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Sensex jumps 281 pts on private bank, oil stocks; Nifty reclaims 11,050

NEW DELHI: After a day’s breather, equity benchmarks Sensex and Nifty returned to winning ways on Friday led by a rally in bank, IT and energy stocks.

After meandering between gains and losses for most part of the session, indices looked up amid hopes of another rate cut by the Reserve Bank of India while signs of a thaw in US-China trade war lent further support.

Oil’s decline to below the $60-mark was another factor that propped sentiment back home. The government mulling to sell a stake in BPCL to a foreign firm also boosted oil stocks.

The 30-pack Sensex jumped 281 points, or 0.76 per cent, to 37,385 with 24 of 30 constituents in the green. Nifty settled at 11,076, up 93 points or 0.85 per cent.

Global markets were already rejoicing, trading at a six-week high level, amid signs of progress in the US-China trade talks and another powerful slug of stimulus from the European Central Bank.

The US President Donald Trump said on Thursday that he was potentially open to an interim trade deal with China, although he stressed an “easy” agreement would not be possible.

RBI is expected to go for a further rate cut in the next month’s monetary policy review as inflation is expected to pan out in line with the central bank’s projections, experts say.

Among Sensex stocks, ICICI Bank followed by Vedanta, ONGC, Kotak Bank, SBI and Axis Bank were among the best-performing stocks while Sun Pharma, Bharti Airtel, HDFC Bank, YES Bank and ITC declined the most.

The BSE Smallcap index rose in line with Sensex, up 0.82 per cent while BSE Midcap gained 0.41 per cent.

BSE Oil & Gas gained the most in the sectoral space with 2.73 per cent, led by BPCL, IOC, HPCL and GAIL. Telecom and healthcare were the only sectors that ended on a weak note.

The advance-decline ratio on BSE stood at 5:3, meaning for every five stocks that traded on BSE, three advanced.

Globally, MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.5 per cent to their highest since August 1, while Japan’s Nikkei rose more than 1 per cent to four-month highs.

Source: Economic Times