Mumbai: Indian stock markets ended higher on Friday as concerns over an imminent US Federal Reserve rate hike eased, lifting investor sentiment. However, profit booking at higher levels and continuing geopolitical tensions in West Asia limited the rally.
The Sensex gained 362.57 points, or 0.48%, to close at 76,515.43, while the Nifty 50 edged up 24.25 points, or 0.10%, to settle at 23,897.70.
Sensex Jumps 730 Points Intraday
The Sensex climbed as much as 730 points during the session to touch an intraday high of 76,883.14.
The Nifty briefly reclaimed the 24,000 mark, touching a high of 24,005.75 before surrendering some gains towards the close.
The broader market remained particularly active, with smallcap indices hitting fresh lifetime highs amid stock-specific buying.
“Indian equities witnessed a relief rally as concerns over an imminent US Fed rate hike eased. However, gains remained capped due to profit booking at higher levels and persistent geopolitical tensions in the Middle East,” analysts said.
Metal Stocks Lead Gains
Among sectors, Nifty Metal emerged as the top performer, gaining more than 1%, followed by financial services excluding banks.
On the other hand, Nifty IT declined 0.47%, while Nifty Pharma and Nifty Healthcare slipped 0.68% and 0.87%, respectively.
Market volatility eased considerably, with India VIX dropping 6.24% to 10.63.
Expectations of softer US core inflation in August have strengthened hopes that the Federal Reserve could pause further rate hikes.
Meanwhile, the Indian rupee strengthened to 94.48 against the US dollar, supported by fresh FCNR deposit inflows and improved dollar liquidity.
Strong corporate earnings, resilient economic growth and robust domestic demand continued to support investor confidence, particularly across the broader market.
