Key Indian stock indices showed positive performance on Friday, December 7. Risk appetite returned to stock exchanges after a significant pullback in the previous trading session. Investors were upbeat about news that US investment company Berkshire Hathaway, owned by billionaire Warren Buffett, may acquire India’s lender Kotak Mahindra Bank. The news flow was positive, as Asian indices trended predominantly higher, while European benchmarks have been trading in positive territory. In sector terms, financial names enjoyed the strongest demand. Recapping the indices, the Nifty 50 advance 0.87% to 10,693.70, while the BSE Sensex closed 1.02% higher at 35,673.25. By 10:21 GMT, the USD/INR currency pair formed 0.18% to 70.671, while EUR/INR dropped 0.33% to 80.3420. Meanwhile, the 10-year government bond yield widened to 7.464%. As noted above, regional banks were well bid. Kotak Mahindra Bank spiked 8.4% on media reports that Berkshire Hathaway plans to invest USD 4-6 bn in its business. Other sector players ICICI Bank and The South Indian Bank added 1.3%. Meanwhile, software exporter HCL Technologies plunged 5.0% on news that it closed a deal to acquire a number of assets of US International Business Machines for USD 1.8 bn. The daily chart shows that the BSE Sensex has broken through the lower end of a rising wedge, while the Slow Stochastic Oscillator has exited overbought territory. As a result, the benchmark may continue to trend lower in the short term. $SENSEX, S&P BSE SENSEX INDEX / D