Sensex rises over 150 points in early trade ahead of key macro data releases; Tata Steel, ICICI Bank among top gainers

  • After touching a high of 37,421.13, the 30-share index was trading 89.87 points 0.24%, higher at 37,360.69

  • Domestic investors are waiting factory output and inflation data, scheduled to be released later in the day

  • Yes Bank, Tata Motors, Bharti Airtel, Bajaj Auto, Infosys and Axis Bank fell up to 2.72%

Domestic equity benchmark BSE Sensex advanced 150 points in the early session driven by by gains in banking, metal and energy stocks, ahead of key macroeconomic data releases.

After touching a high of 37,421.13, the 30-share index was trading 89.87  points 0.24 percent, higher at 37,360.69, while the broader Nifty rose 25.35 points, or 0.23 per cent, to 11,061.05.

In the previous session, the BSE barometer ended 125.37 points, or 0.34 per cent, higher at 37,270.82. Similarly, the broader NSE Nifty rose 32.65 points, or 0.30 per cent, to finish at 11,035.70.

Top gainers in the Sensex pack on Thursday included Tata Steel, ICICI Bank, IndusInd Bank, ONGC, Vedanta, Sun Pharma, HDFC, SBI, M&M, Maruti and HCL Tech, rising up to 2.43 percent.

On the other hand, Yes Bank, Tata Motors, Bharti Airtel, Bajaj Auto, Infosys and Axis Bank fell up to 2.72 per cent.

On Wednesday, foreign portfolio investors bought shares worth a net of Rs 266.89 crore, and domestic institutional investors purchased equities worth Rs 1,132.42 crore, provisional data showed, reported PTI.

 Sensex rises over 150 points in early trade ahead of key macro data releases; Tata Steel, ICICI Bank among top gainers

Stock brokers. Representational image. Reuters.

Besides positive cues from global markets, domestic investors are waiting factory output and inflation data, scheduled to be released later in the day, traders said.

"The recent announcement related to government's intent to front load capital investments in infrastructure development to support the economy has also boosted the sentiments," said Gaurav Dua, Senior VP, Head – Capital Market Strategy, Sharekhan by BNP Paribas.

Meanwhile, US President Donald Trump on Wednesday delayed an additional increase in tariffs on Chinese goods by two weeks, pushing MSCI’s broadest index of Asia-Pacific shares outside Japan 0.4 percent higher, reported Reuters.

Investors also await an European Central Bank meeting later in the day amid expectations that it would start another wave of monetary easing by central banks around the globe.

In the local markets, the Nifty Metals index rose as much as 1.4 percent to a near five-week high. Shares of Tata Steel Ltd and JSW Steel Ltd were among the top gainers on the NSE index.

Mortgage lender Indiabulls Housing Finance Ltd gained as much as 3.14 percent, its sharpest intraday rise in more than two weeks.

Markets is also awaiting consumer price index (CPI) data due later today (Thursday). The country’s retail inflation likely rose to a 10-month high in August, while staying below the Reserve Bank of India’s (RBI) medium-term target of 4 percent, a Reuters poll of economists showed.

“We are seeing stability and return of positive sentiment, there is still some sort of resistance as there are doubts about how long this momentum will sustain,” said Deepak Jasani, senior vice-president at HDFC Securities.

“Local cues giving indication of resurgence of growth will be keenly watched in the near term,” he added.

The Nifty public sector bank index, which tracks the country’s state-owned lenders, gained about 0.95 percent to its highest in over two weeks.

Yes Bank Ltd and Tata Motors Ltd fell 1.8 percent and 1.6 percent, respectively, and were the top losers on the NSE Nifty.

Elsewhere in Asia, bourses in Shanghai, Japan and Korea were trading in the green in their respective late morning sessions amid hopes of a resolution in the US-China trade tiff and expectations that the European Central Bank would kick off monetary easing by global central banks.

On Wall Street, bourses ended significantly higher on Wednesday.

The rupee, meanwhile, appreciated 33 paise against its previous close at 71.33 in early session.

Global oil benchmark Brent crude rose 0.43 per cent to 61.24 per barrel (intra-day).

With inputs from agencies

Updated Date: Sep 12, 2019 11:29:04 IST