Indian equities trended higher on Friday, December 8 led by gains in the automotive sector ahead of an expected increase in prices next year. Moreover, investors await the outcome of the Gujarat election that will be held this weekend, with the Bharatiya Janata Party, an Indian nationalist party led by Narendra Modi, expected to score a victory. Recapping the benchmarks, the Nifty 50 advanced 0.97% to 10,265.65, and the BSE Sensex closed up 0.91% at 33,250.30. By 10:40 GMT the USD/INR pair weakened 0.11% to 64.483, while the EUR/INR eased 0.43% to 75.6980. The 10-year Indian government bond yield stood at 7.079%. As noted above, automotive names outperformed the broader market. Specifically, Maruti Suzuki and Tata Motors advanced 1.8% and 2.28%, respectively. Banking stocks were also well bid, with ICICI Bank and HDFC Bank gaining 1.62% and 1.70%, respectively. In the metals sector, Steel Authority of India surged 3.81% on news that it will sign a joint venture deal with ArcelorMittal next week. As the daily chart shows, the BSE Sensex has bounced off the lower line of Bollinger bands and continues heading north, while the Slow Stochastic Oscillator has just left oversold territory. As a result, the benchmark still holds upside in the short term.