Stock market update: Markets rebound in early trade on foreign fund inflows

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Benchmark equity indices rebounded in early trade on Thursday amid steady foreign fund inflows along with buying in frontline stocks Reliance Industries and HDFC Bank.

The 30-share BSE Sensex rebounded 264.85 points to 82,617.49 in early trade. The NSE Nifty climbed 76.75 points to 25,275.45, reported PTI.

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Among the 30 Sensex firms, UltraTech Cement, Tata Steel, ITC, Titan, ICICI Bank, JSW Steel, Reliance Industries and HDFC Bank were the biggest gainers.

Nestle, Bharti Airtel, Bajaj Finserv, Bajaj Finance and Mahindra & Mahindra were among the laggards.

In Asian markets, Seoul and Shanghai were trading higher while Tokyo and Hong Kong quoted lower.

The US markets ended on a mixed note on Wednesday.

Foreign Institutional Investors (FIIs) bought equities worth Rs 975.46 crore on Wednesday, according to exchange data.

"FIIs turning net buyers of domestic equities in past few sessions has been lending a major support," Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said while speaking on the stock market update, reported PTI.

While speaking about the stock market update, Ajay Bagga, Banking and Market Expert told ANI, "We expect markets to remain volatile going into tomorrow's US August payrolls data and unemployment number. US equities are seeing strong outflows. The shadow of the still pending further unwinding of the Yen carry trade looms on US Big Tech stocks which have been recipients of these investments. India is seeing buying at every dip and that provides strength to the markets. Indian futures are pointing to a positive open but caution remains on the US data and the Yen unwinding expected ahead."

India's services sector activity growth touched a five-month high in August on stronger rise in new work orders, while payroll numbers rose solidly as companies remained upbeat regarding the economic outlook, a monthly survey said on Wednesday.

The BSE benchmark dropped 202.80 points or 0.25 per cent to settle at 82,352.64 on Wednesday.

Snapping its 14-day rally, the Nifty declined 81.15 points or 0.32 per cent to 25,198.70. The Nifty had surged nearly 1,141 points or 4.59 per cent in 14 straight days, reported PTI.

Meanwhile, global oil benchmark Brent crude traded 0.19 per cent higher at USD 72.84 a barrel.

Rupee rises 4 paise to 83.97 against US dollar in early trade

The rupee appreciated by 4 paise to 83.97 against US dollar in early trade on Thursday supported by weakening of the American currency in the overseas market and a positive trend in domestic equities.

Forex traders said an overall drop in crude oil prices and foreign fund inflows aided investor sentiments.

At the interbank foreign exchange market, the local unit opened at 83.98, then inched further to touch 83.97, registering a rise of 4 paise from its previous close.

On Wednesday, the rupee breached the crucial 84-mark for the second time within a month and settled 3 paise lower at 84.01 against the American currency.

(With inputs from PTI and ANI)