Markets soar on stimulus boost
Sensex surges by 792.96 pts; Nifty reclaims 11,000 mark
Mumbai: Benchmark stock indices Sensex and Nifty saw their best day in over three months on Monday, buoyed by the central government move to withdraw additional surcharge on foreign investors and initiate measures to revive the economy.
The BSE gauge Sensex settled with a gain of 2.16 per cent or 792.96 points; while the NSE Nifty ended 2.11 per cent or 228.50 points higher.
Indian equities during the second half of the trading session also got a boost from the news that the US and China will soon resume trade talks despite many failed negotiations in recent months.
However, Asian markets closed with significant losses as investor worries grew over the ever-lasting US-China trade war, though sentiment revived in other markets, including India and the Europe.
Riding on a wave of economic stimulus optimism, the 30-share Sensex opened over 663 points higher, but global volatility wiped out its gains as the session progressed. It swung 1,052 points during the day.
The index, however, made a roaring comeback in the later half tracking news about US-China trade talks resumption. Similarly, the broader NSE Nifty reclaimed the 11,000-level.
During the day, it climbed a peak of 11,070.30 and touched a low of 10,756.55. Both benchmarks Sensex and Nifty have logged their best single-day gains in over three months, since the return of the Narendra Modi government for a second term.
Finance Minister Nirmala Sitharaman on Friday announced a raft of relief measures, including the rollback of enhanced super-rich tax on foreign and domestic equity investors, for the ailing economy.
Sectorally, BSE finance, realty, bankex, capital goods, industrials, FMCG and power index rallied up to 3.86 per cent. While BSE metal index fell 1.12 per cent. Broader BSE midcap and smallcap indices rose up to 1.65 per cent.
Meanwhile, the Indian rupee depreciated 36 paise to 72.02 against the US dollar. Brent crude futures, the global oil benchmark, rose 0.92 per cent to $59.34 per barrel.
"Indian markets opened higher following policy stimulus announcement by Finance Minister on Friday with a raft of measures," said Narendra Solanki, Head Fundamental Research - AVP Equity Research, Anand Rathi Shares & Stock Brokers.
In Asia, Shanghai Composite Index, Hang Seng, Kospi and Nikkei ended significantly lower.