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NEW DELHI: Indian stocks staged a smart rebound on Friday, snapping two-day losing run, as the July derivatives contracts kicked off on a strong note, underpinned by a recovery in the rupee, fall in crude oil prices and easing global trade worries.
The rupee recovered significantly against the US dollar on Friday on fresh selling of the American currency by banks and exporters.
At the time of writing this report, the rupee was trading up by 35 paise.
Markets across the world showed signs of improvement, as a recovery in Asian markets offered a dose of optimism.
In Europe, CAC 40 of France, DAX of Germany and FTSE of UK were up by 1.30 per cent, 1.20 per cent and 0.85 per cent, respectively.
Among Asian peers, Shanghai SE Composite Index closed with a gain of over 2 per cent, while Hang Seng settled 1.61 per cent up.
Nikkei was 0.15 per cent up.
European shares welcomed the solidarity displayed by the EU leaders as they voiced for a new EU law to screen foreign investments and vowed to oppose protectionism.
“Despite the underlying sentiment being fragile, stocks across the globe recovered from the recent selloff to trade higher.
At home, both the benchmark Sensex and the Nifty clocked gains of over 1 per cent, while the VIX petered down by around 6 per cent to 13 levels.
All the sectoral indices on the NSE traded in the green with the metals index chalking gains of over 2%,” said Abhijeet Dey, Senior Fund Manager-Equities, BNP Paribas MF.
Moreover, a fall in crude oil prices also boosted market sentiment back home.
The Sensex index closed Friday's session 386 points, or 1.10 per cent, up at 35,423, with 24 stocks advancing and 7 declining.
The Nifty index gained 125 points, or 1.18 per cent, to end the day at 10,714, with 40 stocks in the green and 10 in the red.
However, for the week, the Sensex lost 0.74 per cent, while Nifty pared 1 per cent.
The BSE Midcap and smallcap indices outperformed benchmark Sensex, closing 1.81 per cent and 1.92 per cent up, respectively.
Tata Steel, YES Bank, Reliance Industries, Larsen Toubro and Adani Ports featured among the top gainers in the Sensex index.
On the other hand, IndusInd Bank, Hero MotoCorp, HDFC Bank, Mahindra Mahindra and Sun Pharma ended the day in the red in Sensex index.
All sectors on BSE closed with gains, with oil gas, metal, capital goods and consumer durables rising up to 3 per cent.
