Sensex up 219 points; traders hope for more measures

The Sensex rose 1.2 per cent in a volatile session on Friday, marking its highest close in nearly two weeks as blue-chip shares surged tracking a rebound in the rupee for a second day, ahead of April-June GDP data.

Ebbing prospects of a US-led military strike against Syria were also seen helping shares even as foreign investors sold over $1 billion worth of shares in the previous 10 sessions through Thursday.

The broader NSE index however fell 4.7 per cent for August, marking its biggest monthly fall in six, on continued concerns about a slowing economy, flip-flop policy response and investors pulling out of riskier assets globally on expectation of a scaling back of US monetary stimulus.

Apart from watching the rupee and flows, traders are hopeful that some action on the ground alongside quick-fix solutions like a diesel price hike, export benefits would cheer the share market.

The benchmark BSE index rose 1.19 per cent, or 218.68 points, to end at 18,619.72, also ending 0.5 per cent higher for the week, snapping its five-week losing streak.

The broader NSE index rose 1.16 per cent, or 62.75 points, to end at 5,471.80, although closing flat for the week. Among blue chip shares, HDFC Bank rose 3.8 per cent, while Hindustan Unilever ended four per cent higher.

Software exporters gained to record highs on improving US business prospects.

Tata Consultancy Services rose 4.4 per cent after earlier hitting an all-time high of Rs 2,050, while Wipro gained 2.1 per cent after touching a 52-week high at Rs 495.

Tech Mahindra rose 0.7 per cent after Morgan Stanley resumed coverage of its shares at 'overweight' and a target price of Rs 1,650, saying they remain undervalued and a re-rating can continue.

Oil and Natural Gas Corp also gained 0.2 per cent, adding to Thursday's gains of 2.1 per cent, on market speculation the government may announce a hike in diesel prices after parliament's monsoon session.

Mahindra and Mahindra Financial Services surged 7.6 per cent ahead of its inclusion in MSCI's emerging markets and India indexes, effective from Monday.

However, among stocks that fell, Axis Bank dropped 2.1 per cent ahead of its exclusion from MSCI standard and large cap indexes, effective September 2.