Global markets, strong rupee propels indices; Sensex up 269 pts (Roundup)

Positive global markets coupled with a strengthened rupee and short-covering led the key equity indices to gain around 0.73 per cent on Friday.

Besides, healthy buying in finance stocks after reports of fresh capital infusion in public sector banks led the gains. This sectoral index has the highest weightage among all the sectors on the BSE. It rose 1.13 per cent.

"Markets were up on the news of fresh infusion of capital in public sector banks," Anuj Gupta of Angel Broking told IANS.

Index-wise, the BSE Sensex settled 269.44 points or 0.75 per cent higher at 36,076.72 points after touching an intra-day high of 36,194.78 and a low of 35,911.99.

The NSE's Nifty50 gained 78.65 points or 0.73 per cent to finish at 10,858.45 points.

According to Vinod Nair, Head of Research at Geojit Financial Services, market extended the rally by taking positive cues from global market.

"Investors remain focused on global growth momentum while easing tension between US government and US Fed provided an opportunity to accumulate stocks after recent consolidation," Nair said.

On the currency front, the Indian rupee gained over 40 paise against the US dollar and settled at 69.94 from its previous close of 70.35.

"The rupee has appreciated smartly in recent sessions on account of sharp decline in the crude oil prices in the international market. This bodes well for the rupee as weak crude oil prices may lead to further decline in inflation and narrow current account deficit," said Rushabh Maru - Research Analyst, Anand Rathi Shares and Stock Brokers.

"However, there is lot of uncertainty and volatility in the global markets. Concerns regarding slowdown in global economic growth, trade tension, tightening of monetary policy etc may create jitters in the global markets."

According to the provisional figures from the stock exchanges, foreign institutional investors (FIIs) sold shares worth Rs 119.60 crore, while domestic institutional investors (DIIs) bought Rs 1,199.40-crore stocks.

"Technically, with the Nifty surging higher, the short-term trend for the Nifty remains positive. Further upsides are likely once the immediate resistance of 10,893 is taken out," said Deepak Jasani, Head - HDFC Securities' Retail Research.

"Crucial supports to watch for any weakness are at 10,820."

Stock-wise, Sun Pharma gained close to 3 per cent on Friday. Bajaj Finance, Vedanta, HDFC and Yes Bank gained in the range of 1 to 2 per cent.

In contrast, IT major TCS lost the most among the 30-stock Sensex. Bajaj-Auto, Asian Paints, Bharti Airtel and Hero Moto Corp and Coal India were the only other laggards which lost up to 1 per cent.

--IANS

ravi-rv/nir