MUMBAI: Indian markets ended higher today, driven by gains in banking and IT stocks. The sentiment was also boosted as global markets recovered after Bloomberg, citing sources, said that the US and China are moving closer to agreeing on the number of tariffs that would be rolled back in a phase-one trade deal despite tensions over Hong Kong and Xinjiang. The Sensex ended 175 points higher at 40,850.29 while the broader Nifty settled at 12,037, up 0.40%.
The index for banking stocks, Nifty Bank, today rose 1.1% to 31,962, led by strong gains in Yes Bank, ICICI Bank, Bank of Baroda, SBI and Federal Bank.
Yes Bank shares today surged 6% following sharp losses in previous sessions. ICICI Bank shares rose 4% while Bank of Baroda gained 3%.
Some buying was also seen in IT stocks with TCS, Infosys, and Tech Mahindra rising about 1.5% each. Tata Motors led gains in auto stocks, surging 7%.
Metal stocks were boosted on optimism that the US and China may reach a trade deal. Tata Steel and Vedanta gained about 3% each.
“Nifty again managed to close above the psychological level of 12,000 which hints bulls are trying to gain momentum on every dip, now immediate support for Nifty is coming near 11,965-11,920 zone and resistance is coming near 12,090-12,130 zone,” said Rohit Singre, senior technical analyst at LKP Securities.
Support for Nifty Bank is coming near 31,700-31,600 zone and resistance is coming near 32100-32200 zone, he added.
Elsewhere, CSB Bank today made a strong debut on exchanges with shares rising over
The Reserve Bank of India will tomorrow announce its rate decision. “It is expected that RBI will go for a rate cut by 25 bps, and maintain its accommodative stance. Though the inflation rate has crossed the 4% target rate in October, RBI’s major focus will be on growth revival. With the growth rate slipping to 4.5% for Q2FY20, there will be more pressure on the central bank for monetary easing. Transmission of rate cuts still remains an issue as the positive effect of the five consecutive rate cuts is not visible in the economy,” said Deepthi Mary Mathew, an economist at Geojit Financial Services. (IANS)