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Rise in Sensex in early trade before economic review, rupee rose by seven paise

Domestic stock markets bounced back from a five-day trading session on Friday before presenting an economic review. Sensex climbed over..

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28 May: Nifty on the new peak, 300 point gain in Sensex, big news

Domestic stock markets bounced back from a five-day trading session on Friday before presenting an economic review. Sensex climbed over 400 points in early trade on the back of a surge in banking, energy and auto stocks. The 30-share sensitive index Sensex of BSE was trading at 47,277.52 points, up 403.16 points or 0.86 percent in early trade.

Similarly, NSE Nifty was trading at 13,936.20 points with an increase of 118.65 points, or 0.86 percent. Among the Sensex companies, IndusInd Bank, M&H, L&T, ONGC, Bajaj Finance, HDFC Bank and Bajaj Auto were among the gainers. In contrast, Axis Bank, Hindustan Unilever, Tech Mahindra, Ultra Tech Cement, Maruti Suzuki and TCS were the losers. The Sensex had lost 2,917.76 points and the Nifty 827.15 points in the last five trading sessions.

Union budget will be presented in February 2021-22

Analysts believe that domestic markets saw a steady decline mainly due to profit-booking ahead of the Union Budget and important global developments. The government is scheduled to present the Economic Review 2020-21 in Parliament on Friday. After this, the Union Budget 2021-22 will be presented on Monday i.e. February 1.

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Foreign portfolio investors (FPIs) made net sales of shares worth Rs 3,712.51 crore on Thursday, as per data available with the stock markets. On Friday, Asian markets were trading up during the trading session. However, this week is the worst for the past several months. Meanwhile, crude oil’s global benchmark Brent crude was trading up 0.18 percent at $ 55.20 a barrel in futures trade.

Rupee gained seven paise

The rupee rose seven paise in early trade on Friday on the rise of domestic stock markets. The rupee opened at 73.01 per dollar in the interbanking currency market. It soon gained 7 paise to 72.98 per dollar. The rupee had closed at 73.05 per dollar on Thursday. Meanwhile, the dollar index rose 0.31 percent to 90.73 in the basket of six major currencies.

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Reliance Securities said the dollar index started rising in Asian trade this morning. However, as the US industrial data predicts not being bad, investors’ risk perception was reduced, which led to lower dollar’s safe investment demand.

He said that Asian currencies are moving down against the dollar. This may put a check on the rise in the rupee. The Economic Review is scheduled to be presented in Parliament on Friday. The market is also awaiting the Union Budget to be presented on Monday.

The decline in initial business on Thursday

The major stock index Sensex fell by more than 520 points during early trade on Thursday due to the fall in large stocks such as HDFC, TCS, Infosys and ICICI Bank amid weak global cues. The 30-share BSE Sensex was down 523.14 points or 1.10 per cent at 46,886.79 during this period.

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Similarly, the broader NSE Nifty fell 167.80 points or 1.2 percent to 13,799.70 points. HDFC Bank fell the most by 2.5 percent in the Sensex. Apart from this, HDFC, HCL Tech, Tech Maxhadra, Sun Pharma, PowerGrid, Kotak Bank, SBI and Nestle India were the leading stocks to fall. On the other hand ONGC, NTPC, Reliance Industries and HUL were in green mark.

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