New Delhi: Benchmark indices Sensex and Nifty rebounded in early trade on Monday, mirroring a sharp rally in global markets, as softer-than-expected US inflation report has reignited hopes of Fed rate cuts.
Prospects of a US–China trade deal and fresh foreign fund inflows also added to the markets' optimism.
From the Sensex firms, Tata Steel, Bharti Airtel, Reliance Industries, State Bank of India, HDFC Bank and NTPC were among the major gainers.
In Asian markets, South Korea's Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng traded sharply higher.
"The global market construct is bullish. With Dow Jones, Nikkei and Kospi at record highs, the sentiments are positive. Globally, there are signals of declining trade tensions," VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.
"A softer-than-expected US inflation report has boosted hopes of Fed rate cuts. Adding to the optimism are prospects of a US–China trade deal and possible US tariff cuts on Indian imports to 15–16 per cent," Prashanth Tapse, Senior VP (Research), Mehta Ltd, said.
Global oil benchmark Brent crude climbed 0.23 per cent to USD 66.09 a barrel.
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