Sensex up over 300 points, Nifty reclaims 10,900 level; key reasons

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Published: September 6, 2019 4:54:54 PM

The benchmark equity indices - Sensex and Nifty - ended the trade with gains, owing to improvement in sentiment around trade truce between the US and China.

Tech Mahindra, Maruti, NTPC, Axis Bank, Tata Steel, Bajaj Auto, Tata Motors, Bajaj Finance, M&M, Kotak Bank were among the top gainers in the Sensex pack recording nearly 4 per cent rise.

The benchmark equity indices – Sensex and Nifty – ended the trade with gains, owing to improvement in sentiment around trade truce between the US and China. Sensex rallied 337.35 points to end at 36,981.77, Nifty jumped 93 points to 10,940.90. Tech Mahindra, Maruti, NTPC, Axis Bank, Tata Steel, Bajaj Auto, Tata Motors, Bajaj Finance, M&M, Kotak Bank were among the top gainers in the Sensex pack recording nearly 4 per cent rise. On the other hand, Yes Bank, Sun Pharma, TCS, HCL Tech, HUL, ITC were among the losers giving up nearly 3 per cent.

“Markets rejoiced possibility of de-escalation of the trade war between the US and China. However, sustainability would be difficult in the absence of any domestic support. On the benchmark front, Nifty has reached closer to its immediate hurdle of 11,000 and requires a decisive break above the same for further up move,” Ajit Mishra Vice President, Research, Religare Broking said. The investors are advised to watch closely on the forthcoming domestic data and global markets for any triggers, he added.

Also read: Gold prices fall Rs 372 on weak demand, strong rupee

“The surge that we saw in the markets is more in reaction to the global risk-off that occurred over the past couple of days. The up move that we saw in the Indian equities is just an extension of the pullback that started a day before. The markets have formed a base in the 10800-10850 level and is witnessing some mild technical pullback. However, this should not be construed as a reversal as the NIFTY continues to remain below important resistance levels…” Milan Vaishnav, CMT, MSTA told Financial Express Online.

Meanwhile, the Indian rupee gained 16 paise  in the intraday trade to trade at 71.68 per US dollar.

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