* BSE gains 0.99 pct, NSE rises 0.95 pct
* Focus to shift on Q2 earnings now-Analysts
* Tech shares gain on Accenture's guidance
By Abhishek Vishnoi
MUMBAI, Sept 28 (Reuters) - India's NSE index rose on Friday
to its highest in 15 months, as blue chips such as Reliance
Industries Ltd and Tata Motors Ltd rallied on continued optimism
about additional fiscal and economic reforms.
The gains come a day after India raised taxes on rail fares,
while pledging to stick to its planned borrowing target for the
year, underlining a resolve to curb its fiscal deficit.
The gains also tracked higher Asian shares on hopes a tough
Spain budget was a prelude to an EU aid programme that would
allow the European Central Bank to try to reduce its high
borrowing costs by buying its bonds.
India's main BSE index has rallied 7.6 percent in
September, its biggest monthly gain since January, following
major fiscal and economic reforms from the government and
monetary stimulus measures from the Federal Reserve and the
European Central Bank.
The BSE index rose 7.6 percent for the quarter, its biggest
quarterly gain since the final quarter of fiscal year 2012.
"We don't foresee a major downside in the immediate term
looking at the global and domestic scenario," said R.K. Gupta,
managing director at Taurus Mutual Fund.
The market will now start discounting second-quarter
earnings, which would start trickling in from mid-October, Gupta
India's benchmark BSE index rose 0.99 percent, or
183.24 points, to 18,762.74 on Friday, its highest close since
July 25, 2011.
The index, also known as the Sensex, however, gained a
marginal 0.05 percent for the week.
The 50-share NSE index gained 0.95 percent, or 53.80
points, to 5,703.3 points and added 0.2 percent for the week.
Blue chips rallied, especially in the autos sector. Tata
Motors rose 3 percent, while Mahindra & Mahindra Ltd
rose 1.5 percent ahead of September sales data due
Reliance Industries Ltd rose 0.9 percent on
expectations of better refining margins and continued support by
the ongoing buy back at lower levels.
LIC Housing Finance Ltd rose 3.1 percent after the
company hired five banks, including Citigroup and HSBC
, for an institutional share sale to raise between $250
million and $270 million, three sources with direct knowledge of
the matter said on Thursday.
Shares in pharmaceutical companies gained despite a
recommendation by a ministry panel to cap drug prices, given the
proposal is seen as less hurtful than expected.
Cipla Ltd rose 2.3 percent, while Sun
Pharmaceutical Industries Ltd rose 2.7 percent
Apollo Hospitals Enterprise Ltd ended 0.1 percent
lower after earlier gaining as much as 2.6 percent, as global
private equity firm Apax Partners LLP is looking to sell its 10
percent stake in the Indian hospital chain, three sources with
direct knowledge of the talks said.
Technology stocks gained after Accenture Plc
forecast full-year earnings ahead of analyst estimates as it
bolsters its outsourcing business to offset a slowdown in
consulting, sending its shares up 5 percent in after-market
Tata Consultancy Services Ltd rose 1.9 percent,
while Wipro Ltd rose 1.4 percent.
But shares in United Spirits Ltd fell 4.6 percent
on profit booking, after a 10.2 percent rise on Thursday on
rising hopes the Indian spirits maker controlled by billionaire
Vijay Mallya will clinch a deal to sell a stake to Diageo Plc
For additional stocks on the move double click
FACTORS TO WATCH
* Spain budget lifts euro but gains seen limited
* Oil up above $113 on Spanish budget, Israel comments
* European shares, euro claw back up after sell-off
* 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
(Additional Reporting by Manoj Dharra; Editing by Anupama