Mumbai: Equity benchmark Sensex surged over 400 points in early trade Friday tracking gains in index majors Infosys, Reliance Industries and HDFC twins amid a positive trend in global markets.
The 30-share index was trading 400.87 points or 0.67 per cent higher at 60,320.56 in initial deals. Similarly, the Nifty rose 120.10 points or 0.67 per cent to 17,993.70.
Tech Mahindra was the top gainer in the Sensex pack, rising over 2 per cent, followed by Infosys, Tata Steel, Sun Pharma and Nestle India.
On the other hand, Bajaj Auto and NTPC were among the laggards.
In the previous session, Sensex ended 433.13 points or 0.72 per cent lower at 59,919.69, and Nifty fell 143.60 points or 0.80 per cent to 17,873.60.
Foreign institutional investors (FIIs) were net sellers in the capital market, as they offloaded shares worth Rs 1,637.46 crore Thursday, as per exchange data.
The market is now caught in crosswinds – the tailwinds of good corporate results and sustained retail enthusiasm getting countered with the headwinds of inflation fears and sustained FII selling, said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
“The global backdrop is exhibiting mixed signals. The fact that the US markets didn’t crack in spite of unexpectedly high inflation and the European markets shrugged off the inflation fears reflect the underlying strength of this global rally despite high valuations,” he noted.
In India, the sustained FII selling – Rs 8,458 crore selling till November 12, on top of the Rs 13,550 crore selling in October – indicates where smart money is headed. But… In recent times, there has been “new money” trumping “smart money”.
Elsewhere in Asia, bourses in Hong Kong, Tokyo and Seoul were trading with gains in mid-session deals, while Shanghai was in the red.
Major indices on Wall Street ended on a positive note in the overnight session.
Meanwhile, international oil benchmark Brent crude rose 0.70 per cent to USD 82.29 per barrel.