MAHARASHTRA, India – The Indian stock market hit new milestones on Monday, powered up by Sensex tracking the latest intra-day and record closing highs.
On the first day of the trading week, Sensex recorded a significant rise of up to 529 points, a new closing high, reaching higher towards 40,889. The Sensex also reached a new intra-day record, valuing at 40,931.71.
In general, the Indian stock market came out more optimistic at the start of this week than the previous trading session. The broader Nifty index also recorded with a modest 1.3% rise, going up towards 12,078 at the end of the trading session. During the day, the Nifty index also rose up to 12, 084.50 points, although it wasn’t a record high, it’s only 20 points lower than its all-time high recorded in June this year at 12,103 points.
Among the Sensex stocks, Bharti Airtel was recorded as the top gainer with its 8% increase in the stock price. Then, the steelmaker Tata Steel followed with an upward trend, gaining 5% in stocks. The positive sentiments in the Indian stock market on Monday came after the positive signals regarding the trade negotiations between the US and China that encouraged Indian market players.
The financial industry also rallied during the trading session with Axis Bank, IndusInd Bank, SBI, Kotak Bank, and HDFC gaining from 2% to 3.5%. Today’s trading session was also optimistic for auto stocks with Tata Motors, Maruti, and Hero MotoCorp gaining between 1.5% to 2.5%.
Out of the 30 stocks under the Sensex index, only two of its constituents ended in the red, the ONGC, and Yes Bank.
On the BSE midcap and smallcap, the market breadth was bullish as well, with recorded 1.2% and 0.80% gains, respectively.
According to the head of research at LKP Securities, S. Ranganathan, the BSE Sensex edged to a record high on Monday, valuing at 40,900 over what was recorded by the MSCI rejig on November 26.
The ongoing trade war between the Us and China has weighed heavily on the Indian stock market, and the recent positive sentiments for an agreement before the year ends from both governments was welcomed by investors, said the ED and CEO of Centrum Broking, Sandeep Nayak.
On the other hand, the global market also ended the first trading session for this week, mostly higher amid the fresh optimism on the US-China trade negotiations. The global market, although coming out a bit higher last Friday, was mostly up-down during the majority of the previous week. But with the increasing hopes on trade agreement signing before 2020 starts, Indian stocks are expected to continue moving up.