Sensex gains 380 points on firm global cues; Nifty above 10,900

NEW DELHI: Overnight gains in tech stocks in the US helped the domestic market sentiments in Friday's early trade, taking benchmark equity indices higher after Thursday's massive selloff.

Investor fears were also assuaged after democrats in the US House of Representatives said they are working on a $2.2 trillion coronavirus package that could be voted on next week. Meanwhile, as much as $380 billion from the US Congress' last big coronavirus aid package is unused and could help households and businesses if lawmakers approve, officials said.

At 9.24 am, BSE flagship Sensex was up 382.24 points or 1.05 per cent to 36,935.84 while NSE benchmark Nifty advanced 118.25 points or 1.09 per cent to 10,923.80. All sectors saw buying led by auto and pharma stocks.

India VIX, the measure of volatility in the market, fell 4.17 per cent but remained elevated at 22.52.

In the 30-share pack Sensex, TCS was the biggest gainer, up 2.55 per cent at Rs 2,390.85. It was followed by M&M, HCL Tech, Bajaj Auto, IndusInd Bank and HUL that gained in the range of 1-3 per cent.

Titan Company was the biggest loser in the pack, down 0.54 per cent at Rs 1,089.80. Kotak Mahindra Bank was another loser in the pack that fell 0.45 per cent.

Broader market indices were faring better than their headline peers as Nifty Smallcap gained 1.37 per cent while Nifty Midcap added 0.78 per cent. Broadest index on NSE, Nifty 500 was up 0.92 per cent.

Nifty IT was the biggest sectoral gainer on NSE, adding 1.59 per cent. It was followed by Nifty Auto that gained 1.54 per cent and Nifty FMCG that advanced 1.38 per cent. All sectoral indices were trading with gains.

Globally, Asian shares rose after robust US housing data supported a late tech-driven rally on Wall Street, with investors picking up the pieces a day after a broad regional index posted its biggest daily loss in more than three months.

US stocks ended positive in choppy trade on Thursday, led by a dogged comeback in the technology sector, having initially sold off on higher-than-expected unemployment claims.

MSCI's broadest index of Asia-Pacific shares outside Japan was 0.66 per cent higher in the morning session, after slumping 2.15 per cent a day earlier, its biggest daily drop since June 11.

Chinese blue-chips added 0.64 per cent and South Korean shares were 0.52 per cent higher. Australian shares jumped 1.54 per cent, with financials rising the most in more than three months on plans to ease bank lending laws. Japan's Nikkei added 0.62 per cent.