Indian shares headed for their best week since May 2016 amid earnings and as tensions eased between the government and the central bank over the monetary authority’s independence. An overnight drop in the price of crude also boosted sentiment.
The benchmark S&P BSE Sensex climbed 1.2 percent to 34,841.20 as of 9:36 a.m. in Mumbai, extending its weekly advance to 4.7 percent. Asian Paints Ltd. — where oil and crude derivatives constitute a major portion of input costs — paced the rally, rising 5.3 percent. All 19 sub-indexes compiled by BSE Ltd. advanced, led by a gauge of automobile stocks. Most stocks in Asia advanced Friday, building on a rally in global equities after what was their worst month in more than six years.
The Sensex and the NSE Nifty 50 Index, also up 1.2 percent, look to exit a so-called technical correction from their all-time highest closes on Aug. 28 as a drop in crude prices eases strain on the trade account, boosting the outlook for economic growth and corporate profits in a nation that imports more than 80 percent of its oil needs.