Equity benchmark Sensex surged nearly 530 points to scale a new closing peak of 40,889.23 on Monday, buoyed by renewed optimism over US-China trade deal and government’s divestment measures to curb fiscal deficit.
Further, reconstruction of Sensex indices and hopes of rate cut by the Reserve Bank in the upcoming monetary policy meet also boosted investor sentiment.
Starting on a positive note, the 30-share BSE index went on to touch its record intra-day high of 40,931.71, before finally settling 529.82 points, or 1.31 per cent, higher at 40,889.23 – its all-time closing peak. Likewise, the broader NSE Nifty closed with a gain of 159.35 points, or 1.34 per cent, at 12,073.75 – just shy of its life-time closing high.
All sectoral indices closed with gains. Analysts are of the view that a trade pact between the US and China is likely by the end of December 2019 after positive statements made by both sides last week.
Further, they said that sentiment got a boost from FIIs preferring emerging markets such as India as the recent easy monetary stance of US Fed and ECB has improved liquidity in world markets.