Benchmark indices are trading higher in the opening session amid positive global markets after crude oil prices have fallen more than 12 per cent. At 09:16 IST, the Sensex was up 1,128.22 points or 2.06 per cent at 55775.55, and the Nifty was up 314.20 points or 1.92 per cent at 16659.60. About 1860 shares have advanced, 185 shares declined, and 38 shares are unchanged.
The front runners on the Sensex included Asian Paints, Axis Bank, SBI, HUL, Maruti, Ultractech Cement, up to 5 per cent higher. Tata Motors was the top gainer on Nifty.
In line with the up move in benchmark indices, the broader markets also extended profits. The BSE MidCap and SmallCap indices rose up to 2 per cent.
The key benchmark indices are will be keenly tracking the state election results of Uttar Pradesh, Punjab, Goa, Mizoram and Uttarakhand. Investors may react positively to the results if they come in line with the exit polls that projected the ruling BJP to win in the key state of UP.
Prashanth Tapse, Vice President (Research), Mehta Equities Ltd, said: “The fear theme at Dalal Street is getting profound and palpable on backdrop of ‘stagflation’. The street will keenly watch on how RBI tackles with a backdrop of higher oil and commodity prices, and most importantly, growth-supporting fiscal policies. Technically speaking, Nifty’s biggest supports are placed at 15711 mark. Below Nifty 15711 zone, expect waterfall of selling which could take Nifty down to 14251 mark with inter-month perspective. From a chartist standpoint, the technical landscape will improve considerably only if Nifty closes above 16557 mark.”
Also Read: LIVE | Uttar Pradesh Election Results 2022: Term 2 for CM Yogi? Counting of Votes Begins with Leaders at Temples, Tight Vigil in Key Areas
The markets have posted sharp gains in the last two sessions as talks emerged of the de-escalation of the Russia-Ukraine war. Ukrainian leadership has said it does not want to align with NATO anymore, while Russia said that it is not looking to de-throw the government in Ukraine. The foreign ministers of the two countries are set to meet today.
Also Read: Punjab Election Results 2022 LIVE Updates: AAP Closing in on Majority as Congress and Akali Dal Fight for No 2
Global Cues
Oil prices rebounded on Thursday after the United Arab Emirates said it is committed to major producers’ pact to add 400,000 barrels per day of supply monthly, hours after UAE’s ambassador to Washington said his country favoured a bigger increase. U.S. West Texas Intermediate (WTI) crude futures jumped more than $3 shortly after opening and were trading up $1.53, or 1.4 per cent, at $110.23 at 2324 GMT. The contract had tumbled 12.5 per cent in the previous session in the biggest daily decline since November.
Tokyo stocks jumped three percent Thursday on hopes for a ceasefire between Russia and Ukraine ahead of their first high-level meeting since Moscow invaded its neighbour. The benchmark Nikkei 225 index spiked 3.00 percent or 741.59 points to 25,459.12, while the broader Topix index jumped 3.04 percent or 53.45 points to 1,812.34. The dollar fetched 115.93 yen, against 115.86 yen on Wednesday in New York.
Hong Kong stocks opened sharply higher Thursday with traders tracking a surge across US and European markets as bargain-buyers stepped in following a Ukraine-fuelled rout. The Hang Seng Index climbed 2.32 percent, or 478.86 points, to 21,106.57. The Shanghai Composite Index added 1.71 percent, or 55.79 points, to 3,312.18, while the Shenzhen Composite Index on China’s second exchange added 2.33 percent, or 49.27 points, to 2,165.42.
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