Sensex at seven-week high after Fed minutes; oil rally

MUMBAI (Reuters) - India's stock markets rose to a seven-week high on Friday, and were headed for a second consecutive weekly gain, tracking a rally in Asian markets after minutes from the Federal Reserve's latest meeting quelled expectations of an imminent U.S. rate hike.

A spurt in crude futures after an influential forecaster predicted that a market rally was not far off also lifted oil explorers such as Oil and Natural Gas Corp .

The gains come as India gears up to kick off earnings season next week, with Infosys Ltd reporting quarterly results on Monday.

"The market will stay upbeat as we head into the earnings season, and we expect results to drive the movement in the next few weeks," said Deven Choksey, managing director, K R Choksey Securities.

 

The benchmark BSE Sensex was trading 0.46 percent higher, heading for a 2.8 percent weekly gain.

The broader Nifty was up 0.38 percent, on track to book a 2.6 percent weekly gain.

Both indexes had hit their highest intraday levels since mid-August and were headed for their biggest weekly gain since mid-July.

Gains were sparked after Fed minutes late on Thursday revealed the extent to which U.S. policymakers are concerned that a global economic slowdown might threaten the economic outlook.

Metal stocks rise with Vedanta Ltd up 10.5 percent, Tata Steel Ltd gaining 3.7 percent and Hindalco Industries Ltd rising 2.4 percent.

Oil explorers including Oil and Natural Gas Corp and Gas Authority of India Ltd also up 2.4 percent and 1.2 percent, respectively.

Gains also supported by automakers after data released on Friday showed India's car sales rose 9.5 percent in September, buoyed by new launches and a recovery in Asia's third-largest economy.

Tata Motors' shares are up 2.9 percent while SUV-maker Mahindra & Mahindra Ltd rises 0.3 percent.

(Reporting by Himank Sharma; Editing by Anand Basu)