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Sensex crosses 38,900 level for first time, Nifty hits 11,751 on revision in NAFTA trade deal

BusinessToday.In     August 28, 2018

The Sensex and Nifty extended their record run in early trade today amid higher Asian shares after the White House said it reached a preliminary agreement with Mexico on replacing a North American free-trade deal. While the Sensex scaled the 38,900 level for the first time ever, Nifty touched a new high of 11,751.

At 9:36 am, the Sensex was trading 114 points higher at 38808 level. The Nifty gained 26 points to 11,718 level.

NTPC (2.77%), Coal India (1.56%) and Vedanta (1.06%) were the top Sensex gainers.

Meanwhile, the rupee opened higher by 14 paise at 70.02 level today compared to previous close of 70.16. The dollar index paused near one-month lows against major currencies to stand at 94.84 which boosted the Indian currency.

Market heavyweight Reliance Industries hit its all-time high of 1304 level rising 13 points from its yesterday's close.

"Majority of the macro factors are in favour, the results that came out this quarter were in line with expectations. The likes of IT and Pharma are doing well now, thanks to the dollar," said Sudhakar Pattabiraman, Head of Research Operations, William O'Neil India.

"The trade war is easing out, that should be helping the energy and IT stocks. It is further expected that dollar might get even better, that is going to help the IT companies for sure," Pattabiraman added.

YES Bank (1.31%), SBI (1.14%) and Bajaj Auto (0.76%) were the top Sensex losers.

Top Nifty gainers were NTPC (2.65%), Cipla (2.03%) and GAIL (1.34%).

Market breadth was marginally positive with  920 stocks advancing compared to 826 falling in the BSE.

Global markets

Asian shares advanced on Tuesday and the US dollar hovered near one-month lows as a US-Mexico deal to overhaul the North American Free Trade Agreement boosted risk appetite.

Asian economies generally benefit from trade deals that will encourage exports to the US. The Nasdaq composite index topped 8,000 for the first time after the NAFTA news, although the trade deal isn't final. The US still needs to reach an understanding with Canada, the third party in the accord.

Japan's benchmark Nikkei 225 added 0.6 percent to 22,944.77 in morning trading. Australia's S&P/ASX 200 gained 0.7 percent to 6,313.50. South Korea's Kospi edged up 0.2 percent to 2,304.78. Hong Kong's Hang Seng was up nearly 0.2 percent at 28,314.15, while the Shanghai Composite index fell 0.2 percent to 2,774.78.

Overnight, the S&P 500 index climbed 22.05 points, or 0.8 percent, to 2,896.74. The Dow Jones Industrial Average jumped 259.29 points, or 1 percent, to 26,049.64. The Nasdaq composite gained 71.92 points, or 0.9 percent, to 8,017.90. The Russell 2000 index of smaller-company stocks added 2.73 points, or 0.2 percent, to 1,728.41.

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