Mumbai: The equity market gained in early trade Wednesday as the benchmark Sensex climbed more than 247 points amid mixed global cues.
The latest data from the US indicated softening of the labour market and a decline in factory orders, a scenario that has also triggered expectations that the US Federal Reserve could go slow on tightening monetary policy to boost the economy.
On Wednesday morning, the 30-share BSE Sensex surged 247.02 points or 0.42 per cent to 59,353.46 points while the broader 50-share NSE Nifty climbed 67.90 points or 0.39 per cent to 17,465.95 points.
In the Sensex pack, 13 stocks, including HDFC Bank, HDFC, and Tata Consultancy Services, were in the green while 17 shares declined. Investors are also waiting for the Reserve Bank of India’s monetary policy decision Thursday amid inflation remaining relatively high. On Tuesday, the US market closed in the red while European shares ended on a mixed note.
Deepak Jasani, Head of Retail Research at HDFC Securities said investors in the US weighed the decline in factory orders and data hinting at a softening of the country’s labour market.
He also said gold prices were high as the dollar eased after the weak US economic data fanned expectations that the Federal Reserve might loosen its monetary policy trajectory.
Sensex and Nifty had closed in the positive territory for the third straight session Monday, with Sensex gaining nearly 115 points. The market was closed Tuesday on account of Mahavir Jayanti.
In the domestic market, Foreign Institutional Investors (FIIs) were net buyers Monday as they purchased shares worth Rs 321.93 crore.