Image for representation purpose only. , Photo Credit: Paul Noronha
Benchmark indices Sensex and Nifty rose over 1% each in early trade on March 31 tracking a strong trend in global markets and heavy buying in index major Reliance Industries.
Fresh foreign fund inflows also added to the positive momentum in the equity market.
In early trade, the 30-share BSE Sensex jumped 705.26 points to reach 58,665.35. The broader NSE Nifty climbed 196.95 points to 17,277.65.
Among Sensex firms, Reliance Industries emerged as the biggest gainer as it jumped over 3%. HCL Technologies, ICICI Bank, Nestle, Tech Mahindra, Infosys, Power Grid, NTPC and Axis Bank were the other major gainers.
Asian Paints and ITC were the laggards.
In Asian markets, Seoul, Japan, Shanghai and Hong Kong were trading in green. US markets closed in positive territory on Thursday.
“There are signs of global equity markets, led by mother market US, coming out of fears of banking contagion. The fact that there have been no further bank failures or major stress in the system is good news for equity markets, said VK Vijayakumar, chief investment strategist at Geojit Financial Services.
Nifty valuations are now reasonable and this has prompted FIIs to become buyers in the last two days, Mr. Vijayakumar said.
Indian equity markets were closed on March 30 on account of ‘Ram Navami’.
The 30-share BSE benchmark closed 346.37 points or 0.60% higher at 57,960.09 on March 29. The Nifty closed at 17,080.70, up 129 points or 0.76%.
Meanwhile, global oil benchmark Brent crude fell 0.24% to $79.08 per barrel.
Foreign portfolio investors (FPIs) were net buyers on March 29 as they bought equities worth ₹1,245.39 crore, according to exchange data.