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Indian shares edge up; on track for best weekly gain since Sept
December 9, 2016 / 6:38 AM / a year ago

Indian shares edge up; on track for best weekly gain since Sept

* NSE index up 0.13 pct, BSE index 0.25 pct higher

* Market focus shifts to Fed meeting next week

* Sheela Foam soars on market debut

By Darshana Sankararaman

Dec 9 (Reuters) - Indian shares rose slightly on Friday, heading for their biggest weekly gain in more than three months, as additional stimulus from the European Central Bank helped offset disappointment about the Reserve Bank of India’s decision to hold rates.

Banks were among the leading gainers, despite the RBI’s surprise rate move after it reversed an order that had forced lenders to surrender all their extra cash and place it under the cash reserve ratio.

Global sentiment was also buoyed after Wall Street hit record highs on Thursday and after the ECB extended it asset-buying programme for a longer period than many analysts had expected, though it trimmed the size of its purchase.

Asian shares, however, edged down on Friday with MSCI’s broadest index of Asia-Pacific shares outside Japan dipping 0.3 percent.

“Yesterday, the markets captured the announcement that was expected from the ECB, which has now decided to continue with its stimulus package,” said Saurabh Jain, assistant vice-president of research at SMC Global Securities.

The broader NSE index was up 0.13 percent at 8,257.30 by 0535 GMT, while the benchmark BSE index was 0.25 percent higher at 26,760.09.

Both indexes have gained more than 2 percent so far this week, heading for their best weekly gain since the week ended Sept. 2.

Some banks rose on Friday with the Nifty Bank index up 1.6 percent this week. State Bank of India rose 1.5 percent, and was up 3.82 percent for the week.

Among other gainers, Sheela Foam Ltd, the maker of “Sleepwell” mattresses, surged as much as 39.45 percent in its market debut compared with its IPO price of 730 rupees. {nL4N1E41XZ}

The Nifty IT index rose for a second straight session, gaining as much as 1.25 percent, led by Infosys Ltd and Tech Mahindra Ltd.

Among decliners, auto stocks fell after sharply rising in the previous session. Bajaj Auto Ltd and Eicher Motors Ltd dropped 2 percent and 1 percent, respectively. (Reporting by Darshana Sankararaman in Bengaluru; Editing by Subhranshu Sahu)

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