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US-China trade deal, banking stocks help Sensex break 3-day losing streak

The positive developments on the US-China trade deal and buoyancy in the PSBs ahead of the meeting with the FM triggered a sharp surge across the board...,” said Ajit Mishra, VP-research, Religare Broking.

By: ENS Economic Bureau | New Delhi |
December 28, 2019 3:29:23 am
US china trade deal, jum in sensex, FM meeting with PSBs boosts sentiment, indian economy, economy news, india news, indian express news The foreign portfolio investors invested a net of Rs 81.3 crore on Friday, they have invested a net of Rs 5,621 crore into Indian equities over the last four trading sessions. (Photo: Reuters)

Supported by positive developments on the US-China trade deal and rise in banking stocks ahead of the meeting between the Finance Minister and chiefs of public sector banks, the Sensex at the BSE jumped 411 points, or 1 per cent, to close at 41,575.

The broader Nifty at the National Stock Exchange, too, rose 119 points, or 0.98 per cent, to close at 12,245.8 Friday gains came after the markets fell for last three consecutive trading sessions where the Sensex lost 518 points. On Friday, sectoral indices such as banking, finance, oil and gas and energy sector gained over 1 per cent. Even the broader markets witnessed gains on Friday with the mid cap and the small cap indices at BSE rising by 0.87 per cent and 0.84 per cent respectively.

EXPLAINED

FM’s meeting today with PSBs boosts sentiment

The foreign portfolio investors invested a net of Rs 81.3 crore on Friday, they have invested a net of Rs 5,621 crore into Indian equities over the last four trading sessions, thereby lending support.

“Markets recovered sharply and settled with a gain of nearly a percent, tracking firm global markets and supportive local cues. The positive developments on the US-China trade deal and buoyancy in the PSBs ahead of the meeting with the FM triggered a sharp surge across the board … We expect the prevailing consolidation to extend further in the index with the bias on the positive side,” said Ajit Mishra, VP-research, Religare Broking.

As per traders, banking stocks rallied ahead of Finance Minister Nirmala Sitharaman’s meeting with heads of public sector banks on Saturday to review financial performance of the lenders and their business growth. The meet is expected to take up issues like non-performing asset recovery through both NCLT and non-NCLT means, take stock of the banking sector and push loan growth, sources said.

Meanwhile, a spike in global crude price pulled down the rupee against the US dollar. On Friday the rupee depreciated 4 paise to close at a fresh three-week low of 71.35 against the US dollar on Friday, continuing its losing streak for the sixth day in a row amid crude oil prices hitting three-month high levels. Crude oil prices rose to three-month high levels on positive US and Chinese economic data.

Among the Sensex stocks, Axis Bank was the top gainer climbing 3.33 per cent, followed by PowerGrid, SBI, Bharti Airtel, ICICI Bank, Reliance Industries and Maruti Suzuki.

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