The BSE Sensex jumped over 200 points in early trade on Friday led by gains in IT and banking stocks amid easing geopolitical tensions.
After hitting a high of 41,647.60, the 30-share BSE index was trading 207.85 points or 0.50 percent higher at 41,649.36. Similarly, the broader NSE Nifty advanced 60.25 points or 0.49 percent to 12,276.15, according to a PTI report
During opening session, the Sensex was trading 124.70 points or 0.30 percent higher at 41,577.05. Similarly, the broader NSE Nifty advanced 37.25 points or 0.30 percent to 12,253.15.
#CNBCTV18Market | Indices open higher for the second day; Infosys top index gainer ahead of Q3 earnings. Street expecting co to raise FY20 constant currency revenue guidance
— CNBC-TV18 (@CNBCTV18Live) January 10, 2020
Kotak Bank was the top gainer in the Sensex pack, rising up to 1.35 percent, followed by HCL Tech, Bharti Airtel, Infosys, Tech Mahindra, L&T, Hero MotoCorp and HDFC Bank.
On the other hand, PowerGrid, Asian Paints, ICICI Bank, IndusInd Bank, SBI and Nestle India were trading on a negative note.
In the previous session, Sensex rallied 634.61 points, or 1.55 percent, to end at 41,452.35, and Nifty surged 190.55 points, or 1.58 percent, to 12,215.90.
Meanwhile, on a net basis, foreign institutional investors sold equities worth Rs 431.11 crore, while domestic institutional investors purchased shares worth Rs 419.22 crore on Thursday, data available with stock exchanges showed.
According to traders, domestic equities extended gains as concerns over US-Iran standoff eased further after US lawmakers introduced a resolution on Thursday aimed at reining in President Donald Trump's ability to take military action against Iran.
Meanwhile, the US is likely to sign the first phase of a pending trade deal with China on January 15, pausing the nearly two-year trade war between the two countries.
Bourses in Hong Kong, Tokyo and Seoul were trading on a positive note in their early session, while Shanghai slipped in the red.
Exchanges on Wall Street ended with gains on Thursday.
Brent crude futures eased over 0.31 percent to $65.17 per barrel.
Rupee gains 7 paise amid easing oil prices
The Indian rupee rose 7 paise to 71.14 against the US dollar in opening trade on Friday, buoyed by sliding oil prices and a firm trend at global markets.
— CNBC-TV18 (@CNBCTV18Live) January 10, 2020
At the interbank foreign exchange market, the rupee opened marginally lower at 71.25 but soon stabilised to trade at 71.14.
The domestic unit had surged 48 paise to close at 71.21 against the US dollar on Thursday as investors cheered easing tensions between the US and Iran.
Meanwhile, US President Donald Trump on Thursday said Iran will never have a nuclear weapon, adding that Tehran was getting "hurt very badly" by US sanctions.
In what could open another front in the West Asia conflict, Canadian Prime Minister Justin Trudeau said multiple intelligence sources indicate that Iran shot down a Ukrainian airliner after it took off from Tehran, killing all 176 on board, including 63 Canadians.
However, Tehran alluded to "doubtful scenarios" and urged Canada to share its information.
World markets soared to record highs on Friday as investors looked beyond the West Asian volatility and focused on the upcoming US-China trade deal signing.
The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.03 percent lower at 97.42.
World stocks hit record high as techs lead relief rally
The world’s shares hit a record high on Friday as relief over de-escalation of US-Iranian tensions quickly prompted investors to bet on faster global growth, especially in the technology sector.
MSCI’s broadest gauge of the world’s stocks in 49 countries rose a tad to hit an all-time high and its index of Asia-Pacific shares outside Japan rose 0.18 percent.
Japan’s Nikkei rose 0.34 percent while Australian stocks rallied 0.7 percent to a record high. Chinese shares were little changed.
Asia’s gains followed record-setting in the pan-regional STOXX 600 index in Europe and the three major stock indexes on Wall Street.
The S&P 500 gained 0.67 percent, with its technology sector rising more than 1 percent. Apple gained 2.1 percent, helped by news that sales of its iPhones in China in December jumped more than 18 percent year-on-year.
Investors welcomed the report as a prelude to the upcoming visit by China’s Vice Premier Liu He, head of the country’s negotiation team in Sino-US trade talks, to Washington next week to sign a trade deal with the United States.
“We will have a symbolic event of Sino-U.S. dialogue. Given the current strength of the market, it is hard not to expect this rally to continue for the time being,” said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities in Tokyo.
Global shares quickly erased losses that followed missile attacks from Iran targeting US forces in Iraq, as the two countries moved to defuse the tension.
“On top of easing tensions in Iran, optimism on US corporate earnings are fuelling sentiment. The euphoria is coming back to the markets,” said Masanari Takada, cross-asset strategist at Nomura Securities.
While analysts expect slight declines in profits for S&P 500 companies in the last quarter, they see a solid recovery this year.
Waning worries about all-out war in the Middle East pushed down gold, safe-harbour currencies and oil.
Gold eased 0.3% to $1,547.8 per ounce from a seven-year high of $1,610.90 hit right after Iran’s missile attack on Wednesday.
Against the yen, the US dollar traded at 109.52 yen, having hit a two-week high of 109.58 in US trade on Thursday.
The euro stood little changed at $1.1105, having fallen to $1.10915 in the US trade, its lowest in about two weeks.
Sterling fell to a near two-week low against the US dollar after Bank of England Governor Mark Carney said there could be a “relatively prompt response” from the bank if the current spell of economic weakness persisted.
The pound last stood at $1.3069, having fallen to as low as $1.3014 in the previous session.
Oil prices were sharply lower from their highs hit in the wake of Iran’s missile attack.
US West Texas Intermediate crude fell to as low as $58.66 per barrel on Thursday and last stood at $59.38, down 0.3 percent on the day, compared to Wednesday’s peak of $65.65.
--With inputs from agencies
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Updated Date: Jan 10, 2020 10:54:00 IST