Sensex rebounds, ends 537 pts higher

Sensex staged a strong rebound on Friday advancing by 537 points boosted by strength in banking and auto shares. “Buying ahead of exit poll results due on Sunday evening triggered short covering in the markets,” said Deepak Jasani of HDFC Securities.

The BSE Sensex jumped 537.29 points or 1.44 per cent to 37,930.77. The Nifty rose by 150.05 points or 1.33 per cent to 11,407.15.

World equity markets, Jasani said, suffered a fresh bout of risk aversion on Friday after tough words on trade from China, while bets on a new pro-Brexit leader in Britain pushed the British pound towards its worst week since October.

“Despite global volatility, domestic market extended the surge due to continued accumulation in blue chips by domestic investors and short covering ahead of exit poll on Sunday,” said Vinod Nair, Head of Research, Geojit Financial Services.

“Auto and FMCG outperformed in expectation of ease in interest rate from RBI and prospects of near normal monsoon. Having said that, investors remain focussed on the final election results for short term direction in the market.”

Snapping its three-session winning streak, the rupee on Friday declined by 20 paise to close at 70.23 against the US dollar as rising crude oil prices and recent foreign fund outflows  weighed on investor sentiment. The Indian rupee ended near day’s low on May 13 as it slipped 61 paise at 70.52 per dollar versus previous close 69.91.

The domestic currency ended at lowest level against dollar since March 1, while it has posted biggest single session fall against dollar since April 4.

Rupee remained under pressure as uncertainty following trade tensions between US and China escalated. US President ordered to begin the process of imposing tariffs on all remaining imports from China, underscoring a lack of progress by US and Chinese negotiators.

Agencies