Equity benchmark indices in India began trading on a firm note on Monday, supported by the continuous inflow of foreign funds and a rally in US equities. The 30-share BSE Sensex rose by 391.8 points to 61,446.09 in early trade, while the NSE Nifty climbed 107.3 points to 18,176.30. Buying in index majors Reliance Industries and HDFC twins also supported the rally in the markets. Among the Sensex firms, IndusInd Bank, Mahindra & Mahindra, Kotak Mahindra Bank, Power Grid, Bajaj Finance, HDFC, ICICI Bank, Axis Bank, Tata Motors, Reliance Industries, and HDFC Bank were the biggest gainers, while Infosys was the only laggard.
Asian markets, including Seoul, Shanghai, and Hong Kong, were trading with gains, while Tokyo was quoting lower. The US markets had ended with significant gains on Friday. Foreign Institutional Investors (FIIs) were net buyers on Friday, purchasing equities worth Rs 777.68 crore, according to exchange data. “FIIs have been continuous buyers in India during the last seven trading sessions, cumulatively buying equity worth Rs 11,700 crore,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
The April US jobs data, which came in at a much better-than-expected 2,53,000 jobs, reflected a strong economy that may even avoid a recession. This and the receding fears from the regional banking crisis indicated that the cues from the mother market US were positive. Meanwhile, global oil benchmark Brent crude rose by 0.08% to USD 75.36 per barrel.
On Friday, the BSE benchmark had tanked 694.96 points, or 1.13%, to settle at 61,054.29, while the Nifty had fallen 186.80 points, or 1.02%, to end at 18,069. The continuous inflow of foreign funds and a rally in US equities have driven the market’s early trade rebound on Monday.
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