Indian equities gained for the sixth straight session while the rupee appreciated sharply on Friday. Positive global cues coupled with lower inflation figures and strong first-quarter GDP growth helped the market remain firm for the sixth straight trading session and close the week on a high note.
The 30-share Sensex of the BSE surged 196.86 points, or 1.30%, to close the day at 15,318.60 points. With this, the benchmark index managed to close the week with a gain of 6.19% or 893.73 points, the highest in calendar 2007. The broader S&P CNX Nifty of the NSE ended the day with a gain of 40.10 points, or 0.91%, at 4,464.
The rupee went up sharply on hopes that the coalition government at the Centre was unlikely to toppled by its Left allies, now that the decision to sign a nuclear pact with the US has been postponed. Dealers said the domestic currency opened stronger from its previous close of 41.18 a dollar at 41.10.
Ample dollar supplies, followed by month-end slack for the currency, saw the greenback appreciating to a high of Rs 40.88.
Dealers said that the week ahead is likely to witness increased half-yearly outward remittances and the rupee is likely to soften further. The remittances are seen as part of servicing overseas corporate loans like interest payments or repayments.
Elsewhere in Asia, markets were in an upbeat mood following expectation that the US government would propose reforms later on Friday to help holders of subprime mortgages avoid default.