Sensex rises; Nifty set for biggest weekly gain in 8 months

By Aby Jose Koilparambil

(Reuters) - Indian shares rose for a fourth consecutive session, helped by a rally in financial firms and optimism ahead of the annual federal budget next week, with the broader NSE index poised to post its biggest weekly gain in eight months.

Recent corporate results have been better than expected, analysts said, while investors are also anticipating giveaways and incentives to help nurse an economy hit by the shock ban on higher-value banknotes late last year.

"Results (at financial firms) have positively surprised the markets so far," said Ankit Agarwal, fund manager and senior vice president at Centrum Wealth Management Ltd.

"The negative impact of demonetisation was probably not as bad as it was initially thought."

The broader NSE Nifty was up 0.7 percent at 8,662.00 by 0552 GMT. It has risen 3.75 percent so far this week despite markets being shut for a public holiday on Thursday. The index is set to post its best weekly gain since May 27, 2016.

The benchmark BSE Sensex was 0.8 percent higher at 27,939.59, and was headed for a 3.4 percent increase on the week.

Financial stocks led by Axis Bank, Housing Development Financial Corp and HDFC Bank contributed around 50 percent to the gains on the NSE index on Friday.

Axis Bank, Bank of Baroda and ICICI Bank were up as much as more than 3 percent.

(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Biju Dwarakanath)