Sensex Rises Over 350 Points, Nifty Reclaims 12,050 On Strong Global Cues
The S&P BSE Sensex and NSE Nifty 50 indexes staged a gap up opening in trade on Friday mirroring gains in other Asian markets. Asian shares scaled eight-month peaks on Friday as a last-gasp Sino-US trade deal and a likely major election win by Britain's Conservative Party looked to have cleared a couple of dark clouds from the global horizon. The Sensex rose as much as 360 points and the NSE Nifty 50 index reclaimed its important level of 12,050.
As of 10:36 am, the Sensex traded 333 points or 0.8 per cent higher at 40,918 and the NSE Nifty 50 index climbed 86 points or 0.7 per cent to 12,057.
The double dose of relief slugged safe-haven sovereign bonds and the Japanese yen, and led markets to scale back the chance of more interest rates cuts around the world.
The pound hit its highest since mid-2018 as UK exit polls seemed to rule out a shock win by the left-wing Labour opposition, and could help clarify the outlook for Brexit.
Polls suggested Prime Minster Boris Johnson could gain a commanding 368 seats in Britain's Parliament, settling another long-standing uncertainty.
Back home, buying was visible across sectors as 17 of nineteen sector gauges compiled by BSE were trading higher led by the S&P BSE Metal index's over 2 per cent gain.
The S&P BSE Capital Goods, Realty, Auto, Information Technology, Industrials and Basic Materials indexes were also up between 1 and 1.6 per cent each.
On the other hand, S&P BSE Telecom index was top loser, down 1.2 per cent.
Mid- and small-cap shares were also witnessing buying interest as the S&P BSE MidCap index rose 0.8 per cent and S&P BSE SmallCap index advanced 0.7 per cent.
Tata Motors was top gainer in the Nifty 50 index, the stock rose 5 per cent to Rs 182. Vedanta, JSW Steel, Yes Bank, Tata Steel, Hindalco, Axis Bank, State Bank of India, Coal India and Maruti Suzuki were also among the gainers.
On the flipside, Dr. Reddy's Labs, Bharti Infratel, Bharti Airtel, Kotak Mahindra Bank, Britannia Industries, Zee Entertainment and Tech Mahindra were among the laggards.
The overall market breadth was positive as 1,221 shares were trading higher while 543 were trading lower on the BSE.