Equity markets rally in early trade

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| Photo Credit: Reuters

Equity benchmark indices extended their previous day’s rally on May 26 amid buying in index major Reliance Industries, fresh foreign fund inflows and a largely positive trend in global markets.

The 30-share BSE Sensex climbed 178.34 points to 62,050.96 in early trade. The NSE Nifty gained 51.1 points to 18,372.25.

From the Sensex pack, Reliance Industries, Tech Mahindra, Maruti, UltraTech Cement, Wipro, Bajaj Finserv, Hindustan Unilever, Infosys, Titan and State Bank of India were among the major gainers. Power Grid, HDFC, Axis Bank, IndusInd Bank, ICICI Bank and HDFC Bank were the laggards.

In Asian markets, Seoul and Tokyo traded in the green, while Shanghai quoted lower. The U.S. market ended mostly with gains on May 25.

The Sensex climbed 98.84 points or 0.16% to settle at 61,872.62 on Thursday. The Nifty gained 35.75 points or 0.20% to end at 18,321.15. Foreign Institutional Investors (FIIs) were net buyers on Thursday as they bought equities worth ₹589.10 crore, according to exchange data.

Meanwhile, global oil benchmark Brent crude dipped 0.26% to $76.06 a barrel. “Amidst the winds of optimism blowing in the market, Nifty bulls strive to seize the baton of positivity from yesterday’s robust rebound. As the market mood improves, fuelled by Nasdaq and S&P 500’s rally and the influx of buyers at Dalal Street, we find ourselves cautiously optimistic.”

“However, amidst this prevailing optimism, we must be wary of the unresolved U.S. debt ceiling,” Prashanth Tapse – Research Analyst, Senior VP (Research), Mehta Equities Limited, said in his pre-market opening quote.