Sensex surges 265 pts on global rebound; banks rally

The Sensex stayed in the positive terrain throughout and closed at 27,517.68, up 265.15 points, or 0.97 per cent, its biggest single-session jump since October 18. Intra-day, it shuttled between 27,743.46 and 27,457.05.

By: PTI | Mumbai | Updated: November 10, 2016 6:05 pm
Donald Trump, black money crackdown, Sensex, bluechip stocks, Trump win, trade, news, latest news, India news, national news, Sentiment also got a boost on short-covering by speculators as buying gathered pace on a firming trend at other Asian bourses and a higher opening in European shares.

After Wednesday’s global stock market rout, BSE Sensex on Thursday recovered over 265 points as banking stocks rallied on hopes of increase in deposits in the wake of higher value notes withdrawal by the Centre and also investors coming to terms with Trump win in the US election. Sentiment also got a boost on short-covering by speculators as buying gathered pace on a firming trend at other Asian bourses and a higher opening in European shares.

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Global investors turned optimistic about generous tax cuts and higher infrastructure and defence spending in the US following Donald Trump’s victory. The Sensex stayed in the positive terrain throughout and closed at 27,517.68, up 265.15 points, or 0.97 per cent, its biggest single-session jump since October 18. Intra-day, it shuttled between 27,743.46 and 27,457.05.

The gauge had lost 338.61 points in Wednesday’s trade after recording biggest intra-day fall of about 1,689 points since August 2015, shocked by Donald Trump win in US election and the Centre’s black money crackdown. The 50-share NSE Nifty took back the crucial 8,500 level and ended the day at 8,525.75, a gain of 93.75 points, or 1.11 per cent after moving between 8,598.45 and 8,510.70.

Financial stocks emerged top performers as investors indulged in raising their bets. Stocks such as Bank of India, PNB, Bank of Baroda, SBI, Canara Bank, Yes Bank, Federal Bank ICICI Bank, Axis Bank and HDFC Bank were the big movers of the day by surging up to 13.71 per cent, lifting the NSE Nifty bank by 3.49 per cent.

Broader markets too were in a bullish form, with BSE small-cap rising 1.75 per cent and the mid-cap up 1.65 per cent. Foreign portfolio investors (FPIs) sold shares worth a net Rs 2,095 crore, as per provisional data. Globally, Japan’s Nikkei climbed 6.72 per cent while Hong Kong’s Hang Seng rose 1.89 per cent. The Shanghai composite index gained 1.37 per cent. Europe too was trading in the positive zone, with the London FTSE rising 0.63 per cent, Paris 0.96 per cent and Frankfurt 0.76 per cent.