Forex

Indian shares rose 2.10 percent on Friday, posting a fourth straight weekly gain to match their best run this year, with sentiment boosted in late trade on growing optimism that a U.S-India nuclear deal would go ahead.

The market fell more than 2 percent in early trade on losses in Asian markets. The turnaround was led by largest firm Reliance Industries, which recovered from an early fall of 2.1 percent to end up 4.2 percent at it highest close since July 24.

But No.2 mobile operator Reliance Communications fell to 436.80 rupees, down 12.7 percent, its sharpest daily fall in just over six months, after some brokerages downgraded it on disappointing June quarter earnings.

Morgan Stanley cut it to "equal-weight" from "overweight", saying the company's revenue in April-June was flat from a quarter ago and its profit growth in the next two quarters was likely to be lower than the industry.

The 30-share benchmark index rose 300.94 points to 14,656.69, its highest close since July 24, with 22 components gaining.

It gained 2.7 percent on the week, a fourth successive rise matching a run in April and May as the best of 2008. However, the index is still down 27.8 percent in 2008.

"The late push in the last half an hour was basically the feel-good factor. Finally the nuclear deal is happening," Ambareesh Baliga, vice-president at Karvy Stock Broking said.

International Atomic Energy Agency Chief Mohamed ElBaredei said a basic inspection for India met all safeguards standards and talks had begun on a system of extended checks.

The deal would open to India the world market in nuclear fuel and technology for civilian uses after an embargo of three decades.

Power equipment makers such as Bharat Heavy Electricals Ltd climbed 4.6 percent to 1,756.50 rupees and Larsen & Toubro advanced 3.5 percent to 2,692.40 rupees on hopes they would gain from the nuclear deal.

In the broader market, 1,548 gainers led 1,108 losers on volume of 406 million shares.

The 50-share NSE Index rose 1.9 percent to 4,413.55.

In Karachi, the 100-share index fell 3.9 percent to a 19-month closing low of 10,171.39, rattled by political uncertainty including reports of America's mistrust of Pakistan military spy agency.

In Colombo, the All-Share index edged up 0.28 percent to 2,470.30, its highest since late June.