Sensex Surges 337 Points, Nifty Settles Above 10,900

The S&P BSE Sensex and NSE Nifty 50 indexes staged a sharp upmove in today's session led by gains in metal, auto and banking shares. The S&P BSE Sensex closed 337.35 points, or 0.92 per cent, higher at 36,981.77 while the NSE Nifty settled at 10,946.20, up 98.30 points from the previous close. Maruti Suzuki, Tech Mahindra, Tata Steel, NTPC and Axis Bank were among the prominent gainers in the Nifty 50 basket of shares. Reliance Industries, Kotak Mahindra Bank and Axis Bank were the top contributors to the advances on Sensex.

"Nifty is trading in a range 10,740-11,040 and a close above 11,040 can help Nifty move towards 11,350", Prakash Pandey, managing director at Pultus Advisors told NDTV.

Auto shares led the gains on Friday on hopes of GST rate cut and the Nifty Auto index closed up 2.61 per cent higher.

Junior finance minister Anurag Thakur said the government was open to taking car-makers' requests for lower taxes to the GST council, a day after industry bosses urged government to revive the sector plagued by plunging sales and job losses, reported news agency Reuters.

Regular news flow from the RBI and the finance ministry have helped to stabilise equity markets lately, analysts were quoted as saying in a report by news agency Press Trust of India (PTI). Investors were further calmed by news of upcoming resumption of talks between China and the US, they added. 

Elsewhere in Asia, Hang Seng, Shanghai Composite Index, Nikkei and Kospi settled in the green. Exchanges in Europe were also trading in the positive zone.

The rupee, meanwhile, appreciated by up to 25 paise to 71.59 at one point by afternoon deals.

Global oil benchmark Brent crude, on the other hand, was trading flat at $ 60.94 per barrel (intra-day).