Heavyweights HDFC, ITC, HDFC Bank and SBI contributed most to gains on 30-scrip benchmark index.Domestic stock markets started Friday's session on a positive note, driven by recovery in auto, metal and banking stocks amid buying by domestic institutional investors.The SP BSE Sensex surged as much as 191.14points to touch 35,704.85, while Nifty50 barometer of National Stock Exchange climbed 57.15points to 10,729.40.Heavyweights HDFC, ITC, HDFC Bank and SBI contributed most to gains on 30-scrip benchmark index.Top gainers on 50-scrip index were Infratel, Tata Motors, Bharti Airtel, NTPCand Eicher Motors, trading between 1.03 and 3.13per cent higher.At 10:26 am, Sensex traded at 35,444.16, down 69.55 points or 0.20per cent from previous close, and Nifty was at 10,644.65, down 27.60 points or 0.26per cent.Globally, financial markets were on edge on Friday as weak US economic data added to fears of a global slowdown and pushed investors to bet US Federal Reserve could reverse policy and start cutting interest rates before end of this year.
But nerves were soothed somewhat by news that United States and China would hold vice-ministerial level talks next week on their trade dispute, with Chinese blue-chip index turning 0.4 percent higher.MSCI's index of Asia-Pacific shares outside Japan dipped 0.1 per cent lower to near two-month lows, weighed by a drop of about 1 per cent in Australian shares.According to Sunil Sharma, Chief Investment Officer, Sanctum Wealth Management, domestic market has remained resilient in face of worrisome news over past three months.
"With low and falling inflation expectations, should growth disappoint, we would expect RBI to deliver a rate cut in Q4 FY19.
"An accommodative central bank, low inflation, strong credit growth and low crude remain four key macro pillars backstopping Indian markets," he said On a net basis, foreign portfolio investors (FPIs) sold shares worth Rs 972.81 crore Thursday, while domestic institutional investors (DIIs) were net buyers to tune of Rs 34.52 crore, provisional data available with BSE showed.
The rupee, meanwhile, strengthened against US dollar and opened at 69.95.The benchmark Brent crude futures were trading marginally lower at $55.93 per barrel.(With inputs from agencies)