IT rally pushes BSE Sensex up 1.26,R gains 32p on inflows

Equities also gained from positive global cues with US President Barack Obama holding talks with Republicans.

The benchmark indices climbed more than a percentage point on Friday,led by a rally in IT stocks on the back of Infosys robust second quarter revenue growth performance.

The benchmark BSE Sensex ended the week with gains of over 3 per cent,its second consecutive weekly gain. The Sensex closed at 20,528 on Friday,up 256 points,or 1.26 per cent,over the previous days close,while the Nifty at the NSE ended up 75 points,or 1.25 per cent,at 6,096.

Equities also gained from positive global cues with US President Barack Obama holding talks with Republicans to reach an agreement on US debt ceiling standoff.

The rupee gained for the second day,adding 32 paise to close at a fresh two-month high of 61.07 against the dollar amid a rise in local equities and sustained capital inflows. It was the highest closing level for the rupee since ending at 60.88 on August 8.

A weak dollar overseas and dollar sales by exporters also supported the rupee. Analysts said the local currency got a boost on reports that the government is in talks to include Indian debt in global indices.

On Friday,foreign institutional investors FIIs were net buyers of shares worth 165 million,while domestic institutional investors sold shares worth 89 million,according to provisional data from the BSE. Realty stocks also gained after the Sebi issued draft guidelines on the setting up of Real Estate Investment Trusts.

Gold in Delhi falls on global cues

New Delhi: Gold plunged by Rs 340 to Rs 30,660 per 10 grams in the national capital on Friday on fall in demand amid a steep decline in the global markets. On the other hand,silver dropped by Rs 1,280 to Rs 47,770 per kg in continuation to a loss of Rs 900 in last two sessions.

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Traders said the precious metals remained under pressure as retailers refrained from buying on hopes of more correction in prices and investors shifting their funds from bullion to equities.

They said a steep fall in global markets also influenced the sentiment. pti

<>US debt deal hopes lift world markets

LONDON: Firming hopes of a US deal to ensure the country does not default on its debt lifted world shares for a second day on Friday and left the dollar on course for its first weekly rise in five.

MSCIs world shares index,which tracks stocks in 45 countries,was up almost 0.5 per cent by mid-session in Europe as a 0.4 per cent rise by European shares followed a rally in Asian and US markets overnight.

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Stock futures pointed to modest gains of around 0.1 per cent on Wall Street when trading resumes with investors expected to be cooler after the Samp;P 500 on Thursday enjoyed its best day since January. REUTERS