Bengaluru: Indian shares snapped a three-day losing streak to close around 1 per cent higher on Friday as state-run banks surged, while strength in Asian markets on hopes that Washington and Beijing will soon sign the Phase 1 trade deal also boosted sentiment.
The NSE Nifty 50 index ended up nearly 1 per cent at 12,245.80, while the benchmark S&P BSE Sensex jumped 1.05 per cent to 41,597.58. With two trading sessions left in the year, the Nifty 50 has so far risen 12.73 per cent in 2019.
An announcement by Reserve Bank of India that it will conduct another simultaneous purchase and sale of government bonds lifted stocks in state-run banks. It announced a similar special open market operation earlier this month.
The Nifty PSU bank index climbed 2.92 per cent, recording its best session in two weeks.
Axis Bank was the top gainer on the Nifty 50 index, rising 3.21 per cent, while Yes Bank ended as the top loser, falling 1.34 per cent.
Global investors returned from their Christmas and Boxing Day break to digest comments from Beijing that it was in close contact with Washington about an initial trade agreement, shortly after US President Donald Trump talked up a signing ceremony for the recently struck Phase 1 trade deal.