Markets had seen selling pressure over the last few sessions, especially in financials due to concerns over asset quality of lenders, and on worries over global growth amid the rise in covid cases in different parts of the world
Mumbai: After falling for three consecutive sessions, Indian share markets opened 0.8% higher led by gains in global equities.
At 9.40am, the benchmark Sensex was 0.9% higher at 52640 points, while Nifty was up 0.83% at 15762 points.
Markets had seen selling pressure over the last few sessions, especially in financials due to concerns over asset quality of lenders, and on worries over global growth amid the rise in covid cases in different parts of the world.
"We continue to believe that the underlying strength of the domestic market remains intact and therefore any meaningful correction in the market should be taken as an opportunity to get in quality stocks. Visible improvement in key economic data in June and satisfactory ramp-up in vaccination indicate healthy corporate earnings in subsequent quarters. Additionally, dovish remark of Federal Reserve Chairman Powell in his last week’s testimony despite surge in inflation and soft bond yield in the USA in recent days offer comfort to global equities including India," said Binod Modi, Head Strategy at Reliance Securities.
Asian stocks climbed Thursday after solid earnings boosted Wall Street, easing concerns about peak economic growth and coronavirus flare-ups. The dollar held a decline.
Shares rose in Hong Kong, South Korea and China. Japan is shut for a holiday. US futures edged up after the S&P 500’s biggest back-to-back advance in two months, led by cyclical stocks like energy and financials.
Among major companies, Hindustan Unilever, Ultratech Cement, Bajaj Auto, Hindustan Zinc, ICICI Lombard General Insurance Co., Biocon, Mphasis, Bajaj Holdings, Persistent Systems and Bank of Maharashtra will announce quarterly earnings today.
"Overall, equity markets have shown strong resilience even though it faces headwinds from the advent of a possible third COVID wave and persistent inflation readings prompting a potential rate increase. Restrictions this time around was localized and less stringent v/s the lockdown in CY20 leading to positive macro data points both on global and domestic front which is giving confidence to the investors of economic rebound," said Motilal Oswal in a note to investors.
IDFC Ltd surged 16% after the Reserve Bank of India had allowed IDFC Limited to exit as the promoter of IDFC First Bank Limited after the 5-year lock-in period. This could pave the way for a potential reverse merger between IDFC Limited and IDFC First Bank Limited.
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