Sensex, Nifty jump on rally in global markets in early trade, Rupee gains against dollar

Nov 17, 2023

Stock markets: Amid a rally in global markets on favourable US inflation data, the equity benchmark indices jumped in early trade on Wednesday. The 30-share BSE Sensex jumped 645.08 points to 65,578.95 in early trade. Meanwhile, the Nifty climbed 209.8 points to 19,653.35.

Among the Sensex firms, JSW Steel, Tech Mahindra, Tata Steel, Infosys, Wipro, Tata Consultancy Services, HCL Technologies and Axis Bank were the major gainers. Power Grid, Nestle, Mahindra & Mahindra and Asian Paints were the laggards.

Asian and US markets

In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong were trading in the positive territory. The US markets ended with significant gains on Tuesday.

"The October US inflation data is a game changer for the stock market. The 3.2 per cent October inflation print is lower-than-expected. More importantly, the mere 0.2 per cent MoM (Month-on-Month) increase in core inflation is hugely positive. The takeaway from these numbers is that the Fed is done with rate hikes and the timeline for rate cuts in 2024 is likely to be advanced. The sharp recovery in US markets will be reflected in India, too," VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said.

Global oil benchmark Brent crude climbed 0.33 per cent to USD 82.74 a barrel. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,244.44 crore on Tuesday, according to exchange data.

Rupee gains against dollar 

Meanwhile, the rupee appreciated 32 paise to 83.01 against the US dollar in morning trade on Wednesday as the American currency retreated from its elevated levels after US inflation came lower than expected.

Forex traders said the rupee opened on a bullish note as the American currency weakened after US Inflation eased to its lowest level since September 2021. 

Moreover, a positive trend in domestic equities boosted investor sentiments. At the interbank foreign exchange, the rupee opened at 83.03, then touched 83.01 against the American currency, higher by 32 paise over its previous close.

(With inputs from PTI)