Nifty, Sensex clock biggest weekly gain since mid-2016 amidst positive global cues and sharp rupee upmove

New Delhi: Indian shares climbed on Friday and clocked their best weekly gain in nearly two-and-a-half years, as the rupee rose the most in more than five years and as crude prices softened.

Benchmark Sensex surged almost 580 points to end at a one-month high of 35,011.65 on Friday as the rupee staged a sharp upmove amid a resounding rally in global equities.

Trading sentiment got a boost after Asian and European markets soared on easing concerns over the US-China trade war, while global crude oil prices eased.

Back home, the rupee gained a massive 95 paise to trade at 72.50 per dollar (intra-day), which added to the momentum, brokers said.

The 30-share Sensex got off to a strong start at 34,743.95 points and reclaimed the 35,000-mark to hit a high of 35,190.20 but profit-booking trimmed the gains. It finally settled 579.68 points, or 1.68%, higher at 35,011.65.

This is its highest closing since October 4, when it had finished at 35,169.16.

The NSE Nifty leaped 172.55 points, or 1.66%, to 10,553 after touching a high of 10,606.95 during the session.

On a weekly basis, both the Sensex and Nifty halted their two-week losing streak by surging 1,662.34 points or 5%, and 523 points or 5%, respectively.

Brent crude, the international benchmark, dropped below the USD 73-mark to quote at a seven-month low of USD 72.65 by falling 3.48% on higher supply from the world’s major producers.

Adding to the upbeat mood, GST collections in October crossed the ₹1 lakh crore mark, after a five-month gap, on the back of festive spending and anti-evasion measures.

The Finance Ministry Thursday said 67.45 lakh businesses filed Goods and Services Tax (GST) returns in October and deposited ₹1,00,710 crore as taxes.

Auto stocks were the centre of brisk activity during the session after some automakers came out with encouraging sales figures for October month.

Foreign institutional investors (FIIs), which had been selling on the Indian bourses, made fresh purchases worth ₹348.75 crore on Thursday, while domestic institutional investors (DIIs) sold shares to the tune of ₹509.17 crore, provisional data showed.

“Expectation of global trade deal and cheer in domestic auto sales numbers supported the market to extend its rally. Any consensus in US-China trade negotiation could settle global market volatility and will attract investors to the beaten down stocks. Additionally, continued fall in oil prices and drop in yield eased liquidity concerns,” said Vinod Nair, Head of Research, Geojit Financial Services.

Maruti Suzuki was the star performer in the Sensex pack, surging 6.37%, followed by Tata Motors at 6.29%.

Shares of Bajaj Auto rose 2.31% after the company on Friday reported a 32% jump in total sales at 5,06,699 units in October.

Other major gainers included Vedanta Ltd 6.04%, IndusInd Bank 5.29%, Adani Ports 4.46%, M&M 3.87%, Hero MotoCorp 3.62%, HDFC Ltd 3.59%, Bharti Airtel 3.30%, Tata Steel 3.07% and Yes Bank 2.77%.

However, Wipro, TCS, SBI, Infosys and Sun Pharma ended lower by up to 3.29%.

Shares of state-run oil marketing companies such as HPCL, BPCL and IOC gained up to 6.69%, supported by falling crude prices in the global market.

Sector-wise, the BSE auto index emerged the best performer by climbing 4.05%, followed by metal (3.04%), oil and gas (2.46%), consumer durables (1.85%), FMCG (1.52%), infrastructure (1.42%), bankex (1.42%), capital goods (1.30%), PSU (1.07%), power (0.79%) and realty (0.12%).

In contrast, IT, teck and healthcare indices ended in the negative zone, falling up to 1.32%.

The broader markets too were in a better shape after investors widened their portfolios, lifting the BSE mid-cap and small-cap indices by up to 0.84%.

The BSE and NSE will conduct a special ‘Muhurat’ trading session on Wednesday, November 7.

‘Muhurat’ trading, which is conducted on the auspicious occasion of Diwali, will be held between 1700 hrs and 1830 hrs, the stock exchanges said.

Elsewhere in Asia, Hong Kong’s Hang Seng surged 4.21%, Korea 3.53%, Shanghai Composite Index 2.70%, Japan’s Nikkei 2.56% and Taiwan index advanced 0.63%.

European markets too were strong in their late morning deals. Frankfurt’s DAX was up 1.29%, while Paris CAC 40 rose 1.26%. London’s FTSE too climbed 0.75%.

(With inputs from agencies)