Markets posts biggest weekly gain in two months as benchmarks add 3% each

Softening bond yields, moderation in FPI selling boost sentiment; both indices are now up 6% from year's low, but still down over 12% from their record high levels seen last October

The benchmark Sensex and the Nifty rose for a third day on Friday led by gains in utility and banking shares to cap their third straight weekly advance. Both the indices rose 3 per cent during the week—their biggest weekly advance since May 15. Softening bond yields and moderation in foreign portfolio investor (FPI) selling boosted sentiment.

On Friday, the Sensex finished at 54,482 and the Nifty at 16,221, each gaining 0.55 per cent. From this year’s low on June 17, both indices are now up 6 per cent but are still down over 12 per cent from their record