Sensex Up by 180 Points Due to US-China Trade Talks

Sensex Up by 180 Points Due to US-China Trade Talks

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SMEStreet Desk
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BSE SENSEX, NSE, NIFTY, Stock Market

A rebound in global sentiment on hopes of a likely thaw in US-China trade relations, coupled with value buying, aided the key Indian equity indices to end on a positive note on Friday. The Sensex and Nifty ended over 0.50 per cent higher.

Initially, the domestic equity market was subdued by the downtrend in global indices. However, as the day progressed, reports of a likely thaw in frosty US-China trade relations buoyed global and domestic sentiments.

On Friday, reports surfaced of a US delegation’s visit to China next week to participate in trade talks. This led not only the Asian but even European indices like FTSE 100, DAX and CAC 40 to trade in the green.

Additionally, healthy uptake of domestic financial and automobile stocks, along with a strengthened rupee, gave an upward push to the key indices. Nevertheless, the benchmark Brent Crude traded over $57 per barrel, gaining over 1 per cent thereby capping gains.

Consequently, the S&P BSE Sensex settled 181.39 points or 0.51 per cent higher at 35,695.10 points after touching an intra-day high of 35,744.20 and a low of 35,382.08.

The NSE Nifty50 closed at 55.10 points or 0.52 per cent down at 10,727.35.

“On the last day of the week, the market attempted to recover but with high volatility due to initial signs of ease between US and China trade negotiations,” said Vinod Nair, Head of Research, Geojit Financial Services.

“Recent weak data from US and China provided a hope to the market that both the parties will try to find a peace soon. PSUB’s led the gains today due to consolidation and increase in capital infusion while IT underperformed due to appreciation in the INR.”

According to Abhijeet Dey, Senior Fund Manager-Equities, BNP Paribas Mutual Fund: “Data released by a private survey showed India’s service economy expanded further at the end of 2018, as strengthening demand continued to translate into new business gains.”

Earlier, Chinese factory data, along with India’s, suggested a global growth slowdown, which was further magnified after a weak US factory data outcome on Thursday.

The latest addition to the worries was tech major Apple’s announcement of cutting its financial forecast, partly blaming US trade tensions with China along with a slowdown in the Chinese economy.

In terms of currency, the Indian rupee strengthened by 47 paise on Friday to end at 69.72 per dollar, against the previous close of 70.19 per dollar.

The gains by the domestic currency impacted export-oriented sectors as IT stocks declined by 1.15 per cent and the Teck sectors lost 0.58 per cent.

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