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The markets are going strong this morning, thanks to the favourable cues from the global front.
At 9:30AM, the Sensex was at 26,009, stronger by 294 points or 1.1% and Nifty was at 7,880, up 88 points.
The broader markets have also risen in tandem with their largecap counterparts; the midcap index is at 10,606, higher by 1.2% and the smallcap index is at 10,897, higher by 1.7%.
The BSE market breadth is strong, with 1045 advancing stocks as against 162 declines.
The global markets seem to be stabilising after being haunted by the yuan devaluation and fears of a slowdown in China, and this is having a rub-off effect on the bourses back home this morning. The NSE VIX, which ia a crucial sentiment indicator, is also suggesting the return of calmness, atleast going by the decline of 5% on Wednesday and another 9% this morning.
However, volatility may rear its head at Dalal Street during the course of the day due to rollover pressures ahead of the expiry of August F&O series. The Asian markets would also determine how things pan out during the day.
GLOBAL MARKETS
The Asian markets have firmed up this morning, tracking a rebound on Wall Street which saw all major US stock indices surging 4% each in overnight trades on Wednesday. China's benchmark Shanghai Composite is up nearly 2% after the sharp slide in the previous five sessions, while Hong Kong has risen tracking gains in the mainland. The Hang Seng has gained 2.4%, Nikkei is up nearly 2% and Straits Times is up 1.9%.
Overnight, US stocks had recorded their biggest one-day gain in four years as fears about China's economy gave way to bargain hunters emboldened by expectations the U.S. Fed might not raise interest rates next month.
The Dow Jones ended higher by 3.9% at 16,285 and Nasdaq Composite added 4% to settle at 4,697.
OIL
Oil prices dipped on Thursday after US petroleum data showed lower crude-oil inventories but barely any decline in production despite sinking prices. US benchmark West Texas Intermediate for October delivery shed 71 cents at USD 38.60 a barrel on the New York Mercantile Exchange. European benchmark Brent oil for October delivery lost seven cents at USD 43.14 a barrel in London.
RUPEE
The rupee has gained 20 paise in the early trade on Thursday, opening at 65.94 per dollar against 66.14 on Wednesday.
SECTORS AND STOCKS
All the sectoral indices are trading in the green, with financials and pharma indices surging by almost 2% each.
HDFC has soared by 3% at Rs 1134 to top the gainers list on the BSE. Sbi, Axis Bank and ICICI Bank are the other banking heavyweights to have gained 1-2% each.
Among the pharma names, Lupin and Sun Pharma have added 1-2% each.
Among other heavyweights, Tata Steel has strengthened by nearly 2% on reports that the company plans to move into manufacturing high-value products at one of its overseas plants in Wales, UK.
Bharti Airtel has also firmed up by nearly 2% after it acquired Augere Wireless Broadband India. The company holds 20 MHz of BWA spectrum in the telecom circle of Madhya Pradesh and Chhattisgarh.
Infosys, Ril and ONGC are the other index heavyweights that are boosting the indices in early trades.
On the other hand, BHEL, Tata Motors and TCS have slipped 1-3% each.
