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Sensex jumps 400 points, Nifty reclaims 11,000 as Trump defers China tariffs plan

As many as 18 stocks in the Sensex pack were trading in the green.|
Updated: Aug 14, 2019, 11.17 AM IST
Most of the sectoral indices traded higher, however, BSE Healthcare was the worst performer, sliding 1.61 per cent.
NEW DELHI: Benchmark equity indices BSE Sensex and NSE Nifty opened higher on Wednesday, tracking overnight gains on Wall Street after US President Donald Trump delayed tariffs on some Chinese imports and gave much-needed relief for markets.

Trump backed off his September 1 deadline for 10 per cent tariffs on the remaining Chinese imports, delaying duties on cellphones, laptops and other consumer goods in the hopes of blunting their impact on US holiday sales.

Following this development, most of the Asian markets too got a leg up with MSCI's broadest index of Asia-Pacific shares outside Japan rising by 0.9 per cent. South Korea's KOSPI advanced 0.8 per cent and Japan's Nikkei rose 0.6 per cent.

Market sentiment also got a boost after retail inflation inched down to 3.15 per cent in July against 3.18 per cent in the previous month. This was the first time in six months that the inflation rate dipped.

As a result, the 30-share Sensex opened 275.34 points higher at 37,233.50, while the 50-share Nifty index opened 77.40 points higher at 11,003.25.

The 30-pack Sensex traded over 400 points higher, led by gains in index heavyweights Vedanta, Tata Steel, Bajaj Finance, Hero MotoCorp, ICICI Bank, HDFC and Tech Mahindra amid firm global cues.

Sun Pharma, YES Bank, Power Grid, TCS and Kotak Mahindra Bank were down between 1-4 per cent.

Reports suggesting that the finance ministry may soon consult the law ministry on how best to provide relief to foreign portfolio investors (FPIs) from the super-rich surcharge that was announced in the July 5 budget also provided hopes to investors. FPIs have been on a selling spree since the Union Budget.

They pulled out a net amount of Rs 9,197 crore in just seven trading sessions in August due to unconducive domestic and global factors. In the preceding month, FPIs were net sellers in the Indian capital markets (equity and debt) to the tune of Rs 2,985.88 crore, PTI reported.

Mustafa Nadeem, CEO, Epic Research said, “We believe the bears are here to stay for a while and it won't be easy and quick for the market to recover anytime soon. We remain cautious and maintain our sell on a rising approach.” His view came after Sensex and Nifty plunged more than 1.50 in the previous trading session.

Sanjeev Hota, Head of Research, Sharekhan by BNP Paribas said, “The global risk aversion and favour for safe haven like gold and bonds is impacting the entire emerging market flow. The volatility in the market could continue for some more time till some favorable measures from government to boost the equity market.”

Shares of HDFC Life plunged 7 per cent on reports a total of 6.4 crore shares changed hands on the counter at Rs 486 a piece in early trade, representing 3.2 per cent of the company’s total stake.

BSE Midcap index was trading 0.41 per cent higher while BSE Smallcap was up 0.28 per cent at around 9.40 am.

Most of the sectoral indices traded higher, however, BSE Healthcare was the worst performer, sliding 1.61 per cent.

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