Sensex rises over 350 points, Nifty reclaims 11,000 level; key reasons behind upsurge

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Published: August 14, 2019 4:48:36 PM

After falling over 600 points on Tuesday, benchmark equity indices ended the session higher on Wednesday, owing to gains in index heavyweights ICICI Bank, RIL, HDFC, and Infosys amid positive Asian cues.

In other Asian markets, Hang Seng, Kospi, Shanghai Composite Index and Nikkei rebounded after US President Donald Trump delayed tariffs on electronic goods from China, reducing fears of the investors over the US-China trade war.

After falling over 600 points on Tuesday, benchmark equity indices ended the session higher on Wednesday, owing to gains in index heavyweights ICICI Bank, RIL, HDFC and Infosys amid positive Asian cues. Even the fall in inflation numbers helped buoyed the sentiment of the domestic market, the analysts said. While, Sensex settled 353.37 points or 0.96 per cent higher at 37,311.53, Nifty reclaimed the 11,000 mark. Vedanta, Tata Steel, Yes Bank, Tech Mahindra, Hero MotoCorp, Bharti Airtel, SBI and Bajaj Finance and IndusInd Bank, were the major gainers in the Sensex pack. Sun Pharma, ONGC, Kotak Bank, Tata Motors, Asian Paints, HCL Tech and NTPC were the major laggards.

“We expect the markets to remain volatile in the near term and maintain our cautious stance. Further, in the absence of any fresh domestic triggers as well as the end of earnings season, investors will take cues from global developments. Market participants would keep a watch on movement of crude oil prices and rupee/dollar. Besides positive progress on US-China trade talks would boost investors sentiments. Given the uncertainty, we advise investors and traders to maintain stock specific approach and avoid risky trades,” Ajit Mishra Vice President, Research, Religare Broking.

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In other Asian markets, Hang Seng, Kospi, Shanghai Composite Index and Nikkei rebounded after US President Donald Trump delayed tariffs on electronic goods from China, reducing fears of the investors over the US-China trade war.

Meanwhile, the rupee appreciated 13 paise to 71.27 against the US dollar intraday. The brent crude futures, the global oil benchmark, slipped 0.83 per cent to $60.79 per barrel.

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