Sensex firms up 162 points on F&O, RBI rate cut hope

Mumbai: The benchmark Sensex rose by 162 points to end at three-week high of 31,892.23 on buying in auto, pharma and energy stocks despite a weak economic growth data for June quarter.

The 30-share index stayed in the positive zone throughout the session and hit a high of 31,944.10 before winding up 161.74 points, or 0.51 per cent, at 31,892.23, a level last seen on August 8.

Also, the NSE Nifty ended 56.50 points, or 0.57 per cent higher at 9,974.40 after shuttling between 9,983.45 and 9,909.85 during the day.

This week, the Sensex rose by 296.17 points, or 0.93 per cent and the Nifty by 117.35 points, or 1.19 per cent -- recording their eighth weekly gain in nine.

Among the Sensex constituents, Dr Reddy's topped the gainers list by climbing 9.75 per cent to Rs 2,217.35 after Nasdaq-listed Vivus Inc on Thursday entered into a

settlement agreement with the pharma major to resolve a long-pending patent litigation related to weight management capsules Qsymia.

Auto stocks, led by Ashok Leyland, Maruti Suzuki, Tata Motors, Hero MotoCorp, Bajaj Auto, TVS Motors, Eicher Motor and M&M rose up to 5.42 per cent largely on the back of better-than-expected monthly sales figures for August.

Sentiment got a boost on renewed hopes that the RBI policy may announce a cut in rates at its next policy meet in Otober to perk up growth, which fell to three-year low of 5.7 per cent during April-June, brokers said.

Creating new positions by investors following the beginning of the September futures and options (F&O) series lifted the key indices, they added.