Sensex gains 396 pts on US-China trade talks
Mumbai: The BSE sensex zoomed 396 points on Thursday, propelled by bank, auto and energy stocks, as September series derivatives expired amid positive global cues. Global markets were galvanised by US President Donald Trump’s comments that a trade deal with China could happen sooner than expected.
Domestic equities rose further as September futures and options expired, traders said, adding that investors remain optimistic ahead of the Reserve Bank’s policy review meet next week. After rallying 565 points during the day, the 30-share sensex ended 396 points, or 1%, higher at 38,990. Similarly, the broader NSE Nifty soared 131 points, or 1.2%, to end at 11,571.
Top gainers in the sensex pack included Vedanta, M&M, ICICI Bank, Tata Steel, ONGC, Maruti, IndusInd Bank, L&T, Hero MotoCorp, Bajaj Finance, Kotak Bank and Reliance, surging up to 6.5%. On the other hand, Yes Bank, Infosys, HUL, HCL Tech, HDFC, NTPC, PowerGrid and TCS dropped up to 4.9%. “Momentum was broad-based with auto, banks and metals leading the gains on expectation of better demand during festive season. This positive trend is likely to be maintained in combination with ease in trade war and domestic stimulus,” said Vinod Nair, head of research, Geojit Financial Services.
Sectorally, BSE metal, realty, oil and gas, auto, energy, basic materials, capital goods, bankex and finance indices rallied up to 4.2%. However, IT and teck indices finished lower.