May 28 2020
Sensex vaults on favourable U.S., Mexico trade talks
29 August 2018

Global indices also gain ground, adding to market momentum

Strong global cues on the back of favourable trade talks between the U.S. and Mexico pushed the Indian benchmark indices to new highs for the second consecutive session of the week on Tuesday with the Sensex crossing the 38,900-mark during intra-day trades.

The 30-share Sensex gained 244 points during the trading session to touch a high of 38,938.91 on Tuesday. It finally settled the day at 38,896.63, increased by 202.52 points or 0.52%.

Select stocks gain

The gains, however, were on the back of select index heavyweights as 13 of the Sensex constituents lost ground. The overall market breadth was also weak with more than 1,500 stocks declining as against 1,157 gainers. The BSE Midcap index also ended in the red on Tuesday.

Meanwhile, the broader Nifty of the National Stock Exchange closed at 11,738.50, gaining 46.55 points or 0.40%.

The Indian indices were not alone in registering gains. The benchmark indices of Hong Kong, Japan, South Korea and Indonesia also gained ground after news came in that the U.S. and Mexico had reached an agreement to overhaul their trade pact.

“The momentum continued on the back of optimistic U.S.-Mexico trade agreement,” said Jayant Manglik, president, Religare Broking. “With indices trading at record highs, some profit taking cannot be ruled out. We advise traders to keep their risky leveraged positions hedged, while investors should follow a ‘buy on dips’ approach in fundamentally strong counters,” he added. Among the Sensex pack, Vedanta, Adani Ports, Reliance Industries, Maruti Suzuki India, Axis Bank and HDFC were among the top gainers.



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