Print   Close

Sensex reclaims 41,000 mark, posts biggest single-day gain since November 25

Niti Kiran     December 14, 2019

The benchmark Sensex on Friday reclaimed its crucial 41,000 level after 11 trading sessions. It last traded above this level for two consecutive sessions between November 27 and November 28. The 30-share index settled the day at 41,009.71, up 428 points or 1.05 per cent, registering the biggest single day gain since November 25, the day the index moved up nearly 530 points from 40,359.4 to 40,821.3. "Global positive cues and strength in Indian rupee has caused the rally in equities," said Shrikant Chouhan, senior vice-president, equity technical research, Kotak Securities in a note. It was a broad-based rally for the market as the advances to declines ratio was close to 2:1.

"It's an all-time highest closing for the market on a weekly basis where we saw the rally in the broader market as well. Going by the performance of PSU banks in every market rally, we are of the view that it should outperform in the near-term," he added.

Axis Bank, Vedanta, State Bank of India, and Maurti Suzuki emerged as top gainers on the Sensex, gaining over 3 per cent. The top laggards included Bharti Airtel, Kotak Mahindra Bank and Bajaj Auto declining 2.5 per cent, 1.4 per cent and 0.9 per cent, respectively.

The market remained positive despite concerns of rising inflation and weakness in growth indicators. The benchmark index rose 1.4 per cent for the week.

ALSO READ: Sensex surges 428 points, Nifty ends near 12100; 5 factors that fuelled Friday's rally

Foreign portfolio investors (FPIs) bought equities worth $182 million over the past five trading sessions while domestic institutional investors invested $64 million in markets over the same period.

On the economy front, the CPI-based retail inflation shot up to a 40-month high of 5.5 per cent in November 2019 from 4.6 per cent a month ago. Index of Industrial Production (IIP) declined for the third consecutive month by 3.8 per cent in October 2019 compared to a 4.4 per cent contraction in September.

Mustafa Nadeem, CEO, Epic Research expects the market to continue to move higher as momentum favours the bulls while easing global sentiment is a bigger boost for investors at the moment.

ALSO READ: BT MindRush: Time for caution as stock market rally not broad-based

URL for this article :
@ Copyright 2019 India Today Group.