Indian shares ended 2 percent higher on Friday, positing their biggest single-day percentage gain since October as hints of more stimulus measures from the European Central Bank lifted global markets, but still marked a third weekly fall. A recovery in crude oil prices also helped support investors' sentiment. Oil rose 5 percent on Friday to trade above the $30 a barrel mark as bouts of cold weather in the United States and Europe boosted hopes of higher demand.
The broader NSE index ended 2 percent higher, its biggest single-day percentage gain since October 5, 2015. Gains from Friday's session helped the index recover most of the losses this week to only 0.21 percent lower. The benchmark BSE index ended 1.98 percent higher; also its biggest single-day gain since October 5, 2015. The index lost 0.08 percent during the week.
Global markets were also supported after oil prices rose 5 percent on Friday. Although higher crude prices are not good for India's current account balance, they are helping shore up risk sentiment in global assets. Friday's gains were first in three sessions, but the broader NSE index was still down 0.35 percent for the week, while the benchmark BSE index was headed for a 0.2 percent decline, their third consecutive weekly loss.
Analysts said whether shares can gain further would depend on corporate earnings results and developments in China, where markets have remained volatile over concerns about economic growth. "Sustainability (of market gains) would depend on quarterly earnings performance and no negative news flow from China," said Gaurang Shah, vice president at Geojit BNP Paribas. Bluechip stocks battered this week led gains, with Housing Development Finance Corp up 2.3 percent, Reliance Industries rising 2.4 percent and Larsen & Toubro 3.2 percent higher.
Cigarette maker ITC gained 0.5 percent ahead of its quarterly results. Idea Cellular fell as much as 7.4 percent after third-quarter earnings fell short of street estimates. Meanwhile, higher crude prices led to a sharp correction in aviation stocks. InterGlobe Aviation fell over 18 percent, while Jet Airways was down 10.3 percent.