Sensex opens with gains on back of strong global cues, robust GDP data

Mumbai (Maharashtra), [India], June 2 (ANI): Key indices of the domestic equities market opened with gains, tracking strong global cues. Investors reacted to the bipartisan deal to raise the US debt ceiling, which is set to reach the floor of the House of Representatives in the US for a vote on Wednesday evening.

India’s better-than-expected gross domestic product (GDP) and stronger corporate earnings for the fourth quarter also influenced investors’ sentiments.

BSE 30-share Sensex went up 233 points to 62,661.61 and NSE Nifty 50 surged 77 points to 18,564.90 in morning trade on Friday.

In sectoral indices, IT was up 0.38 per cent up, Auto 0.70 per cent, Metal 1.06 per cent, Bankex was up 0.45 per cent, FMCG rose 0.55 per cent while BSE Healthcare was down 0.016 per cent in morning trade on BSE.

At 10:23 am, Sensex was trading 33.59 points lower at 62,394.95, whereas Nifty was trading 6.75 points down at 18,481.00.

In the Asian markets, Hong Kong’s Hang Seng surged 608 points, Japan’s Nikkei gained 236 points, China’s Shanghai rose 21 points and Thailand Set gained 6 points as domestic markets opened on Friday morning.

In the US markets, Nasdaq gained 165 points, Dow Jones went up 153 points, NYSE surged 143 points and S-P 500 rose 41 points as Asian markets opened on Friday.

According to NSE data, domestic institutional investors (DIIs) turned net buyers, with Rs 488.93 crore on Thursday closing while foreign institutional investors (FIIs) were net sellers, with Rs 71.07 crore.

In the European market, Amsterdam Exchange, Deutsche Borse, CAC and BEL were trading in the positive territory, FTSE 100 was up 44 points, FTSE 250 gained 104 points on Thursday.

In the foreign exchange market, the Indian rupee opened 9 paise higher on Friday against the US dollar. It opened at 82.32 a dollar as compared to the previous close of 82.41.

Crude oil prices rose during Friday morning, with Brent oil gaining 0.57 per cent, which was USD 74.70 per barrel.

Santosh Meena, Head of Research, Swastika Investmart, said, “The recent deal on the US debt ceiling had already been anticipated and taken into account by the market, resulting in the absence of a significant downturn and a rally despite the prevailing chaos surrounding the issue. In addition to this, there has been a stream of positive news, including robust GDP data, the resolution of the US debt ceiling, a decline in commodity prices, and increased Foreign Institutional Investor (FII) activity.”

Meena also said while these factors contribute to an overall bullish outlook for our market, it was important to consider the possibility of profit booking in the near term. (ANI)

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