Benchmark indices edge higher, Nifty closes above 10,850 mark

Equity benchmark indices edged higher on Friday as investors made purchases amid signs of easing tensions between India and Pakistan.

Cues from Asian markets added a positive ring to the optimism in bourses.

The Bombay Stock Exchange S & P Sensex closed 196 points higher at 36,064 while the National Stock Exchange Nifty 50 closed 71 points up at 10,864.

Adani Ports, Indiabulls Housing Finance, Vedanta, Yes Bank, and Hero MotorCorp traded higher during the day.

But Bharti Airtel plunged over 4 per cent and closed at Rs 305.05, a day after its board approved a fund-raising plan of up to Rs 32,000 crore through rights issuance and perpetual bond. The other losers were Cipla, Dr Reddy Labs, Wipro, and Bajaj Auto.

Though both countries have shot down each other's fighter jets this week, investors hoped the hostilities along Indo-Pak border will subside soon. The armed conflict between neighbouring nations comes ahead of the Indian general elections due in April.

Meanwhile, Asian markets traded higher, driven by a rally in the Chinese markets after index publisher MSCI said it will quadruple the proportion of mainland shares in its global benchmarks later this year.

That could potentially draw more than 80 billion dollars of fresh foreign inflows to the world's second-biggest economy, experts said.