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Sensex, Nifty Log Strong Gains For Second Day

Indian shares posted strong gains for the second day running on Friday as a sharp fall in oil prices overnight as well tepid readings on consumer inflation and wholesale inflation eased investor concerns surrounding the twin deficits.

Positive exports and industrial output data as well as firm global cues after news of a possible new round of U.S.-China trade talks in coming days also offered some support ahead of PM Modi's economic review meeting due later today.

The benchmark BSE Sensex hit as high as 38,125.62 in intraday trade before closing higher by 372.68 points or 0.99 percent at 38,090.64. The broader Nifty index surged 14530 points or 1.28 percent to 11,515.20.

The rupee hit a one-week high of 71.65 against the dollar earlier in the day after separate reports showed that CPI and WPI inflation eased to 10-month and 4-month lows, respectively in August, supporting the view that the RBI will keep interest rates on hold in October.

Vedanta, HPCL, Bajaj FinServ, BPCL and Indiabulls Housing Finance jumped 5-7 percent in the Nifty pack, while IT stocks such as Infosys and HCL Technologies fell over 1 percent amid continued recovery in the rupee.

Globally, other Asian markets ended broadly higher after reports that the U.S. and China might hold a fresh round of trade talks, a development that could help resolve the trade dispute between the world's two largest economies.

Concerns around emerging market risks also eased somewhat after Turkey's central bank raised its key interest rate sharply in a dramatic bid to control rocketing inflation and prevent a currency crisis.

European stocks also inched higher in early trade, with auto and technology stocks pacing the gainers.

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