Easing global trade war fears underpin stocks
Mumbai : Stock markets snapped six-day losing streak on Thursday as investors piled into recently hammered stocks amid positive global cues.
The BSE Sensex surged 318 points to end at 33,351.57, while the broader Nifty spurted 88 points to 10,242.65.
Benchmarks benefited from value buying in beaten-down stocks and a firm trend in overseas markets as fears of a global trade war eased after the White House signalled it would water down plans for contentious metal tariffs, brokers said.
Stocks of state-run lenders staged a rebound in late afternoon trade on short-covering, they added.
However, the BSE market breadth was bearish with 1,530 declines and 1,197 advances.
This is its biggest single-day gain since February 23, when it had jumped 322.65 points. The index had lost 1,412.66 points in the previous six sessions on negative domestic as well as global cues.
“Market reversed from the last six days losing streak as ease in trade war concerns and short covering in PSU banks supported the rally.
“Mid and small caps continued to underperform, as investors are still jittery waiting for further ease in valuation,” said Vinod Nair, Head of Research, Geojit Financial Services
Meanwhile, domestic institutional investors (DIIs) had net bought shares worth Rs 409.34 crore, while foreign portfolio investors (FPIs) sold shares worth Rs 719.78 crore yesterday, as per provisional data.
“Bottom fishing on the back of gains in Asian stocks amid news of potential US tariff exemptions helped to boost the market sentiments,” Deepak Jasani, Head – Retail Research, HDFC Securities, said.
NSE to float IPO next fiscal
New Delhi : NSE on Thursday said it hopes to float its initial public offer (IPO) next fiscal even as markets regulator Sebi returned its consent application in a high-profile probe into the co-location issue.
The exchange’s Rs 10,000 crore IPO has been delayed because of the probe in the co-location matter and the regulator had earlier issued show-cause notices to several individuals as well as the exchange, while the role of some brokers is also being probed.
“The timeline for the IPO is dependent on the resolution of the regulatory matters with Sebi and we are hopeful we will be able to do the IPO in fiscal 2019,” NSE said in a statement.
The exchange said that Sebi has returned its consent application in the co-location probe due to ongoing investigations in the case.
