Global cues push equity markets higher; financials rise

Mumbai, Jul 02, 2020, ENEWSTIME Desk

Mumbai, July 2 (IANS) Following Asian peers, the key indices of the Indian equity market made a gap-up opening and sustained their upward trajectory during the opening session on Thursday.

Accordingly, both the 30-scrip Sensitive Index (Sensex) of the S&P BSE and the NSE Nifty50 opened on a positive note.

Sector wise, financials and select PSU stocks made healthy gains.

Around 10.45 a.m., the Sensex of the BSE opened at 35,604 points and traded at 35,704.36 points, up by 289.91 points or 0.82 per cent on Thursday.

On Wednesday, the Sensex had closed at 35,414.45 points.

Similarly, the broader 50-scrip Nifty at the National Stock Exchange (NSE) made gains during the opening session.

It traded at 10,508.60 points, up 78.55 points or 0.75 per cent from its previous close.

"Nifty rose to make almost a double top near its previous recent high of 10,553 but profit taking at higher levels resulted in some minor correction," said Deepak Jasani, Head of Retail Research at HDFC Securities.

"Market participants expect the Nifty to make a new recent high today post which the upward momentum could gather pace."

Meanwhile, IANS from New York reports:

US equities finished mixed as investors digested a slew of economic data.

On Wednesday, the Dow Jones Industrial Average decreased 77.91 points, or 0.30 per cent, to 25,734.97. The S&P 500 was up 15.57 points, or 0.50 per cent, to 3,115.86. The Nasdaq Composite Index increased 95.86 points, or 0.95 per cent, to 10,154.63, Xinhua news agency reported.

Eight of the 11 primary S&P 500 sectors closed higher, with real estate and utilities up 2.57 per cent and 2.29 per cent, respectively, leading the gainers. Energy shed 2.49 per cent, the worst-performing group.

Shares of Beyond Meat jumped 5.7 per cent following the news that the company's faux-meat products would be available at retail outlets in China.

On the data front, US private sector employment increased by 2.369 million jobs in June, US payroll data company Automatic Data Processing (ADP) reported Wednesday.

"Small business hiring picked up in the month of June," Ahu Yildirmaz, vice president and co-head of the ADP Research Institute, said in a statement.

"As the economy slowly continues to recover, we are seeing a significant rebound in industries that once experienced the greatest job losses," Yildirmaz noted.

Economic activity in the US manufacturing sector grew in June, the Institute for Supply Management (ISM) said Wednesday. The ISM manufacturing PMI (Purchasing Managers' Index) registered 52.6 per cent in June, up 9.5 percentage points from the May reading of 43.1 per cent.

For the second quarter, the Dow rose 17.8 per cent, the S&P 500 advanced nearly 20 per cent and the Nasdaq soared 30.6 per cent. The major averages notched their best quarterly performance in decades.