Sensex rallies 411 points, PSU bank index contributes handsome gains

Last Updated: Fri, Dec 27, 2019 20:54 hrs

SBI closed 2.2 pc higher on Friday at Rs 337.20 per share


Mumbai: Equity benchmark indices snapped a three-day losing streak on Friday following gains in global peers over the signing of US-China trade deal.

The gains domestically were broad-based with most sectoral indices in the green led by banking, auto, financial services and energy stocks. The BSE S&P Sensex closed 411 points higher at 41,575 while the Nifty 50 edged up by 119 points at 12,246.

All sectoral indices at the National Stock Exchange were in the green with Nifty PSU bank moving up by 2.92 per cent, private bank by 1.13 per cent, financial service by 1.07 per cent and realty by 1.61 per cent.

Public sector banking stocks closed higher after the Reserve Bank of India said that it will purchase 10-year bonds worth Rs 10,000 crore while simultaneously selling four bonds maturing in 2020 for up to the same amount on December 30 in the open market.

State Bank of India gained by 2.23 per cent to close at Rs 337.20 per share. Private lenders Axis Bank and ICICI Bank also added gains of 3.3 per cent and 2 per cent respectively.

The other prominent winners were Coal India, Bharat Petroleum Corporation, Power Grid Corporation, Bharti Airtel and Reliance Industries.

However, Yes Bank and Kotak Mahindra Bank fell by 1.4 per cent and 0.3 per cent respectively. Wipro, Bharti Infratel, Britannia, Titan and JSW Steel too closed in the negative terrain.

Meanwhile, Asian shares jumped to an 18-month high as investor optimism was boosted by hopes that the US-China trade deal will soon be signed. Beijing said it is in close contact with Washington about an initial trade agreement.

Hong Kong's Hang Seng index was up by 1.3 per cent and South Korea's Kospi by 0.29 per cent. But Japan's Nikkei closed 0.36 per cent lower and Shanghai Composite slipped by 0.08 per cent.

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