Sensex up in line with global peers eye US-China trade deal

Indian stock markets on Friday opened marginally higher tracking mostly upbeat global equities that rose in a relief rally following a de-escalation in tensions between the US and Iran. Investors have now shifted focus to US-China phase-one deal which is expected to be signed next week.

At 9.30 am, the benchmark Sensex was up 0.3% or 130.04 points at 41582.39 points, while the Nifty gained 0.29% or 35.35 points to 12251.25 points.IIFL Securities expects the party in mid caps to continue today as investors make a beeline for higher delta stocks with mid caps making a strong come back.

The October-December earnings season kick starts today, Infosys Ltd scheduled to announces its results later in the day. Analysts expect the 3Q of FY20 to be another quarter of muted earnings, largely led by BFSI, auto and consumer segment. The IT major rose 1% ahead of its earnings.Bharti Airtel rose 1% after Business Standard reported that it has received offers for subscriptions aggregating over $10 billion, three times its target of $3 billion, through a combination of qualified institutional placement (QIP) and foreign currency convertible bonds (FCCBs).

"Going ahead, markets would continue to be volatile in short term due to the tension in Middle East and upcoming 3QFY20 earnings season. Investors would also be watching out for pre-budget developments which would influence the market", Motilal Oswal said in a note to its investors.

Meanwhile, shares in Japan and Australia nudged higher along with US equity futures, even as gains fizzled in Hong Kong and China. The S&P 500 Index climbed to a fresh record on Thursday and the yen dropped to a two-week low versus the dollar as tension in the Middle East ebbed. Also aiding sentiment, jobless claims fell more than expected, adding to signs of economic strength ahead of the US payrolls report later today.