Led by Power Grid, UltraTech Cement, NTPC, Tata Steel, Asian Paints and Axis Bank, the Sensex climbed more than 282 points in Friday morning trade. The Nifty gained at least 86 points in the early session, continuing the positive trend across global markets, including Wall Street, which ended higher on Thursday.
This was at the heel of US President Donald Trump, who offered corporations lower taxes if they manufactured their products in the US, at the World Economic Forum on Thursday. Trump also threatened higher tariffs if they did not do so.
The rupee also appreciated in value, going up 18 paise to hit 86.26 against the US dollar. The Indian currency piggybacked on strong domestic stocks and weakening crude oil prices.
With the rupee showing signs of resilience, Amit Pabari of CR Forex Advisors said that more inflows from IREDA fundraising to the tune of USD 570 million would provide additional support to the Indian currency. Pabari projected the rupee to trade within the 86.20–86.80 range.
Despite two strong trading sessions for the rupee and equities, offloading by foreign investors remained strong, with FIIs selling equities worth Rs 5,462.52 crore on Thursday.
Earlier on Friday, Japan's apex bank raised its key interest rate to 0.5 per cent from 0.25 per cent. The Bank of Japan's decision came after a two-day policy board meeting in Tokyo. Last year in July, when Japan lifted its rates, stocks tumbled en masse.