The stock markets traded higher early today, mirroring the positive sentiment in the Asian and world markets on hopes of a breakthrough in the US tax talks as well as encouraging US housing data.
At 9:16 a.m., the 30-share BSE Sensex was 0.68 per cent higher at 18,464.15, while the broader 50-share NSE Nifty rose 0.69 per cent, or 38.5 points, to 5,609.
The major Sensex gainers were Tata Motors (2.01 per cent), Dr Reddy's Laboratories (1 per cent) and HDFC (1.80 per cent), Jindal Steel (1.16 per cent), were among the Sensex gainers.
Bharti Airtel, however, fell nearly 0.3 per cent, paring gains from six consecutive sessions. The lackluster 2G spectrum auction last week had boosted telecom stocks and analysts’ outlook on the entire sector.
The rupee opened nearly 0.5 per cent higher. At 9:02 a.m., the Indian currency traded at 54.8 against the US dollar, up 26 paise, or 0.47 per cent, from yesterday’s close of 55.06.
Asian shares rose today on hopes of a compromise in the US fiscal crisis, while the euro fell after Moody's Investors Service scrapped France's top-notch credit rating, reiterating the protracted debt crisis in the 17-nation euro zone. MSCI's broadest index of Asia-Pacific shares outside Japan inched up 0.3 per cent. Australian shares were up 0.2 per cent and South Korean shares opened 1 per cent higher.
Overnight, global stocks and commodities surged to recover some of last week's sharp losses on hopes US lawmakers will reach a deal to avert $600 billion in tax increases and spending cuts due to start in January - the ‘fiscal cliff’ that threatens to send the U.S. economy back into recession.
Wall Street climbed almost 2 per cent, extending its Friday rally, with the Standard & Poor's 500 Index closing above its 200-day moving average for the first time in eight sessions.
With inputs from Thomson Reuters