Final trade: Sensex ends over 1,300 pts higher, Nifty reclaims 24,500 led by broad-based gains

FINAL TRADE: Indian equities in Friday's trade ended sharply higher amid encouraging global cues. Nify at the close ended at 24,541.15, up 397.4 points or 1.65 per cent, while the Sensex closed higher by 1.68 per cent or 1,330.96 points at 80,436.84 levels.

Sectorally, the IT index stole the limelight as it continued to gather steam for the fifth straight day and zoomed more than 6 per cent during the period, nearing its 52-week high levels. Furthermore, Realty, Auto and Private Bank and Oil & Energy indices also gained up to 2 per cent.

The strength in the Indian equities is seen as several factors have contributed to this bullish momentum. The fear of a reversal in the yen carry trade has subsided, and strong retail sales figures, along with better-than-expected job data, have alleviated concerns about a potential U.S. recession.

Additionally, the market is now fully pricing in a 25 basis point rate cut by the U.S. Federal Reserve in September, further boosting investor confidence, said Santosh Meena, Head of Research, Swastika Investmart.

FIIs have turned net sellers in index futures this week, but today's trading session has seen a significant short-covering move. If the Nifty can sustain above its 20-DMA, around 24,500, the bullish momentum could extend towards the 24,800-25,000 zone. On the downside, the 24,200 level now serves as a key support, she added.

Vinod Nair, Head of Research, Geojit Financial Services mentioned that the stability of the JPY has been instrumental in driving a global market recovery.

Nonetheless, he believes that as challenges such as a drop in WPI inflation, weak IIP, and lukewarm Q1 corporate earnings persist market gains may be limited, which is reflected by FIIs maintaining a net seller position, he added.

Meanwhile, European markets traded mixed with the FTSE 100 index down, while the French CAC and German DAX indices gained up 0.7 per cent on improving risk-on sentiment.