Markets trade firm in early trade on positive global equities, foreign fund inflows

Equity benchmark indices started the trade on a positive note on Thursday mirroring a rally in the global markets and continuous foreign fund inflows.

The BSE Sensex climbed 379.15 points to 61,654.24 after a firm start. The NSE Nifty advanced 108.25 points to 18,124.10.

All the Sensex firms were trading in the green in initial trade, with Tech Mahindra, Reliance Industries, HDFC, Tata Consultancy Services, Tata Motors, Mahindra & Mahindra, Asian Paints and HDFC Bank emerging as the prominent winners.

“Two factors have contributed to the ongoing mild rally in the market. One, the global market construct is favourable and, two, the bulls have been emboldened by the apparent change in FII strategy from selling to buying,” said V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Foreign Portfolio Investors (FPI) were net buyers as they bought shares worth ₹432.15 crore on Wednesday, according to exchange data.

Among Asian markets, Japan, China and Hong Kong were trading higher.

The U.S. markets had ended in the positive territory on Wednesday.

“While intra-day sideways movement could continue amid sluggish mood in global equities, traders would take solace from the return of FIIs into the local markets, as they have been net buyers for the past 4 trading sessions,” said Prashanth Tapse – Research Analyst, Senior VP (Research), Mehta Equities Ltd.

The 30-share BSE benchmark had advanced 242.83 points or 0.40% to settle at 61,275.09 on Wednesday. The broader Nifty of NSE climbed 86 points or 0.48% to settle at 18,015.85.

International oil benchmark Brent crude climbed 0.49% to $85.80 per barrel.