Mumbai, May 23 (IANS) The Indian stock markets bounced back strongly on Friday with both the Sensex and Nifty rising sharply during the intra-day trade after a cautious start. The rally was driven by positive global cues and heavy buying in the IT and FMCG stocks.

The Sensex jumped 953 points, or 1.17 per cent, to hit an intra-day high of 81,905. Meanwhile, the Nifty climbed 299 points, or 1.21 per cent, to cross the 24,900 mark, reaching a high of 24,909 during early trade.

However, the market gave up some of its early gains as the session progressed. Around 1 p.m., the Sensex was trading at 81,800.85, still up by 848.86 points or 1.05 per cent.

The Nifty, too, remained in positive territory at 24,887.80, up by 278.10 points or 1.13 per cent.

Leading the gains were stocks like Eicher Motors, ITC, Infosys, Tech Mahindra, and HCL Technologies, which rose up to 4 per cent in intra-day trading.

Asian markets also traded in the green, setting a positive tone for Indian equities.

Major indices such as South Korea’s Kospi, Japan’s Nikkei 225, China’s Shanghai Composite, and Hong Kong’s Hang Seng were all higher.

In the US, stock futures moved up in early trade, providing additional support to global markets.

On Thursday, the US markets had a volatile session but ended higher after treasury yields dropped.

The yield on 10-year US treasury notes fell to 4.53 per cent, down 7 basis points, while the 30-year yield also declined from its highest levels since 2007.

The fall in yields followed the US House of Representatives passing a major tax and spending bill, which boosted investor sentiment.

Technology stocks led the rally in India after a bullish report by brokerage firm Bernstein.

The report said the Indian IT sector is likely to see a turnaround, supported by stable demand and increasing deal activity.

According to the report, earnings for IT companies are expected to improve in the current financial year, with better guidance likely to support strong revenue growth by FY27.

–IANS

pk/na