Sensex rises nearly 200 points, Nifty tests 12,250

Mumbai: Equity benchmark BSE Sensex jumped nearly 200 points in early trade on Friday led by gains in IT and banking stocks amid easing geopolitical tensions.

After hitting a high of 41,647.60, the 30-share BSE index was trading 124.70 points or 0.30 per cent higher at 41,577.05. Similarly, the broader NSE Nifty advanced 37.25 points or 0.30 per cent to 12,253.15.

Kotak Bank was the top gainer in the Sensex pack, rising up to 1.35 per cent, followed by HCL Tech, Bharti Airtel, Infosys, Tech Mahindra, L&T, Hero MotoCorp and HDFC Bank.

On the other hand, PowerGrid, Asian Paints, ICICI Bank, IndusInd Bank, SBI and Nestle India were trading on a negative note.

In the previous session, Sensex rallied 634.61 points, or 1.55 per cent, to end at 41,452.35, and Nifty surged 190.55 points, or 1.58 per cent, to 12,215.90.

Meanwhile, on a net basis, foreign institutional investors sold equities worth Rs 431.11 crore, while domestic institutional investors purchased shares worth Rs 419.22 crore on Thursday, data available with stock exchanges showed.

According to traders, domestic equities extended gains as concerns over US-Iran standoff eased further after US lawmakers introduced a resolution on Thursday aimed at reining in President Donald Trump's ability to take military action against Iran.

Meanwhile, the US is likely to sign the first phase of a pending trade deal with China on January 15, pausing the nearly two-year trade war between the two countries.

Bourses in Hong Kong, Tokyo and Seoul were trading on a positive note in their early session, while Shanghai slipped in the red.

Exchanges on Wall Street ended with gains on Thursday.

Brent crude futures eased over 0.31 per cent to USD 65.17 per barrel.

Meanwhile, the rupee appreciated 8 paise to 71.13 against the US dollar in morning session.