Sensex hits new intra-day high; Yes Bank zooms 24%

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Updated: November 1, 2019 3:31:44 AM

Of the 19 sectoral indices compiled by the BSE,16 ended the session in green with BSE Teck, BSE Telecom and BSE IT gaining nearly 2%.

sensex, bseForeign portfolio investors (FPIs) bought shares worth $263 million on Thursday, provisional data on exchanges showed.

The Sensex touched a new intra-day high of 40,392.22 points on Thursday during the day, clocking gains for the fifth consecutive session. It pared initial gains to settle at 40,129.05, up 77.18 points or 0.19%.
With Thursday’s gain, the Sensex has added about 4,000 points or 11.2% after the corporate tax rate cut announcement with stocks such as Reliance Industries, HDFC Bank, ICICI Bank and Axis Bank contributing half of the gains. The broader Nifty50 Index rose 33 points to close at 11,877.45 points, 211 points shy from its record-high.

The benchmark clocked gains amid expectations of higher foreign flows into the country after the Federal Open Market Committee (FOMC) cut the policy rate by 25 basis points and expectations of a pick-up in corporate earnings. Market participants believe the rally will continue on account of lower tax rates, divestment of PSUs and improved liquidity conditions. “Favourable conditions like easing taxation norms by the government and a liquidity surplus situation would lead to higher inflows from foreign portfolio investors (FPIs) in the coming months,” said Deven Choksey, MD, KRChoksey Investment Managers.

According to ICICI Bank Global Markets, the Federal Open Market Committee (FOMC) cut the policy rate on expected lines by 25 bps but provided a neutral guidance contrary to our expectations of a dovish one. “Market response to the FOMC was limited. We expect both the dollar index and US yields to be driven by risk sentiment in the near-term,” the brokerage said in a report.

Foreign portfolio investors (FPIs) bought shares worth $263 million on Thursday, provisional data on exchanges showed. So far in October, FPIs have purchased equities worth nearly $2 billion after pumping in nearly $1 billion in September. In contrast, they had pulled out nearly $4 billion in July and August.

Amit Khurana, head of equities & research, Dolat Capital, said, “Today’s rally has lot to do with the influence of short covering due to derivative expiry. The general positive momentum in the market and inflows from both domestic and foreign institutional investors also aided the Sensex to scale-high.”

Private-sector lender Yes Bank gained the most in Thursday’s trade after the bank said in an exchange filing that it has received a binding offer of $1.2 billion from a global fund. Shares rose by 24% to close at `70.45.
While State Bank of India and Infosys also gained in Thursday’s trade, Tata Steel and Tech Mahindra were the biggest losers.

Of the 19 sectoral indices compiled by the BSE,16 ended the session in green with BSE Teck, BSE Telecom and BSE IT gaining nearly 2%.

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