Sensex rises over 250 pts on strong global cues

Sensex rises over 250 pts on strong global cues

Market benchmark BSE Sensex jumped over 250 points on Friday led by global euphoria over progress in US-China trade and likely Conservative Party win in UK general elections.

After rising 284 points in early session, the 30-share index was trading 244.04 points or 0.60 per cent higher at 40,825.75. Similarly, the broader Nifty was trading 66.20 points or 0.55 per cent up at 12,038.

Tata Motors was the top gainer in the Sensex pack rallying up to 3.78 per cent, followed by Vedanta, Yes Bank, Tata Steel, SBI, M&M, Axis Bank and RIL.

On the other hand, Bharti Airtel was the top loser, shedding up to 0.59 per cent. Asian Paints, Kotak Bank, Bajaj Auto and Sun Pharma were also trading in the red.

In the previous session, the 30-share gauge ended 169.14 points, or 0.42 per cent, higher at 40,581.71, while the Nifty settled 61.65 points or 0.52 per cent, up at 11,971.80.

According to traders domestic investors followed cues from global markets, which were enthused by reports of the completion of the first phase of US-China trade deal and Boris Johnson's likely re-election as British prime minister

The Trump administration and China are close to finalising a modest trade agreement that would suspend tariffs that are set to kick in Sunday, de-escalating their 17-month trade war.

In return, Beijing would buy more US farm products, increase Americans companies' access to the Chinese market and tighten protection for intellectual property rights.

Reports suggest that US President Donald Trump has give his final approval to the deal.

Further, Boris Johnson is set to be re-elected as British prime minister with a landslide majority in the country's general elections, an exit poll suggested on Friday, a victory that will end the uncertainty over Brexit and will help him to take the UK out of the European Union by the end of next month.

Bourses in Hong Kong, Shanghai, Tokyo and Seoul were trading significantly higher on reports of finalisation of the preliminary US-China trade deal.

Stock exchanges on Wall Street settled at record peaks on Thursday.

However, in the domestic market, increasing food inflation and weak factory output data capped the gains in benchmark indices.

Rising food prices pushed the retail inflation in November to over three-year high of 5.54 per cent, while the industrial sector output shrank for third month in a row by 3.8 per cent in October, indicating deepening slowdown in the economy, government data showed on Thursday.

On a net basis, foreign institutional investors sold equities worth Rs 683.83 crore, while domestic institutional investors bought shares worth Rs 810.23 crore, data available with stock exchange showed on Thursday.

Brent futures, the global oil benchmark, rose 0.76 per cent to USD 64.69 per barrel.

Meanwhile, the rupee appreciated by 25 paise to 70.58 in morning session.

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