The indices of the Indian benchmarks Sensex and Nifty rose by more than one percent on Monday. The strong recovery in the markets is because the US and China are in talks to avoid a possible trade war.
The 30-share Sensex of the Bombay Stock Exchange (BSE) increased by 469.87 points to close the day at 33066.41. Banking majors like State Bank of India, Yes Bank, and HDFC Bank were among the top gainers, rising between 2-6% each.
The broader 50 shares Nifty reclaimed the psychological level of 10,000; it gained 132.60 points or 1.33% to 10,130.65. The market breadth was positive with 1,573 stocks gaining ground on the BSE, as against 1,184 declines.
Sectoral indices rise
Sectoral indices of banking, metals and consumer durables, etc. rose by more than 2 percent each.
In other Asian Markets, Hong Kong’s Hang Seng gained 240 points, Japan’s Nikkei rose 148 points while Most European markets were also in the green during the afternoon trading session yesterday.
“A higher opening in European stocks and recovery in Asian shares boosted gains on domestic bourses,” said Karthikraj Lakshmanan, senior fund manager, Equities, BNP Paribas Mutual Fund.
According to reports, while both the U.S. and China are mulling trade barriers in the form of import tariffs, U.S. Treasury Secretary Steven Mnuchin said on Sunday that he had been talking to Chinese officials in an effort to prevent a full-blown trade war.