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5 reasons why BSE Sensex surged over 350 points in early trade

Benchmark indices BSE Sensex and NSE Nifty surged over a percentage point in the early trade on Thursday after US Fed kept interest rates unchanged.

By: | New Delhi | Updated: September 22, 2016 10:01 AM
Sensex, Nifty, BSE, NSE, bajaj finance Benchmark indices BSE Sensex and NSE Nifty surged over a percentage point in the early trade on Thursday after US Fed kept interest rates unchanged.

Benchmark indices BSE Sensex and NSE Nifty surged over a percentage point in the early trade on Thursday after the US Fed kept interest rates unchanged. Among the 51-components in the Nifty index, 49 stocks were trading in green with Hindalco surging over 3.5 per cent, followed by Bank of Baroda (up 2.65 per cent), YES Bank (up 2.52 per cent), Bharti Infratel (up 2.46 per cent) and ICICI Bank (up 2.45 per cent). On the other hand, Wipro was down 0.12 per cent in the early trade. Sensex rallied over 350 points in the early trade, while Nifty crossed the psychological level of 8,850.

The FIIs as per Wednesday’s data were net buyers in equity and debt segments both, according to data released by the NSDL. In equity segment, the gross buying was of Rs 4,551.11 crore against gross sell of Rs 3,445.40 crore. Thus, FIIs stood as net buyers of Rs 1105.71 crore in equities. In the debt segment, the gross purchase was of Rs 1280.64 crore with gross sales of Rs 1214.76 crore. Thus, FIIs stood as net buyers of Rs 65.88 crore in debt.

Below are 5 reasons which supported market sentiments on Thursday:

1) Asian markets were trading higher in the morning trade post US Fed meet. Hang Seng, Nikkei and Shanghai were trading up by 1.14 per cent, 1.91 per cent and 0.75 per cent, respectively.

2) Firm closing of US Markets further supported market sentiments with Nasdaq surging to a new record closing high. Dow Jones Industrial Average index gained 163.74 points to 18,293.7, the S&P 500 index jumped 23.36 points to 2,163.12 and the Nasdaq Composite advanced 53.83 points to 5,295.18.

3) Traders also got some support with the report that country’s current account deficit (CAD) narrowed to $0.3 billion, or 0.1 per cent of GDP, in the first quarter of 2016-17, significantly lower than $ 6.1 billion or 1.2 per cent of GDP in Q1 of 2015-16 on account of lower trade gap.

4) Strong opening of Indian rupee also strengthened market movement in the early trade on Thursday. The local currency was trading 13 paise higher at 66.89 around 9.45 am.

5) Across the board buying in sectors such as metal, oil & gas, auto, banking further helped benchmark indices to start on a robust note.

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