Sensex climbs 209 points on global cues, Nifty closes above 10,800; IIP, inflation data eyed

Mumbai: Benchmarks surged to over four-month highs on Tuesday, joining a global relief rally sparked by the historic summit between the US and North Korea on denuclearisation of the Korean peninsula. The BSE Sensex soared 209 points to close at 35,692.524, while the broader NSE Nifty reclaimed the key 10,800-mark. Asian markets advanced after North Korean leader Kim Jong-un agreed to work towards “complete denuclearisation of the Korean Peninsula” following his landmark summit with US President Donald Trump in Singapore. Building up of positions by participants ahead of IIP and inflation data also influenced trading sentiments here, brokers said. Healthcare counters saw robust buying triggered by attractive valuations, they added. The BSE Sensex stayed in the positive terrain throughout the session and hit a high of 35,743.08 before ending at 35,692.52, higher by 209.05 points, or 0.59 percent. [caption id=“attachment_4382183” align=“alignleft” width=“380”] Representational image. Reuters.[/caption] This is its highest closing since 1 February, when the index had closed at 35,906.66. The broader NSE Nifty scaled a high of 10,856.55 before closing up by 55.90 points, or 0.52 percent, at 10,842.85 – its highest close since 1 February, when it had settled at 11,016.90. Meanwhile, domestic institutional investors (DIIs) bought shares worth a net Rs 1,062.82 crore, while foreign portfolio investors (FPIs) sold equities worth Rs 1,156.77 crore on Monday, according to provisional data. “Market edged higher supported by positive outcome from US-North Korea summit which may lead to an end of conflicts in Korean peninsula. “However, global market remains mixed ahead of Fed, ECB and BoJ policy meeting during the week. A 25 bps rate hike from US Fed is largely factored in by the market but any hawkish comment of rate cycle may dent the sentiment,” said Vinod Nair, Head of Research, Geojit Financial Services. Dr Reddy’s topped the gainers’ chart in the Sensex pack, rallying 5.23 percent, followed by SBI at 3.36 percent. Other winners were IndusInd Bank 2.41 percent, HUL 2.41 percent, Hero MotoCorp 2.11 percent, TCS 1.74 percent, Adani Ports 1.65 percent, L&T 1.58 percent, RIL 1.32 percent, Sun Pharma 1.03 percent, Kotak Bank 0.84 percent and Wipro 0.79 percent, among others. However, Bharti Airtel fell 1.98 percent, while Tata Steel lost 1.52 percent on profit-booking. Coming to sectoral indices, healthcare rose 1.94 percent, followed by capital goods 1.19 percent, FMCG 0.73 percent, PSU 0.71 percent, bankex 0.69 percent, IT 0.59 percent, infrastructure 0.53 percent, teck 0.35 percent, consumer durables 0.35 percent, realty 0.31 percent and oil and gas 0.28 percent. Broader markets too were in a better shape, with the BSE mid-cap and small-cap indices gaining 0.90 percent and 0.54 percent. In the Asian region, Japan’s Nikkei rose 0.33 percent, Shanghai Composite Index gained 0.89 percent and Hong Kong’s Hang Seng advanced 0.13 percent. In Europe, Frankfurt’s DAX gained 0.60 percent, while Paris CAC 40 rose 0.40 percent in early trade. London’s FTSE edged up 0.30 percent.