Sensex, Nifty scale fresh closing peaks; Yes Bank rallies over 7 pc

Market benchmark Sensex and Nifty on Wednesday scaled fresh closing peaks on hectic buying in banking, oil & gas and auto stocks amid positive trends from global markets as investors latched onto hopes of a trade deal between the US and China. The 30-share Sensex rose by 199.31 points or 0.49 percent to end at a new life-time high of 41,020.61 as 24 of its constituents ended in the green.

The broader NSE Nifty gained 63 points or 0.52 percent to settle at a new peak of 12,100.70. According to analysts, sustained foreign fund inflow also buoyed the market sentiment. Foreign investors purchased shares worth Rs 4,677.75 crore on a net basis on Tuesday, provisional exchange data showed.

Banking stocks advanced on rising expectations of a rate cut by the RBI. Yes Bank was the biggest gainer in the Sensex pack, rallying 7.65 percent. SBI rose by 2.43 percent after SBI Cards filed its IPO papers with SEBI. Kotak Bank was up 1 percent, and IndusInd Bank by 0.64 percent. HDFC gained 1.41 percent at the close while HDFC Bank edged up 0.29 percent.

Among other major gainers, SBI rose by 2.43 percent, Maruti by 2.38 percent, Sun Pharma by 1.87 percent, HUL by 1.78 percent and ONGC by 1.72 percent. Tata Motors, Bajaj Auto and Hero MotoCorp rose more than 1 percent. Infosys, HCL Tech, Reliance Industries, and Vedanta Ltd also gained. Growing hopes that the US and China may soon reach an agreement to settle their trade disputes drove the market sentiment in global markets. US President Donald Trump said the talks were "in the final throes".

"Market was cheerful with the hope that the government will consider new scrappage policy while metals were positive about developments of the first phase US-China trade deal. Rate sensitive stocks like banks did well in expectation of rate cut in RBI policy," Vinod Nair, Head of Research at Geojit Financial Services said. Short-covering ahead of the expiry of November derivatives contracts on Thursday also contributed to the rally, traders said.

Paras Bothra, President of Equity Research, Ashika Stock Broking said, "Domestic markets were volatile but eventually ended with gains led by positive global cues over US-China trade deal while F&O expiry and upcoming GDP data kept scepticism alive." L&T was the top loser among Sensex stocks, ending 2.05 percent lower. ICICI Bank, ITC, Tata Steel, NTPC and Axis Bank too closed in the red.

Broader BSE midcap and smallcap advanced up to 0.82 percent. Sectorally, BSE auto, oil and gas, basic materials, metal, energy, and healthcare indices ended up to 1.22 percent higher.

Most of the Asian markets were up on expectations of the US-China trade deal. Hong Kong gained 0.2 percent, Tokyo rose by 0.3 percent and Sydney by 0.9 percent. However, Shanghai settled lower. On the currency front, the rupee closed up by 15 paise at 71.35 against the US dollar. Brent futures rose 0.18 percent to USD 63.33 per barrel.