Domestic stock markets started Thursday’s session on a positive note, amid cautious gains across Asian equities. The S&P BSE Sensex opened 219.61 points – or 0.56 per cent – higher at 39,293.53, whereas the broader NSE Nifty 50 benchmark started the day above the 11,600 mark, continuing to rise for the fifth day in a row.
At 9:23 am, the Sensex traded 217.68 points – or 0.56 per cent – higher at 39,291.60, while the Nifty was up 57.2 points – or 0.50 per cent – at 11,606.80.
The GST Council will conduct its 41st meeting via video conferencing to discuss compensation to states.
Analysts awaited official data on the country’s GDP in the April-June period for more clarity on the damage caused by the coronavirus pandemic and resultant lockdowns.
Equities in other Asian markets touched two-year peaks before losing stream as caution prevailed on account of US-China trade tensions.
MSCI’s broadest index of Asia-Pacific shares outside Japan turned flat after earlier reaching its highest since August 2018.
Japan’s Nikkei index eased 0.4 per cent from levels not seen since mid-February, and South Korea’s KOSPI benchmark fell 0.8 per cent as a jump in coronavirus cases ended four days of rises.
Asian investors turned more circumspect because of the military face-off in the South China Sea, as Washington blacklisted 24 Chinese companies while Beijing reportedly test fired missiles into the area on Wednesday.
Yet markets globally are still focused on the endless liquidity being pumped out by central banks.
Federal Reserve Chair Jerome Powell is expected to outline a more flexible approach to policy on Thursday including a shift to targeting an average inflation rate around 2 per cent that will allow rates to stay super-low for longer.
