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Sensex gains 220 pts to settle above 40,000 mark; Nifty ends at 11,844

Sensex closed just 260 points away from record high and Nifty just 256 points shy.

Oct 30, 2019, 04.08 PM IST
Mumbai: Benchmark equity index BSE Sensex rose for the fourth straight session, and crossed the psychologically-important 40,000-mark, on expectations of more reforms, backed by strong buying in technology stocks and energy-to-telecom conglomerate Reliance Industries (RIL).

There was also short covering ahead of expiry monthly F&O contracts on Thursday, dealers said.

The country’s largest software services exporter Tata Consultancy Services (TCS) contributed the most to Sensex’s gain (58.77 points), as it rose 2.63 per cent. Peer Infosys (35.71 points) rose 1.51 per cent. RIL rose 0.79 percent.

Markets at a glance:
BSE’s 30-share Sensex rose 0.55 per cent or 220.03 points higher at 40,051.87 points, while NSE’s 50-share Nifty advanced 0.49 per cent or 57.25 points to close at 11,844.10 points.

Sensex closed just 260 points away from record high level, and Nifty is 256 points away from logging a new high.

Bulls were marginally in favour as advance-decline ratio on the BSE stood at 1.2:1. Eighteen of 30 Sensex stocks closed higher.

Top lender State Bank of India advanced 3.37 per cent, while cigarettes-to-hotels firm ITC rose 2.43 per cent.

Interglobe Aviation closed 7.19 per cent higher after the parent of carrier Indigo said it had ordered 300 Airbus aircraft – its largest order so far – worth an estimated $33 billion to replace old planes in its fleet and operate nonstop flights to long-haul destinations such as London and Tokyo.

Analysts’ views
“BSE Sensex regained 40k back today led by buying in pivotals, short covering and hopes of strategic divestment in PSU stocks"- S Ranganathan, Head of Research at LKP Securities.

“Market is positive in expectation of fresh reforms from the government and change in the long-term capital gain tax in the future. After a long-time market is seeing incentive to invest in equity due to reduction in taxation producing better than expected Q2FY20 result, providing a hope that earnings growth will revamp further in H2FY20. Results are adding fuel to the market despite weakness in other global markets ahead the fed interest rate decision & US-China trade talks agreement,” - Vinod Nair, Head of Research, Geojit Financial Services.

“Nifty remains in a structural uptrend and is expected to test 12200-12300 in the next few weeks. Since we witnessed a rally in the recent past some consolidation is expected in the range of 11650-11950. Accumulation on dips is advisable as we await for the next momentum trade to get triggered. Metals and select banking stocks trade with a positive bias. Selective buying is advisable in the midcap space,” -- said Sahaj Agarwal, Head of Derivatives, Kotak Securities

Global markets:
Asian shares slipped from three-month highs on Wednesday, as the prospect of a rate cut by the Federal Reserve was countered by worries a Sino-US first-stage trade deal could be delayed, Reuters reported.

MSCI's broadest index of Asia-Pacific shares outside Japan shed 0.33 per cent from Tuesday's three-month high while Japan's Nikkei lost 0.57 per cent after hitting a one-year high the previous day.

European shares struggled for direction as losses due to uncertainty around an interim US-China trade deal were curtailed by a jump in auto stocks following merger talks between Fiat Chrysler and PSA Group, said a Reuters report.

The pan-European STOXX 600 index was flat at 0810 GMT.

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