* BSE index gains 0.72 pct; NSE ends 0.74 pct higher
* FIIs extend record buying spree for 15th session
* Maruti surges on weaker yen, Suzuki's record profit
By Abhishek Vishnoi
MUMBAI, May 10 India's NSE index rose on Friday
to its highest close since January 2011, as ITC rose to a record
on expectations foreign investors will continue to scoop up
domestic blue chips, while Maruti Suzuki surged after the yen
slid against the dollar.
The NSE index has gained 2.5 percent this week, marking its
fourth consecutive weekly gain as part of a global market rally
that has sent U.S. indexes to record highs as easier global
monetary policy sparks flows into riskier assets.
Foreign investors have been net buyers for 15 consecutive
sessions, bringing their total for the year to $12.73 billion,
regulatory data shows.
Investors are also betting the Reserve Bank of India will
continue to cut interest rates after having lowered them by 75
basis points so far this year. The key to those expectations
will be the consumer price inflation data due on Monday and the
wholesale price inflation data on Tuesday.
India's headline wholesale inflation is expected to have
risen 5.5 percent in April from a year ago, a Reuters poll
shows, marking the slowest pace since November 2009.
"With so much monetary easing globally, the gush of global
liquidity is driving markets higher, which should continue in
the near term," said Vivek Mahajan, head of research at Aditya
Inflation is important, but might take a backseat if
liquidity continues to remain strong, added Mahajan.
The broader NSE index rose 0.74 percent, or 44.60
points, to end at 6,094.75.
The benchmark BSE index rose 0.72 percent, or
143.58 points, to end at 20,082.62. It gained 2.6 percent for
the week, in the fourth straight week of gains.
A special live trading session will be conducted by NSE and
BSE on Saturday from 11:15 a.m. to 12.45 p.m
Shares in Maruti Suzuki India Ltd gained 4.1
percent, tracking a weaker yen and on optimism around its parent
Suzuki Motor Corp's record profit in the financial year
ITC Ltd gained 2.5 percent, after earlier hitting
an all-time high of 354.15 rupees, as investors placed long
positions in equity futures of the company, indicating they
expect gains to continue.
Shriram Transport Finance Co Ltd rose 3.6 percent
after U.S. private equity firm TPG Capital raised about
$300 million by selling its roughly 10 percent stake in the
commercial vehicle financier to India's Piramal Group.
Hopes that upcoming consumer price inflation data would
support the case for more rate cuts also helped rate-sensitive
stocks such as ICICI Bank Ltd.
ICICI Bank gained 1.1 percent while HDFC Bank Ltd
rose 1.9 percent.
However among stocks that fell, Apollo Tyres Ltd
shares fell 0.5 percent ahead of its March-quarter earnings
later in the day.
Apollo Tyres later reported its Jan-March net profit fell by
9.55 percent to 1.42 billion rupees.
For additional stocks on the move double click
FACTORS TO WATCH
* Yen slides to 4-year low as U.S. data lifts dollar
* Brent slips, but stays above $104 as US data supports
* Yen slumps to four-year low against dollar
* Foreign institutional investor flows
* For closing rates of Indian ADRs
ASIA-PACIFIC STOCK MARKETS:
Pan-Asia........ Japan....... S.Korea...
S.E. Asia....... Hong Kong... Taiwan....
Australia/NZ.... India....... China.....
Wall Street .... Gold ....... Currency..
Eurostocks..... Oil ........ JP bonds...
ADR Report ..... LME metals. US bonds..
Stocks News US.. Stocks News Europe
DIARIES & DATA:
Indian Data Watch Asia earnings diary
U.S. earnings diary European diary
Indian diary Wall Street Week Ahead
Eurostocks Week Ahead
For top Asian company news, double click on:
U.S. company news European company news
Forex news Global Economy news
Technology news Telecoms news
Media news Banking news
Politics/General Asia Macro data <ECONASIA
(Editing by Anupama Dwivedi)