MUMBAI: Equity benchmark BSE Sensex overcame a weak start to end nearly 100 points higher on Friday, led by auto, IT and finance stocks, even as global markets dived after US announced fresh tariffs on Chinese imports.
Sentiment received a leg-up after reports said the Prime Minister's Office and the finance ministry have held talks on the issue of tax surcharge on FPIs.
The 30-share BSE Sensex rose 99.90 points or 0.27 per cent to settle at 37,118.22. Similarly, the broader NSE Nifty gained 17.35 points or 0.16 per cent to end at 10,997.35.
On a weekly basis, the Sensex lost 764.57 points or 2.01 per cent, while the Nifty declined 286.95 points or 2.54 per cent.
Global markets tanked after US President Donald Trump on Thursday announced that the US will impose 10 per cent levy on USD 300 billion worth Chinese imports, which Beijing vowed to retaliate.
Mortgage lender HDFC climbed 1.75 per cent on Friday after the company reported a 46 per cent rise in standalone net profit to Rs 3,203.10 crore for the June quarter.
Bharti Airtel topped the gainers' list by spurting 6.02 per cent, followed by Asian Paints, Bajaj Auto, Maruti, M&M, Tech Mahindra, Hero MotoCorp, TCS, L&T and Tata Motors.
On the other hand, SBI was the biggest loser, dropping 2.76 per cent, even as the country's largest lender posted a standalone net profit of Rs 2,312.02 crore for the first quarter of the current fiscal, driven by higher income and reduction in bad loans.
Tata Steel, NTPC, ONGC, Power Grid, Vedanta, ICICI Bank and ITC were among the other major laggards.
"Global market was weak due to escalation in US-China trade war, but India recovered in the second half of the trading day on optimism as government mulls over exempting FPI from super rich surcharges.
"Additionally, better domestic macros like GST collection, PMI and monsoon forecast in August provided a relief hoping that economy will improve by H2FY20," said Vinod Nair, Head of Research, Geojit Financial Services.
Sectorally, BSE telecom emerged as the biggest gainer by surging 3.63 per cent, followed by auto (1.07 per cent), teck (0.91 per cent), consumer durables (0.79 per cent), information technology (0.65 per cent) and capital goods (0.14 per cent).
Power was the biggest loser, tumbling 1.30 per cent, followed by utilities (1.03 per cent), oil and gas (0.86 per cent), realty (0.82 per cent), bankex (0.62), industrials (0.32 per cent), basic materials, energy (0.29 per cent each), FMCG (0.27 per cent), healthcare (0.25 per cent) and finance (0.01 per cent).
Foreign investors continued their selling spree and offloaded shares worth a net Rs 1,056.55 crore on Thursday, as per provisional data with stock exchanges.
Meanwhile, the rupee was trading 52 paise lower at 69.58 against the US dollar (intra-day).
The global oil benchmark Brent crude futures soared 2.28 per cent to USD 61.88 per barrel.
Elsewhere in Asia, Shanghai Composite Index slipped 1.41 per cent, Hong Kong's Hang Seng plunged 2.35 per cent, Japan's Nikkei shed 2.11 per cent, Korea's Kospi lost 0.95 per cent following ratcheting up of US-China trade tensions.
In European markets, Frankfurt's DAX was trading 2.45 per cent lower, and Paris CAC 40 dropped 2.62 per cent in their early session. London's FTSE declined 1.76 per cent.
The US Dow Jones Industrial Average ended 1.05 per cent lower on Thursday.