Sensex surges 530 points to scale new closing peak of 40,889, Nifty ends above 12,050; Bharti, Tata Steel among top gainers

  • After touching its record intra-day high of 40,931.71, the 30-share BSE Sensex ended 529.82 points, or 1.31 perent, higher at 40,889.23

  • Similarly, the broader NSE Nifty settled just shy of its life-time closing high, up 159.35 points, or 1.34 percent, at 12,073.75

  • Bharti Airtel was the top gainer in the Sensex pack, rallying over 7.20 percent, followed by Tata Steel 4.99 percent, IndusInd Bank 3.49 percent, Axis Bank 3.26 percent and HDFC 2.57 percent

Mumbai: Market benchmark Sensex surged nearly 530 points to scale a new closing peak of 40,889.23 on Monday, buoyed by renewed optimism over US-China trade deal and government's divestment measures to curb the fiscal deficit.

Further, reconstruction of Sensex indices and hopes of a rate cut by the Reserve Bank in the upcoming monetary policy meet also boosted investor sentiment.

Starting on a positive note, the 30-share BSE index went on to touch its record intra-day high of 40,931.71, before finally settling 529.82 points, or 1.31 percent, higher at 40,889.23 -- its all-time closing peak.

Likewise, the broader NSE Nifty closed with a gain of 159.35 points, or 1.34 percent, at 12,073.75 -- just shy of its lifetime closing high.

Sectorally, BSE telecom index zoomed nearly 7 percent on the BSE, lifted by a positive sentiment in the sector in the wake of government's relief measures and plans to raise tariffs by telcos.

Following suit, the metal index too rose over 3 percent on hopes that the US and China may strike an early deal to break the logjam in their trade war negotiations.

 Sensex surges 530 points to scale new closing peak of 40,889, Nifty ends above 12,050; Bharti, Tata Steel among top gainers

Representational image. Reuters.

Besides, a sign of revival in demand, especially in auto, FMCG and other consumer-driven sectors, saw respective sectoral indices rising.

All sectoral indices closed with gains.

In the Sensex pack, Bharti Airtel was the top gainer, rallying over 7.20 percent, followed by Tata Steel 4.99 percent, IndusInd Bank 3.49 percent, Axis Bank 3.26 percent and Vedanta Ltd 2.57 percent.

Barring ONGC and Yes Bank, all Sensex constituents closed in the green.

"Cues that US and China will conclude a deal by next month lifted the sentiment across the globe. Reconstruction of Sensex indices and new developments over divestment to curb fiscal deficit provided confidence in the Indian market. Expectations of further cut in interest rate by RBI, gave the advantage to rate-sensitive stocks," Vinod Nair, Head of Research at Geojit Financial Services, said.

In the biggest privatisation drive ever, the Union Cabinet last week approved the sale of government's stake in blue-chip oil firm BPCL, shipping firm SCI and onland cargo mover Concor as well as decided to cut shareholding in select public sector firms below 51 percent to boost revenue collections that have been hit by slowing economy.

Analysts are of the view that a trade pact between the US and China is likely by the end of December 2019 after positive statements made by both sides last week.

Further, they said that sentiment got a boost from FIIs preferring emerging markets such as India as the recent easy monetary stance of US Fed and ECB has improved liquidity in world markets.

Bourses in Shanghai, Hong Kong, Seoul and Tokyo were trading up to 1.50 percent higher.

Stocks in Europe were also trading on a positive note.

On the currency front, the rupee was flat against the US dollar at 71.71.

Brent futures, the global oil benchmark, rose 0.11 percent to $62.44 per barrel.

(With inputs from agencies)

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Updated Date: Nov 25, 2019 17:22:56 IST


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