Markets snap losing streak, Sensex spurts 411 points

Mumbai: Snapping a three-day losing streak, the Sensex and Nifty both jumped 1 percent on Friday with Reliance Industries, ICICI Bank, Axis Bank and HDFC leading the rally, contributing over 50 percent to the Nifty gains.

Stocks of public sector banks (PSBs) emerged as the top sector gainers, advancing nearly 3 percent, after the Reserve Bank of India (RBI) notification on Thursday that it would purchase 10-year bonds worth Rs 10,000 crore, while simultaneously selling four bonds maturing in 2020 for up to the same amount on Monday.

“State-run banks helped the market to trade higher after consecutive days of weakness. The announcement of another bond sale next week by the central bank lifted the financial stocks higher, while positive sentiments in global markets on easing trade concerns fuelled a broad-based rally,” said Vinod Nair of Geojit Financial Services.

The Sensex advanced 411.38 points or 1 percent to 41,575.14. The broader Nifty gained 119.25 points, or 0.98 percent, at 12,245.80.

Strong buying interest was seen in Allahabad Bank stocks that closed over 8 percent higher following its disclosure on a fresh capital infusion of Rs 2,153 crore from the government.

Meanwhile, global markets stayed firm buoyed by optimism on a US-China trade deal. US markets hit record highs on Thursday, boosted by the news. Dow Jones Industrial Average, S&P 500 and Nasdaq logged new records on Thursday. (IANS)

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