Mumbai, Aug 2 (UNI) A day after plunging by over 460 points in a single session due to outflow of foreign capital, the benchmark index of Bombay Stock Exchange (BSE) bounced back on Friday by 99.90 points to end positive at 37,118.22 on renewed buying in IT, Telecom, Auto, Consumer Durables and Telecom stocks after media reports suggested that the PMO and the Finance Ministry were holding talks to resolve the foreign portfolio investor (FPI) surcharge issue.

The Nifty of National Stock Exchange (NSE) also went up by 17.35 points to 10,997.35.

The stock market bounced back in afternoon trade after media reports suggested that Prime Minister Office (PMO) and Finance ministry's top bureaucrats were in talks over foreign portfolio investor (FPI) surcharge issue. The PMO took stock of tax surcharge and its impact on the stock market and FPIs, reports added.

In a highly volatile trade witnessed during the day, the Sensex slipped by 98 points to 36,920.11 in early trade. It swung wildly in the range of 37,375.16 and 36,607.41 during the day before closing firm at 37,118.22, up by 99.90 points versus its last close.The gains in sectoral indices like IT, Telecom, Auto, Consumer Durables and Telecom boosted the market sentiment, however, brisk sell-off in Metal, Power, Realty and Bankex capped its further gains, brokers informed.

The broader markets ended mixed today, as the S&P BSE Mid-Cap index rose 0.15 per cent while the Small- Cap fell 0.44 pc.

The market breadth was negative on BSE, as 840 shares advanced whereas 1,600 declined and 148 were unchanged.

Overseas, European and Asian stocks edged lower Friday after announcement of a surprise tariff by the United States escalated trade tensions between Beijing and Washington.

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