The Sensex and Nifty ended marginally higher boosted by a recovery in Tata Group companies such as Tata Motors, while software maker Tech Mahindra Ltd jumped after reporting a surge in quarterly revenue.

The last trading session of the Samvat year 2072 today marked the beginning of the November series of derivatives contracts but investors chose to play safe.

The benchmark BSE index ended higher by 25.61 points or 0.09 per cent at 27,941.51, while the NSE index closed up 22.75 points or 0.26 per cent at 8,638.

Among BSE sectoral indices, metal index gained the most by 2.09 per cent, realty 1.36 per cent, auto 1.26 per cent and PSU 1.08 per cent. On the other hand, IT index was down 0.37 per cent and TECk 0.35 per cent.

Top five Sensex gainers were Bajaj Auto (+3.35%), Tata Motors (+2.68%), Coal India (+2.33%), Tata Steel (+1.85%) and Dr Reddy's (+1.24%), while the major losers were ICICI Bank (-2.41%), Cipla (-1.74%), Asian Paints (-1.51%), Bharti Airtel (-1.36%) and ONGC (-0.91%).

Tech Mahindra was the top percentage gainer on the NSE index, rising as much as 7.2 per cent, after reporting the biggest revenue growth among its peers in the September quarter.

Recovery in Tata Group stocks also helped indexes erase some of their losses in the previous sessions.

Tata Motors rose 2.7 per cent, contributing almost one-fourth of NSE's gains. Tata Steel rose nearly 2 per cent.

However, trading was subdued ahead of a holiday next week. Markets will open on Sunday for a special one-hour trading session on account of Diwali, a Hindu religious holiday, and will remain closed on Monday.

Analysts said trading is expected to be muted over the next few weeks as global investors await the outcome of the US presidential elections, which could also keep domestic flows in check.

“One of the biggest factors to affect domestic markets would be foreign investments,” said Vinod Nair, head of research at Geojit BNP Paribas Financial Securities.

“We have already seen the numbers dwindle this week and I do not expect the numbers to pick up in the following couple of weeks. This, along with muted earnings expectations is likely to subdue growth,” he said.

Foreign investors have sold a net $450.25 million worth of local shares so far this month, paring year-to-date inflows to $7.06 billion.

Global markets

The dollar stood near a three-month high against the yen on Friday after increased chances for a near-term US interest rate hike boosted Treasury yields that had already gained in the wake of a surge in British and euro zone yields.

Upbeat US data, including jobless claims, manufacturing activity and pending home sales, strengthened the case for the Federal Reserve to raise rates by the year-end and lifted the Treasury yields.

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