Key indices jump 1% on renewed optimism

Mumbai: Equity benchmark indices Sensex and Nifty rebounded sharply by nearly one per cent on Friday, propelled by buying in market heavyweights Reliance Industries (RIL), HDFC Bank and ITC. Besides, hopes of a record dividend from the RBI and easing US treasury yields bolstered investor sentiment, traders said. After a flat start, the 30-share BSE benchmark bounced back and surged 769.09 points or 0.95 per cent to settle at 81,721.08 points. During the day, it jumped 953.18 points or 1.17 per cent to 81,905.17 points. As many as 2,361 stocks advanced, while 1,589 declined and 156 remained unchanged on the BSE. The NSE Nifty rallied 243.45 points or 0.99 per cent to 24,853.15 points. On a weekly basis, the BSE benchmark dropped 609.51 points or 0.74 per cent and the Nifty declined 166.65 points or 0.66 per cent.

“The domestic market has recouped nearly half of the week’s losses, supported by gains in FMCG and IT stocks. FMCG benefitted from the early and above-normal monsoon forecast, while IT stocks saw a rebound following a healthy correction. Optimism around a potentially record-high dividend from the RBI is boosting hopes for fiscal consolidation, reflected in falling Indian bond yields,” said Vinod Nair, head (research), Geojit Investments Limited.