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Welcome to ETMarkets Watch, the show about stocks, market trends and money-making ideas. I am Bhaskar Dutta and here are the top headlines at this hour.

-Amazon, Flipkart eye diagnostic chain stake
-China ups purchases of low-priced Russian oil
-Maruti accepts Haryana’s job quota policy
-China cuts mortgage reference rate
-Centre wants data on wheat for further action
-Cartelisation going to be a challenge, says Finance Minister

Let’s take a quick glance at what happened on Dalal Street today.

Domestic equity markets surged on Friday, wrapping up a turbulent week, as gains in Asian stocks and select index heavyweights boosted headline indexes.

Even as US stocks fell overnight, Asian stocks received a boost after China lowered a key lending rate in order to prop up its struggling economy.

Friday’s rally was a broad-based one, with six stocks gaining for every one that declined. Reliance Industries surged six per cent, logging its largest one-day gain in 18 months. The rise in its share price pushed the benchmark higher by 142 points.

The Sensex jumped 1,534.16 points or 2.91 per cent to 54,326.39 and logged gains for the first time in six weeks. Its broader peer, Nifty50, added 456.75 points or 2.89 per cent to close above the 16,200 mark.

Both the Sensex and Nifty also logged their biggest single-day gains in over three months. All the sectoral indices ended in the black with metal, realty, pharma, capital goods and PSU bank indices rising 3-4 per cent each.

Broader markets underperformed, with the BSE Midcap and Smallcap indexes gaining 2 per cent each. Fear gauge India VIX fell 6 per cent to end at 23.10.

All the stocks on the 30-pack BSE Sensex ended up, with Dr Reddy’s surging 8 per cent, followed by Reliance’s 6 per cent rise. Nestle gained 5 per cent, while Tata Steel rose 4 per cent.

18 stocks hit the upper circuit, while five of them hit lower circuit limits. 22 stocks touched 52-week highs while 25 hit 52-week lows.

We have Rahul Shah from Equitymaster to share his views on the action and the road ahead:

Welcome to the show sir:
1. Was today’s surprise rally merely based on bargain hunting after the recent plunge in stocks or were there fundamental factors at play?
2. Are valuations looking more reasonable after the recent weakness in domestic markets or could we see more correction?

We also caught up with Vaishali Parekh from Prabhudas Lilladher to decode the technical charts for you.
1. The Nifty50 closed above the 16,250 level. What do the technical charts suggest about it?

2. Bank Nifty rose in line with the headline index today. What is your outlook on the sector?

Asian markets ended higher. Major European markets were trading with strong gains in the first few hours of trade. Meanwhile, US stock futures were up, signalling a firm start to US equities later in the day.

That’s all for now. Do check out ETMarkets.com for all the news, market analysis, investment strategies and dozens of stock recommendations. Enjoy your evening. Bye Bye!

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