Sensex ends at highest in 1-1/2 months on Infosys

By Abhishek Vishnoi

MUMBAI (Reuters) - The BSE Sensex and Nifty rose about 1.5 percent on Friday, marking their highest close in 1-1/2 months, as Infosys surged after it defied some analysts' expectations by retaining its revenue growth forecast, which lifted other IT services stocks.

Shares also rose for a third consecutive week as the rupee recovered from a record low hit on Monday, helped by measures from policy makers targeting derivatives trading and by comments from Federal Reserve Chairman Ben Bernanke implying he was in no hurry to end accommodative monetary policy.

Foreign institutional investors (FIIs) bought 15.36 billion rupees worth of index futures on Thursday, marking their biggest single-day purchase of these contracts since July 1, regulatory and exchange data shows.

 

Amid blue chip earnings like Reliance Industries Ltd and HDFC Bank Ltd next week, investors are also on watch for June consumer price inflation data and May industrial output due later in the day and wholesale price-based inflation data for June on Monday.

"With better-than-expected numbers, Infosys bring in positive surprise and set the market for a buoyant start," said

Jayant Manglik, president retail distribution at Religare Securities Ltd

The bulls are in control and are likely to extend the gaining streak to test 6,150 on the NSE index in the near future, Manglik added.

The benchmark BSE Sensex rose 1.44 percent, or 282.41 points, to end at 19,958.47, highest close since May 30. The index climbed 2.37 percent for the week, posting gains for a third consecutive week.

The broader Nifty rose 1.25 percent, or 73.90 points, to end at 6,009, closing above the psychologically important 6,000 level, while gaining 2.4 percent for the week.

India's Infosys Ltd shares surged 10.9 percent, to mark their highest intraday level in 23 months, after the company surprised some analysts and retained its revenue growth forecast for the full year.

Infosys which marked its biggest daily gain in six months also pulled up other rival stocks. Tata Consultancy Services Ltd gained 2.9 percent and Wipro Ltd ended 3.2 percent higher.

Reliance Industries Ltd gained 2.3 percent after India's oil minister said on Thursday that the decision to raise prices of locally produced gas would not be reviewed, allaying fears that New Delhi may consider a roll-back.

IDFC Ltd shares rose 3.3 percent on covering of short position in July futures, dealers said.

Development Credit Bank Ltd rose 4.9 percent ahead of its results on Monday.

However among stocks that fell, Maruti Suzuki India Ltd fell 3.8 percent, falling for a second day after Macquarie downgraded the stock to "neutral" from "outperform" and cut its target price to 1,525 rupees from 1,850, citing continued weakness in passenger vehicle demand and discounts on models.

(Editing by Anand Basu)