Sensex surges nearly 500 points, Nifty above 17,400; IT stocks jump

Benchmark equity indices opened higher on Thursday amid signals of milder-than expected inflation in the US. The gains were led by the index heavyweights Reliance Industries, IT and banking stocks.

At 9.17 am, the BSE Sensex was trading 496 points or 0.86 per cent higher at 58,562. Nifty50 was trading at 17,408, up 133 points or 0.77 per cent.

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said that the mother market US is now signalling a base case scenario of a short and mild recession. That’s why markets are bouncing back sharply from oversold levels. And whenever there is a rally in US markets, India is outperforming reflecting the resilience of Indian economy and markets.


“Investors should not be carried away by the rallies because there are major challenges for the global economy and markets. In a stable environment markets will respond to Q2 results which will start flowing in from October 10th onwards,” Vijayakumar added.

More to come…