Domestic equity benchmark BSE Sensex advanced 150 points in early session on Thursday, driven by gains in banking, metal and energy stocks, ahead of key macroeconomic data releases.
After touching a high of 37,421.13, the 30-share index was trading 129.68 points, or 0.35 per cent, higher at 37,400.50 at 0940 hours, while the broader Nifty rose 34.65 points, or 0.31 per cent, to 11,070.35.
In the previous session, the BSE barometer ended 125.37 points, or 0.34 per cent, higher at 37,270.82. Similarly, the broader NSE Nifty rose 32.65 points, or 0.30 per cent, to finish at 11,035.70.
Top gainers in the Sensex pack on Wednesday included Tata Steel, ICICI Bank, IndusInd Bank, ONGC, Vedanta, Sun Pharma, HDFC, SBI, M&M, Maruti and HCL Tech, rising up to 2.43 per cent.
On the other hand, Yes Bank, Tata Motors, Bharti Airtel, Bajaj Auto, Infosys and Axis Bank fell up to 2.72 per cent.
On Wednesday, foreign portfolio investors bought shares worth a net of Rs 266.89 crore, and domestic institutional investors purchased equities worth Rs 1,132.42 crore, provisional data showed.
Besides positive cues from global markets, domestic investors are waiting factory output and inflation data, scheduled to be released later in the day, traders said.
“The recent announcement related to government’s intent to front load capital investments in infrastructure development to support the economy has also boosted the sentiments,” said Gaurav Dua, Senior VP, Head – Capital Market Strategy, Sharekhan by BNP Paribas.
Elsewhere in Asia, bourses in Shanghai, Japan and Korea were trading in the green in their respective late morning sessions amid hopes of a resolution in the US-China trade tiff and expectations that the European Central Bank would kick off monetary easing by global central banks.
On Wall Street, bourses ended significantly higher on Wednesday.
Rupee rises 36 paise to 71.30 against US dollar in early trade
The Indian rupee appreciated by 36 paise to 71.30 against the US dollar in early trade on Thursday as gains in domestic equity market and fresh foreign fund inflows strengthened investor sentiments.
Forex traders said Trump delaying the increase in Chinese tariff by 15 days enthused investors.
US President Donald Trump has announced the delay of his proposed massive increase in Chinese import tariffs by 15 days.
At the interbank foreign exchange the rupee opened at 71.46, then gained further ground and touched a high of 71.30, registering a rise of 36 paise over its previous close.
The domestic unit however could not hold on to the gains and was trading at 71.35 against the dollar at 0949 hrs.
On Wednesday, the rupee had settled for the day at 71.66 against the US dollar.
Describing this as a goodwill gesture, Trump said on Wednesday night that he had moved the increased tariffs on USD 250 billion worth of goods from October 1 to October 15.
“At the request of the Vice Premier of China, Liu He, and due to the fact that the People’s Republic of China will be celebrating their 70th Anniversary on October 1st, we have agreed, as a gesture of good will, to move the increased Tariffs on 250 Billion Dollars worth of goods (25% to 30%), from October 1st to October 15th,” Trump tweeted.
Besides, higher opening in domestic equities and weakening of the American currency vis-a-vis other currencies overseas supported the local unit.
Domestic bourses opened on a positive note on Thursday with benchmark indices Sensex trading 139.69 points higher at 37,410.51 and Nifty up 41.20 points at 11,076.90.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell marginally by 0.01 per cent to 98.63.
Foreign institutional investors (FIIs) remained net buyers in the capital market, putting in Rs 266.89 crore on Wednesday, according to provisional exchange data.
Brent crude futures, the global oil benchmark, rose 0.72 per cent to trade at USD 61.25 per barrel.