Business

Nifty closes at a record high amid global rally

PBC easing reserves norm brings cheer

Buoyed by a strong surge in the global markets, the Indian benchmark indices registered significant gains on Thursday, with the broader Nifty closing at a new all-time high.

The 50-share Nifty gained 99.70 points, or 0.82%, to close at a record high of 12,282.20. Meanwhile, the Sensex ended the day at 41,626.64, up 320.62 points, or 0.78%.

Market participants attributed the rally to the announcement by the Chinese central bank — People’s Bank of China (PBC) — that it would take steps, including lowering the reserve requirement ratio, to boost economic growth. “Global markets cheered the news that China’s central bank has cut the amount of cash that all banks must hold as reserves, releasing around 800 billion yuan ($114.91 billion) in funds to shore up the slowing economy,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.

U.S.-China deal

“Sentiments also got boosted by U.S. President Donald Trump’s announcement on Tuesday that the Phase 1 trade deal with China will be signed on January 15,” he added.

The announcement led to a global rally with the Hang Seng gaining over 1%.

Most of the European markets were also trading strong with some of the benchmarks gaining over 1% during the trading session.

Back in India, the market breadth was quite strong with more than 1,700 gainers on BSE, as against less than 800 declines.

Why you should pay for quality journalism - Click to know more

Recommended for you
This article is closed for comments.
Please Email the Editor

Printable version | Feb 23, 2020 11:49:51 PM | https://www.thehindu.com/business/nifty-closes-at-a-record-high-amid-global-rally/article30463441.ece

Next Story