The BSE Sensex surged over 300 points in the early trade on Friday on account of buying in frontline blue chip counters. Barring HDFC, rest all other components of the 30-share index were trading in green at 10.00 am. Bajaj Auto, Hero MotoCorp, GAIL, Axis Bank and Maruti Suzuki were trading higher by 2.70 per cent, 2.60 per cent, 2.30 per cent, 2.25 per cent and 2.09 per cent, respectively. Nifty 50-index also crossed the psychological mark of 8,800 in the early trade. At 10.19 am, Sensex was trading 314 points up at 28726, while Nifty 50 was up 88.10 points up at 8,830.65.
Below are 5 reasons why BSE Sensex surged over 300 points in the early trade.
1) Firm global cues: The US markets advanced on Thursday on account of easing concern about interest rate hike by the Federal Reserve and surge in the tech sector led by Apple. Dow Jones Industrial Average index advanced 0.99 per cent on Thursday. Asian peers also made a positive start on Friday following firm US markets.
2) Rupee: Indian rupee opened higher on Friday which further supported domestic equity markets in the early trade. At 10.07 am, the local currency was trading nearly 19 paise up at 66.84 against dollar.
3) Some support also came with reports that Prime Minister Narendra Modi targeting to roll out the GST Bill on April 1 next year and has directed that all steps required in this direction should be completed before that date.
4) Buying in auto, banking, power and telecom stocks further helped benchmark BSE Sensex to advance over 300 points in the early trade. The BSE Auto, BSE Bankex, BSE Power and BSE Telecom index were trading higher by 1.93 per cent, 1.66 per cent, 1.25 per cent and 1.14 per cent, respectively.
5) The country’s trade deficit narrowed slightly in August which further boosted market sentiment.