Equities edged higher on Monday ahead of the release of key inflation data, while broader Asian peers rose on optimism after US President Donald Trump outlined the first phase of a deal to end the trade war with China. He suspended a threatened tariff hike last week, though officials on both sides said much more work needs to be done.
Sensex rose over 150 points on Monday led by gains in HDFC Bank, ITC and HUL, amid positive global cues and foreign fund inflow.
After opening on a volatile note, the 30-share index swung over 200 points in early trade. It was trading 105.79 points or 0.28 percent, higher at 38,232.87 at 0945 hours. Similarly, the broader NSE Nifty rose 34 points, or 0.32 percent, to 11,340.80, a PTI report said.
#CNBCTV18Market | Market opens in the green amid strong global cues; 38 Nifty cos open in the green with Infosys leading losers after Q2 earnings, followed by UPL
— CNBC-TV18 (@CNBCTV18Live) October 14, 2019
All sectoral indices at the National Stock Exchange were in the green except for IT which slipped by 0.8 percent. Top gainers in the Sensex pack in the early session included Tata Motors, Vedanta, Tata Steel, Sun Pharma, Bajaj Auto, IndusInd Bank, Bharti Airtel, HUL and SBI, rising up to 4 percent.
Infosys results came after a below-par showing from larger rival Tata Consultancy Services a day earlier.
Infosys, PowerGrid, TechM, Kotak Bank and TCS fell up to 3 percent.
UPL, Cipla, Zee Entertainment, Power Grid Corporation and Bharti Infratel too were in the red.
Metal stocks led gains, as the Nifty metals rose about 1.1 percent as commodity prices rose due to the progress in the Sino-US trade talks, Reuters said. Realty was up by 1.3 per cent.
In the previous session on Friday, the BSE barometer ended 246.68 points, or 0.65 percent, higher at 38,127.08, and the Nifty rose 66.70 points, or 0.59 percent, to 11,301.25.
Foreign institutional investors (FIIs) turned net buyers in the capital market, infusing Rs 749.74 crore on Friday, while domestic institutional investors sold shares worth Rs 703.02 crore, data available with stock exchange showed.
Domestic equities followed global stocks that rallied after US President Donald Trump announced that US had reached a "very substantial" Phase 1 trade deal with China.
Bourses in Shanghai, Hong Kong, Seoul and Tokyo were trading significantly higher.
Asian share markets firmed on Monday as signs of progress in the Sino-U.S. trade standoff whetted risk appetites, though investors remained wary of the damage already done to the global economy.
Figures from China underlined the pain felt as dollar-denominated exports and imports both fell by more than expected in September.
Liquidity was also lacking with Japan off and a partial market holiday in the United States for Columbus Day. MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 1.1% in light trade.
Australia's main index tacked on 0.6 percent and South Korea rose 1.4 percent. Shanghai blue chips added 1.4 percent.
Nikkei futures were trading at 22,080 NKc1 compared with a Friday close of 21,798 in the Nikkei cash index. E-Mini futures for the S&P 500 ESc1 nudged up 0.2 percent after jumping on Friday, while futures were little changed.
Sentiment had been boosted when US President Donald Trump outlined the first phase of a deal to end a trade war with China and suspended a threatened tariff hike, though officials on both sides said much more work needed to be done.
The emerging deal, covering agriculture, currency and some aspects of intellectual property protections, would represent the biggest step by the two countries in 15 months.
Analysts, however, advised caution.
“We have seen a truce established, and then broken, before,” said Tai Hui, chief market strategist for Asia at JPMorgan Asset Management.
“The threat to global growth is weak corporate capex, and potentially spilling over into the consumer sector,” Hui added. “CEOs are not going to restart investing again merely because of the latest round of agreement between the two sides.”
The drag from the trade war was a major reason Singapore’s central bank eased monetary policy on Monday for the first time in three years as data showed the city-state’s economy had only narrowly dodged recession.
Market sentiment volatile
Market sentiment, however, remained volatile amid concerns over an economic slowdown after the World Bank on Sunday said India's growth rate is projected to fall to 6 percent after a broad-based deceleration in the initial quarters of this fiscal year, traders said.
Markets are also reacting to industrial output data released Friday evening, traders said. Industrial output declined by 1.1 percent in August due to poor performance by manufacturing, power generation and mining sectors, official data showed. Further, wholesale inflation data is scheduled to come on Monday, which may also influence trading, according to analysts.
The rupee, meanwhile, appreciated 19 paise against its previous close to trade at 70.83 in early session.
— CNBC-TV18 (@CNBCTV18Live) October 14, 2019
Brent futures, the global oil benchmark, fell 0.51 percent to $60.20 per barrel.
--With agency inputs
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Updated Date: Oct 14, 2019 11:06:13 IST