Sensex rallies 354 pts as banks soar

Mumbai, August 28

Extending its winning run for the sixth session, BSE benchmark Sensex rallied 354 points on Friday, boosted by gains in bank stocks amid persistent foreign fund inflows.

After touching a high of 39,579.58, the BSE Sensex ended 353.84 points or 0.90 per cent higher at 39,467.31.

The NSE Nifty surged 88.35 points or 0.76 per cent to close at 11,647.60.

IndusInd Bank was the top gainer in the Sensex pack, spurting over 8 per cent, followed by Axis Bank, ICIC Bank, Sun Pharma, SBI and Kotak Bank.

On the other hand, PowerGrid, Infosys, Maruti, NTPC, Asian Paints, HUL, M&M and Tata Steel were among the laggards.

Market mood remained exuberant on hopes of a speedy economic recovery and further fiscal and monetary support, said Sanjeev Zarbade, VP PCG Research, Kotak Securities.

Strong foreign fund inflows, led by high global liquidity and decline in US dollar, also fuelled the markets, he added.

Foreign institutional investors bought equities worth a net Rs 1,164.32 crore on Thursday, exchange data showed.

A sharp appreciation in the rupee too supported investor sentiment. The domestic currency strengthened 43 paise to end at 73.39 against the US dollar.

Meanwhile, bourses in Shanghai, Hong Kong and Seoul ended with gains after US Federal Reserve Chairman Jerome Powell said the central bank will remain accommodative and shift to a more relaxed approach on inflation.

Stock exchanges in Europe were trading on a mixed note in early deals.

Global oil benchmark Brent crude was trading 0.35 per cent lower at USD 45.44 per barrel. PTI

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