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  Business   Market  18 Oct 2019  Markets cheer Brexit deal, FPIs buying

Markets cheer Brexit deal, FPIs buying

THE ASIAN AGE. | RAVI RANJAN PRASAD
Published : Oct 18, 2019, 2:29 am IST
Updated : Oct 18, 2019, 2:29 am IST

Broader market indices outperformed with BSE Mid Cap index and the Small Cap index gaining 1.77 per cent and 0.89 per cent respectively.

The Sensex gained 453.07 points or 1.17 per cent closing at 39,052.06 while the Nifty-50 gained 122.35 points or 1.07 per cent to close at 11,586.35. “The gains came on the back of a boost in sentiments after EU and UK negotiators reached a draft agreement on a new Brexit deal,” analysts said.
 The Sensex gained 453.07 points or 1.17 per cent closing at 39,052.06 while the Nifty-50 gained 122.35 points or 1.07 per cent to close at 11,586.35. “The gains came on the back of a boost in sentiments after EU and UK negotiators reached a draft agreement on a new Brexit deal,” analysts said.

Equity market witnessed gains in the fifth consecutive session after Sensex and Nifty-50 closed at nearly one-month high, backed by foreign investor buying.

The Sensex gained 453.07 points or 1.17 per cent closing at 39,052.06 while the Nifty-50 gained 122.35 points or 1.07 per cent to close at 11,586.35. “The gains came on the back of a boost in sentiments after EU and UK negotiators reached a draft agreement on a new Brexit deal,” analysts said.

 

Broader market indices outperformed with BSE Mid Cap index  and the Small Cap index gaining 1.77 per cent and 0.89 per cent respectively.

Sectorally, the top index gainers were the BSE Auto Index(2.93 per cent), Bankex(1.59 per cent), FMCG(1.33 per cent) and Metal(0.99 per cent) while all sectoral indices closed in the green. There were no losers.

“The equities with exposure to Europe and UK  witnessed a sudden spike in the last 30 minutes after the European Union and U.K. reached a historic Brexit deal, paving the way for Britain’s departure from the EU. Stressed financials/banks saw some aggressive bottom fishing while select PSU and metal stocks also witnessed buying interest,” said Deepak Jasani, head —  Retail Research, HDFC Securities.

 

FPIs were net buyers of equities worth Rs 1,158.63 crore on Thursday.

Technical View

Kotak Securities’ Shrikant Chouhan said, “Technically, “it was a make or break” sort of day for the market which ended positively. Although the market closed higher above 11,550 with an improvement in market breadth, it has multiple hurdles at every 50 points higher from current levels. In case the market manages to cross 11,700 in 3 to 4 days, it would result in re-knocking 12,100 levels in coming days.”  

Indianbulls Ventures’ Manav Chopra said, “Bulls are now completely in control. We have continued our bullish bias since 11,150 and continue to maintain an initial target of 11,700. Overall index may hit and test previous all-time highs before the calendar year. 11,100 is a new strong base for the index. In the near term, 11,450 is the support zone.”

 

“Bank Nifty breached 28,850 resistance zone on the upside and we advised traders to go long above 28,850 in our last report for initial target of 29,400. Bank Nifty is likely to build momentum on the upside and should witness sharp moves on the upside. Immediate support on the downside is placed at 28,300 zone,” Chopra said.

Market View

On the Brexit deal’s impact on the market, Geojit Financial’s V.K. Vijaykumar, said: “Two major concerns for the global economy have been the trade skirmishes between US & China and a ‘no deal Brexit.’ Early indications are that a Brexit deal has been done. This augurs well for the global economy. If the US-China trade deal also happens that will be very good news for the global economy. Since markets are over-sold this can lift spirits in the market.”

 

Tags: equity market, sensex