Indian Shares Rebound After Four Days Of Losses

Indian shares closed higher on Friday after four consecutive sessions of losses.

Investor sentiment was underpinned as concerns over artificial intelligence spending and valuations eased, and signs of cooling U.S. inflation bolstered expectations of looser U.S. monetary policy next year.

Accenture released better-than-expected first-quarter, the rupee continued to rebound after RBI intervention and exchange data pointed to fresh foreign capital inflows, helping spur bargain hunting at lower levels.

The benchmark BSE Sensex ended the session up 447.55 points, or 0.53 percent, at 84,929.36 while the broader NSE Nifty index surged 150.85 points, or 0.58 percent, to 25,966.40.

The BSE mid-cap and small-cap indexes jumped nearly 1.3 percent each. The market breadth was strong on the BSE, with 2,727 shares rising while 1,438 shares declined and 166 shares closed unchanged.

Among the top gainers, BEL, TMPV and Power Grid Corp all rose around 2 percent.

Globally, Asian stocks followed Wall Street higher on Fed rate cut expectations.

European stocks were little changed in early trade, a day after the European Central Bank and Bank of England issued hawkish signals on the outlook for their rate paths.

Gold prices fell slightly but were on track for a second weekly gain on expectations of further interest rate cuts by the U.S. Federal Reserve in the new year.

The U.S. dollar index held at one-week highs ahead of the release of the core PCE price index, widely regarded as the Federal Reserve’s preferred inflation gauge, later in the day.

Oil prices inched lower and were on track for a second weekly loss as investors weighed the risk of a global surplus against concerns over Venezuelan supply disruptions.