Domestic stock markets started the week on a positive note tracking gains across global equities, after the US drug regulator authorised the use of blood plasma from recovered patients as a treatment option for COVID-19. The S&P BSE Sensex index climbed up as much as 219.43 points - or 0.57 per cent - to 38,654.15 in the first few minutes of trade, after opening up 132.24 points (0.34 per cent) at 38,566.96. The broader NSE Nifty 50 benchmark rose to as high as 11,442.70, up 71.1 points (0.63 per cent) from its previous close, having started the day at 11,412.00.
Gains in banking, financial services and energy shares supported the markets, however losses in IT stocks limited the upside.
At 9:20 am, the Sensex traded 182.34 points - or 0.47 per cent - higher at 38,617.06 while the Nifty was up 66.5 - or 0.58 per cent - at 11,438.10. (Track Sensex, Nifty)
Eicher Motors, Kotak Mahindra Bank, HDFC Bank, Grasim and Zee Entertainment, trading between 1.51 per cent and 8.10 per cent higher, rose the most among the 36 percentage gainers in the 50-scrip Nifty basket.
On the other hand, Tech Mahindra, HCL Tech, Infosys and TCS, trading between 0.60 per cent and 1.19 per cent lower, were the top Nifty losers.
HDFC Bank, HDFC and Kotak Mahindra Bank were the biggest boosts to the Sensex.
The announcement from the US Food & Drug Administration (FDA) of an “emergency use authorization” came on the eve of the Republican National Convention, where Donald Trump will be nominated to lead his party for four more years.
MSCI's broadest index of Asia-Pacific shares outside Japan jumped was last seen trading 0.74 per cent higher, while Japan's Nikkei 225 benchmark was up 0.33 per cent.
China's Shanghai Composite index traded 0.20 per cent higher, whereas Hong Kong's Hang Seng gauge jumped 1.54 per cent and South Korea's KOSPI was up 0.88 per cent.
The E-Mini S&P 500 futures were up 0.26 per cent at the time, indicating a positive start for US markets on Monday.