Sensex rallies 453 pts, Nifty tops 11,550

| | Mumbai
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Sensex rallies 453 pts, Nifty tops 11,550

Friday, 18 October 2019 | PTI | Mumbai

Sensex rallies 453 pts, Nifty tops 11,550

Extending its gains for the fifth consecutive session, equity benchmark BSE Sensex rallied 453 points on Thursday as global investors cheered a Brexit deal reached between Britain and the EU.

Domestic traders were also enthused after Finance Minister Nirmala Sitharaman hinted at more stimulus measures as she urged international investors to pump funds into India.

After opening on a subdued note, the 30-share Sensex surged in afternoon trade to close at 39,052.06, up 453.07 points, or 1.17 per cent.

The broader NSE Nifty too spiked 122.35 points, or 1.07 per cent, to settle at 11,586.35. Yes Bank was the biggest gainer in the Sensex pack, soaring 15.19 per cent, followed by Tata Motors, IndusInd Bank, SBI, Bajaj Auto, Asian Paints, Axis Bank, Tata Steel and Maruti, rising up to 9.82 per cent.

On the other hand, HCL Tech, Vedanta, PowerGrid, Kotak Bank, Infosys, ONGC, Tech Mahindra, L&T and HDFC Bank fell up to 1.04 per cent. According to traders, domestic market followed European equities that rallied after Britain and the European Union said they have struck an outline Brexit deal after prolonged negotiations.

The deal, however, must still be formally approved by the bloc and ratified by the European and UK parliaments.

“Government’s intention to provide further fiscal stimulus in the future as per the needs of the economy lifted the market sentiment today. Easing trade tension and positive development on Brexit provided further boost to the market.

“Risk taking ability is improving in the market with optimism over recovery in the economy led by stimulus, festive demand, good monsoon and lower interest rate,” said Vinod Nair, Head of Research, Geojit Financial Services.

Sectorally, BSE auto, bankex, finance, energy, FMCG, metal, healthcare and power index rose up to 2.93 per cent. Broader BSE midcap and smallcap indices gained up to 1.77 per cent.

Elsewhere in Asia, bourses in Shanghai, Hong Kong, Seoul and Tokyo ended on a mixed note. Further, the Chinese Government’s appeal to Washington to negotiate a quick end to their tariff war also buoyed market sentiment.

Rs  strengthens 27 paise to 71.16 post Brexit deal

Mumbai: The rupee darted up 27 paise to close at 71.16 against the US dollar on Thursday, led by optimism over the Brexit deal amid softening crude oil prices.

Persistent foreign fund inflows and robust buying in domestic equity markets added to the momentum, forex traders said.

At the interbank foreign exchange market, the rupee opened at 71.38 against the US dollar. During the day, the domestic unit fluctuated between a high of 71.14 and a low of 71.47, before finally ending at 71.16, up 27 paise over its previous close.

“Rupee has appreciated nearly 1 per cent in two days. The hopes of US-China closing the phase-one trade deal along with the announcement Brexit deal, has kept all emerging market currencies including rupee, afloat,”

said Rahul Gupta, Head of Currency, Emkay Global Financial Services.

Global markets rallied after Britain and the European Union said they have struck an outline Brexit deal after prolonged negotiations. The deal, however, must still be formally approved by the bloc and ratified by the European and UK parliaments.

Weak US economic data, fall in dollar index and speculation over the third rate cut by US Fed added to the strength in rupee, Gupta said.         

Gold falls Rs 105 on stronger Rs , weak cues

Gold prices on Thursday declined Rs 105 to Rs 38,985 per 10 gram in the national capital on a stronger rupee and weak global cues, according to HDFC Securities.

However, silver surged by Rs 509 to Rs 46,809 per kg here from its previous close of Rs 46,300 per kg.

On Wednesday, gold closed at Rs 39,090 per 10 gram.

“International gold prices traded weak on Brexit hopes and the US-China trade deal optimism,”

HDFC Securities Senior Analyst — Commodities Tapan Patel said.

Gold was trading lower at USD 1,488 an ounce in the international market, while silver quoted higher at USD 17.45 per ounce.

The Indian rupee was trading 18 paise stronger against dollar during the day and weighed on gold prices, he added.

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