Sensex surges 453 points after Britain, EU reach Brexit deal

Mumbai, October 17

Extending its gains for the fifth consecutive session, equity benchmark BSE Sensex rallied 453 points on Thursday as global investors cheered a Brexit deal reached between Britain and the EU.

Domestic traders were also enthused after Finance Minister Nirmala Sitharaman hinted at more stimulus measures as she urged international investors to pump funds into India.

After opening on a subdued note, the 30-share Sensex surged in afternoon trade to close at 39,052.06, up 453.07 points, or 1.17 per cent.

The broader NSE Nifty too spiked 122.35 points, or 1.07 per cent, to settle at 11,586.35.

Yes Bank was the biggest gainer in the Sensex pack, soaring 15.19 per cent, followed by Tata Motors, IndusInd Bank, SBI, Bajaj Auto, Asian Paints, Axis Bank, Tata Steel and Maruti, rising up to 9.82 per cent.

On the other hand, HCL Tech, Vedanta, PowerGrid, Kotak Bank, Infosys, ONGC, Tech Mahindra, L&T and HDFC Bank fell up to 1.04 per cent.

According to traders, domestic market followed European equities that rallied after Britain and the European Union said they have struck an outline Brexit deal after prolonged negotiations.

The deal, however, must still be formally approved by the bloc and ratified by the European and UK parliaments.

“Government’s intention to provide further fiscal stimulus in the future as per the needs of the economy lifted the market sentiment today. Easing trade tension and positive development on Brexit provided further boost to the market.

“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,” said Vinod Nair, Head of Research, Geojit Financial Services.

Sectorally, BSE auto, bankex, finance, energy, FMCG, metal, healthcare and power index rose up to 2.93 per cent.

Broader BSE midcap and smallcap indices gained up to 1.77 per cent.

Elsewhere in Asia, bourses in Shanghai, Hong Kong, Seoul and Tokyo ended on a mixed note.

Further, the Chinese government’s appeal to Washington to negotiate a quick end to their tariff war also buoyed market sentiment.

Meanwhile, the Indian rupee appreciated 24 paise to 71.19 against the US dollar intra-day.

Brent crude futures, the global oil benchmark, fell 0.24 per cent to USD 59.28 per barrel. PTI