THE Sensex and the Nifty on Wednesday scaled fresh closing peaks, amid positive global cues and hopes of a trade deal between the United States and China. The 30-share index rose by 199 points, or 0.49 per cent, to end above the 41,000-level at a life-time high of 41,020.61. The broader NSE Nifty Index gained 63 points or 0.52 per cent to settle at a new peak of 12,100.70 even as the market speculated on another rate cut by the Reserve Bank of India (RBI) in the upcoming monetary policy review. A major reason for the rally is sustained foreign fund inflows that buoyed sentiment. Foreign investors bought shares worth Rs 4,677.75 crore on a net basis on Tuesday, provisional exchange data showed. “Markets were cheerful with hopes that the government will consider new scrappage policy, while metals were positive about developments of the first phase US-China trade deal,” Vinod Nair, head of research, Geojit Financial Services, said. Growing hopes that the US and China may soon reach an agreement to settle their trade disputes drove the sentiment in global markets, with US President Donald Trump saying talks were “in the final throes”. Most Asian markets rose, with Hong Kong gaining 0.2 per cent, Tokyo 0.3 per cent and Sydney 0.9 per cent. Siddhartha Khemka, head—retail research, Motilal Oswal Financial Services, said, “ While the current momentum is likely to continue for a while, we expect some volatility ahead of the monthly F&O expiry Thursday and Q2 GDP data to be released Friday.” Banking stocks advanced on rising expectations of a rate cut by the RBI. Yes Bank was the biggest gainer and rallied 7.65 per cent. State Bank of India rose by 2.43 per cent after SBI Cards filed its IPO papers with Sebi.
