The BSE Sensex rose to 440.04 points today. (File)
Mumbai:
Buoyed by positive global cues, the Indian stock market opened on a strong note today with the Sensex rising 440 points in early trade.
Asian markets, including Japan and Hong Kong, were trading in the green.
U.S. and European markets ended the trading sessions higher on Tuesday as the latest U.S. inflation data suggested that price pressures may be easing.
On Wednesday, the 30-share BSE Sensex rose 440.04 points, or 0.76 percent, to 58,340.23, while the broader NSE Nifty gained 109.60 points, or 0.64 percent, to 17,152.90.
28 Sensex constituents like Maruti Suzuki, TCS and Reliance traded in positive territory while Nifty gained 45 scrips in the pack.
Domestic stocks have fallen in recent days. The Sensex was down 2,447 points, or 4.1 percent, while the Nifty was down 711 points, or 4.6 percent, in the four days to Tuesday.
In a pre-market note, Deepak Jasani, head of retail at HDFC Securities, said Indian markets are likely to open higher on Wednesday in line with today’s positive Asian markets and US markets are likely to rise sharply on Tuesday.
“U.S. stocks edged higher in volatile trade on Tuesday, rebounding from steep losses following the Silicon Valley bank failure, as investors digested February inflation data that came in line with estimates and suggested that pressure on prices may ease,” he said.
Foreign Institutional Investors (FIIs) remained net sellers on Tuesday as they offloaded Rs 3,086.96 crore worth of domestic stocks, according to exchange data.
In February, the US consumer price index fell from 6.4 percent a month earlier, in line with expectations at 6 percent.
“The February data, coupled with interest rate pressure from banks, may be hoping to convince the US Federal Reserve to halt rate hikes altogether. Other market watchers are bullish on the idea and say a 25 basis point hike is the more likely outcome,” Jasani said.
(Except for the headline, this story was not edited by NDTV staff and was published on a syndicated channel.)
