Markets open in green: Sensex rallies over 600 points in early trade, Nifty surges above 9,370; RIL jumps 2% after Vista deal

IndusInd Bank was the top gainer in the Sensex pack, soaring over 4 percent, followed by Kotak Bank, Hindustan Unilever and Axis Bank.

FP Staff May 08, 2020 10:42:15 IST
Markets open in green: Sensex rallies over 600 points in early trade, Nifty surges above 9,370; RIL jumps 2% after Vista deal

Stocks showed early gains in morning session amid rising expectations about an economic stimulus to cushion the impact of the COVID-19 pandemic, with Reliance Industries leading gains after yet another investment into its digital arm.

The Sensex rallied over 600 points in opening session on Friday as strong gains in index-heavyweight Reliance Industries, massive foreign fund inflow and positive global cues boosted market sentiment.

After touching a high of 32,088.51, the 30-share index was trading 559.96 points or 1.78 per cent higher at 32,003.34.

Similarly, NSE Nifty surged 175 points, or 1.90 per cent, to 9,374.05.

IndusInd Bank was the top gainer in the Sensex pack, soaring over 4 percent, followed by Kotak Bank, Hindustan Unilever and Axis Bank.

Markets open in green Sensex rallies over 600 points in early trade Nifty surges above 9370 RIL jumps 2 after Vista deal

Representative image. Reuters

Shares of Reliance Industries jumped over 2 percent after the company announced that US-based private equity firm Vista Equity Partners has picked up 2.32 per cent stake in Jio Platforms for Rs 11,367 crore.

On the other hand, PowerGird, HCL Tech, Asian Paints and NTPC were trading in the red.

In the previous session, the BSE barometer dropped 242.37 points or 0.76 per cent to close at 31,443.38. The broader NSE Nifty slipped 71.85 points, or 0.78 per cent, to 9,199.05.

Foreign portfolio investors purchased equities worth Rs 19,056.49 crore in the capital market on Thursday, provisional exchange data showed.

According to traders, besides stock-specific action, massive foreign fund inflow and firm cues from global markets enthused buying activity in the domestic market.

In India, the death toll due to COVID-19 rose to 1,886 and the number of cases climbed to 56,342 as on Friday, according to the health ministry.

Globally, the number of cases linked to the disease has crossed 38.46 lakh and the death toll has topped 2.69 lakh.

Rupee up

The rupee appreciated 45 paise to 75.27 against the US dollar in early trade on Friday tracking positive opening of domestic equities and weakness in the American currency.

Forex traders said a positive start of domestic stocks and significant foreign fund inflows supported the local unit.

At the interbank foreign exchange, the rupee opened at 75.36, then gained ground to touch 75.27, registering a rise of 45 paise over its previous close.

On Wednesday, the rupee had settled at 75.72 against the US dollar.

Forex market was closed on Thursday on account of Buddha Purnima.

Foreign institutional investors were net buyers in the capital market, as they bought equity shares worth Rs 19,056.49 crore on Thursday, according to provisional exchange data.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.16 per cent down at 99.73.

However, traders said investor sentiment remains fragile amid concerns over the impact of COVID-19 pandemic on the domestic as well as global economy.

Asian shares up as US, China trade negotiators talk

Asian shares rose on Friday as investors focused on talks between US and Chinese trade officials and solid corporate earnings rather than the looming release of data expected to show the worst US unemployment rate in more than 70 years.

Having opened higher following gains on Wall Street overnight, Asian markets had a further boost late in the morning on Chinese state media reports that US. and Chinese trade representatives had held a phone call and pledged to cooperate on carrying out the countries’ Phase 1 trade deal.

The news lifted US stock futures, pushing E-minis for the S&P 500 up 1.06 percent to 2,910.5.

MSCI’s broadest gauge of Asian share indexes outside Japan was 1.1 percent higher and Japan’s Nikkei added 1.78 percent.

Australian shares were 0.76 percent higher. China's blue-chip CSI300 index gained 0.86 percent.

While rising equity markets on Friday were accompanied by a slight uptick in US Treasury yields, bond markets remained focused on the shaky global economic picture as coronavirus-related lockdowns continue to depress economic activity, despite signs of reopening.

“The equity market is disconnected and optimistic ... We’ve got this bizarre scenario at the moment, where the bond market is really looking at the doomsday economic data and also hopes for potentially further support from the US Federal Reserve,” said Ryan Felsman, senior economist at CommSec in Sydney.

--With inputs from agencies

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