* NSE index gains 0.3 pct, BSE adds 0.4 pct
* Rupee, stocks firm as oil falls
* HDFC Bank, Kotak Mahindra at record highs
* IT stocks drop on stronger rupee, Cognizant forecast cut
By Chris Thomas
May 3 (Reuters) - Indian shares rose the most in a week on Friday as oil prices slipped, with gains led by financial stocks, while IT companies retreated in the face of a stronger rupee.
The broader NSE index edged 0.3 percent higher at 11,759.7 as of 0549 GMT, while the benchmark BSE index gained 0.39 percent to 39,131.77. The indexes were set to post marginal gains for the week.
Oil prices weakened as surging U.S. output and an expected supply increase from the Organization of the Petroleum Exporting Countries (OPEC) weighed on markets.
A drop in crude prices bodes well for markets in India, which is the world’s third-biggest oil importer.
The rupee rose as much as 0.22 percent to its strongest level since April 15.
Banking stocks accounted for most of the gains on the indexes. HDFC Bank Ltd added 0.8 percent, and Kotak Mahindra Bank Ltd advanced 2.1 percent, both touching all-time highs.
Both stocks were headed for their fourth straight session of gains.
The gains on the indexes are still not fully reflective of the drop in oil prices, as IT stocks have fallen due to a stronger rupee and Cognizant’s cut in revenue forecast, said Deepak Jasani, analyst at HDFC Securities.
Cognizant Technology Solutions Corp on Thursday nearly halved its 2019 revenue expectations after missing first-quarter earnings estimates, as the IT services and outsourcing company faces sluggish demand in its financial and healthcare businesses.
The Nifty IT index fell as much as 1.9 percent on Friday.
Tata Consultancy Services Ltd was the biggest drag of the indexes, falling as much as 2.7 percent in its sharpest intraday drop in over four weeks.
Smaller rivals Infosys Ltd and HCL Technologies Ltd fell 1.7 percent and 2.9 percent, respectively.
Consumer giant Hindustan Unilever Ltd shed 1.3 percent ahead of its quarterly results. (Reporting by Chris Thomas in Bengaluru; Editing by Shreejay Sinha)