Sensex snaps 2-day bearish trend, gains 370 pts in morning trade

Mumbai (Maharashtra), [India], May 18 (ANI): Indices of the domestic equities market opened with gains on Thursday, tracking strong global cues. Stocks were trading higher, led by metals, commodities, banking and financial stocks.

The 30-share Sensex went up 377 points to 61,937.86 and NSE Nifty 50 surged 89 points to 18,277.30.
In the Asian markets, Hong Kong’s Hang Seng moved up 252 points, Japan’s Nikkei went up 440 points, Thailand Set rose 13 points, China’s Shanghai surged 22 points and Philippines Stock Exchange was up 8 points when domestic stocks opened on Thursday.

In the US markets, Nasdaq gained 158 points, Dow Jones rose 408 points and S and P surged 48 points. Debt ceiling negotiations in the US seem to be headed in the right direction after speaker Kevin McCarthy, the California Republican, said it was possible that such a deal could materialize within days.

In the European market, CAC, BEL, Amsterdam Exchange, Madrid SE and Deutsche were trading in the positive territory, FTSE lost 27 points,

Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas said, “Nifty has witnessed consecutive negative days. Amid the selling pressure, the Nifty has managed to hold on to the crucial support level of 18100 and the intraday pullback has come exactly from around 18100 which indicates that until the Nifty manages to stay above this level the uptrend is intact.”

The foreign institutional investors (FIIs) remain the net buyers in the domestic equity market for fifteen straight days with an inflow of Rs 149.33 crore on Wednesday, according to NSE data. Domestic institutional investors (DIIs) were net sellers with Rs 203.87 crore.

Rupee appreciated by 4 paise to open at 82.35 against the dollar on Thursday.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities, said, “Markets lingered in negative territory as cautious investors continued to book profit after the recent spike. The subdued economic readings coming in from the US and China once again raises concern of a slowing economy and hence recession fears, which is making investors jittery about the future course.”