The benchmark BSE Sensex opened on a positive note on February 28 between buying by domestic as well as foreign institutional investors ahead of February derivatives expiry.
Investors, however, were cautious on attention over the tension between India and Pakistan.
The 30-share index was trading soaring by 81.45 points, or 0.23%, to 35,986.88. The gauge had lost 308 points in the previous two sessions. The NSE Nifty too was trading in the green, up 35.35 points, or 0.33%, at 10,842.
Major gainers that helped key indices were Coal India, Bharti Airtel, ONGC, Sun Pharma, PowerGrid, Asian Paint, RIL, Infosys, ICICI Bank, IndusInd Bank, SBI, Tata Motors, Yes Bank, HUL, HDFC Bank and Vedanta, rising up to 1.42%.
Indian markets resilient
According to Sunil Sharma, Chief Investment Officer, Sanctum Wealth Management, while attacks on the India Pakistan border and war-like situation continue to make headlines, Indian markets have been elastic.
“Clearly, the market appears to be suggesting that things will subside as both sides do not appear to want an escalation,” he told. “The flip side of the event is that investors seem to be recognizing a greater likelihood of a victory for the current regime in upcoming elections; with the follow-on implication that while the near term may be fraught with tensions and a fear of escalation, the medium term picture is possibly clarifying in terms of election outcome and that’s a positive for the market.”
Investors are covering their pending short positions on the last trading session of February futures and options (F&O) expiry in the derivatives segment, brokers related. The market is also awaiting GDP numbers and fiscal deficit data scheduled for publicity later in the day.
Meantime, foreign portfolio investors (FPIs) bought shares worth a net of ₹423.04 crore, while domestic institutional investors (DIIs) made purchases to the tune of ₹66.81 crore on February 27, provisional data revealed.
Elsewhere in Asia, Hong Kong’s Hang Seng gained 0.06%, while Japan’s Nikkei was down 0.35% in early trade Thursday. The Shanghai Composite Index fell 0.35%. The US Dow Jones Industrial Average ended 0.28% lower on February 27. The rupee, meanwhile, rose 10 paise to 71.14 against the US dollar in the opening.