Mumbai:Indian markets rose over 1% on Friday after the Organization of the Petroleum Exporting Countries (Opec) ended talks without a deal on oil production cuts when the markets closed. BSE’s 30 share benchmark Sensex rose 1.02% or 361.12 points to closed at 35,673.25, while the National Stock Exchange’s 50 share index Nifty climbed 0.87% to 10,693.70 points.

Later, Opec and its Russia-led allies moved closer to clinching a deal that would cut oil production by more than the market had expected.

The producer club will curb output by 0.8 million barrels per day (bpd) from January while non-Opec allies contribute an additional 0.4 million bpd of cuts, Iraqi oil minister Thamer Ghadban said after Opec concluded two days of talks in Vienna.

“Domestic market rebounded today along with global market which has lightened up, hoping for a resolution of US-China trade war. Opec’s decision to delay the final resolution to cut oil output caused prices to fall, boosting sentiments in India", said Vinod Nair, head of research, Geojit Financial Services.

However, domestic institutional investors (DIIs) continue to sell in equities ahead of state election results. So far in December, DIIs have sold nearly 2,500 crore worth of Indian shares. For the year to date, DIIs have invested a net of 1.06 trillion while foreign institutional investors (FIIs) have pulled out a net of $4.91 billion in Indian equities.

Analysts attributed the DII move to booking profit ahead of the final outcome of state assembly elections which will set the tone for the general elections next year.

“Markets have become super-volatile as a combination of two factors: tweets and action in the US with regards to China and secondly state election results. Hence, sharp volatility will be the order of the day," said Arun Kejriwal, director of Kejriwal Research and Investment Services Pvt. Ltd. Election results in Rajasthan, Madhya Pradesh, Telangana, Chhattisgarh and Mizoram will be declared on Tuesday. Meanwhile, Kotak Mahindra Bank closed at 8.53% higher, its biggest single day rise since September 2013, to 1,282.25 a share. In intraday, it surged as much as 13.87% after CNBC TV reported that Berkshire Hathaway is looking to buy 10% stake in Kotak Mahindra Bank valued at between $4 billion and $6 billion. However, the bank clarified to stock exchanges that it is unaware of any purchase plans by Warren Buffett’s Berkshire Hathaway.

HCL Technologies Ltd fell 5% after the company said it will buy select IBM software products for $1.8 billion. Among the sectoral indices, BSE Bankex index and BSE Finance index rose the most, with 1.66% and 1.06% gains, respectively.

Globally, most Asian markets were higher on reports suggesting the US Federal Reserve is likely to slow down increasing interest rates.

Fed chairman Jerome Powell said, “Our economy is currently performing very well overall, with strong job creation and gradually rising wages,’’ He added, “In fact, by many national-level measures, our labour market is very strong.’’

Powell’s comments are his final scheduled public remarks before the Fed goes into a blackout period in the runup to its 18-19 December policy meeting, at which officials are expected to raise interest rates by a quarter percentage point for the fourth time this year.

Bloomberg contributed this story.