Sensex, Nifty Rebound On Report Of US, China Moving Closer To Trade Deal

S&P BSE Metal index was top sectoral gainer.
S&P BSE Metal index was top sectoral gainer.

The S&P BSE Sensex and NSE Nifty 50 indices rebounded in the last hour of trade on report that the United States and China moved closer to agreeing on the amount of tariffs to be rolled back in a phase-one trade deal, Bloomberg reported on Wednesday, citing sources. For most part of the day, the benchmarks traded lower, however late buying in banking, information technology and metal shares lifted the investor sentiment. The Sensex rose as much as 411 points from day's lowest level while the broader Nifty 50 index reclaimed its psychologically important level of 12,050 after closing below 12,000 in the previous session.

The Sensex rose 175 points or 0.43 per cent to close at 40,850 and Nifty 50 index climbed 49 points or 0.41 per cent to end at 12,043.

US President Donald Trump on Tuesday had said a trade agreement with China might have to wait until after the US presidential election in November 2020, denting hopes of a resolution soon to a dispute that has weighed on the world economy.

Equities across the globe cheered the move with the UK's FTSE 100 index advancing 0.2 per cent, Germany's DAX rising 1.1 per cent and France's CAC 40 index climbing 1.2 per cent. Dow futures on Wall Street climbed 0.5 per cent.

Back home, fifteen of 19 sector gauges compiled by BSE ended higher led by the S&P BSE Metal index's 1.6 per cent gain. S&P BSE Bankex, Consumer Durables, Information Technology, Healthcare and Finance sector gauges also rose between 0.8-1.4 per cent each.

On the other hand, S&P BSE S&P BSE Capital Goods was top loser, down 1.3 per cent.

Mid- and small-cap shares also witnessed buying interest as the S&P BSE MidCap index rose 0.5 per cent and S&P BSE SmallCap index advanced 0.3 per cent.

Tata Motors was top gainer in the Nifty 50 basket of shares, the stock rose 7 per cent to Rs 169.30.

Yes Bank, ICICI Bank, Vedanta, Hindalco, Tata Steel, Wipro, Sun Pharma and ONGC were also among the gainers.

On the flipside, Larsen & Toubro, Reliance Industries, Coal India, Indian Oil, Bajaj Finserv and Maruti Suzuki were among the losers.

The overall market breadth was neutral as 1,247 shares ended higher while 1,218 closed lower on the BSE.