Sensex recovers from shock of currency demonetization, Trump win
| Updated On : November 10, 2016 12:01 pm
All sectoral indices led by metal, realty, PSU and healthcare were trading in the green, rising by up to 4.77 percent.
The Sensex on Thursday recovered from the double whammy of demonetization of Rs 500 and Rs 1,000 notes and the victory of Donald Trump in the US presidential election.
It surged 450 points and the Nifty topped the 8,500-level in the early session on the back of a global rally in equities. Clearly, the market signaled that it’s as comfortable with the government’s drive against black money as it was with the prospects of global economy under Trump presidency.
Besides, value-buying in blue-chip stocks, covering of shorts created in yesterday’s trade and the strengthening rupee turned the tide and fueled a rally. At 11.20 in the morning, the Sensex was up 1.65 per cent or 448 points. It had lost 338.61 points yesterday. All sectoral indices led by metal, realty, PSU and healthcare were trading in the green, rising by up to 4.77 per cent.
Similarly, the NSE Nifty surged 155 points, or 1.84 per cent, to 8,579.
Brokers said apart from the emergence of buying at prevailing levels by investors, the rally at other Asian markets amid overnight gains on the Wall Street following Donald Trump’s shock win of the US presidency, in anticipation of favorable policies fuelled the move.
Besides, domestic investors seemed coming to terms with the government’s decision to withdraw Rs. 500 and Rs. 1,000 currency notes from circulation in a bid to curb black money and terror funding.
Major gainers that supported the key indices were Tata Steel, Cipla, SBI, Bharti Airtel, Adani Ports, Axis Bank, Bajaj Auto, ICICI Bank, M&M, TCS, and ONGC, gaining by up to 7.58 percent. Sun Pharma too was quoting 3.24 per cent higher at Rs. 682.50 ahead of its quarterly earnings, to be released later in the day.
In the Asian region, Japan Nikkei climbed 5.82 per cent, while Hong Kong’s Hang Seng gained 1.92 per cent in early trade today. Shanghai Composite was up 1.14 per cent.
The US Dow Jones Industrial Average ended 1.40 per cent higher in yesterday’s trade.