Equity benchmarks registered a strong rally in the second half of the trading session on Thursday as stocks rose globally after the U.K. and European Union reached a Brexit deal.
The 30-share Sensex gained 453.07 points, or 1.17%, to close at 39,052.06. The broader Nifty closed at 11,586.35, up 122.35 points or 1.07%.
This was the fifth straight session of gains for the benchmark indices. The overall market breadth was also strong on BSE, with over 1,400 stocks gaining ground as against 1,077 declines. All the sectoral indices also ended the day in positive territory.
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“The equities with exposure to Europe and U.K. witnessed a sudden spike in the last 30 minutes after the European Union and UK reached a historic Brexit deal, paving the way for Britain’s departure from the European Union,” said Deepak Jasani, Head - Retail Research, HDFC Securities.
Stressed financials and banks saw some aggressive bottom fishing while select government entities and metal stocks also witnessed buying interest, Mr. Jasani added.
Among the Sensex pack, stocks like Yes Bank, Tata Motors, State Bank of India, Tata Steel, Axis Bank, Indusind Bank and Tata Steel were among the top gainers.
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The investor sentiment in the domestic market got a fillip as equities gained in most leading markets after reports emerged that negotiators have arrived at an agreement to pave the way for UK’s exit from the EU by October 31.
Incidentally, uncertainty regarding the Brexit deal along with concerns about the ongoing trade war between the U.S. and China are often considered to be the two major global overhangs affecting markets across the world.
Most of the Asian indices gained ground on Thursday and European benchmarks were also trading in the green at the time of going to press.
Back in India, foreign portfolio investors (FPIs) were net buyers at ₹1,159 crore even as their domestic counterparts sold shares worth nearly ₹512 crore.