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Sensex surges 170 points in early trade amid positive Asian cues

Sensex surges 170 points in early trade amid positive Asian cues

Short covering, along with value buying and rupee appreciation, lifted the Indian equities markets on Friday. The Sensex resumed slightly lower at 26,049.14 and dropped further to 25,810.97 before ending at 25,860.17, showing a loss of 191.64 points or 0.74 per cent.

Mumbai: The benchmark BSE Sensex recovered by almost 121 points and the Nifty reclaimed 8,000-mark in early trade today on fresh buying by investors as the December derivative contracts started on a better note amid mixed Asian cues.

This was the benchmark's biggest single day gain since October 18, when it had surged 520.91 points.

The NSE 50-share Nifty rose by 148.80 points or 1.87 per cent to close above 8,100-level at 8,114.30.

IT stocks continued to remain in focus for the second consecutive day today, surging up to 7.3 per cent on a weak rupee against USA dollar. The dollar index, which tracks the greenback against a basket of six major global peers, climbed 0.1% to 101.84 early on Friday, after touching 102.05, the highest level since March 2003, on Thursday. The scrip settled the day 7.74 per cent up. "Now the market will focus on the possibility of a 50 bps cut in repo rate by the RBI in the next monetary policy".

"Continued weakness in rupee against dollar, last hour of expiry square-off and the disruptions in Rajya Sabha debate over demonetisation dragged the market", said Vinod Nair, Head of Research, Geojit BNP Paribas Financial Services.

Sectoral indices led by capital goods, metal and realty stocks were in the green, adding up to 2 per cent. This is the first weekly gain in the indices after five weeks. However, the underperformance from the banking and auto space kept a check on the bullish sentiment.