Both the Sensex and Nifty hit all-time highs — with India’s benchmark indices buoyed by a surge in stock values across global markets. The bullish mood was triggered by the US-China limited trade agreement and market commentary that oil prices would cool despite the Opec+ agreement to cut production. Most commentators remain sceptical that the Opec cuts would reduce global oil supplies.
Reliance, the HDFC twins, metal and IT stocks surged in the trading on Tuesday.
The Sensex hit a high of 41401.65 before closing the day at 41352.17, up 413.45 points, or 1,01 per cent. The earlier all-time high of the Sensex was 41207.96 points.
The 50-stock Nifty on the National Stock Exchange touched a new intra-day high of 12,182.75 before ending 111.05 points, or 0.92 per cent, up at 12165 — a record closing level. The positive close was aided by strong portfolio flows. Provisional data from the NSE showed foreign portfolio investors (FPIs) made net purchases of Rs 1,248 crore on Tuesday So far this calendar year, the FPIs have put over Rs 93,000 crore into equities.
In November, FPI inflows at Rs 25,231 crore were the second highest for the year even as the economy was wracked by a slowdown. Analysts said expectations of reform measures in the budget were one of the factors driving the rally.
“Positive global sentiments buoyed by easing trade war tensions between the US and China continue to pump the market. Economic growth remains on the lower side, while the risk appetite of investors is gradually improving on expectation of further steps from the government in the upcoming budget to revive consumption and attract investments,” Vinod Nair, head of research at Geojit Financial Services said.
Metal stocks rallied on expectations that US and China would arrive at a deal.
Tata Steel led the Sensex pack rising 4.38 per cent to rs 439.50, while Vedanta gained 3.50 per cent to end at Rs 152.35. Telecom, financial and IT stocks also gained.
Some of the other gainers include Bharti Airtel by 4.37 per cent, Tata Motors 3.03 per cent, HDFC 2.46 per cent and Bajaj Finance 2.39 per cent. Among the losers, Sun Pharma fell 1.37 per cent, M&M 0.63 per cent, Bajaj Auto 0.56 per cent and HUL 0.48 per cent.
Investors are now awaiting the outcome of Wednesday’s GST Council meet.
The positive mood of the markets was also aided by the RBI governor’s statement about central bank's further accommodative stance in terms of policy rate provided if there is a need.
Bourses in Shanghai, Hong Kong, Seoul and Tokyo ended significantly higher, while those in Europe were trading on a mixed note.
Meanwhile, in the forex markets, the rupee gave up its gains to finish 2 paise down at 70.98 against the dollar. The rupee opened at 70.96 and hit the day’s high of 70.87. It ended at 70.98, lower by 2 paise over the previous closing price.
Karvy case
The Securities Appellate Tribunal (SAT) on Tuesday asked Sebi to pass an order within 15 days in the Karvy Broking matter on Axis Bank’s plea, which said the regulator’s ruling is preventing the lender from accessing securities pledged by the broking firm through another account.
The order comes following a Sebi directive to NSDL in November that prevented Axis Bank from accessing the securities pledged with the lender by Karvy Stock Broking.
The case pertains to the securities held by Karvy, which were used by the brokerage for borrowing, courtesy the power of attorneys (PoA)that they held. The securities held by over 83,000 clients were given back to them after Sebi asked NSDL to do so, forcing lenders — Bajaj Finance, ICICI Bank, HDFC Bank and IndusInd Bank — to move SAT and secure an interim relief on further transfers.
However, the SAT refused any immediate relief to top lenders. NSDL’s move helped 90 per cent of Karvy’s demat account holders to get back their securities.
Sebi, through an interim order passed on November 22, barred KSBL from taking new brokerage clients and also prevented it from using PoAs given by its clients after the brokerage was found to have allegedly misused clients’ securities.
