The domestic stock markets have begun FY22 on a strong note, post the 1 per cent decline in the previous session, tracking positive global cues. At 9:20 am, the BSE Sensex was trading at 49,921.75, stronger by 408.95 points or 0.81 per cent and the NSE Nifty was at 14,809.10, up 121.55 points or 0.81 per cent. The BSE Midcap index and BSE Smallcaap index were also trading with gains of 0.7 per cent and 1 per cent respectively.
Asian stocks have opened higher on Thursday after big tech rallied on Wall Street and as President Joe Biden announced a multi-trillion-dollar infrastructure investment plan.
The S&P 500 and Nasdaq rose on Wednesday, boosted by gains in technology shares, and the three major Wall Street indexes registered their fourth straight quarterly rise as investors positioned themselves for President Joe Biden’s massive infrastructure plan.
On the economy front, the combined output of the eight core sector industries fell at the fastest pace in 6-months, contracting 4.6 per cent in February, from a year ago, confirming fears that a recovery in industrial growth would be slower than expected.
Meanwhile, oil prices fell about 2 per cent on Wednesday as fresh lockdowns in Europe stoked fuel consumption fears and a pessimistic demand outlook from OPEC and its allies ahead of their meeting to decide on production curbs.
On the stock-specific front, select information technology and auto stocks are going strong in the early-morning session. HCL Tech has gained more than 2 per cent on the news that the IT major has announced an agreement with Tenneco Inc, a leading Fortune 500 global tier-1 automotive supplier and manufacturer, for a multi-year, integrated application development, modernization, and operations services contract.
Among other IT stocks, Wipro has added 1.8 per cent on the BSE. In the auto space, Bajaj Auto and Maruti Suzuki have gained more than a per cent each on the BSE.
On the other hand, UPL, HDFC Life and HDFC Bank have shed up to a per cent each on the BSE.
The BSE market breadth is strong. Out of 2000 stocks traded on the BSE, there are 1519 advancing stocks as against 429 declines.