Domestic equity market benchmarks Sensex and Nifty opened on a positive note lifted by gains in RIL, HDFC twins, ICICI Bank, Infosys. “Market is finding some sanity after the setback of not meeting high expectations from the budget, hereon the focus will be on corporate results and global trend. With valuations on the higher side, the on-going results reported have been mostly in line with estimates. Manufacturing PMI shows notable rebound providing a breather that economy will stabilize as mentioned in the budget,” Vinod Nair, Head of Research at Geojit Financial Services said.
Here’re the key factors leading the rally-
Sensex, Nifty up over 1.75%- Around 11 AM, the S&P BSE Sensex was trading 700 points or 1.76 per cent higher at 40,574 points, while the broader Nifty 50 index was trading 205 points or 1.76 per cent higher at 11,914 points.
29 out of 30 Sensex stocks in green- As many as 29 out of 30 Sensex stocks were trading in green in the today’s trade. Hero MotoCorp, HDFC Bank, RIL, ITC and UltraTech Cement were among the top gainers. On the other hand, Bharti Airtel was trading over 0.25 per cent lower ahead of Q3 earnings.
All Nifty sectoral indices in green- All the Nifty sevtoral indices were trading in green. Nifty Bank index gained over 1.5 per cent or 454 points led by gains in HDFC Bank, ICICI Bank, IDFC First Bank and Punjab National Bank. The Nifty Metal index, too, was tradinh higher with Welspun Corp, Hindustan Copper, APL Apollo Tubes as the top gainers.
Rupee gains- The Indian rupee rose 0.23 per cent or 16 paise against the US dollar. It was trading at 71.20 per dollar level.
Q3 earnings today- Bharti Airtel, Adani Ports, Cipla, HPCL, Divi’s Lab are among the companies which are scheduled to release their December quarter earnings today.
Manufacturing PMI scales near 8-year peak in January- Indian manufacturing output picked up at the fastest pace in almost eight years in January, with the PMI touching 55.3. Growth was led by consumer and intermediate goods, and capital goods moved back to expansion.
Oil prices surge- Oil prices rose on Tuesday as investors regained calm after Monday’s sharp sell-off over coronavirus fears. Brent crude was at $54.66 a barrel, up 21 cents, or nearly 0.4 per cent, while US West Texas Intermediate (WTI) crude was up 32 cents, or 0.6 per cent, at $50.43 a barrel.
Global markets- MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1.0 per cent, led by gains in South Korea and Australia. Japan’s Nikkei inched up 0.1 per cent. The Dow Jones Industrial Average rose 143.78 points, or 0.51 per cent, to 28,399.81, the S&P 500 gained 23.4 points, or 0.73 per cent, to 3,248.92, and the Nasdaq Composite added 122.47 points, or 1.34 per cent, to 9,273.40.