Mumbai, Feb 20 (PTI) Stock markets rebounded on Friday, with the benchmark Sensex closing higher by 316 points after heavy buying in banking and metal shares, amid optimism over progress on a trade deal and India's participation in Pax Silica.

The 30-share BSE Sensex climbed 316.57 points, or 0.38 per cent, to settle at 82,814.71. During the day, the benchmark appreciated by 633.94 points, or 0.76 per cent, to hit an intraday high of 83,132.08.

The 50-share NSE Nifty advanced 116.90 points, or 0.46 per cent, to close at 25,571.25, as 36 of its components ended in the positive zone and 14 in the red. In the intraday session, it jumped by 209.2 points, or 0.82 per cent, to hit a high of 25,663.55.

The Sensex, on Thursday, tanked 1,236.11 points, and the NSE Nifty slumped 365 points to close near 25,450, following across-the-board selling by investors amid growing geopolitical concerns.

NTPC, Larsen & Toubro, Hindustan Unilever, PowerGrid, Tata Steel, Kotak Mahindra Bank, Bharat Electronics Ltd, Bajaj Finance, Titan, Maruti Suzuki India, Axis Bank and IndiGo were the major gainers on Friday among Sensex stocks.

On the other hand, Tech Mahindra, Infosys, Eternal, HCL Technologies, Bharti Airtel, HDFC Bank, Mahindra & Mahindra and Adani Ports ended with losses.

"Indian equities rebounded after yesterday's sharp correction, led by strong buying in large caps as investors favoured their better risk-reward over premium-valued midcaps. Sentiment improved on clearer trade-agreement signals and India's entry into Pax Silica, which is expected to strengthen supply-chain security in AI, semiconductors, and critical minerals," Vinod Nair, Head of Research, Geojit Investments Ltd, said.

He added that banking and metal stocks drove the recovery, while IT lagged. Volatility stayed elevated, with the India VIX spiking even as geopolitical tensions still linger.

"Softer inflation data from Japan supported expectations of accommodative global policy. Structurally, markets remain constructive, though near-term moves are likely to stay flow-driven amid global uncertainties," Nair said.

Broader indices ended higher, with the BSE Midcap Select Index rising 0.45 per cent, while the Smallcap Select Index edged up by 0.07 per cent.

Among sectoral indices, Power rose the most by 1.91 per cent, followed by PSU Bank by 1.83 per cent, Utilities by 1.53 per cent, Capital Goods by 1.51 per cent, Industrials and Metal by 1.27 per cent each, and Bankex by 0.77 per cent.

Information Technology and Focused IT were the only laggards.

A total of 2,265 stocks declined, while 1,917 advanced and 167 remained unchanged on the BSE.

Shares of Novartis India surged 20 per cent to hit its upper circuit limit of Rs 996.50 apiece after the Swiss company announced a pact with ChrysCapital group to sell its entire 70.68 per cent stake in Indian arm Novartis India Ltd in a deal valued at around Rs 1,446 crore.

On a weekly basis, the 30-share BSE Sensex rose 187.95 points, or 0.22 per cent, while the Nifty went up by 100.15 points, or 0.39 per cent.

The market capitalisation of BSE-listed firms increased by Rs 1,89,341.06 crore to Rs 4,67,11,355.63 crore (USD 5.14 trillion).

"Markets traded with volatility on Friday but managed to end in the green amid mixed cues. The Nifty opened lower due to lingering geopolitical concerns and subdued global signals; however, buying in select heavyweight stocks helped the index recover and settle in positive territory as the session progressed.

"Most sectors participated in the rebound, with energy, metals, and banking emerging as notable gainers following the sharp sell-off in the previous session," Ajit Mishra, SVP - Research, Religare Broking Ltd, said.

Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd, said PSU banks continued to remain in focus, advancing 1.7 per cent, supported by strong credit growth trends, stable asset quality and increased allocations from mutual funds, along with higher FII stakes and DII buying.

"Market is likely to consolidate next week, tracking the geopolitical development along with the signing of India-US trade deal, India Q3 GDP data, US initial Jobless claims and the conclusion of AI summit," Khemka said.

Precious metal prices soared 4 per cent in the futures trade on Friday, with silver jumping Rs 9,405 to Rs 2.50 lakh per kilogram, while gold increased by Rs 1,581 to Rs 1.56 lakh per 10 grams.

The broader Asian markets ended lower, with Hong Kong's Hang Seng index declining 1.10 per cent, while Japan's Nikkei 225 benchmark fell 1.07 per cent. However, South Korea's Kospi finished 2.31 per cent higher. Markets in mainland China remained closed for the Lunar New Year holidays.

In European markets, Germany's DAX, Paris' CAC 40 and London's FTSE 100 were trading nearly 1 per cent higher in mid-session deals on Friday.

The US equities markets settled lower on Thursday.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 880.49 crore on Thursday, while domestic institutional investors were also the net sellers of stocks worth Rs 596.28 crore, according to the exchange data.

Brent crude, the global oil benchmark, fell 0.31 per cent to USD 71.44 per barrel. PTI HG MR