Indian benchmark equity indices, Sensex and Nifty, surged in early trade, propelled by a robust rally in IT stocks and positive global market sentiment, marking a strong start to Friday's trading session.
Key Points
- Indian benchmark equity indices, Sensex and Nifty, opened higher, supported by strong performance in IT stocks and positive cues from US markets.
- The BSE Sensex surged 451.46 points to 75,850.18, while the NSE Nifty gained 143.25 points to 23,832.85 in early trade.
- Major gainers included Infosys, Tech Mahindra, TCS, HCL Technologies, and several banking and auto stocks.
- Shares of oil marketing companies declined over 2 per cent following a Rs 3 per litre hike in petrol and diesel prices, the first increase in over four years.
- Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) were net buyers on Thursday, injecting Rs 187.46 crore and Rs 684.33 crore into equities, respectively.
Benchmark equity indices Sensex and Nifty climbed in early trade on Friday, supported by buying in IT stocks and firm trends in the US markets.
The 30-share BSE Sensex jumped 451.46 points, or 0.60 per cent, to 75,850.18 in morning trade. The 50-share NSE Nifty rose 143.25 points, or 0.60 per cent, to 23,832.85.
Top Gainers and Losers in Today’s Trade
Among the major gainers from the Sensex pack were Infosys, Tech Mahindra, Tata Consultancy Services, HCL Technologies, Kotak Mahindra Bank, HDFC Bank, PowerGrid, Bharti Airtel, Titan, Bajaj Finance, and Maruti Suzuki India.
On the other hand, Reliance Industries, State Bank of India, Eternal, Bharat Electronics Ltd, UltraTech Cement, Mahindra & Mahindra, Trent and Asian Paints were the laggards.
Impact of Fuel Price Hike
Shares of oil marketing companies dropped over 2 per cent after petrol and diesel prices were hiked by Rs 3 per litre each on Friday, the first rate increase in more than four years, amid mounting losses of fuel retailers due to surging global crude prices.
"The decision to increase the price of petrol and diesel by Rs 3 per litre and CNG by Rs 2 per kg indicate that the government is playing it safe through small increases, perhaps stage by stage, without triggering a sharp spike in cost-push inflation.
This is a welcome step," VK Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd, said.
Global Cues Supporting Indian Markets
Brent Crude, the global oil benchmark, rose more than 1 per cent to $107.01 per barrel.
In Asian markets, South Korea's KOSPI benchmark, Japan's Nikkei 225, and Hong Kong's Hang Seng traded lower, while Shanghai's SSE Composite index quoted in the green.
US markets ended nearly 1 per cent higher in overnight deals on Thursday.
Foreign Institutional Investors (FIIs) bought equities worth Rs 187.46 crore on Thursday, and Domestic Institutional Investors (DIIs) purchased stocks for Rs 684.33 crore, according to exchange data.
