NEW DELHI, India – Benchmark Indian stock indexes rallied on Friday, with the Sensex index recording massive gains for the day up to 425 points, allowing it to reach the 41,000 mark.
Friday’s trading session was very optimistic for major Indian shares as the Nifty also rose to around 12,050 points for the day. The rally in the Indian stock market, along with the majority in the Asian market, was aided by buying sentiments in select market heavyweights and the increasing optimism that the trade war will end soon.
For the Nifty index, the top gainers on Friday were YES Bank, Hindalco, Axis Bank, and Vendeta. The top losers for the index include Zee Entertainment and Bharti Airtel.
Several optimistic global cues helped Indian stocks rally on the last day of the trading week. For one, the gains in the market came after investors see more optimism on the trade deal, following the reports that the US and the Chinese government are closing to signing phase one of the agreement to end the trade war between the two countries, which has been going on for over a year now.
Recent trade headlines also reported that the impending tariff increase on the $156 billion worth of Chinese imports scheduled for Sunday will not come through anymore, boosting the market into a buying mood throughout the day. This also manifested in Indian indexes too.
Another factor that further backed the Indian stock market on Friday was the exit polls on the general election in the UK, which showed a majority will for the Conservative party under Prime Minister Boris Johnson. Johnson’s win erases the uncertainty whether Brexit will happen or not by January 2020.
The win of the British Prime Minister has also lent massive support to a couple of Indian firms including the Tata Motors, which tracked a 20% rise in its JLR profits from the UK.
Tata Motors shares for the day also scaled higher after the predicted UK elections win for the conservatives. It tracked a 6% increase on the NSE for the day, adding points to its previous Rs. 173.35 close to reach its current valuation at Rs.183.95. Tata Communications shares also traded higher for the day, adding 2% to reach Rs. 399.90.
Meanwhile, the Asian stock market also climbed to its eight-month peak on Friday, boosted by the optimism on global developments. Major indexes in the market including the Nikkei 225 index in Japan surged on Friday, adding a new 2.4% to reach its 14-month high. The Hang Seng index in Hong Kong and the Shanghai index also recorded around 2.5% gains each, while the Kospi index in South Korea confirmed an advance of 1.3% in Friday’s session.