Tracking positive global cues after the release of US Fed meeting minutes, Indian equity indices opened higher on Thursday, led by IT, banking and financial stocks.
BSE Sensex was trading 154 points or 0.25% higher at 61,665. Nifty50 was trading at 18,314, up 47 points or 0.26% at around 9.17 am.
“The US market construct of ‘rising equity-falling bond yields-falling dollar’ continues favouring the bulls. In addition to this favourable global cues, in India, the steadily falling crude is another positive,” V K Vijayakumar, Chief Investment Strategist at said.
“The FOMC minutes indicate slowing of the rate hikes, going forward. Consequently, the 10-year yield fell to 3.69% and the dollar index slipped to 106. So long as this trend continues, bears will be on the back foot,” Vijayakumar added.
“In India macro news confirms the resilience of the Indian economy. Investment is gaining momentum. The latest RBI data shows credit growth at an impressive 17% YoY. This is good news for the banking and capital goods stocks,” he said.
Among Sensex stocks, M&M, , , HUL, , and were the top gainers, rising about 0.5-1%. , , , , L&T and also opened higher.
On the other hand, , , , , NTPC and ITC opened lower.
Sectorally, Nifty PSU Bank rose 1.04% and Nifty IT surged 0.39%. Nifty Financial Services and Nifty Media also opened higher. Whereas, in the broader market, Nifty Midcap50 rose 0.18% and Smallcap50 advanced 0.55%.
All the US and European markets closed higher yesterday after the Fed meeting minutes indicated that interest rate hike may slow down. Asian markets are also trading higher after expectations of smaller rate hikes from the Fed.
On Wednesday, US Market’s Dow Jones Industrial Average rose 1.08%, S&P 500 surged 0.59% and Nasdaq Composite advanced 0.99%.
In early trade in Asian markets, Japan’s Nikkei 225 increased 0.61% and South Korea’s Kospi rose 0.12% while China’s Shanghai Composite declined 0.11%.
The Indian rupee depreciated 19 paise to 81.69 against the US dollar in early trade on Thursday. Meanwhile, the dollar index, which tracks the movement of the greenback against a basket of six major world currencies, decreased 0.38% to 105.66 level.
Brent crude January futures fell 0.22% to $85.22 a barrel, while U.S. West Texas Intermediate (WTI) crude futures slipped 0.06% to $77.89 a barrel.
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