Sensex’s equity benchmark jumped 529 points after gains in index

Sensex’s equity benchmark jumped 529 points after gains in index

On Thursday, Sensex’s equity benchmark jumped 529 points after gains in index majors Reliance Industries, HDFC twins, and ICICI Bank amid optimistic global signals. At 46,973.54, the 30-share BSE index ended 529.36 points, or 1.14 percent higher. The wider NSE Nifty increased to 13,749.25 by 148.15 points or 1.09 percent.

Axis Bank, followed by Sun Pharma, Reliance Industries, ONGC, HDFC, ICICI Bank, Kotak Bank, and Bharti Airtel, was the top winner in the Sensex pack, rising about 3 percent. Among the laggards, on the other hand, were Infosys, IndusInd Bank, HCL Software, Nestle India, and Tech Mahindra.

Binod Modi, Head-Strategy at Reliance Securities, said domestic equities remained bullish and witnessed a sharp rebound backed by financials. The emerging prospect of a Brexit trade agreement led to higher Asian markets, including India, he said, adding that all sectors contributed to the market rally, barring IT.

“As the outline of Brexit trade deal was reached, higher chances of Brexit trade deal led markets to trade higher. Also, fear of new coronavirus strain seems to be easing out now with select European countries opening borders for Britain,” he said. He further noted that the FPI inflow continues to remain a key driver of domestic equity, which is expected to be sustained in the short term in the background of the weak dollar, soft monetary policies of global central bankers, and fiscal stimulus in the US.

According to provisional exchange details, foreign portfolio investors (FPIs) were net purchasers in the stock market as they purchased shares worth Rs 536.13 crore on Wednesday. Elsewhere in Asia, the Seoul, Hong Kong, and Tokyo stock exchanges finished on a good note, while Shanghai was in the red.

Stock exchanges in Europe were dealing in early deals with profits. Meanwhile, Brent crude futures, the global oil standard, slipped 0.48% to USD 51.04 per barrel.

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