ET Markets
Stock Analysis, IPO, Mutual Funds, Bonds & More

Banks, Airtel and Reliance propel Sensex to all-time high

Continued buying by foreign institutional investors (FIIs) also supported the rally.

Nov 25, 2019, 04.11 PM IST
ThinkStock Photos
gain thinkstock
Mumbai: BSE Benchmark Sensex hit a new record, while peer Nifty inched closer to a closing high, backed by gains in global equities as investors pinned hopes on a US-China trade deal.

Continued buying by foreign institutional investors (FIIs) also supported the rally, dealers said.

The 30-share Sensex closed 1.31 per cent or 529.82 points to close at 40,889.23, while 50-share Nifty rose 1.38 per cent or 164.60 points to close at 12,079 points.

Earlier in the day, Sensex rose as much as 1.42 per cent or 572.30 points to a record high of 40.931.71, while Nifty climbed as much as 1.41 per cent or 168.30 points to 12,084.50, merely 30 points away from the record high.

Markets at a glance
Bulls were in charge on the bourses, as gainers beat losers in the ratio of 1.4:1 on the BSE.

BSE Midcap and BSE smallcap indices lagged Sensex, as they rose 1.17 per cent and 0.81 per cent respectively.

All the sectoral indices ended in the green. BSE Telecom and BSE Metals led the gainers’ pack. They jumped 6.78 per cent and 3.34 per cent, respectively.

Telecom majors Bharti Airtel and Vodafone Idea rallied 7.20 per cent and 4.27 per cent, respectively, after they filed separate petitions in the Supreme Court on Friday, seeking a review of penalties and interest on the dues, and questioning some components of the non-core items that the court said should be included while computing adjusted gross revenue (AGR) of telcos.

Only two Sensex stocks closed lower. Financials and Bharti Airtel contributed the most to the benchmark’s gains.

Mortgage lender HDFC (95.82 points) contributed the most to Sensex’s gains, as it rose 2.57 per cent, while Bharti Airtel followed next (55.81 points). Private lenders Axis Bank (50.28 points) and Kotak Mahindra Bank (41.62 points) rose 3.10 per cent and 2.32 per cent, respectively.

Analysts’ views
“The prolonged trade war between the US & China was weighing heavily on Indian indices. Positive statements made by officials from both sides last week, indicating that a trade pact was likely by the end of December are being welcomed. Moreover, FIIs are preferring emerging Markets such as India as the recent easy monetary stance of US Fed & ECB has improved liquidity in the globak markets. Whereas, India’s economy is seeing a demand revival, especially in auto and consumer durables. The government providing relief to telecom firms over spectrum related dues and impending price increase planned by players has also revived interest in the sector,” -- Sandeep Nayak, ED & CEO of Centrum Broking.

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

Global markets
Asian and European shares gained traction on Monday following reports that Washington and Beijing were nearing a trade agreement.

A Chinese state-backed tabloid said on Monday China and the United States were “very close” to an initial trade agreement, adding to optimism from Friday, when the presidents of both the countries reiterated their desire for a deal, Reuters reported.

The MSCI All-Country World Index, which tracks shares across 47 countries, was up 0.2 per cent. MSCI’s broadest index of Asia-Pacific shares outside Japan bounced 0.7% The pan-European STOXX 600 index was up 0.6 per cent at 0802 GMT.
Add Your Comments
Commenting feature is disabled in your country/region.

Other useful Links

Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service