Sensex Rises Over 100 Pts in Early Trade on Positive Global Cues

Equity benchmark Sensex rose over 100 points in early trade on Tuesday, tracking gains in index majors Infosys, Tata Steel and Reliance Industries amid a positive trend in global equities.

The 30-share index was trading 148.72 points or 0.27 per cent higher at 55,704.51, while the broader NSE Nifty advanced 49.15 points or 0.30 per cent to 16,545.60.

Tata Steel was the top gainer in the Sensex pack, rising around 3 per cent, followed by Tech Mahindra, NTPC, L&T, PowerGrid, IndusInd Bank and UltraTech Cement.

On the other hand, Maruti, Asian Paints, Kotak Bank and HDFC were among the laggards.

“Domestic equities look to be good as of now. Benchmark indices witnessed high volatility in recent period especially after FOMC meeting minutes, which essentially indicates that liquidity-driven market might come to an end,” said Binod Modi, Head of Strategy at Reliance Securities.

Notably, the minutes of the RBI’s Monetary Policy Committee meeting held at the beginning of this month continues to show its commitment to ensuring policy support to sustain economic recovery despite select members showing some apprehensions about high inflation and pitching for gradual normalisation in ultra-loose monetary policy, he stated.

Meanwhile, the Union Health Ministry has declared that the number of active Covid-19 cases in the country has declined to 3,19,551. A single-day rise of 25,467 new infections and 354 fatalities has push India's tally of cases to 3,24,74,773 and death toll to 4,35,110.

Elsewhere in Asia, bourses in Shanghai, Hong Kong, Tokyo and Seoul were trading with strong gains in mid-session deals.

US equities recovered sharply as investors focused on the likelihood of dovish tone from Federal Reserve Chairman in the Jackson Hole Symposium later this week, Modi said.