Mumbai

Equity benchmark indices Sensex and Nifty rebounded sharply on Friday after sliding for the past four sessions, propelled by bargain hunting in select blue-chip stocks amid a firm trend overseas.

Renewed optimism around further monetary policy easing by the US Federal Reserve, fresh foreign fund inflows and an appreciating rupee also supported the domestic market, traders said.

The 30-share BSE Sensex jumped 447.55 points, or 0.53 per cent, to settle at 84,929.36. During the day, it surged 585.69 points, or 0.69 per cent, to 85,067.50.

A total of 2,731 stocks advanced, while 1,444 declined and 156 remained unchanged on the BSE.

The 50-share NSE Nifty climbed 150.85 points, or 0.58 per cent, to 25,966.40.

On the weekly front, the BSE benchmark declined by 338.3 points or 0.39 per cent, and the Nifty dipped by 80.55 points or 0.30 per cent.

"Markets rebounded after the recent decline and gained over 0.5 per cent, tracking favourable global cues. The rebound was supported by positive global cues, a recovery in the rupee and a pause in foreign outflows, which helped ease selling pressure and lifted sentiment across sectors," Ajit Mishra - SVP, Research, Religare Broking Ltd, said.

From the 30-Sensex firms, Bharat Electronics, Power Grid, Tata Motors Passenger Vehicles, Asian Paints, Reliance Industries, HDFC Bank and Bajaj Finserv were among the biggest gainers.

In contrast, HCL Tech, Kotak Mahindra Bank, ICICI Bank, and Sun Pharma were the laggards.

The BSE midcap gauge jumped 1.26 per cent, and the smallcap index climbed 1.25 per cent.

All sectoral indices ended higher. Realty surged 1.68 per cent, capital goods (1.65 per cent), telecommunication (1.54 per cent), industrials (1.49 per cent), utilities (1.25 per cent) and power (1.24 per cent).

In Asian markets, South Korea's Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index, and Hong Kong's Hang Seng index settled in positive territory.

Equity markets in Europe were trading higher. US markets ended higher on Thursday.

"Investor sentiment remained steady and constructive, supported by favourable global cues as renewed optimism around further monetary easing by the US Federal Reserve -- following lower-than-expected November inflation data -- boosted global risk appetite.

"A recovery in the Indian rupee against the US dollar further added to confidence, leading to broad-based buying through the session," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.

The rupee appreciated 54 paise to close at 89.66 (provisional) against the US dollar on Friday.

Foreign Institutional Investors (FIIs) bought equities worth Rs 595.78 crore on Thursday, according to exchange data. Domestic Institutional Investors (DIIs) also bought stocks worth Rs 2,700.36 crore in the previous trade.

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Brent crude, the global oil benchmark, dipped 0.40 per cent to USD 59.58 per barrel.

Logging its fourth day of decline on Thursday, the Sensex dropped 77.84 points or 0.09 per cent to settle at 84,481.81 in a volatile session. The Nifty ended flat, skidding 3 points, or 0.01 per cent, to 25,815.55.