Sensex staged a strong rebound on Friday advancing by 537 points boosted by strength in banking and auto shares.
“Buying ahead of exit poll results due on Sunday evening triggered short covering in the markets,” said Deepak Jasani of HDFC Securities.
The BSE Sensex jumped 537.29 points or 1.44 per cent to 37,930.77. The Nifty rose by 150.05 points or 1.33 per cent to 11,407.15.
World equity markets, Jasani said, suffered a fresh bout of risk aversion on Friday after tough words on trade from China, while bets on a new pro-Brexit leader in Britain pushed the British pound towards its worst week since October.
“Despite global volatility, domestic market extended the surge due to continued accumulation in blue chips by domestic investors and short covering ahead of exit poll on Sunday,” said Vinod Nair, Head of Research, Geojit Financial Services.
“Auto and FMCG outperformed in expectation of ease in interest rate from RBI and prospects of near normal monsoon. Having said that, investors remain focussed on the final election results for short term direction in the market.”