Sensex jumps 453 points, Tata Motors surges 10% as new Brexit deal agreed1 min read . Updated: 17 Oct 2019, 04:15 PM IST
- Auto, banking and FMCG stocks led the gains
- Some selling pressure was seen in IT stocks
Indian markets gained momentum as the session progressed and ended sharply higher today, extending gains to the fifth day. The Sensex rose 453 points to 39,052 while Nifty settled 1% higher at 11,586. European markets surged today after Britain and European Union reached a new Brexit deal. Tata Motors, the owner of UK-based JLR, surged 10%. The Dow futures jumped after the new new draft Brexit deal was reached, indicating a higher open for Wall Street.
Among the Sensex stocks, Yes Bank surged 15%, IndusInd Bank 5%, Bajaj Auto 4%. Other top gainers included SBI, Asian Paints, Axis Bank and Maruti.
The gains were broad-based with all the sectoral indices on the NSE, barring IT, ended in green. The Nifty Bank index rose 1.5% while the auto index surged 3%.
"Two major concerns for the global economy have been the trade skirmishes between US and China and a 'no deal Brexit.' Early indications are that a Brexit deal has been done. This augurs well for the global economy. If the US-China trade deal also happens that will be very good news for the global economy," said VK Vijaykumar, chief investment strategist at Geojit Financial Services.
Vinod Nair, head of research at Geojit Financial Service, said: "Risk-taking ability is improving in the market with optimism over recovery in the economy led by stimulus, festive demand, good monsoon and lower interest rate."
Ajit Mishra, vice president for research at Religare Broking, maintains a maintain positive yet cautious approach. "The recent surge in the banking index has paved the way for further surge in the Nifty. The next hurdle could be 11,650-11,750 zone," he said.