- Sensex jumps 2073 points, Nifty 639 points: Foreign funds buy shares worth Rs. 5236 crore
- India-US trade deal agreement leads to global storm in stocks
Mumbai: The long-standing standoff between India and the US over tariffs and trade deals was resolved yesterday, with both countries agreeing on a trade deal after a telephonic conversation between Prime Minister Narendra Modi and US President Donald Trump. Foreign institutional investors rebounded in the Indian stock markets today, becoming large buyers in stocks, leading to an unprecedented stormy rally in stocks with the expected mega gap-up opening. The Indian rupee rose by 1.26 to 90.26 against the US dollar and the positive impact of falling crude oil prices was seen in the market.
The Sensex jumped 2072.67 points to 83739.13 and the Nifty 50 spot index closed at 25727.55, up 639.15 points. The disappointment that had gripped traders and investors due to the budget disappeared in a single day today and they became happy again.
The Rs.9.41 lakh crore erosion in investors’ wealth due to the increase in STT on the budget day was recovered in a flash today on the news of the trade deal and recorded a record increase of Rs.12.11 lakh crore. The US has agreed to eliminate the 25% tariff on India and reduce the reciprocal tariff from 25% to 18%, and in return, India has agreed to buy $500 billion worth of US products and stop buying oil from Russia and buy oil from the US and Venezuela, and India has also promised to reduce tariffs on US products to zero in the coming days. Today, funds, experts, and players got excited and started buying stocks.
Indian markets suddenly came out of the budget disappointment and today there was a lot of buying in automobile, banking, healthcare, IT, capital goods, metal-mining, consumer durables stocks. The trade deal and tariff reduction agreement late last night sent the GIFT Nifty up by 750 points and by morning this rise was expected to be more than 1000 points, and today the Indian stock markets saw an expected gap-up opening in the opening hours of trading. In the pre-open market, the Sensex jumped 4025.27 points to reach a peak of 85871.73 and after a long period of showing a rise of more than 2500 points, it finally closed at 83739.13, up 2072.67 points. The Nifty 50 spot also jumped 1252.80 points to reach a peak of 26341.20 with a gap-up pre-market opening, breaching the 26000 level and finally closing at 25727.55, up 639.15 points.
Among the Sensex stocks, Adani Ports rose by Rs.128 to Rs.1530.90, Bajaj Finance rose by Rs.60.40 to Rs.964.75, Indigo rose by Rs.258.05 to Rs.4945.55, Power Grid Corp rose by Rs.13.10 to Rs.283.25, Sun Pharma Industries rose by Rs.73.90 to Rs.1702.80, Bajaj Finserv Puro rose by Rs.82.85 to Rs.2013.05, State Bank of India rose by Rs.35.80 to Rs.1064.25, Reliance Industries rose by Rs.47.70 to Rs.1437.85, Larsen & Toubro rose by Rs.115.65 to Rs.4037.65.
Foreign portfolio investors (FPIs) and FIIs today made a net purchase of shares worth Rs 5236.28 crore in the cash segment. While domestic institutional investors (DIIs) were net buyers of shares worth Rs 1014.24 crore today. Due to the widespread rally in stocks, the wealth of investors, i.e. the aggregate market capitalization of companies listed on the BSE, increased by Rs 12.11 lakh crore to Rs 467.14 lakh crore in a day today. Thus, there has been an increase of Rs 18.53 lakh crore in wealth in two days.
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