Sensex opens on positive note, Nifty back to 10,500 mark

The benchmark BSE Sensex opened on positive note today, the 30-share BSE Sensex was up 253.58 points or 0.74 per cent at 34,336.29 and the 50-share NSE Nifty rose 71.60 points to 10,548.30.

Key indices on Thursday extended gains in morning driven by index heavyweights like Infosys, HDFC twins and Reliance Industries.

Shares of Torrent Power, Prestige Estates, ICRA and SRF were among early gainers, the shares gained around gained 1-4 per cent.

Gati, Hexaware and Dixon Technologies were trading in red, down by 1-4 per cent.

Asian shares flirted with six-week lows on Thursday as U.S. bond yields crept up towards four-year highs as investors fretted that low borrowing costs enjoyed by companies for many years may be endangered by the threat of rising inflation.U.S. congressional leaders reached a two-year budget deal to raise government spending by almost $300 billion, a rare display of bipartisanship that is positive for risk sentiment but is also widening the federal deficit sharply.

"The scale of increase was much larger than what markets were expecting just a few months ago. It will have as big impacts as tax cuts. Since the markets haven't priced this in yet, US bonds could be sold for another week or so," said Tomoaki Shishido, fixed income analyst at Nomura Securities.

The 10-year US Treasuries yield jumped back to 2.813 per cent, near Monday's four-year peak of 2.885 per cent.That is keeping investors nervous, with the prospects of rising interest rates around the world triggering a massive selloff in equities in the past few days. The rising costs of dollar funding is detrimental to firms not just in the United States but around the world.

Bombay Stock Exchange - BSE

National Stock Exchange of India Ltd (NSE)