Sensex closed on a record level: the Sensex index closed at 330.87 points, or 0.87%, at a new level of 38,340. The Nifty 50 Index closed above 11,500 for the first time ever.
The uptrend continued from last week, the local equity market rose to a new record on Monday, with the main indexes – Sensex and Nifty – closing at new highs. The SENSEX index closed at a high of 330.87 points or 0.87% at a new high of 38340.69. Nifty 50 of the national stocks closed above the 11,500 level for the first time ever in a record high of 11551.75 points, up 81 points, or 0.71%.
Global stocks rose on Monday amid optimism about planned US-China trade talks. European shares opened higher as investors expressed hope that the United States and China would find a compromise to resolve their trade dispute. The two governments said last week that China and the United States would hold lower-level trade talks this month. Asian equity markets appear to be welcoming the news, with the broader MSCI Asia Pacific Index outside Japan rising nearly 1%.
“It was a booming day on the bourses, with the key fundamentals opening positively and keeping gains as the meeting progressed,” said Abhijeet Dey, chief executive officer of BNP Equity Funds. “Positive global equities and optimism about a US-China trade decision and strong institutional activity at home Fuelled investors’ sentiment and led the bourses to close today with gains of more than 0.50%.
The rupee recovered from record lows and rallied 38 paise to 69.77 against the US dollar in early morning trade on Monday as the US dollar weakened and domestic stock markets opened higher. On a daily basis, the rupee rose to 69.60, up nearly 55 pips against the US currency. On Thursday, the rupee collapsed to a fresh intraday low of 70.40 before closing at a new low of 70.15 against the US dollar, down by paise or 0.37%
India’s economic growth appears to have returned to recovery, and the country will rely on a strong 7.5 percent growth path in the finance, former chief economic adviser Arvind virmani said on Monday. Arvind said the US-China tariff war offers an opportunity to increase India’s exports to the United States.
Investors were seen expanding their portfolios, triggered by positive global indices fuelled by hopes of easing the trade dispute between China and the United States, brokers said.
The inflow of new funds by foreign portfolio investors also supported the rise, which brought each of the key indicators to new levels.
Provisional data showed that local institutional investors bought shares with a net value of Rs 151.89 crores, while FPIs bought shares worth Rs. 147.31 crore on Friday.