Sensex snaps losing streak, rallies 646 ptshttps://indianexpress.com/article/business/market/sensex-snaps-losing-streak-rallies-646-pts-6061674/

Sensex snaps losing streak, rallies 646 pts

The BSE Sensex surged 645.97 points, or 1.72 per cent, to end at 38,177.95, while the broader NSE Nifty zoomed 186.90 points, or 1.68 per cent, to 11,313.30, amid increasing doubts of a breakthrough in the upcoming US-China trade talks.

After a cautious start, the key indices gained momentum in afternoon trade, led by banking, financial and telecom counters.

The benchmark Sensex on Wednesday staged a strong rally as investors lapped up banking and financial stocks ahead of the earnings season. The BSE Sensex surged 645.97 points, or 1.72 per cent, to end at 38,177.95, while the broader NSE Nifty zoomed 186.90 points, or 1.68 per cent, to 11,313.30, amid increasing doubts of a breakthrough in the upcoming US-China trade talks.

After a cautious start, the key indices gained momentum in afternoon trade, led by banking, financial and telecom counters. The sentiment got a further boost after the Union Cabinet hiked the dearness allowance (DA) for central government employees, which is expected to prop up festive demand, analysts said.

Vinod Nair, head of research at Geojit Financial Services, said, “The market recovered after many days of fall and rose comfortably above 11,300-level. Banks outperformed as the sharp fall in bond yield is indicating further room for rate cuts which will improve liquidity and consumption story. Further, a 5 per cent hike in DA by the Centre will add impetus to the festival demand. Going forward, the result season will dictate the market direction and investors are expecting some green shoots on account of festival demand and good monsoon.”

IndusInd Bank spurted 5.45 per cent, followed by Bharti Airtel, ICICI Bank, SBI, M&M, Kotak Bank, Tata Steel and HDFC Bank. On the other hand, Yes Bank was the top loser with a 5.26-per cent decline.

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Sectorally, BSE telecom emerged the biggest gainer with a jump of 4.92 per cent, followed by banking (3.67 per cent), finance (2.84 per cent), metal (2.12 per cent), realty (1.99 per cent), basic materials (1.95 per cent) and energy (0.98 per cent). However, IT, consumer durables and teck lost up to 0.92 per cent. The BSE Midcap index shot up 1.38 per cent while the smallcap gauge gained 0.66 per cent.

Meanwhile, the rupee pared most of its initial losses and settled the day marginally down by 5 paise, as China offering to buy additional US goods to ease trade tension bolstered hopes of a partial deal between the two major economies.