Sensex soars over 400 points in early trade on positive global cues

Mumbai: Continuing with the positive momentum, Sensex and Nifty surged in early trade on Wednesday as encouraging trends in the global market boosted investor sentiments.

The 30-share Sensex surged 416.22 points or 0.63 per cent to 66,495.58 points while the broader Nifty jumped 120 points or 0.61 per cent to 19,809.85 points.

Hopes that the Israel-Hamas conflict might not spillover into a larger Middle East crisis and impact crude oil prices also aided the positive momentum, according to analysts.

Asian markets, including Japan, China and Hong Kong, were trading with gains.

European and US markets closed in the green on Tuesday. On the domestic front, Sensex had jumped 566.97 points to close at 66,079.36 points while Nifty climbed 177.50 points to settle at 19,689.85 points.

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said the fundamental support to the market comes from the resilience of the US economy, the declining US bond yields and the hope that the Israel-Hamas conflict will remain a localised crisis which will not impact crude prices.

"The fact that Nifty is just 2.5 per cent away from the all-time high indicates the strength and resilience of the market.

"Even though FIIs are sustained sellers in the market, buying by DIIs, HNIs and retail are counterbalancing the selling and supporting the market. Safety is in large-caps," he noted.

DIIs and HNIs refer to Domestic Institutional Investors and High Networth Individuals, respectively.

Foreign Institutional Investors (FIIs) continued to be net sellers as they offloaded shares worth Rs 1,005.49 crore on Tuesday, according to data available with BSE.