Indian stocks opened higher on Thursday after a seven-session losing streak on hopes of a firmer rupee, amid gains in global markets, along with a drop in bond yields that helped improve investor sentiment. The Nifty 50 index was up around 0.5% at 24,197.48 while its sibling benchmark, the BSE Sensex, jumped 0.66% to trade at 77,431.57 during initial dealings. IT and financials sector stocks were leading the way for now but even the broader indices of small and mid-caps are seeing action too.
The rupee, which had been downbeat in recent weeks, saw an improvement in its fortunes today after strengthening against the US dollar in the opening hours of the day. It was up 19 paisa at 95.56, though it has been fluctuating around 95.60 since then. The currency was buoyed by a weaker dollar, improving sentiment abroad and interventions by the central bank, as per reports in Reuters.
Elevated crude prices continued to be an issue of concern for the Indian economy that relies heavily on oil imports. With the benchmark crude trading at over $ 92 a barrel and US-based West Texas Intermediate crude above $86, both continue to weigh down India’s import bill and inflation outlook.
In Thursday’s session, the index was up following the fall seen by Indian indices in Wednesday’s trade as the Nifty extended its losing streak to seven sessions. Investors will also keep track of corporate earnings and foreign fund flows along with the performance of global markets and geopolitical issues.
