Indian shares closed higher on Friday, with the benchmark BSE index recording its biggest weekly gain in nine weeks, as strong August sales data of companies such as Hero MotoCorp and Tata Motors lifted investor sentiments. The NSE index gained 2.36 percent in the week, its biggest gain in seven weeks, and closed up 0.4 percent at 8,809.65. BSE index ended 0.38 percent higher at 28,532.11 points, recording a 2.7 percent gain over the week.
Both indexes gained in four out of the five sessions in the week with the Nifty Auto index being the top performer after rising as much as 1.2 percent to hit a record high earlier in the session. Asian stock markets wobbled and the dollar was on the defensive as caution prevailed after downbeat US manufacturing data tempered recent optimism on the world's largest economy that had revived expectations for a near-term rate hike by the Fed.
"The markets are in a consolidation phase after hitting 52-week highs earlier in the week," said Mangesh Kulkarni of Almondz Global Securities Ltd. "In the near-term, the NSE index will be factoring in global cues like the US jobs data and foreign institutional investments to hit a possible 9,000 points." Shares of most Indian auto companies gained, with the Nifty Auto index rising as much as 1.2 percent to a record high, after Hero MotoCorp and Tata Motors logged robust monthly sales figures.
Hero MotoCorp jumped as much as 1.87 percent to a record high of 3,614 rupees after the company reported a 28 percent surge in its total vehicle sales for August, while Tata Motors rose 2.3 percent after posting a 6 percent increase in its monthly sales. Meanwhile, Idea Cellular extended losses, shedding as much as 3.4 percent, after Reliance Industries Ltd announced its foray in to the telecom sector. Bharti Airtel Ltd dropped up to 1.4 percent before bouncing back. It slumped 6.3 percent on Thursday after Reliance Industries unveiled its telecom venture. Among auto stocks, Bajaj Auto Ltd fell 2.5 percent after posting a 5.1 percent fall in its August sales.