Sensex jumps over 150 points in opening session, Nifty up; RIL, SBI, HDFC top gainers amid positive global cues

  • The 30-share BSE index was trading 161.85 points or 0.39 percent higher at 41,325.61, and the broader NSE Nifty rose 57.70 points or 0.48 percent to 12,184.25

  • SBI was the top gainer in the Sensex pack, rising up to 2.14 percent, followed by PowerGrid, Axis Bank, Bharti Airtel, Reliance Industries (RIL), Maruti and HDFC twins

  • Domestic equities followed global stocks that rose on easing trade tension between the US and China.

The BSE Sensex jumped over 150 points in opening session on Friday tracking gains in index-heavyweights RIL, SBI and HDFC twins amid positive global cues.

The 30-share BSE index was trading 161.85 points or 0.39 percent higher at 41,325.61, and the broader NSE Nifty rose 57.70 points or 0.48 percent to 12,184.25, according to a PTI report.

On the other hand, TCS was the top loser, shedding up to 0.68 percent. Tata Steel, HUL, HCL Tech, Bajaj Auto and Tech Mahindra were also trading in the red.

In the previous session, the 30-share gauge ended 297.50 points, or 0.72 percent, lower at 41,163.76. Similarly, the Nifty closed 88 points, or 0.72 percent, down at 12,126.55.

 Sensex jumps over 150 points in opening session, Nifty up; RIL, SBI, HDFC top gainers amid positive global cues

Representative image. Reuters

Meanwhile, on a net basis, foreign institutional investors sold equities worth Rs 504.13 crore, while domestic institutional investors purchased shares worth Rs 120.46 crore on Thursday, data available with stock exchange showed.

According to traders, domestic equities followed global stocks that rose on easing trade tension between the US and China.

The domestic market is expected to wait for cues from the budget, they said.

Bourses in Shanghai, Hong Kong, Tokyo and Seoul were trading significantly higher in their respective early sessions.

Rupee appreciates 5 paise

The Indian rupee opened on a positive note and rose 8 paise to 71.23 against the US dollar in early trade on Friday tracking gains in domestic equity market, even as crude oil prices firmed up.

Forex traders' positive opening in domestic equities supported the rupee, while a steady rise in crude oil prices and foreign fund outflows weighed on the local unit.

At the interbank foreign exchange, the rupee opened at 71.26 then rose to 71.23 against the dollar, showing a rise of 8 paise over its previous closing.

The Indian rupee on Thursday had closed at 71.31 against the dollar.

Meanwhile, Brent crude futures, the global oil benchmark, rose 0.16 per cent to USD 68.03 per barrel.

Foreign institutional investors (FIIs) remained net sellers in the capital markets, as they sold shares worth Rs 504.13 crore on Thursday, as per provisional data.

Domestic bourses opened on a positive note on Friday with benchmark indices Sensex trading 161.59 points up at 41,325.35 and Nifty higher by 36.60 points at 12,163.15.

The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.10 per cent to 97.43.

The 10-year government bond yield was at 6.51 in the morning trade.

Meanwhile, on the global front, China slammed US defense act over trade restrictions.

The National Defense Authorization Act (NDAA)—signed into law last week—bars the use of federal funds to buy railcars and buses from China, and slows the lifting of sanctions on tech giant Huawei.

Asian shares at 18-month high

Asian shares jumped to an 18-month high on Friday while gold and oil prices stayed buoyant in a holiday-shortened week, as investor optimism was boosted by hopes a US-China trade deal would soon be signed.

Traders returned from their Christmas and Boxing Daybreak to digest comments from Beijing that it was in close contact with Washington about an initial trade agreement, shortly after U.S. President Donald Trump talked up a signing ceremony for the recently struck Phase 1 trade deal.

MSCI’s broadest index of Asia-Pacific shares outside Japan jumped 0.55 percent to 555.25, a level not seen since mid-2018. It is up about 16 percent so far this year.

Japan's Nikkei was flat, but on track for a near 20% rise this year, the biggest annual increase since 2013, Reuters said.

The country’s industrial output slipped for a second straight month in November in another sign the economy is cooling. Japan has approved a record budget for the coming fiscal year, in a bid to shore up growth.

Australia's benchmark index rose 0.2 pecent while Chinese shares were upbeat after Beijing laid out additional plans to bolster its economy, including infrastructure investments. The blue-chip CSI300 added 0.56%.

The rally in global share indices is in sharp contrast to a plunge late last year when fears about the impact of the Sino-US trade war had sapped investor confidence.

The worries scuttled capital expenditure plans over much of 2019, but strong employment and signs of an improving global economy suggest that will change next year.

The US Federal Reserve’s policy easing, economic data that has come in above low expectations, and corporate profits have helped lift stocks this year along with trade-related optimism.

Market participants are now waiting for fourth-quarter earnings in January for indication on whether sentiment among corporates has actually improved.

Overnight, MSCI’s all-country world index and Wall Street’s Dow Industrials, the benchmark S&P 500 and the technology-rich Nasdaq all closed at record highs.

MSCI’s gauge of stocks across the globe gained 0.38 percent to a record, on track for its best year since 2009. The index has gained 24 percent this year.

Wall Street was boosted overnight by US-China trade optimism and gains in Amazon.com.

Amazon shares jumped 4.4 percent after Mastercard said U.S. shoppers spent more online during the holiday season than in 2018, with e-commerce sales hitting a record.

--With inputs from agencies

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Updated Date: Dec 27, 2019 10:25:45 IST