Firm global cues send Sensex 300 points higher; Nifty above 17,450

NEW DELHI: Benchmark indices opened higher in Thursday's trade, tracking an overnight jump in US shares due to solid quarterly earnings and economic data. Buying in domestic indices was led by banking and IT names.

At 9.22 am, the BSE Sensex was trading 310 points or 0.53 per cent higher at 58,660. Nifty50 was trading at 17,475, up 88 points or 0.5 per cent. The midcap and smallcap indices edged up to 0.80 per cent each.

"The 17,450-17,500 range still holds the sturdy wall for the bulls, and a decisive closure above the same could only trigger fresh longs in the system. Any dip towards the 17,200 level is likely to get bought into, while the sacrosanct support lies around the unfilled gap and psychological mark of the 17,000," said Sameet Chavan of Angel One.

Infosys climbed 1.58 per cent to 1589.90. IndusInd Bank advanced 1.11 per cent to 1069.95. Wipro gained 0.98 per cent to Rs 436.40. Axis Bank, TCS, UltraTech Cement, Tech Mahindra and Bajaj Finserv rose up to 0.8 per cent.

Losers included NTPC, which declined 0.72 per cent to Rs 158.60. SBI, Tata Steel and Reliance Industries declined up to 0.4 per cent.

Overnight, the US services sector showed surprise improvement, soothing concerns over a possible recession in the world's largest economy. A handful of companies such as Moderna, Starbucks and Electronic Arts also reported solid earnings, adding to the sentiment. Meanwhile, there was also some relief, especially in Asia, as Nancy Pelosi's Taiwan trip did not elicit a harsher response from China despite grave warnings.

"In the mother market of the US, markets are climbing many walls of worries including the US-China skirmishes arising from Nancy Pelosi's visit to Taiwan. Other markets are taking cues from the strong trend in the US market. In India, the FPIs turning buyers has changed the sentiments in favour of the bulls. The market momentum is so strong that it is overpowering negatives like higher valuations and rising trade deficit," said Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Vijayakumar said the market may remain resilient if the FPI buying sustains, but investors should exercise some caution.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)