Sensex climbs 423 points in early trade; Nifty above 17,250
Equity benchmark Sensex jumped 423.14 points in early trade on Thursday, led by strong gains index major Reliance Industries, Bajaj Finserv and Asian Paints amid a mixed trend in global markets.
The BSE benchmark Sensex was trading 423.14 points higher at 57,460.64. The Nifty gained 117.25 points to 17,253.80.
From the 30-share Sensex pack, IndusInd Bank, Reliance Industries, Asian Paints, Bajaj Finserv, Dr Reddy’s and M&M were among the major gainers.
In contrast, Nestle, Tata Steel, HCL Technologies and Axis Bank were the laggards.
Halting its five-day fall on Wednesday, the BSE Sensex closed 574.35 points or 1.02 per cent higher at 57,037.50. The NSE Nifty surged 177.90 points or 1.05 per cent to 17,136.55.
Meanwhile, in Asia, markets in Tokyo and Seoul were trading in the green, while Hong Kong and Shanghai were quoting lower in mid-session deals.
Stocks in the US had ended on a mixed note on Wednesday.
“Markets often overreact, both on the upside and downside. As sanity sets in, prices normalise. The stretched valuations of IT stocks, particularly in the mid-cap space, were the consequence of the market overreacting to excellent results and good earnings visibility.
“Slight disappointments in expectations swing the pendulum to the other side, depressing prices. Even though there is some margin pressure in IT, results of mid-cap IT stocks indicate that earnings momentum is strong,” according to VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
He further added that similarly, the relentless selling in HDFC twins by FIIs and shorting by bears who swim with the FII current have created another case of overreaction depressing prices to fundamentally unjustifiable levels.
International oil benchmark Brent crude gained 1.16 per cent to USD 108 per barrel.
Foreign institutional investors continued their selling spree, offloading shares worth a net Rs 3,009.26 crore on Wednesday, according to stock exchange data.
