Sensex rebounds 396 pts on F&O expiry, trade talk

The BSE Sensex zoomed 396 points on Thursday, propelled by bank, auto and energy stocks, as September series derivatives expired amid positive global cues.

Global markets were galvanised by US President Donald Trump's comments that a trade deal with China could happen sooner than expected.

Domestic equities rose further as September futures and options expired, traders said, adding that investors remain optimistic ahead of the Reserve Bank's policy review meet next week.

After rallying 565 points during the day, the 30-share Sensex ended 396.22 points, or 1.03 per cent, higher at 38,989.74. Similarly, the broader NSE Nifty soared 131 points, or 1.15 per cent, to end at 11,571.20.

Top gainers in the Sensex pack included Vedanta, M&M, ICICI Bank, Tata Steel, ONGC, Maruti, IndusInd Bank, L&T, Hero MotoCorp, Bajaj Finance, Kotak Bank and Reliance, surging up to 6.47 per cent.

On the other hand, Yes Bank, Infosys, HUL, HCL Tech, HDFC, NTPC, PowerGrid and TCS dropped up to 4.93 per cent.

"Momentum was broad-based with auto, banks and metals leading the gains on expectation of better demand during festive season. This positive trend is likely to be maintained in combination with ease in trade war and domestic stimulus," said Vinod Nair, Head of Research, Geojit Financial Services.

Sectorally, BSE metal, realty, oil and gas, auto, energy, basic materials, capital goods, bankex and finance indices rallied up to 4.20 per cent.

IT and teck indices finished lower.

Broader BSE midcap and smallcap indices settled up to 0.92 per cent higher.

In Asia, Hang Seng, Nikkei and Kospi ended significantly higher, while Shanghai Composite Index settled in the red.

Stock exchanges in Europe were also trading in the positive zone in their respective early sessions.

On the currency front, the rupee appreciated 8 paise to 70.95 against the US dollar (intra-day).

Brent crude futures inched up 0.26 per cent to USD 62.65 per barrel.