Equity markets rebounded on Friday as brent crude prices softened to about $80 a barrel. For a change, key indices closed with a gain of more than 2%.

Three-week high

The Indian rupee, which was hammered in the past several sessions against a resurgent U.S. dollar, also appreciated and closed with a gain of 55 paise, a three-week high for the Indian currency.

With buying resuming at low levels, the 30-share BSE Sensex closed at 34733.58 points, up 732.43 points or 2.15%.

Similarly, the 50-share NSE Nifty also closed with a gain of 237.85 points at 10,472.50, up 2.32%.

The gain was led by automobile and banking and finance stocks.

Maruti was the gainer at both exchanges, with its shares gaining by about 6%. The other gainers included M&M, Kotak Mahindra Bank, Bajaj Auto, IndusInd Bank, Bajaj Finance, HPCL and Asian Paints.

In Sensex, all stocks gained except for TCS, which closed with a loss of 3.10%. In the Nifty, 46 stocks advanced, while four declined.

“The softening of crude oil prices to $80/bbl, the likely deal in Brexit, and the fall in USA equity and bond markets could keep the dollar on check. Softer crude and dollar will lead to stable rupee. This will ease FIIs selling and pressure in Indian markets,” Deven R. Choksey, MD & CEO, KR Choskey Share and Securities, said.

Jayant Manglik, president, Religare Broking Ltd, “Nifty made a strong comeback and gained over 2%, thanks to strength in rupee against the US dollar and softening of crude oil prices. It opened gap up and maintained that bias till the end. Mostly sectoral indices traded in sync with the benchmark index and posted handsome gains. The broader market indices also participated in the move and ended strongly on the advancing side.”

“Markets are extremely volatile these days but indications are in the favour of further rebound in Nifty. Traders should prefer hedged trades in such scenario and maintain extra caution in stock selection,” Mr Mangalik said.

Vinod Nair, Head of Research, Geojit Financial Services Ltd said, “The recent drop in valuation kept the stocks attractive while investors may seek more clarity from upcoming quarterly results. Worries about US FED rate hike, US-China trade dispute and political uncertainties in India on account of upcoming state elections may impact the sentiment in the short-term.”

The Rupee on Friday gained against the U.S. dollar ad closed at 73.56, its biggest jump in three weeks. The recovery was backed by weakness in crude oil prices, said traders The rupee in intraday trade hit 73.52 a US dollar