The S&P BSE Sensex index rose as much as 297.37 points to touch 49,029.92 in early deals and the broader NSE Nifty 50 benchmark climbed to as high as 14,762.30, adding 84.5 points to its previous close.
ITC was the top gainer in the Nifty50 universe, up 2.10 per cent in early trade. UPL, L&T, ONGC and SBI were among the other top gainers.
On the other hand, JSW Steel was the top laggard, down 1.25 per cent. Cipla, Tata Steel, Sun Pharma and Hindalco were among other losers.
Investors looked past concerns about rising Covid cases and accelerating inflation in the US which may trigger rate hikes sooner than anticipated earlier, say analysts.
“There are two macro numbers that will exert a big influence on the markets. Externally US inflation numbers and internally India’s Covid data. The jury is still out on US inflation with Fed claiming that the spike in inflation in April is transitory and many economists and market experts believing that inflation will continue to rise to force the Fed to taper earlier than expected,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
“We will have to wait to see how the inflation scenario plays out,” he said.
Analysts awaited more Q4 earnings from India Inc for cues.
Bharti Airtel, Gland Pharma, Colgate Palmolive and Sun Pharma Advanced Research Company will be posting their financial results for the March quarter later in the day.
Among other companies due to release their earnings reports in the day are
, Wabco India, Subex, Indo Count Industries, Orient Cements, 3I Infotech, Shakti Pumps, Rane Brake Lining and Butterfly Gandhimathi .
Equities in other Asian markets edged higher cautiously catching the tailwind from a bounce on Wall Street and ahead of expected upbeat readings on the Chinese economy.
MSCI’s broadest index of Asia-Pacific shares outside Japan gained 1.17 per cent. Hang Seng jumped over 1 per cent, Australia’s ASX 200 gained 0.55 per cent. Shanghai Composite inched up marginally but Seoul’s Kospi opened in the red. Japan’s Nikkei was down 0.5 per cent.
Wall Street equities posted a solid rebound Friday, despite lackluster economic data including disappointing retail sales. The good news on mask requirements offered more hope for the economic reopening and helped drive gains in travel shares.
The S&P 500 gained 1.49 per cent to 4,173.85. The Dow Jones Industrial Average rose 1.06 per cent to 34,382.13. Tech heavy Nasdaq climbed 2.32 per cent to 13,429.98.
Crude oil prices edged lower as the recovery of a major US pipeline network eased concerns over supply and a new wave of Covid-19 restrictions in Asia fuelled fears of lower demand. Brent crude oil futures were down 8 cents, or 0.1 per cent, at $68.63 a barrel, and WTI crude was down 7 cents, or 0.1 per cent, at $65.30.
THIS IS A DEVELOPING STORY. MORE TO COME…