June quarter earnings look encouraging; soft monetary policy stance of Federal Reserve bode well for Indian markets
Equity benchmark Sensex surged over 300 points in early trade on Monday, tracking gains in index majors HDFC, Reliance Industries and Infosys amid a positive trend in global equities.
The 30-share index was trading 333.69 points or 0.63 per cent higher at 52,920.53 in initial deals, while the broader NSE Nifty advanced 101.65 points or 0.64 per cent to 15,864.70.
Titan was the top gainer in the Sensex pack, rising around 2 per cent, followed by Axis Bank, Bharti Airtel, HDFC, Maruti, Bajaj Finserv, Infosys and Reliance Industries.
On the other hand, Tech Mahindra, Sun Pharma, NTPC, PowerGrid and Dr Reddy’s were among the laggards.
"Barring financials, June quarter earnings so far have been encouraging and most companies succeeded to beat consensus estimates, which offered comfort and aided to restrict sharp fall despite selling pressure in global equities," said Binod Modi, Head - Strategy at Reliance Securities.
Further, persistent soft monetary policy stance of Federal Reserve along with least possibility of any reversal of monthly bond buying in the near to medium term and recent softening of dollar index augur well for emerging markets including India, Modi added.
Elsewhere in Asia, bourses in Shanghai, Seoul, Tokyo and Hong Kong were trading with significant gains in mid-session deals.