Equity benchmark BSE Sensex rallied over 400 points on Friday following positive cues from global markets on hopes of a trade deal between the US and China.
The 30-share index was trading 414.38 points, or 1.09 per cent, higher at 38,294.78 at 0940 hours. Similarly, the broader NSE Nifty jumped 116.15 points, or 1.03 per cent, to 11,350.70.
Top gainers in the Sensex pack during early session included Vedanta, Tata Steel, ONGC, SBI, Kotak Bank, Tata Motors, ICICI Bank, HDFC twins and Infosys, rising up to 4 per cent.
On the other hand, TCS was the top laggard shedding up to 3 per cent, after the largest software exporter on Thursday reported a tepid growth in net income for the September quarter at Rs 8,042 crore, and guided towards more challenges putting a big question mark over its ability to deliver the double-digit growth.
Tech Mahindra, Bharti Airtel, RIL and Sun Pharma were the other losers on the index, dropping up to 1 per cent.
In the previous session, the BSE barometer ended 297.55 points, or 0.78 per cent, lower at 37,880.40, and the Nifty fell 78.75 points, or 0.70 per cent, to close at 11,234.55.
Foreign institutional investors (FIIs) remained net sellers in the capital market, pulling out Rs 263.11 crore on Thursday, while domestic institutional investors bought shares worth Rs 502.67 crore, data available with stock exchange showed.
Market rallied in early session on Friday tracking gains in global markets after US President Donald Trump offered an positive assessment of US-China trade talks, traders said.
“We just completed a negotiation with China. We’re doing very well. We’re having another one tomorrow. I’m meeting with the Vice Premier over at the White House,” Trump told reporters at the White House on Thursday.
Following the news, bourses in Shanghai, Hong Kong, Seoul and Tokyo were trading significantly higher in early trade. Stocks on Wall Street too ended on a positive note on Thursday.
Domestic investors are also awaiting factory output data and Infosys earnings, scheduled to be released later in the day.
The rupee, meanwhile, appreciated 15 paise against its previous close to trade at 70.92 in early session.
Brent futures, the global oil benchmark, rose 0.42 per cent to USD 59.35 per barrel.
Rupee rises 27 paise to 70.80 against USD in early trade
The rupee appreciated by 27 paise to 70.80 against the US dollar in early trade on Friday as optimism about US-China trade talks and gains in domestic equity market enthused investors.
At the interbank foreign exchange the rupee opened at 70.82, then gained further ground and touched a high of 70.80, registering a rise of 27 paise over its previous close.
Rupee had settled at 71.07 against the US dollar on Thursday.
The domestic unit however could not hold on to the gains and was trading at 70.92 against the dollar at 1012 hrs.
Forex traders said higher opening in domestic equities supported the rupee.
Meanwhile, US President Donald Trump said he is meeting with Chinese Vice Premier Liu He on Friday, raising hopes for progress on this week’s high-level talks aimed at ending a 15-month trade war between the two nations.
“Big day of negotiations with China. They want to make a deal, but do I?” Trump said in a tweet Thursday before the start of the trade talks between US and China.
Domestic bourses opened on a positive note on Friday with benchmark indices Sensex trading 425.29 points higher at 38,305.69 and Nifty up 110.75 points at 11,345.30.
Moreover, weakening of the American currency vis-a-vis other currencies overseas also propped the rupee.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.04 per cent to 98.66.
Market participants, however, said sustained foreign fund outflows and rising crude prices weighed on local currency.
Foreign institutional investors (FIIs) remained net sellers in the capital market, pulling out Rs 263.11 crore on Thursday, according to provisional exchange data.
Brent crude futures, the global oil benchmark, rose 0.54 per cent to trade at USD 59.42 per barrel.
The 10-year government bond yield was at 6.48 per cent in morning trade.