Sensex, Nifty rise in early trade

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| Photo Credit: Reuters

Domestic equities jumped in early trade on Tuesday, with the benchmark Sensex surging more than 300 points, mainly due to positive trends in the Asian market.

A day after witnessing a sharp slump, both Sensex and Nifty gained significantly despite concerns over the Israel-Hamas conflict that has also pushed crude oil prices higher.

The 30-share BSE Sensex climbed 303.92 points or 0.46% to 65,816.31 points while the broader NSE Nifty rose 87.15 points or 0.45% to 19,599.50 points.

Key Asian indices, including Japan’s Nikkei 225 and Hong Kong’s Hang Seng gained on Tuesday.

Sensex had tumbled 483.24 points to settle at 65,512.39 points and Nifty dropped 141.15 points to end the day at 19,512.35 points on Monday.

On the global front on Monday, it was a mixed trend for stocks amid concerns over the Israel-Hamas conflict.

While European markets mostly closed in the red, US stocks ended in the positive territory.

US stocks pared early losses and ended in the green on Monday as investors focused on remarks by Federal Reserve officials.

Deepak Jasani, Head of Retail Research at HDFC Securities, said remarks by Dallas Federal Reserve Bank President Lorie Logan were seen as indicating a surge in long-term Treasury yields that may mean the central bank has less need to further raise interest rates.

On Monday, Foreign Institutional Investors (FIIs) were net sellers, offloading equities worth ₹997.76 crore, according to data available with the BSE.

According to Jasani, the attack by Hamas on Israel raised fears of a broader conflict, sending crude prices higher and spurring haven-related support for gold, the dollar and US Treasury futures.

India’s urban unemployment rate fell to 6.6 per cent in the first quarter of 2023-24 from 6.8% in January-March. At 6.6 per cent, the rate of unemployment in Indian cities is the lowest ever recorded by the government’s Periodic Labour Force Survey (PLFS) since it was started in 2018-19, he added.