Key Indian equity indices move up after weak opening

Market rally image via Shutterstock

Key Indian equities indices opened a tad lower on Thursday as the investor mood was cautions ahead of the expiry of derivatives contracts for November but soon rose in line with global cues, notably from the Asian and European peers.

Against the previous close at 25,775.74 points, the sensitive index (Sensex) of the Bombay Sock Exchange (BSE) opened a tad lower at 25,769.81 points. Immediately thereafter, the index saw a spike and was ruling at 25,852.03 points, with a gain of 76.29 points or 0.30 %.

At the National Stock Exchange, the broader 50-share Nifty opened slightly higher at 7,837.15 points against the previous close at 7,831.60 points. Minutes after the opening bell, the index was ruling at 7,856.90 points, with a gain of 25.30 points, or 0.32 %.

On Tuesday, the Sensex had lost 43.60 points or 0.17 %, while the Nifty was down 18 points or 0.22 %. Wednesday was a trading holiday.

The marginal gain on Thursday was on account of global cues, notably in Asia where investors saw some ease of tension between Moscow and Ankara, following the shooting down of a Russian jet fighter by Turkey, on charges of violation of the latter's airspace.

Japan's Nikkei was up 0.6 % higher, Australia's key index rose 0.7 %, Hong Kong's Hang Seng was higher by 1 %, while China's Shanghai Composite climbed 0.3 %. The European indices gained around 1 %, while some key ones in the US ended flat.

"The European markets rallied on a report that the European Central bank is contemplating expanding its stimulus to boost the economy," said Angel Broking said in a pre-open analysis, even as the Indian markets had closed with marginal losses on Tuesday after some volatile trading.

"US stocks closed flat in a quiet trading session with gains in health care and consumer stocks after data showed that the economy had a modest growth," the broking firm said, adding that the volumes were low, ahead of a holiday on Thursday and truncated trading on Friday.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel