Stock Market

Sensex, Nifty rise for 2nd day on trade deal hopes

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NEW DELHI: The domestic stock market ended higher on Wednesday ahead of the expiry of June futures and options contracts.

Select stocks helped the indices log gains for a second straight session. Investors took cues from rise in US stocks futures after Treasury Secretary Steve Mnuchin said that the US-China trade deal was 90 per cent complete. BSE Sensex jumped 157 points or 0.40 per cent to 39,592 while NSE Nifty ended at 11,848, up 51 points or 0.43 per cent. The advance-decline ratio stood at 2:1 on BSE, indicating two out of every three stocks that traded rose. The rupee recouped early losses.

The domestic currency gained as much as 25 paise against the greenback. Market at a glanceIn the 30-pack Sensex, 19 stocks ended in the black and 11 in the red with Infosys as the worst performer and Vedanta best.

Power Grid, Sun Pharma, YES Bank and Tata Steel too joined Vedanta on the gainers list, rising up to 4.12 per cent. IndusInd Bank, TechM, Bharti Airtel, Maruti Suzuki and TCS were among other Sensex stocks that declined. BSE Midcap index rallied 0.85 per cent and outperformed benchmark Sensex while BSE Smallcap, up 0.47 per cent, rose in line with the barometer. Metal index recorded gains of 2.88 per cent.

The stellar rise in the index could be amid the possibility of a US-China trade resolution.

Power, Utilities and Basic Materials too performed well. Shares of Reliance Infra ended 17.44 per cent higher.

The stock rallied after the company bagged Versova-Bandra sea link project (VBSL) from Maharashtra State Road Development Corporation (MSRDC) worth Rs 7,000 crore.

Factors that worked in favour of stocks:A.

F-O expiryDomestic markets rose as investors squared off their positions ahead of the expiry of June options - contract series.

B.

US-China trade resolution near?US Treasury Secretary Steve Mnuchin in an interview to CNBC said that the US-China trade deal was "90 per cent" complete and this sent a wave of cheer across the global markets and India was no exception.

Dow Jones and S-P futures gained nearly half a per cent indicating a positive start on Wall Street. Expert TakeThe structural trend for the broader market remains extremely positive.

From near term perspective, a hold above 11,800 is expected to push Nifty towards 12,200.

We expect private banking to outperform.

Strong bounce back is expected in auto and metal stocks- Sahaj Agrawal, Head of Derivatives, Kotak SecuritiesThe market managed to maintain its gain throughout the session and ended near intraday high level with the gain of 0.4%.

Factors such as progress on the monsoon front, NBFC sector development, building expectations from Budget and global trade situation will continue to govern market trend in the coming sessions- Satish Kumar, Senior Research Analyst, Choice Broking




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