Sensex recovers 72 pts in early tradehttps://indianexpress.com/article/news-archive/web/sensex-recovers-72-pts-in-early-trade/

Sensex recovers 72 pts in early trade

Fresh buying activity,firming trend in global markets,works wonders on Indian bourses.

Stocks open report: The BSE benchmark index Sensex recovered by over 72 points in early trade today on fresh buying activity amid a firming trend in global markets.

The 30-share index,which had lost over 350 points in the previous two sessions,recovered by 72.38 points,or 0.40 per cent,to 18,150.88 points.

In a similar fashion,wide-based index of the National Stock Exchange,Nifty,moved up by 21.70 points to 5,505.00.

Brokers said fresh buying by funds and retailers following beginning of a new monthly contract in the derivatives segment and firming trend in overseas markets,mainly influenced the trading sentiment.

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All the sectoral indices were trading in the positive territory with gains up to 1.76 per cent.

In Asia,Hong Kong’s Hang Seng Index was up 0.36 per cent,while Japan’s Nikkei Index was being quoted 0.14 per cent higher in morning trade today.

The US the Dow Jones Industrial Average closed 0.36 per cent higher in yesterday’s trade.

PREOPEN: Sensex seen up; State Bank likely to drop

Sensex is likely to trade with a positive bias on Friday after falling for two straight sessions,but top lender State Bank of India could drop after it priced a share issue to the government at a discount.

“It should be flattish with positive vibes”,said Jagannadham Thunuguntla,head of research at SMC Global Securities.

“It’s the beginning of a new F&O series ahead of a data-heavy month”,he said,referring to the new monthly derivatives contracts that start on Friday.

State-run SBI said late on Thursday it would issue shares to the government at Rs 2,191.69 each to raise about Rs 79 billion ($1.6 billion). The shares closed at Rs 2,260.50 ahead of the news.

“We may see a short-time fall in SBI,more of a knee-jerk reaction”,said Deven Choksey,managing director of KR Choksey. “The market will likely be rangebound today.”

Asian shares rose on Friday as solid U.S. data improved sentiment,but the upside may be capped by concerns that rising oil prices could deal a further blow to the fragile euro zone economy and moves to take profits after recent gains.

At 0245 GMT,the MSCI’s broadest index of Asia Pacific shares outside Japan was up 0.23 per cent,while the Nifty India stock futures index traded in Singapore was up 0.14 per cent,indicating a higher opening.

STOCKS TO WATCH

* Reliance Industries may rise after reports claimed that the company planned to raise $500 million through a foreign bond sale.

* Housing Development Finance Corp will be watched after sources said that Citigroup Inc plans to raise up to $2.1 billion by selling its entire stake in the mortgage lender.

* DB Realty will likely fall after United Arab Emirates telecom operator Etisalat said on Thursday it had started legal proceedings against executives at DB Group,its Indian mobile phone joint venture partner.

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* Tata Steel shares likely rise after sources said that the company plans to raise $610 million by March through 10-year bonds.

FACTORS TO WATCH

* Euro at highs after short squeeze,outlook brittle

* Brent crude hits record high in euros

* Shares inch up but growth worry caps

* Wall St rises,nearing 4-year highs

* Foreign institutional investor flows

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