Markets up on rate cut hopes, firm global cues

Mumbai: Benchmark indices finished with smart gains on Friday as investors wagered on another rate cut by the RBI following subdued inflation data amid a broad upmove in global equities on signs of easing US-China trade tensions.

A strengthening rupee and foreign capital inflows added to the buying momentum, traders said.

After a lacklustre start, the 30-share BSE Sensex saw buying momentum in late-afternoon trade to close 280.71 points, or 0.76 per cent, higher at 37,384.99.

On similar lines, the broader NSE Nifty settled 93.10 points, or 0.85 per cent, higher at 11,075.90.

During the week, the Sensex advanced 403.22 points or 1.09 per cent, while the Nifty gained 129.70 points or 1.18 per cent.

According to official data released post market hours on Thursday, retail inflation inched up marginally to 3.21 per cent in August, while industrial production growth slowed to 4.3 per cent in July, raising chances of a rate cut by the RBI next month.

Top gainers in the Sensex pack included Vedanta, ICICI Bank, ONGC, Kotak Bank, Axis Bank, SBI, M&M, Infosys, PowerGrid, HCL Tech, NTPC, Bajaj Finance and Reliance Industries, rising up to 2.72 per cent

On the other hand, Bharti Airtel, Sun Pharma, HDFC Bank, Yes Bank, ITC and HUL were among the losers, shedding up to 1.35 per cent.

"Subdued inflation kept hopes alive for rate cut and positive vibes to support the auto sector lifted the markets. Broad based recovery in rate sensitive stocks fuelled domestic market while additional policy measures from European Central bank powered global peers," said Vinod Nair, Head of Research, Geojit Financial Services.

Sectorally, BSE oil and gas, energy, metal, realty, utilities, bankex, power, auto and IT stocks ended up to 2.73 per cent higher.

However, telecom and healthcare dropped up to 0.94 per cent.

Broader BSE midcap and smallcap indices settled up to 0.82 per cent higher.