Benchmark indices Sensex and Nifty rose sharply in early trade on Thursday in line with a rally in global markets after lower consumer inflation expectations in the US ended hopes of further rate cuts by the Federal Reserve.
BSE’s 30-share benchmark Sensex jumped 595.42 points to 77,319.50 in early trade. The NSE Nifty rallied 178.45 points to 23,391.65.
From the 30-share blue-chip pack, Adani Ports, Zomato, UltraTech Cement, State Bank of India, IndusInd Bank, Tata Motors, ICICI Bank and Bajaj Finserv is the biggest beneficiary.
Nestle, Hindustan Unilever, ITC and Tata Consultancy Services are among the sleepers.
In the Asian markets, Seoul, Tokyo, Shanghai and Hong Kong were trading in positive territory.
US markets rallied on Wednesday.
“Wall Street was stronger overnight following the cooler-than-expected December CPI data, with the US 10-year benchmark yield falling to 4.68 percent from a record high,” said Prashanth Tapse, Senior VP ( Research), Mehta Equities Ltd.
Foreign Institutional Investors (FIIs) sold shares worth Rs 4,533.49 crore on Wednesday, according to exchange data.
“Major indicators from the US suggest that as Trump’s inauguration approaches, Trump’s trade has increased significantly. The decline in US bond yields and the dollar index are indicators of this. This decline in the dollar index and bond yields has been helped by lower-than-expected CPI inflation in the US, it also dampened hopes of further rate cuts by the Fed this year,” VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said.
Global oil benchmark Brent crude rose 0.44 percent to USD 82.39 a barrel.
The 30-share BSE index rose 224.45 points or 0.29 percent to settle at 76,724.08 on Wednesday. Nify advanced by 37.15 points or 0.16 percent to 23,213.20.
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