Sensex up on easing trade tension, monsoon forecast
Mumbai: Signs of easing US-China trade tension and expectation of cooling inflation following Met department’s forecast of near-normal monsoon aided the benchmark Sensex to close 138 points higher on Monday.
The Nifty IT and metal index led the gains on the bourses. While metal stocks rose on cooling US-China trade tension and encouraging China’s trade data released over the weekend, the export-oriented IT stocks gained owing to the weakening rupee.
TCS led the gains on the Sensex as the investors reacted positively to its fourth quarter earning outcome of Friday. It finished nearly 5 per cent higher. Infosys on the contrary fell steeply after it missed Dalal Street’s earning expectation.
The S&P BSE Sensex advanced 138.73 points or 0.36 per cent to 38,905.84. The broadbased Nifty gained 46.90 points or 0.40 per cent to end at 11,690.35.
“Market traded on a positive note as expectation of US-China trade agreement and a likely turnaround in domestic earnings steered the sentiment. IT index outperformed due to weak rupee and optimism in earnings growth,” said Vinod Nair, Head of Research, Geojit Financial Services.
“WPI inflation inched to 3.18 per cent in March due to rise in food prices, while India Meteorological Department (IMD)’s forecast of near-normal monsoon may ease the concerns over inflation.”
IT heavyweights reacted on line expected lines, with Infosys falling due to guidance cut, while TCS rose after posting strong numbers. SpiceJet continued its upward move seemingly benefiting from the woes at rival Jet Airways, said Deepak Jasani of HDFC securities.
“Rail Vikas Nigam seemed to have attracted institutional buying after its debut last week. The stock rose almost 20 per cent.”