By Abhishek Vishnoi
MUMBAI (Reuters) - The BSE Sensex edged higher on Friday to touch two-year high, posting its strongest weekly performance since the end of November, as oil companies such as ONGC rose on hopes a proposed change in the government's pricing formula would boost gas prices.
Software services exporters such as Tata Consultancy Services
India VIX <.NIFVIX>, also considered by some investors as a fear gauge, is just 2.5 percent away from its all-time lowest close.
"We have already seen advance tax numbers, so in the near term one has to see how the earnings season pans out," Kaushik Dani, fund manager at Peerless Mutual Fund, said.
"One has to remain stock specific on how the numbers shape up for the quarter," Dani said.
The benchmark BSE index rose 0.1 percent, or 19.30 points, to end at 19,784.08, marking a fourth consecutive session of gains.
The index rose 1.74 percent for the week, its strongest weekly performance since the end of November.
The broader NSE index rose 0.11 percent, or 6.65 points, to end at 6,016.15, closing above the psychologically important 6,000 level for a second day. It rose 1.8 percent for the week.
Shares in upstream oil and gas companies rallied on hopes that the pricing formula recommended by a government-appointed panel that looked into oil and gas exploration contracts would be approved by the government.
The proposed changes would sharply raise the prices of domestic natural gas, analysts said.
Oil and Natural Gas Corporation
Reliance Industries Ltd
State-owned oil companies gained on expectations India could soon announce a potential gradual hike in diesel prices, after a government official last month was quoted in local media saying a proposal was being considered.
Among refiners, Indian Oil Corp
Expectations of better-than-expected quarterly earnings lifted technology stocks.
Tata Consultancy Services Ltd
Infosys, which kicks off earnings on Friday, rose 0.5 percent. The company denied a newspaper report it was planning to fire up to 5,000 poorly performing workers was "wrong", although it encourages "chronic underperformers" to leave as part of its routine staff management.
However, Tata Steel
(Additional reporting by Manoj Dharra; Editing by Subhranshu Sahu)