Sensex rises for second day; upbeat U.S. data calms nerves

REUTERS - India's stock markets rose more than 1.5 percent on Friday, heading for their second straight session of gains, as upbeat U.S. economic growth data calmed nerves after a bruising selloff in global equities earlier this week.

Wall Street rose sharply overnight, thanks to revised U.S. gross domestic product data showing the economy grew faster than initially thought in the second quarter - a reassuring sign amid worries over deepening economic woes in China.

"Some positive global triggers but the last hour will be crucial. We are on the last day of the week and the first day of the F&O contract, there could be some pull and push," said Gaurang Shah, vice president at Geojit BNP Paribas.

 

The benchmark BSE Sensex was up 1.51 percent after rising as much as 1.73 percent earlier in the day. It has lost 3.22 percent so far this week, heading for its third straight weekly fall.

The broader Nifty was higher 1.59 percent after rising as much as 1.79 percent. The index has lost 3.29 percent so far this week, on track for its third weekly decline.

Both indexes headed for their highest close since Aug. 21.

Financial, IT, consumer discretionary and oil stocks led the gains.

Oil stocks rose with a rebound in crude prices. ONGC Ltd climbed 5.67 percent, Reliance Industries Ltd rose 0.86 percent and Cairn India Ltd gained 5.6 percent.

Banking stocks continued to see heavy buying, with ICICI Bank Ltd up 2 percent, HDFC Bank Ltd 1.6 percent and Axis Bank Ltd higher 2.3 percent.

Infosys Ltd and HCL Technologies Ltd led the gains among IT stocks.

Consumer discretionary stocks such as Bajaj Auto Ltd rose 3 percent, while Tata Motors Ltd gained 1 percent.

(Reporting by Karen Rebelo in Mumbai; Editing by Subhranshu Sahu)