Indian shares finished a touch higher on Friday, as earnings-driven gains in oil-to-retail conglomerate Reliance Industries Ltd helped offset sharp losses in Sun Pharmaceutical Industries Ltd. The benchmark BSE index closed 0.03 percent higher at 36,386.61, while the broader NSE index ended up 0.02 percent at 10,906.95. The former posted a weekly gain of 1.05 percent - its best since late November - while the latter closed the week 1.02 percent higher.
Reliance Industries accounted for the biggest share of gains, ending 4.4 percent higher at its best closing level since October 3 after it reported a record quarterly profit on Thursday. Sun Pharma shares plunged 8.4 percent to their worst close since February, 2013 after reports of fresh allegations by a whistleblower against the country's biggest drugmaker.
The whistleblower complaint alleges that an Indian pharmaceutical manufacturer Aditya Medisales Ltd had transactions worth over 58 billion rupees with Suraksha Realty, controlled by Sun Pharma's co-promoter Sudhir Valia. Sun Pharma did not immediately respond to a Reuters request seeking comment.
Analysts feel that the downside risks to the markets are quite limited in the near term. "The budget indication is becoming clear - benefit of taxation coupled with the central bank cutting rates will definitely push the markets higher," said R.K. Gupta, managing director at Taurus Asset Management.
"It's a pure trading market and I expect investors to book profits in the first week of February." Oil-to-retail conglomerate Reliance Industries Jio, which posted a 65 percent rise in its third-quarter profit, has steadily grabbed market share, sending the telecoms sector into a pricing war. Bharti Airtel Ltd declined 6 percent while the newly-formed Vodafone Idea Ltd fell 5 percent.
Beleaguered Jet Airways Ltd fell 3.2 percent, its ninth session of losses this year. This follows a media report stating that the debt-laden carrier's lenders might write off up to a fourth of its debt. India's third-biggest software services exporter Wipro Ltd advanced 1.3 percent ahead of its third-quarter results scheduled after market hours today.