Sensex Surges Over 200 Points, Nifty Above 11,000; Infosys Leads Gains

Even as the rupee plunged to a fresh record low and the Chinese currency weakened further, the domestic equity markets were upbeat ahead of a no-confidence vote against Prime Minister Narendra Modi's government on Friday. At 12:20 am, the S&P BSE Sensex traded at 36,556.65, with a gain of 205.42 points or 0.57 per cent while the broader Nifty50 was at 11,017.10, up 60 points or 0.55 per cent. Index heavyweights Reliance Industries (up 1.86 per cent) and Infosys (up 3.03 per cent) contributed the most to the gains in the 30-share Sensex pack.

 AK Prabhakar, Head of Research at IDBI Capital, said that the market moved higher as the government already has the numbers to win the no-trust vote.

Other experts said that the real issue for markets was the battered rupee. "Currency could be an issue...The Chinese devaluation of the yuan could further spell trouble for the rupee," said VK Sharma, Head Private Client Group & Capital Market Strategy at HDFC Securities.

Among the other top gainers in the Sensex were ICICI Bank, Sun Pharma and Larsen and Toubro which gained between 1-2 per cent.

PSU banks and IT stocks led the gains while metal and auto shares declined on the National Stock Exchange (NSE).

Technical experts expect Nifty to trade in the range of 10,800-11,100. "Nifty may trade in a tight range of 10,800 on the lower side and 11,100 on the higher side. So traders are advised to go for a directional view on the indices. One should look for stock-specific action. Bank Nifty is oscillating in ascending triangle wherein intermediate resistance is placed near 27,200. If bulls manage to surpass the 27,200 level, we may see further escalation towards 27,700-28,200," said Dyaneshwar Padwal, AVP, Technical Analysis, KIFS TradeCapital, told NDTV.

Foreign portfolio investors (FPIs) sold net equities worth Rs 315.69 crore while domestic institutional investors purchased net shares worth Rs 470.02 crore on Thursday, according to provisional data from the National Stock Exchange (NSE). The Sensex had last closed at 36,351.23 and the Nifty50 at 10,957.

Most Asian stock markets retreated after China allowed its yuan currency to slide further, stoking concerns Beijing's currency management could become the next flash point in a fierce trade conflict with the United States, according to a report by news agency Reuters. MSCI's broadest index of Asia-Pacific shares outside Japan was unsteady in early trading, giving back morning gains to decline as much 0.1 percent at one point. It was last up 0.08 per cent.

In overnight trade, US stocks dropped after earnings disappointed and trade jitters escalated. The Dow Jones Industrial Average fell 134.79 points, or 0.53 per cent, to 25,064.5, the S&P 500 lost 11.13 points, or 0.40 per cent, to 2,804.49 and the Nasdaq Composite dropped 29.15 points, or 0.37 per cent, to 7,825.30. (With Reuters inputs)