Sensex, Nifty rise in early trade on Asian cues and Fed rate cut hopes

Sensex and Nifty opened higher on Thursday, tracking gains in Asian markets and hopes of a US Fed rate cut. Optimism over India-US trade talks also supported sentiment, even as FIIs sold shares while DIIs provided strong buying support.

Mumbai: Equity benchmark indices Sensex and Nifty were trading with gains in early trade on Thursday tracking a rally in Asian markets amid hopes that the US Federal Reserve will cut interest rates next week.

Renewed optimism over a successful conclusion of India-US trade talks also lend support to the markets to stay in the positive territory.

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The 30-share BSE Sensex climbed 153.82 points to 81,578.97 in early trade. The 50-share NSE Nifty went up 34.15 points to 25,007.25.

From the Sensex firms, Eternal, Adani Ports, NTPC, Bajaj Finance, State Bank of India and Bajaj Finserv were among the major gainers.

However, Infosys, Tech Mahindra, UltraTech Cement and Kotak Mahindra Bank were among the laggards.

In Asian markets, South Korea’s Kospi, Japan’s Nikkei 225 index and Shanghai’s SSE Composite index traded in positive territory while Hong Kong’s Hang Seng quoted lower.

US markets ended on a mixed note on Wednesday.

“India’s resilient macros and the sweeping reforms implemented this year, particularly the GST reforms, have taken the economy to the cusp of a breakout growth,” VK Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd, said.

Foreign institutional investors (FIIs) offloaded equities worth Rs 115.69 crore after a day’s breather on Wednesday, according to exchange data. However, domestic institutional investors (DIIs) bought stocks worth Rs 5,004.29 crore in the previous day.

“Hopes of a US-India trade deal and record highs in the S&P 500 and Nasdaq on softer US PPI keep bullish momentum intact,” Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.

Global oil benchmark Brent crude dipped 0.07 per cent to USD 67.44 a barrel.

On Wednesday, the Sensex climbed 323.83 points or 0.40 per cent to settle at 81,425.15, registering its third straight day of gain. The Nifty rallied 104.50 points, or 0.42 per cent, to 24,973.10.