Tuesday, May 07, 2024 | Last Update : 03:23 AM IST
Markets rally as China, US start trade negotiations
The broader markets didn’t participate in the rally, as there were 1,573 stocks, which closed in the red as compared to 1,184 stocks that advanced.
Mumbai: The equity markets bounced sharply from their five-month low tracking gains in overseas stocks amid reports that US and China have started fresh negotiation to address trade imbalances, which eased concern regarding an escalation of trade war between the world’s two largest economies.
The Sensex soared 469.87 points or 1.44 per cent to end the day at 33,066.41 while the Nifty scaled above the 10,100 level mark to close the session at 10,130.65, gaining 132.60 points or 1.33 per cent.
Last week, global stocks were hammered badly after US President Donald Trump announced plans to impose tariffs on $60 billion worth of goods it imports from China. The latter retaliated by announcing tariffs on $3 billion worth of US imports with trade experts cautioning about more stringent measures by Beijing that triggered heavy selling in riskier assets across the globe.
“While markets opened the day on a flat note, a higher opening in European stocks and recovery in Asian shares boosted gains on domestic bourses. Renewed momentum was witnessed in European and Asia stocks on hopes that talks between the US and China could prevent an escalation of the trade dispute between the two countries,” said Karthikraj Lakshmanan, senior fund manager, equities, BNP Paribas Mutual Fund.
The provisional data released by stock exchanges suggests that domestic institutional investors including mutual funds and insurance firms turned aggressive buyers at lower levels. The remained net buyers to the tune of Rs 2,017.95 crore.
On the other hand, FPIs, offloaded shares worth Rs 741.19 crore.
“The indices started trading for the week on a cautious note citing the sell-off in the US markets on Friday. However, 9,950 acted as a strong support for the Nifty. If we observe the short-term charts, it is seen that the Nifty index has pulled back from the higher end of the support zone, which was placed in the range of 9,950-9,900. However, this does not change the broader trend in the market,” said Ruchit Jain, technical analyst at Angel Broking.
