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Sensex at new peak on U.S.-China trade deal hope

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FPIs net buyers at ₹25,000 cr. in Nov.

The benchmark Sensex closed above the psychological 41,000-mark for the first time ever on Wednesday that also saw the broader Nifty closing at a new high.

The 30-share Sensex gained 199.31 points, or 0.49%, to close at 41,020.61 with banking and automobile stocks being the main contributors to the day’s rise. While Yes Bank was the highest gainer among the Sensex pack, stocks like State Bank of India, Maruti Suzuki India, HDFC, Tata Motors, Hero Motocorp and Bajaj Auto were among the top gainers.

The 50-share Nifty settled the day at 12,100.70, up 63 points or 0.52%. The previous closing high for the Nifty was 12,088.55 recorded on June 3. Market participants attribute the current upswing to a firm trend in the global markets on the back of optimism related to the U.S.-China trade negotiations and the strong foreign inflows. on the domestic front.

“Market sentiments remain positive on the global front with the likely settlement of the first phase of a deal between the U.S. and China. On the domestic side, strong FPI inflows have provided the much needed support to the market in the absence of any major triggers,” said Siddhartha Khemka, head, retail research, Motilal Oswal Financial Services.

“While the current momentum is likely to continue for a while, we expect some volatility ahead of the monthly F&O expiry on Thursday and Q2 GDP data to be released on Friday,” added Mr. Khemka.

Most of the Asian indices, including those of Hong Kong, Japan, Indonesia, South Korea, Malaysia and Taiwan all ended the day in the green.

Back in India, foreign portfolio investors (FPIs) have been net buyers at nearly ₹25,000 crore in the current month even though the provisional numbers showed that FPIs were net buyers at only ₹43 crore on Wednesday – much lower than the flows witnessed in the last few trading sessions.

The overall market breadth, however, was slightly weak as 1,301 stocks declined on the BSE against 1,225 gainers.

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Printable version | Dec 6, 2019 12:19:20 AM | https://www.thehindu.com/business/sensex-at-new-peak-on-us-china-trade-deal-hope/article30099600.ece

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