Indian equities opened higher for the fourth straight day on Thursday, tracking gains in global peers amid signs of a thaw in US-China trade war.
At 9.20 am, the benchmark Sensex was up 0.3% at 37379.51 points, while the 50-stock Nifty advanced 0.36% to 11058.30 points. So far this year, the Sensex and Nifty have gained 3.33% and 1.59%, respectively. In 2019 so far, foreign investors have bought nearly $6.40 billion in Indian equities and $4.71 billion in debt.
According to Sahaj Agarwal, head of derivatives, Kotak Securities, Nifty has been consolidating in the range of 10650-11200 points over the past few weeks, with market breadth largely positive as domestic equities have found support at a critical level. Agarwal said markets are attempting to make a reversal for 11700/12100 on the higher side and support of 10650 on the lower side.
US President Donald Trump said he was postponing the imposition of 5% extra tariffs on Chinese goods by two weeks, delaying an escalation in the trade war ahead of resumption in negotiations. China late on Wednesday said it will exempt a range of US imports from extra tariffs put in place last year.
Back home, investors await consumer price inflation and industrial production data due later today, which will likely have a bearing on the Reserve Bank of India’s rate decision next month. India’s CPI probably rose 3.32% year on year in August, according to a median estimate of a Bloomberg survey, In July, CPI grew 3.15%. IIP likely expanded 2.3% year-on-year in July, faster than 2% seen in June.
Apollo Hospitals Enterprises Ltd was 4.2% after the stock witnessed a series of block deals, with around 3.6% stake of the company changing hands, Bloomberg reported. Further details were not available.
(Bloomberg contributed this story)