|Domestic equity benchmarks BSE Sensex and NSE Nifty started on a positive note on Wednesday tracking firm cues from global markets after U.S. President Donald Trump hinted at the possibility of a trade deal with China in the future.|
After surging over 200 points in early session, the 30-share index was trading 98.07 points, or 0.26%, higher at 37,416.60. The broader NSE Nifty was also trading 21.65 points, or 0.19%, up at 11,243.70.
In the previous session on Tuesday, the BSE bourse settled at 37,318.53, gaining 227.71 points or 0.61%; and the Nifty ended at 11,222.05, 73.85 points or 0.66% higher.
Top gainers in the Sensex pack include Yes Bank, Tata Motors, Sun Pharma, Coal India, NTPC, Hero MotoCorp, Bajaj Auto, HUL, Bharti Airtel, Asian Paints, ONGC and HDFC, shedding up to 3.04%.
On the other hand, HCL Tech, Tata Steel, M&M, PowerGrid, Vedanta, RIL and TCS were the major gainers, rising up to 1.79%.
According to traders, investors took cues for other Asian bourses which were trading higher after U.S. President Trump hinted at the possibility of a trade deal with China, in a series of tweets.
“When the time is right we will make a deal with China... Respect and friendship with President Xi is unlimited,” he wrote.
“We can make a deal with China tomorrow, before their companies start leaving so as not to lose USA business” he added.
Sustained foreign fund outflow, however, weighed on investor sentiment here, capping the gains on key bourses, traders said.
Foreign institutional investors (FIIs) sold equity worth ₹2,011.85 crore on May 14, while domestic institutional investors (DIIs) purchased shares to the tune of ₹2,242.91 crore, provisional data available with stock exchanges showed.
According to experts, investors are not very aggressive in the market as every rally will be used as an opportunity to book profit. Market is watchful of quarter earnings and election verdict too.
Meanwhile, on the currency front, rupee appreciated 18 paise to 70.26 against the U.S. dollar.
Brent crude futures, the global oil benchmark, were trading 0.31% lower at $71.02 per barrel.