Sensex and Nifty open higher as US bond yields ease

Indian benchmark indices opened higher on Thursday, supported by positive global cues, gains across Asian markets and a modest decline in US bond yields.

The BSE Sensex opened 154.60 points, or 0.20 per cent, higher at 76,724.95, while the NSE Nifty gained 83.50 points, or 0.35 per cent, to 23,997.95.

Banking and realty shares led the early advance. The Nifty PSU Bank and Nifty Realty indices rose by up to 1 per cent, while Nifty Private Bank gained 0.83 per cent. The Nifty MidSmall Financial Services index advanced 0.82 per cent.

Information technology and consumer stocks, however, remained under pressure. Nifty IT fell 0.8 per cent and Nifty FMCG declined 0.44 per cent. The healthcare and pharmaceutical indices also traded marginally lower.

Market experts said the slight easing in US bond yields could help improve investor sentiment. They added that the mobilisation of $136 billion through a concessional swap facility, including $127 billion under the FCNR(B) scheme, could support the rupee and strengthen foreign investor confidence.

The substantial mobilisation of FCNR(B) deposits by banks could also improve their net interest margins and lend further support to banking shares, according to analysts.

The Nifty had fallen 141 points on Wednesday despite net institutional purchases of around Rs 9,500 crore. Foreign institutional investors bought equities worth Rs 6,688 crore, while domestic institutional investors recorded purchases of Rs 2,812 crore.

Analysts said the figures indicated that much of the selling pressure had come from retail investors, proprietary traders and bearish market participants.

Technical analysts said the Nifty’s recovery from around 23,800 had strengthened the possibility of further gains, although they cautioned investors against aggressively chasing higher prices.

A sustained move above the 24,150-24,215 range could indicate additional strength, while 23,860 remains a significant level on the downside, they said.

Asian markets broadly followed Wall Street higher. Crude oil prices also eased after US President Donald Trump played down the possibility of a prolonged conflict with Iran.

With IANS inputs