Sensex climbs above 127 points in early trade


Domestic stocks are supported by renewed capital inflows from abroad.

Domestic stocks are supported by renewed capital inflows from abroad.

Stock benchmark Sensex rose over 127 points at the open of trading on Thursday, March 31, 2022, tracking gains in index majors HDFC, Bajaj Finance and ICICI Bank amid a sharp fall in global oil prices, after the US indicated had that they were planning a massive release of crude oil.

Renewed foreign capital inflows also supported domestic stocks, traders said.

The BSE barometer traded 127.38 points higher at 58,811.37. Similarly, the broader NSE Nifty gained 47.1 points to 17,545.35.

Among the 30 stocks, the biggest gainers in early trading were M&M, HDFC, Bajaj Finance, Axis Bank, Asian Paints, Kotak Mahindra Bank, ITC, HUL, ICICI Bank and IndusInd Bank.

Conversely, Infosys, Wipro, PowerGrid and Reliance Industries Limited were among the laggards.

In previous trade, the 30-stock BSE Barometer index rose 740.34 points, or 1.28 percent, to 58,683.99. Similarly, the NSE Nifty rose 172.95 points, or 1 percent, to 17,498.25.

“Two positives”

“Hopes for a de-escalation of the war have proved short-lived and the uncertainties associated with the war continue. From a market perspective, there are two positive factors that could support the market.

“First, the sharp drop in the dollar index from above 99 to 97.7 is positive for global equity markets. Second, FPIs, the buyers with a good purchase price of 1.357 billion, Chief Investment Strategist at Geojit Financial Services said.

Elsewhere in Asia, bourses in Seoul, Shanghai, Tokyo and Hong Kong traded lower during the session’s transactions.

Stock exchanges in the US ended the night session on a negative note.

The US government is reportedly considering a massive release of crude oil from its emergency reserves to combat inflation and supply shortages. It is expected to release up to 180 million barrels of oil from strategic reserves in the coming months. Global crude oil prices have risen sharply since Russia invaded Ukraine last month.

The US government can announce the relevant decision on Thursday.

Meanwhile, international oil benchmark Brent crude fell 4.54 percent to $108.30 a barrel.

Foreign institutional investors (FIIs) were buyers as they bought £1,357.47 billion worth of shares, according to stock market data on Wednesday.

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