New Delhi: Benchmark indices Sensex and Nifty surged in early trade on Friday amid a rally in IT stocks and a softer-than-expected US jobs data tempering expectations of near-term monetary tightening by the Federal Reserve.
The 30-share BSE Sensex jumped 545.89 points to 78,048.01 during initial trade. The 50-share NSE Nifty surged 173.85 points to 24,346.90.
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From the Sensex pack, HCL Tech, Bajaj Finserv, Tata Steel, Tech Mahindra, Bharat Electronics and Tata Consultancy Services were among the major winners.
Mahindra & Mahindra, State Bank of India, NTPC and InterGlobe Aviation were among the laggards.
In Asian markets, South Korea's Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng index were quoting higher.
US markets ended on a mixed note, with the Dow Jones Industrial Average surging 1.14 percent, while the Nasdaq Composite declining 0.80 percent. The S&P 500 ended flat.
"Continued progress in the US–Iran negotiations has strengthened hopes of a diplomatic resolution, easing concerns over energy supply disruptions and providing support to risk assets. Meanwhile, softer-than-expected US jobs data has tempered expectations of near-term monetary tightening by the Federal Reserve, offering an additional boost to investor sentiment," Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm, said.
Brent crude, the global oil benchmark, quoted 0.63 percent higher at USD 72.25 per barrel.
"India’s outperformance continues aided partly by the weakness in Kospi and the general weakness in the chip trade. The continuing tapering of the FII outflows is another significant factor supporting the market. But the rally will not sustain unless it is supported by fundamental factors. The crash in crude to pre-war level is the strongest macro support to the economy and the market," VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.
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Foreign Institutional Investors (FIIs) offloaded equities worth Rs 311.82 crore on Thursday, according to exchange data.
On Wednesday, the Sensex jumped 579.48 points, or 0.75 percent, to end at 77,502.12. The Nifty rallied 169.85 points, or 0.71 percent, to settle at 24,175.70.
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