Benchmark indices bounced back sharply in the opening trade on Thursday taking cues from global markets that recovered from a sell-off due to escalating US-China trade war situation.
Sensex jumped 383.96 points or 1.16 percent to 33,403.03 while the Nifty gained 124.10 points or 1.23 percent to 10,252.5 ahead of the RBI monetary policy outcome due after 2:30 pm today.
As per a Reuters report, the Reserve Bank of India (RBI) is expected to keep interest rates on hold but maintain a cautious approach in its first monetary policy meet of the current FY.
Nifty midcap index rose 1.5%. All sectoral indices gained with the realty, metal index rising over 2%
Tyre stocks also rallied in trade today; Apollo Tyres surged by 4.5% while MRF and Balkrishna Industries jumped 3% in trade.
Indian Hotels Company share rallied 3.7% in morning trade after it received extraordinary income from Newbury Owner LLC.
Also, Asian shares gained taking cues from the US equities market as investors hoped that a full-blown trade war between the two largest trading nations the US and China can be averted.
The rupee opened at 65.03 against the dollar up 0.19% from Wednesday's close of 65.15. The 10-year bond yield was at 7.3% compared to its previous close of 7.294%. Bond yields and prices move in opposite directions.