Benchmark equity indices snapped their two-day losing streak on Friday on account of low-level buying. The BSE Sensex rallied nearly 400 points, while the NSE Nifty index reclaimed 10,700-mark.
In the Nifty 50-pack, GAIL, Titan, Hindalco, Bajaj Auto and Tata Steel rallied up to 5 per cent. On the other hand, Dr Reddys Labs, IndusInd Bank, Hero Moto, HPCL and Mahindra & Mahindra stood among top losers.
Here are the five factors that supported market in Fridays trade:
Rupee rebound: The India rupee recovered from its record low by rising over 35 paise, or 0.51 per cent, to 68.44 against the US dollar in Fridays trade on fresh selling of the American currency by banks and exporters.
Firm global cues: Domestic equity markets gathered momentum following sharp recovery in Asian as well as global markets. Hang Seng closed 457.79 points, or 1.61 per cent, up at 28955, while Nikkei and Shanghai also rallied up to 2 per cent. On the Wall Street, the S&P 500 index added 0.6 per cent to 2,716.31. The Dow Jones Industrial Average rose 0.4 per cent to 24,216.05 and the Nasdaq Composite gained 0.8 per cent to 7,503.68.
Soft crude prices: Easing crude oil prices supported further the recovery in domestic equity markets. West Texas Intermediate (WTI) crude was trading down 39 cents, or 0.50 per cent, to $73.06, while Brent crude eased 31 cents, or 0.40 per cent, to USD 77.54 a barrel on the New York Mercantile Exchange.
China-US spat! China plans to reduce tariffs on more than 8,500 goods, including chemicals, farm products and metals from India and some other Asian countries in what is seen as a part of its ongoing trade war with the US.
Ease in FII selling pressure: Selling by foreign institutional investors (FII) eased in June as compared with previous two months. FIIs sold shares worth Rs 4,153 crore this month till June 28, whereas they offloaded shares worth Rs 10,062 crore and Rs 5,552 crore in May and April, respectively.
Dalal Street is gaining the reputation of a haven among emerging markets, which are reeling under the increasing threat of trade war between global economic giants led by the US.
“India is not in the spotlight of the trade war and it is regarded as a more domestic oriented economy,” said Hong Kong-based Geoff Lewis who is senior Asia strategist, capital markets & strategy group at Manulife Asset Management (Asia).
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