Sensex gains 194.20 points, Nifty up nearly 60 points in early trade as US bond yields ease

After extending their losses for three days the domestic equity benchmark indices rebounded on Thursday in the early trade tracking Asian markets amid easing in US bond yields and a stable rupee that is likely to boost foreign inflows despite the renewed USIran conflictMarket movementThe 30share BSE Sensex advanced 19420 points or 025 per cent to 7676455 in early trade The 50share NSE Nifty gained 5850 points or 024 per cent to 2397295 in the initial tradeAccording to Shrikant Chouhan Head Equity Research Kotak Securities the overall structure remains weakThe market has been breaking important support levels with relatively little effort which is a matter of concern A decisive dismissal of the 2360075400 support zone could trigger another round of capitulation For Thursday 23800 on the Nifty and 76100 on the Sensex will remain crucial trenddeciding levels he saidAmong the Sensex constituents bank stocks were the gainers in the early trade with shares of Axis Bank ICICI Bank HDFC Bank and State Bank of India trading over 1 per cent higher Adani Ports and Tata Steel were also among the major gainers However IT stocks such as Tech Mahindra HCL Tech Infosys Tata Consultancy Services TCS were among the major laggards along with TitanOn Wednesday the Sensex shed 37393 points or 049 per cent to settle at 7657035 while the Nifty tanked 14135 points or 059 per cent to end at 2391445Global cuesAsian markets are showing signs of stabilisation this morning after Wednesdays selloff with the Kospi opening 133 per cent higher and the Nikkei broadly flat Investors are reassessing the latest escalation in the Middle East while Brent remains elevated around USD 9543 a barrel keeping pressure on Indias import bill and inflation outlook Rajesh Palviya Head of Research Axis Direct saidIn Asian markets South Koreas Kospi Japans Nikkei 225 index Shanghais SSE Composite index and Hong Kongs Hang Seng index all traded higherAccording to news agency PTIBrent crude the global oil benchmark was trading marginally lower by 016 per cent at USD 9548 per barrel in futures trade while Foreign Institutional Investors FIIS purchased equities worth Rs 668837 crore on a net basis on WednesdayThe market sentiment is likely to look up today following the slight easing of the US bond yields A big positive from the rupee perspective is the huge mobilisation of USD 136 billion under concessional swap facility The USD 127 billion mobilised under the FCNRB scheme has come way above the consensus estimates The implication of this from the market perspective is that the rupee will stabilise imparting confidence to FIIs V K Vijayakumar Chief Investment Strategist Geojit Investments saidWith improving growth and earnings prospects FIIs are likely to continue buying in India despite the elevated US bond yields Also the huge FCNRB mobilisation by banks will help improve their net interest margins This is positive for banking stocks he addedHe noted that the market indices especially the Nifty declined on Wednesday despite a Rs 9500 crore of institutional buying with FIIs purchasing equities worth Rs 6688 crore and Domestic Institutional Investors DII buying equities worth Rs 2812 croreSo it is obvious that the brunt of the selling came from retail investors proprietary traders and bears who used the market weakness to hammer the stocks down This is likely to reverse today he further saidWith inputs from PTI