Sensex, Nifty rise in early trade on global rally, US-China trade optimism, FII inflows

Benchmark indices Sensex and Nifty opened higher on Wednesday, tracking global gains and optimism over US-China trade negotiations. Positive FII inflows and firm Asian markets contributed to the upward momentum, while Brent crude saw a marginal dip.

Mumbai: Equity benchmark indices Sensex and Nifty climbed in initial trade on Wednesday following a rally in global markets amid US-China trade talks optimism and foreign fund inflows.

The 30-share BSE Sensex rose 118.11 points to 82,509.83 in early trade. The 50-share NSE Nifty went up by 33.3 points to 25,137.55.

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From the Sensex firms, Eternal, Reliance Industries, Mahindra & Mahindra, Tata Motors, NTPC and Tata Steel were among the biggest gainers.

Kotak Mahindra Bank, HDFC Bank, Power Grid, Larsen & Toubro, IndusInd Bank and Axis Bank were among the laggards.

In Asian markets, South Korea’s Kospi, Japan’s Nikkei 225 index, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng were trading in the positive territory.

US markets ended higher on Tuesday.

Foreign Institutional Investors (FIIs) bought equities worth Rs 2,301.87 crore on Tuesday, according to exchange data.

“The market is likely to continue in the consolidation range with a slight upward bias. A clear breakout above the Nifty 25,100 level, and sustaining above this level, will require sustained large buying.

“This can happen on positive news regarding a US-China trade deal. Reports of both countries reaching an agreement to implement the Geneva consensus are positive,” VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said.

Global oil benchmark Brent crude dipped 0.16 per cent to USD 66.76 a barrel.

On Tuesday, the 30-share Sensex declined by 53.49 points or 0.06 per cent to settle at 82,391.72. The Nifty eked out a marginal gain of 1.05 points to end at 25,104.25.