Rupee up 18 paise at 95.21; Sensex rises 480 points, Nifty tops 24,300

Foreign portfolio investors (FPIs), however, continued to offload Indian equities, selling shares worth Rs 3.12 billion on Thursday, according to provisional data. FPIs have sold a record $29.46 billion worth of Indian stocks so far this year.

Global markets took cues from a softer US labour market report released overnight. Data showed US job growth slowed sharply in June, while payroll figures for the previous two months were revised lower, signalling a cooling economy.

Following the report, traders lowered expectations of a September rate hike by the Federal Reserve. Market-implied odds of a hike fell to around 53 per cent from nearly 75 per cent before the data release.

In Asia, Japan’s Nikkei 225 rose 0.74 per cent to 69,243.68 by the midday break, although it remained on track for a marginal weekly decline. Other regional markets traded mixed as investors weighed signs of slowing US growth against the prospect of a less hawkish Federal Reserve.

On Wall Street, the technology-heavy Nasdaq closed lower overnight after the payrolls report showed job creation missed expectations by 57,000, reinforcing hopes that US interest rates may remain lower for longer.

The combination of a softer dollar, easing Fed concerns and continued domestic institutional support helped Indian markets begin the day on a positive note.