Sensex surges over 400 points; bank stocks rally

Mumbai: Equity benchmark BSE Sensex rallied over 400 points in early session on Thursday, led by gains in banking stocks, tracking positive cues from global markets.

After hitting a high of 39,008.83, the 30-share index was trading 384.54 points, or 1 per cent, higher at 38,978.06 at 0945 hours, while the broader Nifty rose 120.75 points, or 1.06 per cent, to 11,560.95.

In the previous session on Wednesday, the BSE barometer ended 503.62 points, or 1.29 per cent, lower at 38,593.52. The broader NSE Nifty plunged 148 points, or 1.28 per cent, to 11,440.20.

Top gainers in the Sensex pack in early trade included ICICI Bank, IndusInd Bank, Kotak Bank, L&T, M&M, Bajaj Finance, ONGC, Tata Steel, Maruti, Bharti Airtel, Tech Mahindra and Asian Paints, surging up to 3 per cent.

On the other hand, Yes Bank, HCL Tech, SBI, Infosys, HDFC, PowerGrid, ITC, Sun Pharma and TCS fell up to 3 per cent.

According to traders, domestic investors followed cues from global markets that rallied on reports that US President Donald Trump asserted a trade deal with China could happen sooner than expected.

Bourses in Hong Kong, Tokyo and Seoul were trading significantly higher in their respective late morning sessions, while Shanghai Composite Index was trading on a negative note.

Shares on Wall Street ended in the green on Wednesday.

Further, experts continue to believe that the recent policy announcements are structurally positive for equities.

The scenario is expected to improve with the monthly derivative settlement and ahead of the much-awaited RBI policy review meet next week, said Gaurav Dua, Sr VP, Head – Capital Market Strategy & Investments, Sharekhan by BNP Paribas.

On the currency front, the rupee appreciated 10 paise against its previous close to 70.93 in early session.

Global oil benchmark Brent crude rose 0.10 per cent to 62.45 per barrel (intra-day).

On Wednesday, foreign portfolio investors sold shares worth a net of Rs 342.40 crore, and domestic institutional investors offloaded equities worth Rs 762.48 crore, provisional data showed.