The markets scripted a rebound theme and ended the week on a high note on Friday with both benchmark indices closing in the green. According to market analysts, the intentions and initiatives of the new RBI Governor helped in changing the sentiments on the currency and equity markets.The recent appreciation in the rupee and positive global cues in the form of positive US data and ECB keeping its interest rate unchanged also contributed to improved market sentiments on Friday.

The Nifty closed at 5,680, up 87 points or 1.56 per cent and the Sensex closed at 19,270, up 290 points or 1.53 per cent.

Dipen Shah, Head-PCG Research, Kotak Securities, said: " Banking stocks and other rate sensitive stocks were the major gainers and as a natural corollary, defensive sectors like IT and FMCG under-performed."

"There are expectations of additional dollar flows into the country, which has created optimism on the rupee. Equity markets have reacted on cues from the currency markets. Further initiatives on the rupee and on fiscal reforms will help in taking the markets higher. In the near term, the decision of the US Fed on withdrawal of quantitative measures will influence the movement of the rupee," he added.

Banking and capital goods sector remained gainers for the day and their sectoral indices on BSE closed up around 2.89 per cent and 2.77 per cent respectively. The losers were consumer durables and realty sector which closed down around 0.66 per cent and 0.17 per cent respectively.

Volatility was up with the India VIX index closing at 28.65, up 0.42 per cent.

ICICI Bank, Airtel, Cipla, ONGC, Asian Paints were the top five Nifty gainers while Bank of Baroda, Coal India, Tata Power, Sesa Goa and Lupin were the top losers.

(This article was published on September 6, 2013)
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