That said, analysts believe the appreciation in the US 10-year yield and strengthening US dollar are likely to pose headwinds for equity markets.
At 9.30 am, the BSE Sensex was trading 350 points or 0.59 per cent higher at 60,096. The NSE Nifty rose 104 points or 0.54 per cent to 17,916.
Among Sensex names, TCS rose 1.8 per cent to Rs 3,924 apiece on BSE. The IT major will report its quarterly earnings on Wednesday and its board will consider a share buyback. ICICI Bank added 1.51 per cent to Rs 805. Maruti Suzuki, Bajaj Finserv, Axis Bank, HDFC Bank and Kotak Mahindra Bank advanced over 1 per cent each.
Shares of Reliance Industries rose 0.81 per cent after the company announced the acquisition of New York’s premium luxury hotel Mandarin Oriental for $98.15 million. Foreign brokerage Jefferies has maintained its buy call on Reliance Industries with a target of Rs 3,400.
Analysts believe the NSO’s GDP projection for FY22 at 9.2 per cent, while strong, was conservative and that there is room for upside.
“While we see downside risk to our above-consensus FY22 GDP growth forecast of 10.1 per cent amid Omicron-related uncertainty, we still think the NSO’s estimate is conservative,” said Emkay Global, while noting that the advance estimates will have a short shelf life as they are mostly based on extrapolation of indicators available till November. SBI’s economic research team is expecting FY22 numbers could be revised to 9.5 per cent going forward.
Asian markets were trading mixed. There are hopes that less-than-expected growth in US jobs could ease pressure on the Federal Reserve to speed up its pace of monetary tightening. MSCI’s index of Asia-Pacific shares outside Japan was up by 0.21 per cent.