Mumbai (Maharashtra) [India], July 3 : Indian benchmark indices opened Friday's trade on a strong note, with the Sensex gaining over 500 points and the Nifty crossing the 24,300 mark, supported by weaker-than-expected US labour market data that strengthened expectations of a more accommodative US Federal Reserve, while easing crude oil prices further boosted investor sentiment.
The Sensex opened at 78,152.34 against its previous close of 77,502.12, while the Nifty started the session at 24,375.65 compared to Thursday's close of 24,175.70. At the time of filing this report, the Nifty was trading at 24,307.95, up 132.25 points or 0.55 per cent, while the Sensex was at 77,862.28, higher by 360.16 points or 0.46 per cent.
Market sentiment was supported by global cues after US labour market data came in significantly weaker than expected, raising hopes that the Federal Reserve could adopt a more accommodative policy stance in the coming months. Employers added just 57,000 jobs last month, well below market estimates of 100,000, reinforcing expectations of easing monetary policy.
Banking and market expert Ajay Bagga said, "The US government data threw a curveball into the market's rate trajectory assumptions. Employers added just 57,000 jobs last month--significantly lower than the 100,000 forecasted by economists."
He added, "Wall Street saw a split session on Thursday following a highly anticipated macro data release. A softer-than-expected labor print boosted broader equities but took a bite out of tech."
Asian markets traded mixed during the session, although the improved outlook for US interest rates continued to lend support to risk assets globally.
On the domestic front, easing crude oil prices around USD 71 per barrel remained favourable for India, a major crude importer, helping sustain positive market momentum.
Bagga said, "Easing crude oil ($70-71), a softening US dollar index, a pause in US rate-hike rhetoric, and incredibly robust quarterly operational updates from the domestic financial sector indicate that Indian bulls are firmly in control this morning."
Tech Mahindra, HCL Technologies, TCS, Infosys, Asian Paints, HDFC Bank, Larsen & Toubro, Bajaj Finance, BEL, Trent and Power Grid were among the top gainers in early trade. NTPC, Kotak Mahindra Bank, State Bank of India and Axis Bank were among the major laggards.
Sectorally, Nifty IT extended gains for the second straight session, rising over 2 per cent, while Nifty Metal and Nifty MidSmall IT & Telecom gained over 1 per cent each. Most other sectoral indices also traded in positive territory.
In commodities, gold prices climbed more than 1 per cent and were on track for their first weekly gain in five weeks as investors pared expectations of further monetary tightening following the weak US jobs data. Spot gold rose 1.4 per cent to USD 4,179.94 per ounce at 0235 GMT.
Meanwhile, crude oil prices remained subdued, trading around USD 72 per barrel during the session, providing additional support to emerging markets, including India.