BackSensex, Nifty gain on hope of further stimulus from government
Metal stocks gained on hopes of progress in the US-China trade dealDLF gained 3% after Morgan Stanley upgraded the stock to overweight from equal weight earlier
PremiumMumbai: Key equity indices surged over 0.8% on Monday on expectations the Reserve Bank of India may cut rates further and the government is likely to announce fresh stimulus as economic growth may have slowed to 4.6% in the September quarter. Expectation that US and China may finalise a trade deal soon also lifted sentiment.
At 12.05 pm, the benchmark Sensex rose 0.84% to 40,682 points, while Nifty advanced 0.84% to 12,008.55 points.
India’s GDP is likely to have grown 4.6% in the last quarter, the least since January-March 2013, according to the median of analysts estimates by Bloomberg. The government will release the GDP data on Friday and the Reserve Bank of India will announce its interest rates decision on 5 December.
"Markets may witness volatile swings this week due to scheduled derivatives expiry on November 28. On the data front, investors will be eyeing core sector data and GDP data on November 29. Besides, developments in the US-China trade deal could provide momentum to the markets," said Ajit Mishra Vice President, Research, Religare Broking Ltd.
Metal stocks gained on hopes of progress in the US-China trade deal. Jindal Steel & Power gained, Hindalco Industries Ltd, Tata Steel Ltd, NMDC, JSW Steel, NALCO, Vedanta Ltd and SAIL gained 2-6%.
Telecom stocks rallied as companies moved the Supreme Court to seek a review of the order to pay ₹92000 crore to Department of Telecom. Bharti Airtel gained 5%, while Vodafone Idea rose 5%.
DLF gained 3% after Morgan Stanley upgraded the stock to overweight from equal weight earlier. The brokerage has also upgraded the target price to ₹269 from ₹201 a share.
(Bloomberg contributed to this copy)
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