The benchmark indices settled over 1.5 per cent higher on Friday led by a sharp rise in automobile stocks amid a jump in the Asian markets which rose as China and the United States expressed optimism about resolving their bruising trade war.
The S&P BSE Sensex ended at 35,012, up 580 points (up 1.8 per cent), while the broader Nifty50 index settled at 10,553, up 173 points (up 1.7 per cent). The indices ended over 5 per cent higher this week, making it the biggest weekly gain since May 2016.
Among the sectoral indices, Nifty Auto index rose 4.2 per cent led by a rise in Maruti Suzuki, Tata Motors and Hero MotoCorp. The Nifty Bank index, too, ended 1.5 per cent led by IndusInd Bank and Axis Bank.
In stocks, the oil and gas companies rallied led by BPCL which rose 6.4 per cent to Rs 301 on the BSE while IOC ended nearly 5 per cent higher at Rs 148.
The rupee firmed against the US dollar, reclaiming the 72-per-dollar levels. The Indian currency rose to 72.53 against the greenback in intra-day trade, up from its previous close of 73.45 per dollar.
Asian shares jumped to three-week highs on Friday and US equity futures rebounded on a report that US President Donald Trump has asked officials to draft terms for a potential trade deal with China following a phone call with leader Xi Jinping.
MSCI's broadest index of Asia-Pacific shares outside Japan extended morning gains and was up 2.5 per cent by early afternoon at its highest level since Oct. 10. Japan's Nikkei stock index was 2.4 per cent higher. Chinese blue-chips gained 3.0 per cent, and its start-up board added 3.8 per cent, also buoyed by President Xi's pledge on Thursday of more support for private firms.
(with Reuters input)