By Bharath Rajeswaran and Manvi Pant
BENGALURU (Reuters) -Indian shares advanced on Friday and closed higher for the week, snapping a five-week losing streak, after data showed the economy grew at its quickest pace in a year in the first quarter, which could boost foreign investor inflows.
The Nifty 50 index rose 0.94% to end at 19,435.30, while the S&P BSE Sensex settled 0.86% higher at 65,387.16.
They gained 0.88% and 0.77%, respectively for the week after having logged losses in each of the past five weeks since hitting record highs on July 20.
India’s economy expanded 7.8% on an annual basis in April-June, data showed, while concerns over dry weather conditions persisted. Factory activity also grew at the fastest pace in three months to 58.6 in August.
“Resilient growth would attract stability in overseas flows along, with cheer from domestic institutional investors and this would act as a breather to Indian markets for the time being,” said Dhawal Ghanshyam Dhanani, fund manager at SAMCO Mutual Fund.
Foreign inflows had moderated to a four-month low of 122.52 billion rupees ($1.48 billion) in August.
The more domestically focused small-caps and mid-caps gained 1.17% and 0.84%, respectively.
They have surged a little over 27% and 25%, respectively, so far this year, aided by retail inflows, while the Nifty has risen 7.35%, weighed down by weaker global cues.
Among individual stocks, Maruti Suzuki’s record monthly sales powered the stock 3.27% to an all-time high and lifted auto stocks by 1.65%.
Network 18 Media & Investments and TV18 Broadcast jumped 1.17% and 2.08%, respectively, after Viacom18 won the media rights for the Indian cricket team’s bilateral matches for five years. Viacom18 is a joint venture between the unit of billionaire Mukesh Ambani-owned Reliance Industries – Network18 Group – and Paramount Global.
Investors await the U.S. jobs report later in the day. A rise in unemployment could allow the Federal Reserve to pause rate hikes at its September meeting. [MKTS/GLOB]
($1 = 82.6800 Indian rupees)
(Reporting by Bharath Rajeswaran and Manvi Pant in Bengaluru; Editing by Savio D’Souza)
