Equity benchmarks Sensex and Nifty started on a positive note on Monday, driven by gains in financial and IT shares.
The BSE Sensex jumped 238.75 points or 0.64 per cent to trade at 37,258.89; and the NSE Nifty rose 79.15 points or 0.73 per cent to 10,980.85 in opening deals.
Financial and IT stocks primarily drove the rally on indices in early trade. On the Sensex, the prominent gainers were HDFC Bank, ICICI Bank, HCL Tech, Infosys and Axis Bank.
On Friday, the BSE Sensex had ended 548 points or 1.5 per cent higher at 37,020 and the NSE Nifty had gained 162 points or 1.5 per cent to close at 10,902. Foreign Institutional Investors (FIIs) had bought equities worth Rs6.97 billion on a net basis on Friday, exchange data showed.
Meanwhile, Indian rupee erased some of the early gains but trading higher at 74.98 per US dollar to quote at Dh20.43 amid buying seen in the domestic equity market. It opened 8 paise higher at 74.94 per dollar against Friday's close of 75.02.
RBI's forex reserves rose by another $3.1 billion to a record $516.3 billion. "We may continue to see the rupee trade in the 74.50-75.50 range if the US Dollar remains stable globally. We could see 74.50 get tested again. We expect the resolve of the RBI on building up reserves; preventing the rupee from strengthening too much in relative terms; and containing volatility," said Abhishek Goenka, Founder and CEO, IFA Global.
Source : Khaleej Times