Mumbai: Indian equities rose the most in three months, tracking gains in global markets, as the price of crude oil, the nation’s biggest import, steadied after the US and Iran appeared to be stepping back from a military conflict.
Sentiments brightened further after China confirmed its vice premier Liu He will visit Washington next week for the signing of the interim trade deal with the US.
The Sensex advanced 634.61 points, or 1.55 per cent, to 41,452.35 points in Mumbai, marking its biggest gain since October 9. The Nifty-50 also rose by 190.55 points, or 1.58 per cent, to 12,215.90. Global stocks rallied after US president Donald Trump on Wednesday said that he would impose new sanctions on Iran while offering the country a diplomatic opening.
The monthly factory output data, due on Friday, along with earnings from Infosys, marking the start of quarterly reporting season, may give investors an insight into the corporate state of health at a time when the economy is on track for its slowest growth since 2009.
“The easing of tensions between the US and Iran will help India equities at a time when most investors are expecting muted earnings growth,” said Chokkalingam G, founder of Equinomics Research & Advisory.
Eighteen of BSE’s 19 sectoral indices advanced, led by real estate and auto. ICICI Bank was the top gainer on the Sensex while TCS dropped the most.
