The benchmark indices settled over 1 per cent higher on Friday after falling for two consecutive days, led by a rise in the financial stocks and a 'normal' monsoon forecast during August-September by the India Meteorological Department (IMD). They also rose taking cues from their Asian peers which inched higher following a tech-led rise on Wall Street.
The S&P BSE Sensex ended at 37,556, up 391 points while the broader Nifty50 index settled at 11,361, up 116 points.
Among sectoral indices, the Nifty Bank index rose 1.24 per cent led by a rise in the shares of Axis Bank, YES Bank and Punjab National Bank. The Nifty Fin Service index, too, settled 1.54 per cent higher led by Indiabulls Housing Finance and Edelweiss Financial Services.
Days after private weather forecasting agency, Skymet, predicted 'below normal' rains in the remaining two months of the southwest monsoon season 2018, state-run IMD contradicted it saying that rains in August and September would be 'normal' at 95 per cent of the Long Period Average (LPA).
India's services sector activity remained in the growth territory for the second consecutive month in July, as business activity witnessed the strongest growth since October 2016 amid improved demand conditions, says a monthly survey.
The seasonally adjusted Nikkei India Services Business Activity Index rose from 52.6 in June to 54.2 in July, as new businesses rose at the fastest rise since June 2017.
Asian stocks inched up on Friday following a tech-led rise on Wall Street, although the latest exchange of trade threats between Beijing and Washington capped gains and drove safe-haven flows to the dollar, which hovered near a two-week high.
Investors also remain cautious ahead of the July US jobs report due later on Friday, which will give a reading on the health of the world’s largest economy and possible clues about the pace of Federal Reserve interest rate rises.
MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.05 per cent. The index was down more than 0.6 per cent for the week on US-China trade tensions.
Japan's Nikkei added 0.25 per cent and South Korea's KOSPI was 0.45 per cent higher. Tech-heavy Taiwan stocks outperformed thanks to the gains on Wall Street, rising 0.7 per cent.
(With Reuters inputs)