Sensex Surges 456 Points Amid Rupee Rebound, Nifty Settles At 8,114

Indian equity markets staged a sharp rebound on Friday after correcting nearly 7 per cent in last 11 trading sessions post Donald Trump's surprise win, tracking positive global markets and recovery in rupee against the dollar. 

Software services exporters such as Infosys, TCS, Tech Mahindra, HCL Tech were boosted by a weaker rupee while steel makers extended gains after the government imposed anti-dumping duties on some imports. 

The rupee rebounded to 68.37 per dollar from a record low of 68.87 hit in the previous session after heavy intervention by the Reserve Bank of India in the morning, though traders said they expected the local currency to remain under pressure due to a rally in the greenback. 

Low roll-overs at the expiry of monthly derivatives on Thursday also spurred more buying in cash markets, traders said. 

However, both the Sensex and Nifty indices finished nearly 0.5 per cent higher for the week after shedding about 2.5 per cent each in the previous week, amid continued worries about the impact of demonetisation on economic growth. 

Anand James, chief market strategist at Geojit BNP Paribas Financial Services, said he expected markets would remain under pressure in the near term. 

"Demonetisation will continue to impact the market in the near term," he said. 

The broader Nifty ended 148.8 points or 1.87 per cent higher at 8,114.3, while the benchmark Sensex closed 1.76 per cent or 456.17 points higher at 26,316.34. 

IT stocks accounted for over half of the NSE index's gains as Infosys and Tata Consultancy Services Ltd extended gains on the rupee's weakness. Both Infosys and TCS jumped over 5 per cent. 

Meanwhile, most steel stocks closed with solid gains after the government imposed anti-dumping duties on hot-rolled flat sheets and plates of alloy or non-alloy steel to curb cheaper imports into the country. Tata Steel closed 2.66 per cent higher.