Sensex retakes 33,000 on value buying as US-China trade war concerns diminish; bankers lead, ITs plunge

Indian stock markets ended higher on Monday with Sensex posting a complete recovery from Friday’s wipeout as concerns over US-China trade war eased after the United States approached China to settle down trade imbalances which steered a value buying in equities from Europe to Asia. The S&P BSE Sensex retook the 33,000-mark within a day after the benchmark index slipped to a level of 32,596.54, meanwhile, Nifty 50 also regained the psychological mark of 10,000 after diving to a low of 9,998.05 on Friday. The domestic markets witnessed a sharp slide on Friday with Sensex and Nifty tumbling to their respective 6-month lows after US President Donald Trump imposed tariffs on Chinese imports which triggered a panic among investors on worries of a trade war.

Market relieve

The 30-share barometer Sensex rose 469.87 points or 1.44% to finish at 33,066.41 whereas the wider share indicator Nifty surged 132.6 points or 1.33% to conclude at 10,130.65 on Monday. Amid the European region, Britain’s FTSE index recoiled from its 15-month low as fears of full-blown trade conflict between the world’s two biggest economies — the United States of America and the People’s Republic of China — seemed to have mitigated, according to a Reuters report. The United States has contacted China seeking measures to reduce their trade imbalance, Reuters reported citing an unidentified report. During the day, Sensex advanced as much as 518.87 points to a day’s high of 33,115.41.

Major movers

Shares of Yes Bank (up 5.67%), State Bank of India (up 5.01%), HDFC Bank (up 2.91%), Tata Steel (up 2.8%), HDFC (up 2.66%), Bharti Airtel (up 2.55%), L&T (up 2.16%), ICICI Bank (up 2.05%), M&M (up 1.98%), Hero MotoCorp (up 1.94%), Maruti Suzuki (up 1.87%), Bajaj Auto (up 1.68%), HUL (up 1.6%), Coal India (up 1.36%), Axis Bank (up 1.3%), Asian Paints (up 1.01%), Reliance Industries (up 0.92%) and Adani Ports (up 0.88%) emerged as the lead gainers among the BSE Sensex components rising up to 6%. Shares of big-three IT companies Infosys, Wipro, TCS were the only decliners. The stock of Wipro dropped 3.96% to end at Rs 273.9 on BSE.

Stocks that drove the rally

Shares of heavyweight companies such as HDFC Bank, HDFC, State Bank of India, ICICI Bank, L&T, Yes Bank, Reliance Industries and Maruti Suzuki contributed the most in the Sensex rally. Collectively these eight stocks alone added about 374 points out of the 470-point upsurge in the index.

Market at glance

A market-wide buying was observed in all of the sectors barring the Nifty IT index. All the components of Nifty PSU Bank index surfaced as rock stars on Monday with shares of Canara Bank, Bank of Baroda, State Bank of India, Union Bank of India, Bank of India and Indian Bank rising 4 to 11%. Apart from Nifty PSU Bank index, sectoral indices of Nifty Bank, Nifty Financial Services, Nifty Media, Nifty Metal, Nifty Private Bank, Nifty Realty, Nifty Auto, Nifty FMCG surged 1 to 4% while Nifty IT index dropped 0.63% as blue-chip shares of TCS, Infosys and Wipro lost up to 3.5% with stock of India’s third-largest IT company Wipro dragging heavily.

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