Sensex rallies over 300 points in early trade; Nifty tops 14,200

MUMBAI: Equity benchmark Sensex surged over 300 points in early trade on Friday, helped by gains mainly in index majors Infosys, TCS and HDFC Bank amid positive trend in global equities.

The 30-share BSE index was trading 328.75 points or 0.68 per cent higher at 48,422.07. Likewise, the broader NSE Nifty jumped 101.15 points or 0.72 per cent to 14,238.50 in opening deals.

On the Sensex chart, Sun Pharma was the top gainer, rising around 2 per cent, followed by Infosys, PowerGrid, TCS, Tech Mahindra, L&T, Dr Reddys and Bajaj Auto. On the other hand, HDFC, Titan, Kotak Bank and Bajaj Finserv were among the laggards.

In the previous session, the Sensex had ended 80.74 points or 0.17 per cent lower at 48,093.32, and the Nifty had slipped 8.90 points or 0.06 per cent to 14,137.35.

Foreign portfolio investors (FPIs) were net buyers in the capital market as they purchased shares worth Rs 382.30 crore on Thursday, according to exchange data.

According to Binod Modi, Head-Strategy at Reliance Securities, domestic equities continue to look steady and firm at the moment.

A sign of fatigue is visible in the benchmark indices for last couple of trading days despite key economic data indicated continued rebound in December 2020, he added.

Similarly, a sharp dip in FPIs net flows in recent days indicate a kind of profit booking and sector rotation given a sharp return generated by select sectors, Modi said.

Domestic markets are, however, following the global investor euphoria around American politics.

US markets recorded fresh highs as investors continue to focus of stronger fiscal stimulus after Congress confirmed president elect Joe Biden's victory.

Elsewhere in Asia, bourses in Hong Kong, Tokyo and Seoul were trading with significant gains in mid-session deals, while Shanghai was in the red.

Meanwhile, the global oil benchmark Brent crude was trading 0.26 per cent higher at USD 54.52 per barrel.