Sensex rallies over 400 points in early trade; tracks gains in index majors TCS, Reliance Industries

Mumbai: Equity benchmark Sensex rallied over 400 points in early trade on Friday, tracking gains in index majors HDFC twins, Reliance Industries and TCS amid positive cues from global markets. The 30-share BSE index was trading 416.43 points or 0.85 percent higher at 49,366.19 in initial deals. Similarly, the broader NSE Nifty surged 121.10 points or 0.82 percent to 14,845.90. IndusInd Bank was the top gainer in the Sensex pack and rose over 2 percent, followed by M&M, NTPC, HDFC Bank, SBI, TCS, Asian Paints and Reliance Industries. On the other hand, Bajaj Auto, PowerGrid, Bharti Airtel and Nestle India were among the laggards. In the previous session, Sensex closed higher by 272.21 points or 0.56 percent at 48,949.76, and Nifty ended with a gain of 106.95 points or 0.73 percent at 14,724.80. Foreign institutional investors (FIIs) were net buyers in the capital market as they bought shares worth Rs 1,222.58 crore on Thursday, while domestic institutional investors (DIIs) purchased shares worth Rs 632.51 crore, according to provisional exchange data. “There is a view among many market experts that the present resilience of the market (down only around 5 per cent from February highs) is irrational when viewed from the perspective of the health crisis and pain that the nation and the economy are going through,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. Vijayakumar further said “while there is logic in this view, it is important to appreciate the fact that we are part of the global bull market and the resilience of the Indian market mainly arises from the ‘‘hope trade’’ being fuelled by the expectation that the second wave will peak in May and the economy will quickly rebound.” Moreover, Q4 results have been broadly above expectations. The market may continue to be resilient, he added. Elsewhere in Asia, bourses in Shanghai, Hong Kong, Tokyo and Seoul were trading on a positive note in mid-session deals. Equities on Wall Street ended with gains in overnight trade. Meanwhile, international oil benchmark Brent crude was trading 0.57 percent higher at $68.48 per barrel.