Sensex jumps over 200 points, NSE above 9,390-level in opening trade; RIL, ICICI Bank, HDFC among early gainers

ONGC was the top gainer in the Sensex pack, rising around 3 percent, followed by Tata Steel, L&T, HDFC Bank, ICICI Bank, IndusInd Bank and Axis Bank. On the other hand, M&M, ITC, Infosys, Bajaj Auto, TCS and HCL Tech were among the laggards

FP Staff May 28, 2020 11:13:32 IST
Sensex jumps over 200 points, NSE above 9,390-level in opening trade; RIL, ICICI Bank, HDFC among early gainers

Shares edged higher on Thursday as signs the government is ready to step in to support state-run banks supported financial shares for a second day, adding to a broadly more positive global mood.

Sensex jumped over 200 points in early trade on Thursday as index-heavyweights HDFC twins, Reliance Industries and ICICI Bank extended their gains ahead of May derivatives expiry. After touching a high of 31,899.31 in opening session, the 30-share index was trading 259.92 points or 0.82 percent higher at 31,865.14.

Similarly, NSE Nifty rose 81.20 points or 0.87 percent to 9,396.15.

Manish Hathiramani, Index Trader and Technical Analyst, Deen Dayal Investments, told Firstpost, "The markets opened above the crucial 9,350 levels and we need to hope it stays above those levels for a couple of trading sessions. If we are successful in doing that, the Nifty50 should attempt 9700 levels in the June series itself. The support range of the market has now been upgraded to 9,000-9,050 levels."

ONGC was the top gainer in the Sensex pack, rising around 3 percent, followed by Tata Steel, L&T, HDFC Bank, ICICI Bank, IndusInd Bank and Axis Bank. On the other hand, M&M, ITC, Infosys, Bajaj Auto, TCS and HCL Tech were among the laggards.

In the previous session, the BSE barometer settled 995.92 points or 3.25 percent higher at 31,605.22, while the broader Nifty surged 285.90 points or 3.17 percent to 9,314.95.

On a net basis, foreign portfolio investors sold equities worth Rs 334.74 crore in the capital market on Wednesday, provisional exchange data showed.

Benchmarks are rising on account of short-covering by market participants ahead of May derivatives expiry, analysts said.

However, investor sentiment continues to remain cautious as coronavirus cases has been on a rise in the country, they noted.

Asian shares and US stock futures rose on Thursday as growing optimism about economic recovery from the pandemic trumped immediate concerns about a standoff between the United States and China over Hong Kong, Reuters said.

The number of coronavirus cases in India climbed to 1,58,333 and the death toll touched 4,531, as per health ministry data. Globally, the number of cases linked to the disease has crossed 56.93 lakh and the deceased tally stood around 3.55 lakh.

Meanwhile, bourses in Tokyo and Seoul were trading with gains as optimism over the reopening of major economies across the planet continued to push equities higher.

Stock exchanges on Wall Street ended on a positive note in overnight trade.

International oil benchmark Brent crude futures were trading 2.53 percent lower at $33.86 per barrel.

Rupee falls 19 paise to 75.90 against dollar

The rupee depreciated 19 paise to 75.90 against the US dollar in opening trade on Thursday tracking weak Asian currencies amid escalation of tension between the US and China.

Forex traders said rising US-China tension weighed on the local currency even as positive domestic equities and improving risk appetite supported the local unit, according to a PTI report.

The rupee opened weak at 75.90 at the interbank forex market, down 19 paise over its last close.

It had settled at 75.71 against the US dollar on Wednesday.

"Asian currencies are weak this Thursday morning after US President Donald Trump said he was working on a strong response to China''s proposed security law in Hong Kong," Reliance Securities said in a research note.

It further said that currencies could track the local equities during the session amid optimism over the reopening of economies combined with monetary and fiscal support the respective economies.

On the domestic equity market front, the 30-share benchmark Sensex was quoting 321.01 points higher at 31,926.23 and the broader Nifty rose 84.40 points to 9,399.35.

Foreign institutional investors were net sellers in the capital market, as they sold equity shares worth Rs 334.74 crore on Wednesday, according to provisional exchange data.

Brent crude futures, the global oil benchmark, fell 2.48 per cent to USD 33.88 per barrel.

The dollar index, which gauges the greenback''s strength against a basket of six currencies, fell by 0.08 per cent to 98.98.

Meanwhile, in India, the death toll due to COVID-19 rose to 4,531 and the number of cases climbed to over 1.58 lakh in the country, according to the Health Ministry.

The number of cases around the world linked to the disease has crossed over 56.93 lakh and the death toll has topped 3.55 lakh.

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