INSUBCONTINENT EXCLUSIVE:
Mumbai: Benchmark equity index Sensex rallied 428 points on the back of a slew of positive developments globally such as easing US-China
trade tensions and a sweeping win by Boris Johnson’s Conservative Party in the UK elections, which boosted risk appetite.
BSE’s 30-share
Sensex closed 1.05 per cent or 428 points higher at 41,009.71, while NSE’s 50-share Nifty rallied 0.96 per cent or 114.90 points to close
at 12,086.70.
The US and China were close to finalising a modest trade agreement that would suspend tariffs that are set to kick in Sunday,
de-escalating their 17-month trade war.
Johnson was re-elected as British prime minister with a landslide majority in the country’s
general elections, a victory that will end the uncertainty over Brexit and will help him to take the UK out of the European Union by the end
of next month.
Markets at a glanceThe bulls were back in the driver’s seat, with gainers beating losers in the ratio of 1.6:1 on BSE.
All
the sectoral indices, except BSE Telecom index closed in the green
BSE Metals index and BSE IT index rose the most as they climbed 2.30 per cent and 1.68 per cent, respectively.
As many as 24 out of 30
Sensex stocks closed higher
Financials and energy-to-telecom conglomerate Reliance Industries contributed the most to the index’s gains
Private lender Axis Bank (67.79 points) contributed the most as it rose 4.24 per cent
Mortgage lender HDFC (57.66 points) followed next as it rose 1.49 per cent
RIL (53.76 points) added 1.12 per cent.
Shares of YES Bank advanced 2.87 per cent after ET reported that the private sector lender is
seeking exemption from the market regulator to raise funds under the qualified institutional placement (QIP) programme as a backstop for its
ongoing plan to sell stake via preferential allotment.
The UK-linked companies rallied on hopes that Brexit would happen soon
Shares of Tata Motors, which earns around 16 per cent revenue from the UK thanks to its subsidiary Jaguar Land Rover, gained 1.90 per cent
Bharat Forge was up 3.51 per cent and Motherson Sumi gained 3.99 per cent.
Analysts’ views“The bulls marched ahead and continued with
All signs suggest that the bulls are in a mood to push market higher towards fresh all-time highs
However, over the weekend, global as well as local triggers are lined up, which could create some volatility going ahead
Near term support is placed at 11,980 zone,” -- Amit Shah, Technical Research Analyst, Indiabulls Ventures.
“Market continued its
winning streak fuelled by trade deal optimism and positive cues from the UK election
Global growth sentiment helped domestic indices to subside weak CPI and industrial data in the near term
Midcap and smallcap stocks also participated in the rally
We believe this potential change in risk appetite may help investors to look beyond the polarised market,” -- Vinod Nair, Head of
Research, Geojit Financial Services.
Global marketA surge for London-listed companies brought European stock markets within striking
distance of an all-time high on Friday, as investors cheered the likelihood of an orderly Brexit after a landslide election victory for
Prime Minister Boris Johnson, Reuters reported.
Asian share markets jumped as a last-gasp Sino-U.S
trade deal and a likely major election win by Britain’s Conservative Party looked to have cleared a couple of dark clouds from the global
horizon, a Reuters report said.
MSCI’s broadest index of Asia-Pacific shares outside Japan put on 0.5 per cent.