Sensex Rises Over 100 Points, Nifty Above 10,600; Hindalco Slumps 7%

The Sensex and Nifty edged higher in early trade, with. The Sensex was up 137 points at 34,588 while Nifty edged higher to 10,607. Among Nifty50 stocks, HUL, ONGC, Grasim and Titan were among the top gainers. Metal stocks were under strong selling pressure. Hindalco fell 7 per cent while Vedanta declined over 5 per cent. On the currency front, the rupee was trading at 66.42 per dollar as compared to Monday's close of 66.48. Extending its losing run for the sixth straight session, the rupee on Monday plummeted by a staggering 36 paise to hit a fresh 13-month low of 66.48 against the US dollar as rising crude prices and sustained foreign fund outflows led to subdued forex market sentiment.
The Sensex and Nifty had ended with mild gains on Monday after yet another choppy session as investors kept their faith in consumption stocks amid an encouraging start to the earnings season.

Other Asian markets were mostly higher today despite US bond yields rising t0 4-year highs. US bond prices have fallen for the past four days, pushing up the 10-year yield to 2.998 per cent, its highest level since January 2014. "There are concerns about inflation, rising oil prices and also U.S. fiscal conditions," said Hiroko Iwaki, senior strategist at Mizuho Securities, noting the U.S. budget deficit is expected to hit $1 trillion next year.

Inflation worries are also mounting as oil and commodity prices have been rising in recent weeks.

Investors are concerned that US inflation, long subdued since the financial crisis a decade ago, could gain momentum as President Donald Trump's tax cuts this year could stimulate an economy already near or at full employment.

Oil prices held near 3-1/2-year highs supported by production cuts by oil producing countries and wariness about geopolitical risks in the face Washington's threat to scupper the nuclear deal with Iran.