Sensex soars 385 points at close as rupee recovers, financials lead gains
Indian shares bounced back on Friday after two straight days of losses, starting July derivatives series on a strong footing led by energy and financial stocks as the rupee recovered from an all-time low and Asian peers staged a pullback.
The rupee, which breached the 69 per dollar mark for the first time on Thursday, recovered tracking a rebound in Asian shares and currencies.
The BSE Sensex surged 385.84 points to close at 35,423.48, whereas the broader NSE Nifty zoomed 125.20 points to 10,714.30 at close.
Market sentiment across the globe was negative over the past few weeks on worries of escalating US-China trade war.
“It is going to be tough for Trump to follow through on his trade rhetoric. Given that US administration is focused on market performance, crude oil prices and inflation, it’s going to be tough for the US to put through meaningful trade tariffs,” said Sunil Sharma, chief investment officer at Sanctum Wealth Management.
India is a domestic-focused economy with strong consumption trends and the economy is not showing any signs of rolling over, Sharma added.
Beaten-down counters such as state-run lenders recovered with the Nifty PSU Bank index gaining over 2.5%. The index was on track to snap a four-day losing streak.