Indian benchmark indices in Friday's trading session rallied over 425 points on the Sensex to cross the psychological 41,000 mark, while the Nifty also quoted above 12050 points. The rally was aided by positive global cues as well as buying in select heavyweights.
Vedanta, Axis Bank, Hindalco, Yes Bank were the top gainers on the Nifty while losers include Bharti Airtel, Zee Entertainment, Dr. Reddys among others.
Here are some of the key reasons fuelling today's rally on the Sensex:
1. US-China close to reach trade deal: As per reports Trump administration and China are close to sign a phase one deal that would shelve the US tariffs, which were set to become effective from December 15, ending long-bruising trade war of 17 months. On early Thursday the US President Donald Trump tweeted "Getting VERY close to a BIG DEAL with China. They want it, and so do we!"
The move lifted global equity market sentiment, reflecting in Indian indices too. Metal stocks gained in trade today amid strengthening US-China trade deal hopes.
2. UK election results: Boris Johnson winning the UK general elections with a huge mandate as is suggested by an exit poll also propelled a rally in the stock markets today. With his comeback to power again as British Prime Minister, uncertainty over Brexit will end. Further his winning the elections is seen to lend a positive support for a number of Indian firms such as Tata Motors that draw up to 20% of its JLR sales from the UK.
Shares of Tata Motors scaled higher by as much as 6% to Rs. 183.95 on the NSE versus its previous close of Rs. 173.35, Shares in Tata Communications also traded higher by as much as 2% to Rs. 399.90.
3. Asian shares climbed eight-month peak: Led by positive global developments, Asian stocks also scaled to eight-month high. Japan's Nikkei surged 2.4% to a 14-month high, while South Korea's Kospi firmed 1.3 %. Hong Kong's Hang Seng and Shanghai jumped up to 2.5% in Friday's session.