Sensex rallies over 500 points in early trade
Equity benchmark Sensex surged over 500 points in opening trade on Tuesday tracking gains in index majors HDFC twins, ICICI Bank and Reliance Industries amid mixed cues from global markets. The 30 share BSE index was trading 509.07 points or 1.01 percent higher at 50,950.14, and the broader NSE Nifty was quoting 149.35 points or one percent up at 15,105.55.
Who were the top gainers and laggards?
HDFC Bank was the top gainer in the Sensex pack, rising around two percent, followed by UltraTech Cement, Bajaj Finance, HDFC, M&M, Tech Mahindra, and Asian Paints. On the other hand, ONGC and PowerGrid were the laggards.
Foreign institutional investors offloaded shares worth Rs. 1,494.49 crore
In the previous session, Sensex had settled 35.75 points or 0.07 percent higher at 50,441.07, and Nifty ended higher by 18.10 points or 0.12 percent at 14,956.20. Foreign institutional investors were net sellers in the capital market, offloading shares worth Rs. 1,494.49 crore on Monday, as per exchange data. In the US, equities ended on a mixed note in overnight trade on Monday.
What affected the rise and fall in prices?
"Rising crude prices, surge in bond yields in the US, and weakening INR could be a near-term risk for domestic equities, which has already resulted in FPIs' outflow in recent days," said Binod Modi Head-Strategy, Reliance Securities. "We believe the recent rise in bond yield is discounting a faster recovery in economic growth and is unlikely to move northward beyond a point," he added.
Global oil benchmark Brent crude trading at $68.88 per barrel
"US markets are being driven by anticipations of faster economic recovery led by aggressive fiscal spending and faster reopening of the economy, which may also stoke inflation," Modi added. Elsewhere in Asia, Hong Kong, and Tokyo were trading on a positive note, while Shanghai, Seoul were in the red. The global oil benchmark Brent crude was trading 0.94 percent higher at $68.88 per barrel.
