BENGALURU: Indian shares rose 3% on Friday in a broad-based rally to log their first weekly gain in six, as investor sentiment around the globe improved after China cut a key benchmark lending rate to support its economy.
The NSE Nifty 50 index ended up 2.89% at 16,266.15 while the S&P BSE Sensex closed 2.91% higher at 54,326.39. Both indexes had dropped more than 2.6% in the previous session as investors fretted about the impact of high inflation.
Global equities gained on Friday, as China’s move helped ease some pressure owed to the Russia-Ukraine conflict, prospects of bigger interest rate hikes to contain surging inflation and supply-chain issues that have been worsened by China’s zero-COVID policy.
The MSCI world equity index, which tracks shares in 50 countries, rose 0.5% after China cut its five-year loan prime rate, which influences the pricing of mortgages, by 15 basis points.
In Mumbai, 48 of the 50 stocks in the Nifty 50 index settled higher, led by a 7.8% surge in Dr. Reddy’s Laboratories a day after it reported March quarter results.
Heavyweight Reliance Industries was the top boost to the Nifty, surging 6.6% to log its best session since September 2020.
Metal stocks, which slid over 4% in the previous session, rebounded to close 4.2% higher. The sub-index snapped five weekly losses and gained 7.4% for the week.
One 97 Communications, parent of digital payments firm Paytm, ended up 3.9% ahead of its March quarter results due later in the day.
Among the few decliners, Equitas Small Finance Bank plunged 11.6% after its founder said he was leaving.
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