Indian equity markets opened higher on Thursday with benchmarks jumping about 2 per cent each tracking strong global cues after the outcome of the US midterm elections and a sharp decline in crude oil prices
MUMBAI — Indian equity markets opened higher on Thursday with benchmarks jumping about 2 per cent each tracking strong global cues after the outcome of the US midterm elections and a sharp decline in crude oil prices.
Sensex opened at 78,910.94, an increase of 1,609.54 points or 2.08 per cent. Similarly, Nifty began the trading session at 24,378.05, up 417.45 points or 1.74 per cent.
In early trade, financial stocks led gains with Nifty Private Bank surging more than 2 per cent. Meanwhile, Nifty Realty gained 1.86 per cent. However, all sectoral indices were trading in the positive territory.
Other sectoral performers, Nifty Cement, Nifty Auto, Nifty IT, Nifty Oil & Gas and Nifty PSU Banks climbed up to 1.82 per cent.
FMCG, consumer durables, metal, media and chemicals also traded in positive territory, rising between 1 per cent and 1.5 per cent.
Market experts said the Nifty continued to maintain its position above the 200-day exponential moving average (EMA) near 23,904, reinforcing a positive technical setup.
"The RSI has climbed to 68.55, indicating strong momentum, although the possibility of near-term profit booking cannot be ruled out," analysts said. Immediate support is seen in the 24,000-24,200 zone, while resistance is placed between 24,500 and 24,700.
The experts also noted that after the initial reaction to the US election results weakens, there will be concerns surrounding prolonged political conflict in the US, since US President Donald Trump being what he is, is likely to turn Mr Veto rather than lame duck president.
On Wednesday, foreign institutional investors (FIIs) extending their buying streak for a fourth straight session. FIIs were net buyers of equities worth Rs 7,284 crore. Domestic institutional investors (DIIs), however, continued to pare holdings, recording net sales of Rs 3,712 crore for the fourth consecutive day.
Global markets provided additional tailwinds after US equities registered sharp gains overnight. The Dow Jones Industrial Average jumped more than 3 per cent, marking its strongest post-midterm election performance in over four decades. The S&P 500 and Nasdaq Composite also rose more than 1.4 per cent each as election uncertainty faded following a clear Democratic sweep of both chambers of Congress.
Meanwhile, energy markets witnessed heavy selling pressure as Brent crude tumbled nearly 10 per cent to settle below the $100-per-barrel mark.
US Treasury yields also eased, with the benchmark 10-year yield retreating to around 4.89 per cent, further supporting risk assets globally.
Market mood was further supported by easing geopolitical concerns surrounding Iran and a weaker US dollar which boosted appetite for risk assets across global markets.