Mumbai, March 1 (IANS) Signs of easing Indo-Pak tensions and expectations of a breakthrough in US-China trade talks buoyed the Indian equity market on Friday, snapping a three-day losing streak.
Additionally, expectations of a further lending rate cut by the RBI to prop-up growth and healthy buying in small and mid-cap stocks, supported the upward movement of key indices.
In terms of sectors, all indices gained except for telecom. Healthy buying was seen in the index pivotals — finance and banking — stocks.
Consequently, the S&P BSE Sensex closed 196.37 points or 0.55 per cent higher at 36,063.81 points, while the NSE Nifty ended 71 points up at 10,863.50 points.
“Market rallied as cues on ease in border tensions and expectation of US-China trade agreement uplifted the sentiment. Outperformance was seen in bank, small and mid-caps in expectation of a rate cut from the RBI, after a slowdown in GDP growth in the third quarter,” said Vinod Nair, Head of Research, Geojit Financial Services.
“Investors are gradually churning their portfolios to high quality small and midcaps, where valuation looks attractive.”
Stock-wise, Bharti Airtel, Asian Paints, Bajaj-Auto, Axis Bank and Reliance Industries were the only scrips that ended lower.
On the other hand, Stocks of Tata Motors (DVR), IndusInd Bank, Yes Bank, Vedanta and HeroMoto Corp gained in the range of 1 to 3 per cent.