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Mumbai: Indian shares rose 0.47 per cent on FRiday to their highest close in nearly two weeks, led by banks and Reliance Communications and showing little discomfort at inflation nearing eight per cent.
Reliance Communications rose 2.2 per cent to a three-month closing high of Rs601.85, taking its gains to over 10 per cent in three days. Sources said it had approval for an initial public offer of 10 per cent in its telecoms tower unit.
Top engineering and construction firm Larsen & Toubro rose 1.1 per cent to Rs2,996.35, its highest close since May 7. It has risen 5.9 per cent since the sale of its ready-mix cement business to France's Lafarge was announced on Wednesday.
The 30-share BSE index rose 81.40 points to 17,434.94, its highest close since May 5. The index rose 4.2 per cent on the week, but is still down 14.1 per cent this year.
The market is closed on Monday for a local holiday.
In the broader market, 1,547 gainers led 1,138 losers on volume of 341 million shares.
No direction
"This is a purely trading market and not for investment, and thanks to lack of immediate triggers it does not even have a direction right now," said Daljeet Kohli, head of research at Emkay Shares and Stock Brokers.
"Most of the negative news on the economy front has been factored in, so inflation does not surprise anybody any more," he said, adding he saw the market trading sideways for the next week with some stock-specific action. India's annual inflation rate hit a three-and-a-half year high of 7.83 per cent on May 3, data showed.
Improved global sentiment towards bank stocks helped ICICI Bank gain 1.3 per cent to Rs941.15, and HDFC Bank rose 1.8 per cent to Rs1,502.30.
Sector leader State Bank of India rose 1.4 per cent to Rs1,704. The sector index rose 1.5 per cent.
Punjab National Bank rose 6.1 per cent to Rs569.75 after its chairman said the bank was aiming at 22 per cent growth in net profit during 2008-09.
The 50-share NSE index closed 0.83 per cent higher at 5,157.70, its highest close since May 5.
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