Markets Open On Firm Note As Sensex Jumps 400 Points In Early Trade On Back Of Banking Stocks‘ Rally

Bank stocks rallied to push the key indices as Sensex jump 400 points, or 1.25 per cent, to 31,779.10 while the Nifty 50 index was above the 9,400 levels.

New Delhi, May 28: Indian equity market opened on a firm note on Thursday in line with global stocks that remained strong as investors are expecting recovery with major economies opening up even as US-China trade worries intensify. Bank stocks rallied to push the key indices as Sensex jumped 400 points, or 1.25 per cent, to 31,779.10 while the Nifty 50 index was above the 9,400 levels.

The top gainers remain IndusInd Bank which soared 8 per cent on Nifty 50, Eicher Motors, Zee Entertainment Enterprises, Axis Bank and Hindalco. Anong the laggards on the index are Infosys, Wipro, Grasim Industries, Tata Consultancy Services, and ITC.

Stock markets were one per cent higher tracking Asian markets as the expiry of futures and options contracts of May series is due.

Around 24 companies are expected to announce their quarterly results on Thursday including TVS Motor, Lupin, and Federal Bank.

Some of the stocks to be closely watched are Reliance Industries, State Bank of India, Adani Power, Federal Bank, Lupin, Bharat Forge, Future Consumer, TVS Motor, United Spirits and Ujjivan Financial Services.

The Indian rupee opened lower at 75.90 against the US dollar, compared to the previous close of 75.72.

Investors in Asia are optimistic about economic recovery even as they try to overlook the China-US tensions for now. Hong Kong also managed to minimise losses even as the US announced that its special status could be threatened as a global financial hub. Japan’s Nikkei 225 rose more than 1 per cent, while Hong Kong’s Hang Seng slipped 1.4 per cent and South Korea’s Kospi dropped 0.5 per cent. Shanghai Composite was flat.

US stocks also closed higher on Wednesday as investors hope for normalcy as they witness resumption of economic activities.

The Dow Jones Industrial Average surged 553.16 points, or 2.21 per cent, to 25,548.27. The S&P 500 rose 44.36 points, or 1.48 per cent, to 3,036.13. The Nasdaq Composite Index was up 72.14 points, or 0.77 per cent, to 9,412.36, Xinhua reported.

The 30-stock average popped back above the 25,000 level for the first time since March, while the S&P 500 ended above the 3,000 mark.

(With inputs from agency)