Sensex, Nifty jump 1%; 5 key reasons behind the surge | Trade Nivesh
Hopes of a trade deal between the US and China are keeping the bourses in positive territory.
Across the board healthy buying lifted equity benchmarks higher by a percent in intraday trade on December 13.
Equity barometer Sensex vaulted for almost 450 points or 1.10 percent while Nifty kissed 12,084 on the upside, supported by gains in heavyweights such as HDFC, TCS and ICICI Bank.
Around 14:05 hours IST, Sensex was 429 points up at 41,010, while Nifty was 109 points up at 12,081. BSE Midcap and Smallcap indices were 0.78 percent and 0.71 percent up, respectively, around that time.
Let's take a look at key factors that triggered a sharp rally in the market:
Trade deal hopes
The hopes of a trade deal between the US and China are keeping the market in the positive terrain. Reuters reported that the United States has agreed to reduce some tariffs on Chinese goods and delay a tranche of tariffs as part of a 'phase one' deal. An amicable deal between the world's two biggest economies will bring relief to most markets of the world, experts said.
Prospects of a smooth Brexit
A decisive victory of Britain's Conservative Party in the UK elections has strengthened the prospects of a smooth Brexit. Experts believe that the UK Prime Minister will be able to deliver Brexit within weeks, ending the three-and-a-half years of political instability in Britain.
Fresh sops coming?
Finance Minister Nirmala Sitharaman is to address the media later today and the market is expecting some fresh government measures to address the slowdown n the economy.
"The market is expecting fresh measures from the government. Hopes around this is infusing positive sentiment in the market," said Rajnath Yadav, Fundamental analyst at Choice Broking.
Positive global cues
Positive global sentiment extended to the Indian market. As per Reuters, European shares neared a record high on Friday on hopes of an orderly Brexit after a landslide election victory for British Prime Minister Boris Johnson and signs of a last-ditch trade deal between the United States and China.
Technical factor
On December 12, Nifty closed above 13-day exponential moving average which indicated that the positive trend can continue in the coming sessions also. Experts said if Nifty sustained above 11,934–11,923 levels, one could remain positively biased and look for an initial target of 12,031. Beyond that, critical resistance for the short-term will be present in the zone of 12,081–12,092 levels.
Hopes of a trade deal between the US and China are keeping the bourses in positive territory.
Across the board healthy buying lifted equity benchmarks higher by a percent in intraday trade on December 13.
Equity barometer Sensex vaulted for almost 450 points or 1.10 percent while Nifty kissed 12,084 on the upside, supported by gains in heavyweights such as HDFC, TCS and ICICI Bank.
Around 14:05 hours IST, Sensex was 429 points up at 41,010, while Nifty was 109 points up at 12,081. BSE Midcap and Smallcap indices were 0.78 percent and 0.71 percent up, respectively, around that time.
Let's take a look at key factors that triggered a sharp rally in the market:
Trade deal hopes
The hopes of a trade deal between the US and China are keeping the market in the positive terrain. Reuters reported that the United States has agreed to reduce some tariffs on Chinese goods and delay a tranche of tariffs as part of a 'phase one' deal. An amicable deal between the world's two biggest economies will bring relief to most markets of the world, experts said.
Prospects of a smooth Brexit
A decisive victory of Britain's Conservative Party in the UK elections has strengthened the prospects of a smooth Brexit. Experts believe that the UK Prime Minister will be able to deliver Brexit within weeks, ending the three-and-a-half years of political instability in Britain.
Fresh sops coming?
Finance Minister Nirmala Sitharaman is to address the media later today and the market is expecting some fresh government measures to address the slowdown n the economy.
"The market is expecting fresh measures from the government. Hopes around this is infusing positive sentiment in the market," said Rajnath Yadav, Fundamental analyst at Choice Broking.
Positive global cues
Positive global sentiment extended to the Indian market. As per Reuters, European shares neared a record high on Friday on hopes of an orderly Brexit after a landslide election victory for British Prime Minister Boris Johnson and signs of a last-ditch trade deal between the United States and China.
Technical factor
On December 12, Nifty closed above 13-day exponential moving average which indicated that the positive trend can continue in the coming sessions also. Experts said if Nifty sustained above 11,934–11,923 levels, one could remain positively biased and look for an initial target of 12,031. Beyond that, critical resistance for the short-term will be present in the zone of 12,081–12,092 levels.
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