Sensex rebounds 247 pts as trade truce hopes lift world markets
Mumbai: The Sensex and Nifty finished with smart gains on Friday, largely in tandem with global markets as hopes of a trade truce between the US and China buoyed investor sentiment.
After swinging more than 600 points in a volatile session, the 30-share Sensex ended 246.68 points, or 0.65 per cent, higher at 38,127.08. The broader NSE Nifty rose 66.70 points, or 0.59 per cent, to 11,301.25.
During the holiday-shortened week, Sensex advanced 453.77 points or 1.20 per cent, while the Nifty gained 126.50 points or 1.13 per cent.
World equities rallied on Friday after US President Donald Trump offered a positive assessment of US-China trade talks.
"We just completed a negotiation with China. We're doing very well. We're having another one tomorrow. I'm meeting with the Vice Premier over at the White House," Trump told reporters at the White House on Thursday.
The positive global cues helped offset a lacklustre start to the earnings season domestically, brokers said.
Infosys was the top gainer in the Sensex pack, rallying 4.19 per cent, ahead of its quarterly earnings.
Vedanta, Tata Motors, ONGC, Tata Steel, HUL, HCL Tech, Tech Mahindra and Bharti Airtel too rose up to 3.96 per cent.
On the other hand, Yes Bank, M&M, RIL, TCS, Hero MotoCorp, IndusInd Bank and NTPC declined up to 3.30 per cent.
"Sensex closed in the green for the week on the back of hopes of breakthrough in the US-China trade deal and expected government measures to revive credit growth before the festive season.
"Having said that, there has been caution in the equity markets about stress in the financial sector and likely weak Q2 FY20 earnings season. While the street has built in the effect of slowdown in earnings numbers, but if actual earnings turn out to be worse, then markets could slip to lower levels and vice versa," said Sanjeev Zarbade, VP PCG Research, Kotak Securities.
Sectorally, BSE metal, IT, teck, realty, FMCG, telecom, auto, finance and industrials indices ended up to 2.44 per cent higher.
Oil and gas, energy and utilities lost up to 0.41 per cent.
Broader BSE midcap and smallcap indices followed the benchmarks, ending up to 0.38 per cent higher.
Announcing its results after market hours on Thursday, TCS reported a tepid growth in net income for the September quarter at Rs 8,042 crore, and guided towards more challenges ahead.
Infosys, which declared its Q2 numbers after the market closed on Friday, said its consolidated net profit declined by 2.2 per cent to Rs 4,019 crore.
Elsewhere in Asia, Shanghai Composite Index, Hang Seng, Kospi and Nikkei settled significantly higher.
Equities in Europe were also trading on a positive note in their respective early sessions.
Meanwhile, the Indian rupee appreciated marginally to 71.03 against the US dollar intra-day.
Brent crude futures, the global oil benchmark, surged 1.79 per cent to USD 60.16 per barrel, after reports of missile strikes on an Iranian tanker in Saudi Arabia sparked fresh supply concerns.