Domestic stock markets have rebounded by more than 400 points, following the correction seen over the past three trading sessions, on positive global signals. Wall Street closed positively overnight, Asian markets opened on a firm note and early indications from SGX Nifty futures trading point to a strong open for home indices. At 9:20 a.m., the Sensex was trading at 52,619.70, up 413.90 points or 0.78% and the NSE Nifty was at 15,756.55, up 122.15 points or 0.77 %.
Stocks in Asia-Pacific were higher Thursday morning as Japanese markets were closed for a holiday. Hong Kong’s Hang Seng Index was one of the region’s biggest gainers, rising 1.19% at the start of trading. The Taiex in Taiwan also gained 1.01 percent.
Wall Street stocks posted their second straight daily gain on Wednesday, with robust corporate earnings and renewed optimism about the US economic recovery fueling a recovery in risk. The Dow Jones rose 0.83%, the S&P 500 by 0.82% and the Nasdaq Composite by 0.92%.
In corporate news, Hindustan Unilever, UltraTech Cement, Bajaj Auto, Biocon, Can Fin Homes, Chennai Petroleum Corporation and CSB Bank will report profits during the day.
On the equity side, financials rebounded from recent losses. Bajaj Finance, HDFC Bank, IndusInd Bank, ICICI Bank and SBI each gained 1-3 percent on BSE. Tata Steel, Hindustan Unilever and Titan are the other big winners of the BSE.
On the other hand, Asian Paints, Powergrid and Dr Reddy’s each lost up to one percent on BSE.
The scope of the BSE market is small. Out of 2,731 shares traded on the BSE, there are 2,118 stocks up against 511 down.