Sensex Rises 350 Points, Nifty Above 10,800 Led by Reliance, Tata Steel, Vedanta

Sensex Index surged over 350 points to a two-month higher in the opening session. The NSE’s Nifty 50 surged above 10,800. Markets advanced for the fourth straight day on Thursday following positive sentiment in global markets after dovish comments from the US Federal Reserve.

Asian stocks advanced, tracking a surge on Wall Street, after the US Fed Chairman Jerome Powell suggested it may nearing an end to its three-year rate tightening cycle, boosting interest in riskier assets. However, gains were limited by investor jitters ahead of high-stakes trade talks between US President Donald Trump and his Chinese counterpart Xi Jinping on Saturday on the sidelines of the G20 summit in Argentina.

Oil prices rose 1%, but an increase in US crude inventories and uncertainty in the run to an OPEC meeting next week kept markets under pressure. SGX Nifty Futures traded 92 points up at 10,807, indicating a positive start for the Sensex and the Nifty 50.

Rupee rises against US dollar
The Indian rupee strengthened further to hit a fresh three-month high against the US dollar, tracking gains in its Asian peers after comments by Federal Reserve Chairman Jerome Powell. At 9.10am, the rupee was trading at 70.09 a dollar, up 0.75% from its Wednsday’s close of 70.62.

The currency opened at 70.17 a dollar. The 10-year government bond yield stood at 7.608% from its previous close of 7.643%. So far this year, the rupee has declined 8.9%.

Vedanta, Hindalco, Tata Steel up 3%
Shares of metal companies traded higher today as prices of base metals rebounded. The Nifty Metal Index was up nearly 2% led by Vedanta, Hindalco and Tata Steel, which rose around 3%. Shanghai base metals rose on Thursday, tracking equities higher after investors saw comments from the U.S. Federal Reserve chair as a sign the central bank’s interest rate hike cycle is drawing to a close.

The most-traded January copper contract on the Shanghai Futures Exchange had risen 1.3% to 49,610 yuan ($7,143.27) a tonne. Three-month copper on the London Metal Exchange climbed 0.4% to $6,225 a tonne. Shanghai lead was the next biggest gainer after copper, adding 1.2%, while zinc was on course to snap a seven-day losing run, rising 0.9%.

Yes Bank shares fall over 5%
Yes Bank shares fell as much as 5.6% to Rs 152.60 per share after Icra on Wednesday downgraded the bank’s long-term ratings. “The rating downgrade considers the series of resignations from the board of directors, which raises concerns on corporate governance at the bank,” said the rating agency.

Icra’s action came a day after its parent Moody’s Investors Service on Tuesday downgraded the rating of the bank citing corporate governance concerns and impact of leadership change on the bank’s growth plan. As of last close, Yes Bank shares had fallen 48.6 percent this year.

Oil prices up 1%, metals extend gains

Gold prices held firm after notching up their biggest daily percentage gain in nearly two weeks in the previous session, with the dollar easing on dovish comments from Federal Reserve Chair Jerome Powell. Spot gold had inched up 0.1% to $1,221.73 per ounce by 0127 GMT. Prices gained about 0.6% on Wednesday, their biggest one-day percentage gain since Nov. 16. U.S. gold futures were down 0.2% at $1,221.6 per ounce.

Metals: Shanghai base metals rose on Thursday, tracking equities higher after investors saw comments from the U.S. Federal Reserve chair as a sign the central bank’s interest rate hike cycle is drawing to a close. The most-traded January copper contract on the Shanghai Futures Exchange had risen 1.3% to 49,610 yuan ($7,143.27) a tonne.

Three-month copper on the London Metal Exchange climbed 0.4% to $6,225 a tonne. Shanghai lead was the next biggest gainer after copper, adding 1.2%, while zinc was on course to snap a seven-day losing run, rising 0.9%.

Oil prices climbed 1%, clawing back some ground from losses in the previous session, but an increase in U.S. crude inventories and uncertainty in the run to an OPEC meeting next week kept markets under pressure. U.S. crude futures rose 65 cents, or 1.29%, to $50.94 per barrel.

They ended the last session down 2.5% at $50.29 a barrel, after hitting their lowest since early October last year. International benchmark Brent crude rose 60 cents, or 1.02%, to $59.36 a barrel, having settling down 2.4% on Wednesday at $58.76 a barrel.