The benchmark BSE Sensex recovered by over 148 points today to close at a one-month high of 27,957.50 on across-the-board buying by participants amid renewed hopes of a rate cut and better-than-estimated corporate earnings.

Besides, a higher closing in other Asian markets and a better opening in European markets influenced the trading sentiment, brokers said.

The 30-share BSE index Sensex ended higher by 148.15 points or 0.53 per cent to 27,957.50 after earlier rising to as much as 28,071.16, its highest since April 23. The benchmark index was up 2.4 per cent for the week, marking a third consecutive weekly gain and its best performance since the week ended April 3.

Profit-booking in banking counters pulled the benchmark below the 28,000-mark.

Similarly, the NSE index closed the session up by 37.95 points or 0.45 per cent to 8,458.95 after earlier rising to as much as 8,489.55. The index was up 2.4 per cent for the week.

Sectoral indices

Among BSE sectoral indices, IT index gained the most by 0.91 per cent, followed by healthcare 0.86 per cent, capital goods 0.78 per cent and oil & gas 0.6 per cent. On the other hand, consumer durables index was down 0.68 per cent, followed by banking 0.42 per cent, realty 0.25 per cent and metal 0.18 per cent.

Gainers, losers

Top five Sensex gainers were HDFC 2.51%, TCS 2.42%, Sun Pharma 2.29%, ONGC 1.53% and L&T 1.04%, while the major losers were SBIN 2.38%, Hindalco 1.3%, VEDL 0.67%, Wipro 0.66% and Tata Power 0.59%.

State Bank of India fell 2.7 per cent as investors booked profits on a stock that gained as much as 5.1 per cent earlier in the day. India's largest lender by assets posted better-than expected profit and a sharp decline in bad loan ratio.

Gross bad loans ratio stood at 4.25 per cent in the March quarter compared with 4.9 per cent in the December quarter.

Indexes are recovering from a volatile April amid signs that foreign investors are returning to the markets.

Strong global markets are also helping: the S&P 500 closed at a record high on Thursday after disappointing data on weekly employment, home resales and manufacturing bolstered expectations a US interest rate hike would come only later in the year.

Global markets

The pan-European FTSEurofirst 300 index steadied around the previous session’s three-week highs on Friday, with investors focusing on speeches from leading central bankers due later in the day for hints about the market’s near-term direction.

European Central Bank President Mario Draghi and Bank of England Governor Mark Carney, along with other central bankers, will be addressing an ECB Forum in Portugal later in the day.

Asian shares rose on Friday after Wall Street set another record high with prospects for a Federal Reserve rate hike in June all but quashed, while the dollar steadied after losing ground to the euro for the first time this week on downbeat US data.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.7 per cent with South Korean, Australian and Hong Kong shares posting sizeable gains.

The Shanghai Composite Index extended the previous day’s stimulus-hope driven rally and gained 1.2 per cent. It was on track for a six per cent weekly gain having climbed to seven-year high.

Tokyo’s Nikkei was little changed, hovering near a 15-year high.

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