Indian shares bounce back; rupee gains

Published: October 12, 2018 14:59:21 | Updated: October 16, 2018 11:15:48

File Photo (Collected)

Indian shares rebounded nearly 2.0 per cent on Friday, as the rupee strengthened due to an overnight fall in crude prices.

The rupee gained sharply to hit a one-week high at 73.62 per dollar versus its previous close of 74.14, while the benchmark 10-year bond yield was down 2 basis points at 7.97 per cent.

Oil prices gained slightly on Friday, reversing two days of declines due to sharp falls in equity markets and indications that supply concerns have been overblown, reports Reuters.

The broader Nifty index was up 1.96 per cent at 10,435.35 as of 0543 GMT. It rose as much as 2.14 per cent, its biggest daily percentage gain since May 25, 2016.

The benchmark BSE Sensex was 1.92 per cent higher at 34,654.63, after rising as much as 2.1 per cent - the most since March 14, 2017.

Both indices are poised to end the week higher for the first time in six weeks. The sharp global selloff on Thursday made it the worst start to the October quarter for the NSE index since 2008.

IT and pharma companies were the only ones bucking the trend, with only seven of the 50 Nifty companies down.

Tata Consultancy Services Ltd was the top drag on the index, with shares falling nearly 4.0 per cent despite posting a record quarterly profit on Thursday, over margin concerns.

Bank of Baroda rose 4.0 per cent after the Indian government extended the term of the chief executive officer.

Auto stocks also gained, with the Nifty Auto index up 3.2 per cent. Shares of Mahindra and Mahindra Ltd and Maruti Suzuki India rose over four percent each.

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