The benchmark indices extended gains with the Nifty50 closing at record high after Bharti Airtel rallied on a deal to buy the Tata conglomerate’s consumer mobile business, while Reliance Industries surged ahead of its results later in the day.
Markets also got a boost after data showed inflation held steady, instead of accelerating as expected, raising tentative hopes the Reserve Bank of India (RBI) would be less hawkish about interest rates.
The data late on Thursday showed annual consumer price inflation rose to 3.28% in September from a year earlier, in line with August and countering expectations for a 3.6% rate. At the same time, separate data showed industrial output hitting a nine-month high.
Although analysts still expected the Reserve Bank of India to keep rates steady in the months ahead, but further signs of steady inflation would raise the odds of a rate cut.
Overseas, World stocks rose for a fourth straight day on Friday on expectations of broad-based global growth, while the dollar headed for its worst week in five as investors awaited US inflation data.