Stock markets: Equity benchmark indices rallied in early trade on Tuesday tracking a positive trend in the global markets and unabated foreign fund inflows. Buying in index major Reliance Industries also added to the positive momentum in the equity markets. The 30-share BSE Sensex jumped 356.13 points to 65,700.30 in early trade. The NSE Nifty climbed 102.45 points to 19,458.35.
From the Sensex pack, Bajaj Finance, Bajaj Finserv, Maruti, Mahindra & Mahindra, IndusInd Bank, Larsen & Toubro, Reliance Industries and Titan were the major gainers. Wipro emerged as the only laggard from the 30-share pack.
In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong were trading in the green. The US markets ended in positive territory on Monday. Foreign Institutional Investors (FIIs) continued their buying momentum as they bought equities worth Rs 588.48 crore on Monday, according to exchange data.
Global oil benchmark Brent crude climbed 0.53 per cent to USD 78.10 a barrel.
“Overnight rally in the US markets and early gains in Asian gauges could fuel optimism in local shares, as investors are likely to follow suit and maintain the buying momentum.
“However, caution may prevail at a later stage due to focus on two big catalysts – the US June CPI numbers to be released on Wednesday, and the likely hike in interest rates by the US Fed at its FOMC meeting on July 26,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
The BSE benchmark gained 63.72 points or 0.10 per cent to settle at 65,344.17 on Monday. The Nifty advanced 24.10 points or 0.12 per cent to end at 19,355.90.
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Rupee rises 21 paise against dollar
Meanwhile, the rupee gained 21 paise to 82.38 against the US dollar in early trade on Tuesday supported by a bullish trend in domestic markets and steady foreign fund inflows. However, a surge in crude oil prices capped sharp gains for the local unit, forex traders said.
At the interbank foreign exchange, the domestic unit opened at 82.42, then touched a high of 82.38 against the American currency, registering a rise of 21 paise over its last close.
On Monday, the rupee had settled at 82.59 against the dollar. Softness in the US dollar and sustained FII inflows supported the rupee, forex traders said adding that the strength in crude oil prices remains a concern for the rupee, as a sharp surge in prices could limit its gains. The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.15 per cent to 101.81.
(With PTI inputs)
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