Sensex rallies 281 points, Nifty back above 11,000

Indian benchmark indices marked a spectacular session on Friday. After trading in a range-bound manner for a major part of the day, the indices surged in the last hour of Friday's trading session, led by strong gains in rate-sensitive stocks. The indices closed near the day's high with the Sensex and Nifty recapturing crucial levels at 37,300 and 11,000, respectively.

Sensex closed at 37,384.99, up 280.71 points or 0.76 per cent while Nifty ended 93.10 points or 0.85 per cent higher at 11,075.90. Except six stocks, all other stocks of Sensex ended in green.

The buying activities were largely triggered by economic data and hopes of further government stimulus. The IIP data, that measures the industrial production, came in at 4.3 per cent for the month of July compared to 1.1 per cent in June. However, it was lower than growth of 6.5 per cent in the same month last year. Meanwhile, the CPI based inflation inched up to a 10-month high of 3.21 per cent in August. Slower growth has fanned hoped of rate cut by the Reserve Bank of India which will hold monetary policy review meet on October 4, 2019, just near the festive season.Meanwhile, rupee too continued to strengthen against the dollar.

Some support was also drawn from the global markets as most of the global indices marked positive session on ease in US-China trade tensions and after European Central Bank policy easing provided some solace to the concerns about the global economic slowdown. Most of the Asian and European markets closed in green.