Sensex surges 500 points, Nifty above 18,600 on US debt ceiling deal

Amid improved global cues due to a weekend debt ceiling deal in the US, Indian equity indices opened higher on Monday, led by gains in HDFC twins, M&M and Reliance.

The BSE Sensex was trading 482 points or 0.77% higher at 62,984 while Nifty50 was at 18,629, up 130 points or 0.70% around 9.23 am. The 30-pack index briefly sailed past the 63,000 mark.

From the Sensex pack, M&M, HDFC, Kotak Bank, IndusInd Bank and HDFC Bank were the top gainers, rising 1-3%. Bajaj Finserv, NTPC, and Nestle also opened higher. Whereas, only Sun Pharma and Power Grid opened in the red.

Shares of ONGC opened 4% lower as the PSU firm's Q4 consolidated net profit fell 53% YoY to Rs 5,701 crore. Balkrishna Industries shares plunged over 8% post March quarter results.

On the sectoral front, Nifty Financial Services surged 1.14% and Nifty Bank rose 0.84%. The latter hit its fresh record high at open. Auto, FMCG, IT, metal, and consumer durables sectors also opened with gains. In the broader market, Nifty Midcap 100 opened flat, while Nifty Smallcap 100 gained 0.08%.

Global markets
Asian shares and US stock futures rose on Monday, thanks to a weekend deal by US President Joe Biden and House Speaker Kevin McCarthy to suspend the government's debt ceiling, ending a protracted stalemate and providing some relief for investors.

After weeks of negotiations, congressional Republican McCarthy and Biden forged an agreement late on Saturday to avert an economically destabilising default to suspend the $31.4 trillion debt ceiling until 2025. The deal will now have to pass through the narrowly divided Congress.

The positive news lifted S&P 500 futures 0.2% in Asia while Nasdaq futures firmed 0.4%. Tokyo's Nikkei surged 1.3% to a fresh 33-year high, while China's Shanghai Composite rose 0.15%.

Crude oil price rises
Oil prices rose in today's trade after US leaders reached a tentative debt ceiling deal, possibly averting a default in the world's largest economy and oil consumer, although concerns about further interest rate hikes capped gains. Brent crude futures climbed 66 cents, or 0.9%, to $77.61 a barrel, while US West Texas Intermediate crude was at $73.42 a barrel, up 75 cents, or 1%.

Currency watch
The Indian rupee rose 7 paise to $82.53 against the US dollar in early trade. The dollar index, which tracks the movement of the greenback against a basket of six major world currencies, declined 0.03% to 104.17 level.

(With inputs from agencies)