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Markets rise in early trade amid firm global trends

Tech Mahindra, Infosys, and HCL Technologies were among major winners

Representative Image | PTI Representative image | PTI

Benchmark indices rallied in early trade on Thursday tracking firm global market trends and continuous foreign fund inflows.

Buying in IT counters also added to the momentum.

After a firm beginning, the 30-share BSE Sensex further rallied 483.42 points to 63,583.07, its lifetime intra-day peak in early trade.

The broader NSE Nifty climbed 129.25 points to 18,887.60.

Among the Sensex pack, Tech Mahindra, Infosys, HCL Technologies, Wipro, Tata Consultancy Services, HDFC Bank, Larsen & Toubro and HDFC were the major winners.

Hindustan Unilever, Asian Paints, Mahindra & Mahindra and NTPC were among the laggards.

Elsewhere in Asia, markets in Seoul, Tokyo, Shanghai and Hong Kong were trading higher.

Wall Street had ended significantly higher on Wednesday.

"Fed chief Jerome Powell's observation that 'it makes sense to moderate the pace of rate hikes' has come as a shot in the arm for the bulls to take the ongoing rally forward," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

The dip in the dollar index to 105.5 and the US 10-year bond yield declining sharply to 3.63 per cent are hugely favourable for continuation of FII inflows, Vijayakumar added.

The 30-share barometer rallied 417.81 points or 0.67 per cent to settle at 63,099.65, its fresh record closing high on Wednesday. The Nifty advanced 140.30 points or 0.75 per cent to end at record high of 18,758.35.

"Strong global cues led by overnight surge in the US markets is expected to give local equities a major fillip in early trades on Thursday, after Fed Chair Powell hinted at a smaller rate hike in December.

"Adding to the optimism, FIIs showing renewed interest in Indian markets and lifting of curbs in several cities by the Chinese authorities could encourage investors to go long on equities in the near to medium term," said Prashanth Tapse - Research Analyst, Senior VP (Research), Mehta Equities Ltd.

International oil benchmark Brent crude was trading 2.89 per cent higher at USD 85.43 per barrel.

Foreign Institutional Investors (FIIs) bought shares worth Rs 9,010.41 crore on Wednesday, as per exchange data. 

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