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Nifty gains for third day; cash-rich exporters surge

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Reuters MUMBAI
Last Updated : Sep 19 2014 | 5:06 PM IST

By Abhishek Vishnoi

MUMBAI (Reuters) - The Nifty rose for a third consecutive session on Friday, hitting its highest in about 1-1/2 weeks, as cash-rich exporters such as Tata Consultancy Services surged on hopes of being better placed to weather any Fed-related volatility.

The 50-share index rose 0.2 percent for the week, its sixth consecutive weekly gain. That was its longest winning run since a more powerful seven-week run between January and end-February 2012.

However, broader gains were limited as investors chose to pare positions in bets related to government's efforts to rein in the country's fiscal deficit, such as Oil and Natural Gas Corp after its recent outperformance.

"While the rally is justified on expectations of reforms, actual on-ground results might take some more time," said Aneesh Srivastava, chief investment officer at IDBI Federal Life Insurance.

The broader Nifty rose 0.08 percent to 8,121.45.

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The benchmark BSE Sensex fell 0.08 percent, or 21.79 points, to end at 27,090.42, notching up a weekly gain of 0.11 percent.

Also, both indexes on Friday marked their highest intraday levels since Sept. 9.

Exporters with huge cash reserves gained on hopes of being better bets amid any U.S. Federal Reserve-related surprises.

Among IT exporters, Tata Consultancy Services rose 2.7 percent, while HCL Technologies and Tech Mahindra advanced 2.2 percent each.

In pharmaceuticals, Lupin rose 1.7 percent while Dr. Reddy's Laboratories gained 1 percent.

Idea Cellular gained 3 percent after FTSE raised its investability weighting in related indexes to 40 percent from 24 percent.

Indiabulls Power Ltd surged by its maximum daily limit of 5 percent after broker Motilal Oswal initiated coverage on the stock with a "buy" rating, citing capacity expansion and "compelling" valuations.

However, stocks that could be affected by government measures to mend the country's finances fell. State Bank of India fell 2 percent while ONGC lost 2.4 percent.

Suzlon Energy slumped by its maximum daily limit of 10 percent after part of its foreign currency convertible bonds exchanged to shares on Sept. 9 started to trade on Friday.

(Editing by Sunil Nair)

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First Published: Sep 19 2014 | 4:54 PM IST

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