Rising expectation of an interest rate cut by the US Federal Reserve in its December 11 meeting and a GDP growth of 8.9% for the second quarter ended September 30 improved sentiment on the local bourses. This helped the 30-share Sensex of the Bombay Stock Exchange (BSE) to end the day at 19,363.19 points a gain of 359.93 points or 1.89%.

The Sensex posted a weekly gain of 510.32 points or 2.71%. On the other hand the broader S&P CNX Nifty of the National Stock Exchange (NSE) rose to 5,762.75 points, gaining 2.27% or 128.15 points.

Rest of the Asian markets showed mixed trend with Nikkei 225 surging higher by 166.93 points or 1.08% at 15,860.67 points while Hang Seng closed at 28,643.61 points gaining marginally by 161.07 points or 0.57%.

The sentiment was buoyant also because there was a marginal rise in India?s headline inflation based on Wholesale Price Index which rose to 3.21% in the 12 months to November 17 compared to the previous week’s level of 3.01%. Also, the provisional figures released by the stock exchanges (SEs) showed that foreign players were net buyers to the tune of Rs 1,072 crore on Friday.

Manish Sonthalia, VP, market strategist and portfolio manager, Motilal Oswal Securities, said, ?The expectation of a possible rate cut by US Fed Reserve in its December 11 meeting buoyed sentiment on the local bourses. Domestically outstanding position in the derivative segment has become lighter after the November derivative expiry, which led to a smooth ride in the cash segment of the domestic equity bourses.?

Active participation from the side counters led to a robust market breadth with 1,745 stocks gaining ground when compared to 1,056 stocks that had declined. This resulted in the BSE mid-cap index closing the day with a gain of 191.01 points or 2.28% at 8,553.56 points while the BSE small-cap index surged by 136.27 points or 1.31% to close the day at 10,526.02 points. Among the Sensex stocks 26 stocks advanced while 4 stocks ended the day on a negative note.

Though all the BSE sectoral indices closed the day on a positive note BSE metal index remained the biggest gainer surging by 858.21 points or 5.09% to close at 17,730.53 points.