BENGALURU (Reuters) - A surge in banking shares helped Indian stocks end higher on Friday, as investors digested a policy shift by the U.S. Federal Reserve to focus more on boosting economic growth and worry less about inflation running too high.
The gains cap a strong week for India's main stock indexes, which have now climbed for six straight sessions amid signs of a pick-up in business activity and greater investor interest in beaten-down sectors such as banking, metals and real estate.
The NSE Nifty 50 index <.NSEI> settled 0.76% higher at 11,647.60, while the S&P BSE Sensex <.BSESN> closed up 0.90% at 39,467.31. The Nifty 50 has gained 5.2% in August so far.
The top five boosts to the Nifty 50 were all banks. The Nifty banking index <.NSEBANK> ended 3.9% higher and with a 10% gain, it has clocked its best weekly gain since May 29.
Axis Bank <AXBK.NS> jumped 7.6% and IndusInd Bank <INBK.NS> 9.9%.
Other global stocks struggled for direction as investors worried about a lack of detail in the U.S. Federal Reserve's policy shift that aims for 2% inflation on average so that too low a pace would be followed by an effort to lift inflation "moderately above 2% for some time."
(Reporting by Sachin Ravikumar; editing by Uttaresh.V)