Equity benchmark Sensex jumped over 300 points in the opening trade on Wednesday, tracking gains in index majors Infosys, HDFC and Reliance Industries amid positive cues from global markets and fresh foreign funds flow.
The 30-share BSE index traded 329.15 points or 0.65 per cent higher at 51,354.63, and the broader NSE Nifty quoted 95.75 points or 0.63 per cent up at 15,194.15 during the early hours of trade.
IndusInd Bank led the gainers’ pack on the Sensex, rising around 3 per cent, followed by Bajaj Finance, M&M, HDFC, Infosys, HCL Tech, Titan, Bajaj Finserv and Reliance Industries. ONGC, Bharti Airtel, ITC and Nestle India were laggards.
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Sensex ended Tuesday 584.41 points or 1.16 per cent higher at 51,025.48, and Nifty surged 142.20 points or 0.95 per cent to 15,098.40.
Foreign institutional investors (FIIs) were net buyers in the capital market as they purchased shares worth Rs 2,801.87 crore on Tuesday and domestic institutional investors (DIIs) bought a net of Rs 1,250.22 crore, says exchange data.
According to VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, in this see-saw game in the market, bulls and bears are giving up and regaining their dominance in tune with macro trends.
“A rise in bond yields temporarily strengthens the bears and when yields fall, bulls come back strongly. Now it appears that the US 10-year bond yield is likely to consolidate in the 1.5-1.6 per cent range for the short-term,” he says. FIIs are back to buying mode and along with DIIs, they will impart strength to the market, he says.
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Brent cooling off a bit also is a good macro input, points out Vijayakumar. The global oil benchmark was trading 0.80 per cent lower at $66.98 per barrel.
Bourses in Shanghai, Hong Kong, Seoul and Tokyo were trading on a positive note in mid-session deals. US equities too ended on a positive note in overnight trade.
