Markets climb on rate cut hopes, firm global cues; notch up weekly gains

Benchmark indices finished with smart gains on Friday as investors wagered on another rate cut by the RBI following subdued inflation data amid a broad upmove in global equities on signs of easing US-China trade tensions. A strengthening rupee and foreign capital inflows added to the buying momentum, traders said.

After a lacklustre start, the 30-share BSE Sensex saw buying momentum in late-afternoon trade to close 280.71 points, or 0.76 per cent, higher at 37,384.99. On similar lines, the broader NSE Nifty settled 93.10 points, or 0.85 per cent, higher at 11,075.90.

During the week, the Sensex advanced 403.22 points or 1.09 per cent, while the Nifty gained 129.70 points or 1.18 per cent. According to official data released post market hours on Thursday, retail inflation inched up marginally to 3.21 per cent in August, while industrial production growth slowed to 4.3 per cent in July, raising chances of a rate cut by the RBI next month.

Top gainers in the Sensex pack included Vedanta, ICICI Bank, ONGC, Kotak Bank, Axis Bank, SBI, M&M, Infosys, PowerGrid, HCL Tech, NTPC, Bajaj Finance and Reliance Industries, rising up to 2.72 per cent On the other hand, Bharti Airtel, Sun Pharma, HDFC Bank, Yes Bank, ITC and HUL were among the losers, shedding up to 1.35 per cent.

"Subdued inflation kept hopes alive for rate cut and positive vibes to support the auto sector lifted the markets. Broad based recovery in rate sensitive stocks fuelled domestic market while additional policy measures from European Central bank powered global peers," said Vinod Nair, Head of Research, Geojit Financial Services. Sectorally, BSE oil and gas, energy, metal, realty, utilities, bankex, power, auto and IT stocks ended up to 2.73 per cent higher.

However, telecom and healthcare dropped up to 0.94 per cent. Broader BSE midcap and smallcap indices settled up to 0.82 per cent higher.

Bourses in Hong Kong and Japan ended significantly higher amid signs of easing trade war tensions between the US and China. Stock exchanges in Europe were also trading on a positive note in their respective early sessions after the European Central Bank on Thursday announced a massive package of rate cuts and economic stimulus.

The Indian rupee appreciated 6 paise (intra-day) to trade at 71.07 per US dollar. Foreign institutional investors (FIIs) remained net buyers in the capital market, putting in Rs 783.55 crore on Thursday, according to provisional exchange data.

Global oil benchmark Brent crude was trading 0.31 per cent lower at USD 60.19 per barrel.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)