Mumbai — Indian equity markets closed higher Friday as concerns over an imminent U.S. Federal Reserve rate increase eased, although profit-taking and continued geopolitical tensions in the Middle East limited gains.
The Sensex rose 362.57 points, or 0.48%, to close at 76,515.43. The Nifty gained 24.25 points, or 0.10%, to settle at 23,897.70.
During the session, the Sensex climbed as much as 730 points to an intraday high of 76,883.14. The Nifty touched a high of 24,005.75, up about 132 points from the previous close.
Among sectors, the Nifty Metal index led gains, rising more than 1%, followed by financial services excluding banks.
Technology and healthcare shares came under pressure. The Nifty IT index declined 0.47%, while the Nifty Pharma and Nifty Healthcare indices fell 0.68% and 0.87%, respectively.
The India VIX, a measure of expected market volatility, dropped 6.24% to 10.63.
Analysts said Indian equities benefited from reduced expectations of an immediate Federal Reserve rate hike, but gains were constrained by profit-taking at higher levels and geopolitical uncertainty in the Middle East.
Expectations that U.S. core inflation could ease slightly in August may reinforce hopes that the Fed will keep interest rates unchanged and help reduce volatility in bond yields, they said.
Buying remained strong in select stocks and sectors across the broader market, with small-cap indices reaching fresh intraday record highs.
Analysts said strong corporate earnings, resilient economic growth and robust domestic demand continued to support investor confidence in broader equities.
The Indian rupee also strengthened, trading at 94.48 against the U.S. dollar, up 0.09%, supported by fresh foreign currency non-resident deposit inflows that have improved dollar liquidity. (Source: IANS)
