Key Indian stock indices turned in positive performance on Friday, December 13 as risk appetite improved following media reports that US President Donald Trump has signed a phase one trade agreement with China. However, there has not been any official confirmation. As regards local macro data, the country’s CPI for November rose 5.54% y-o-y, while analysts, on average expected 5.26% y-o-y. Furthermore, the industrial output decreased 3.8% y-o-y in October compared to the consensus forecast of -5.0% y-o-y. FX reserves and trade balance data are due out later today. By the close, the Nifty 50 advanced 0.96% to 12,086.70, and the BSE Sensex 30 increased 1.05% to 41,009.71. On the BSE Sensex 30, Axis Bank and Vedanta outperformed the broader market, surging 4.24% and 3.86%, respectively. Bharti Airtel and Kotak Mahindra Bank were out of favor, slipping 1.98% and 1.40%. Among the Nifty 50 gainers, Axis Bank and Vedanta stood out, up 4.18% and 3.78%. In the bear camp, Dr. Reddy’s Laboratories and Bharti Airtel retreated 2.77% and 1.97%, respectively. On the FX market, the USD/INR pair firmed 0.23% to 70.27, and EUR/INR added 0.72% to 79.08. The 10-year Indian government bond yield reached 6.786%. Metals & mining and banking stocks enjoyed demand. As a result, Yes Bank and Axis Bank picked up over 2%, while Vedanta and Coal India gained over 1.8%. Automotive names were in favor, with Tata Motor and Maruti Suzuki adding over 1.3%. Pharmaceutical names came under pressure. In particular, Dr. Reddy’s Laboratories slid 2.77%. From a technical standpoint, the BSE Sensex is forming an upward trend as it retraces towards the previous high at 41,163, while the Slow Stochastic Oscillator is on the buy side, hovering far from overbought territory. Consequently, the benchmark still holds upside potential in the short term.