Sensex rallies to 3-month high

Select gains in index heavyweights along with a strong rally in global markets pushed Indian equity benchmarks to their highest close in more than three months even as there was weakness in the broader markets.

The 30-share Sensex rose 289.52 points, or 0.82%, to close at 35,535.79. The broader Nifty of the National Stock Exchange (NSE) added 89.95 points, or 0.84%, to 10,806.50. This was the highest close for both the indices since February 1.

Market participants are of the view that going ahead one could see stock-specific action amidst an overall range-bound trading while the direction for the benchmark indices could be influenced by global factors.

“Domestic equity markets may remain broadly range bound at the index levels while we see sectoral and scrip level movements dependent on topical and macro driven developments,” said Viral Berawala, chief investment officer, Essel Mutual Fund.

“Global factors such as crude oil prices and geopolitical flash points remain significant risks,” he added.

Meanwhile, investor sentiment was lifted also on account of the positive trend in the global equity markets after a soft U.S. inflation data assuaged concerns of a rate hike by the Federal Reserve. Asian equity indices like Kospi, Nikkei and Hang Seng all ended in the green on Friday.

Back in India, the Sensex pack saw 22 stocks gain with Asian Paints, Tata Steel, L&T, Yes Bank, Kotak Mahindra Bank and ITC among the top gainers.

The overall market breadth was, however, weak as more than 1,500 stocks declined as against only 1,108 gainers. Incidentally, the BSE Smallcap index ended marginally in the red on Friday.