* NSE index up 0.36 pct, BSE index 0.29 pct higher
* Asian Paints top gainer on NSE index
* Telecom stocks slump as Jio unveils post-paid plan
By Arnab Paul
May 11 (Reuters) - Indian shares rose on Friday tracking Asian peers following an overnight rally in U.S. equities after soft inflation data in the world’s largest economy indicated that the Federal Reserve may not increase interest rates at a faster pace.
U.S. consumer prices rose less than expected in April, indicating a moderate rise in inflation which could allow the Federal Reserve to continue gradually raising interest rates.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.9 percent.
Back home, Asian Paints Ltd hit a record high on strong March-quarter results and was among the top contributors to index gains. Stock was the top gainer of the broader NSE index.
Private banks recovered from Thursday’s losses and were on track to post a third straight week of gains. ICICI Bank Ltd , up as much as 1.5 percent, was among the top gainers.
“The direction of the markets in a particular session at the moment is determined by specific stock movements due to results. This is because the markets are rangebound,” said Rakesh Tarway, head of research at Reliance Securities.
Investors will also be keenly watching elections in the key southern state of Karnataka.
“Till the Karnakata election results are announced, expect the markets to turn a little volatile,” Tarway added.
The NSE index was up 0.36 percent at 10,755.1 as of 0605 GMT, while the benchmark BSE index was 0.29 percent higher at 35,349.59. Both the indexes are on track for a sixth weekly gain in seven.
Shares of Mphasis Ltd hit a record high after the company on Thursday posted a 29 percent rise in March-quarter profit.
Among losers, Bharti Airtel Ltd and Idea Cellular Ltd lost more than 5 percent each after rival Reliance Jio Infocomm Ltd launched a new post-paid plan. Idea fell to its lowest in over seven years.
Fortis Healthcare fell over 3 percent. The board of directors of the hospital chain accepted an investment offer from a consortium involving Hero Enterprise Investment Office and the Burman Family Office late on Thursday.
State-run Union Bank of India Ltd fell to a 12-year low after reporting a fourth-quarter loss of 25.83 billion rupees ($384.20 million) after market hours on Thursday. ($1 = 67.2300 Indian rupees) (Reporting by Arnab Paul in Bengaluru; Editing by Vyas Mohan)