Sentiment likely to remain positive

The market edged higher for the third straight session as positive global cues and improved investor risk appetite.

Metal stocks charged ahead during Friday’s trading session after US President Donald Trump said Washington and Beijing are very close to signing a “big” trade deal, auto stocks gained as Conservative leader Boris Johnson won election in the United Kingdom, paving way for Brexit-divorce deal by Janurary 31, 2020.

Public sector banks (PSBs) rallied today after reports suggested that the government is considering increasing the government bond investment limit of foreign portfolio investors (FPIs) to at least 10 per cent of the outstanding, from 6 per cent now, with an aim to incorporate local bonds into global bond indices.

The Sensex settled 428 points, or 1.05 per cent higher, at 41,009.71 level. Vedanta, Axis Bank, State Bank of India, ans Maurti Suzuki ended as the top gainers among the Sensex pack. On the contrary, Bharti Airtel, Bajaj Auto, and Asian Paints settled as top laggards. “Bulls were active in the trade and pushed the index higher towards the resistance zone. If bulls manage to push Nifty beyond 12,050 and close above it, the current consolidation is likely to end. Till the mentioned zone is not breac-hed on the upside, index continues to remain in consolidation phase between 11,700-12,000-zone. Market breadth was strong as participation was wider. Overall broader uptrend remains intact,” analysts said.

“Fed’s dovish stance on future rate trajectory and strengthening rupee brings cheer to investors. Global sentiment is likely to turn positive in expectation of delay in US tariff deadline, while expe-cting more positive developments from US-China trade talks. Metals and banks outperformed while IT index slid due to strong rupee and signs of change in risk appetite. On the other hand, Nove-mber CPI inflation is lik-ely to rise to 5.3 per cent while October IIP may slide to -5 per cent which may have some impact on the direction,” Vinod Nair, head of research at Geojit Financial Serv-ices. On the NSE, the Nifty50 closed near 12,100-mark, up 114 points, or 0.95 per cent, at 12,085.70 level. For the week, Sensex added 1.5 per cent, Nifty50 advan-ced 1.4 per cent, and Nifty Bank index gained 2.2 per cent. Sectorally, all the indices ended the day with gains. Nifty PSU Bank index gained the most, up nearly 4 per cent, followed by Nifty metal index (up 2 per cent). The S&P BSE mid-cap and small-cap indices closed 0.89 per cent higher.