Indian markets witnessed a stellar rally on Friday led by realty and auto stocks. At the close, the benchmark 30-share index, BSE Sensex added 409.21 points or 1.48% at 28,114.56 with 23 components registering rise. Meanwhile, the broad based NSE Nifty went up by 111.05 points or 1.32% at 8,532.85 with 36 components posting rise.

Jayant Manglik, President, Retail Distribution, Religare Securities said, ''Domestic bourses surged on Friday and posted gains of over a percent after the Department of Industrial Policy & Promotion (DIPP) issued a notification yesterday, July 30, 2015, introducing composite caps for simplification of the foreign direct investment (FDI) policy for attracting foreign investments in the country. For second successive day, benchmarks opened with an upside gap followed by gradual rise till the end.  In line with key index, majority of sectoral indices also remained buoyant and posted decent returns by the end.

By and large, it was the banking sector which drove the markets higher alongside with others. Its alignment with the benchmark index improved the sentiments and triggered noticeable buying interest.

Despite the rebound, we reiterate our advice to stick with stock specific trading approach with strict risk management rules. Though we might see Nifty inching towards 8,600-8,650 levels first but sustainability seems difficult around those levels so plan your trades accordingly.''

Major gainers in the 30-share index were State Bank of India (5.25%), Coal India (4.55%), Dr Reddy's Laboratories (4.05%), ICICI Bank (3.97%), Hero Motocorp (3.36%), and I T C (3.29%).

On the other hand, Bharat Heavy Electricals (2.84%), Tata Power Company (1.44%), NTPC (0.63%), Tata Steel (0.42%), Bajaj Auto (0.18%), and Cipla (0.13%) were the major losers in the Sensex.

The Realty index was at 1,387.35, up by 39 points or by 2.89%. The Auto index was at 19,107.78, up by 338.35 points or by 1.80%. On the other hand, the Power index was at 2,064.56, down by 12.51 points or by 0.6%.