Sensex jumps 404 points, ends 9-day losing streak; IT, banks gain

Sensex jumps 404 points, ends 9-day losing streak; IT, banks gain
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Mumbai, Feb 20: Indian market snapped its losing streak and closed with handsome gains led by large-cap names.
The S&P BSE Sensex rallied over 400 points after 13 sessions while Nifty50 reclaimed 10700 levels. It posted best daily gain since Jan 31, 2019, when the index rose by 1.68 percent.
The metal pack led the rally and Vedanta was the clear winner. It closed with gains of nearly 5 percent. Apart from that, PSU Banks also rose by 1.72 percent ahead of the Governor’s meet with the bank chiefs to discuss the transmission of rates.
The advance-decline ratio was on the whole balanced and therefore the current bounce should be taken with a pinch of salt, suggest experts as the pain may not be over yet.
“Wednesday’s rally was on the back of multiple global events. The first one is US President Donald Trump has hinted that a positive outcome could be expected from the US-China trade. Apart from that stable rupee and crude oil prices supported the rally,” Yogesh Mehta, VP, retail research at Motilal Oswal Securities told Moneycontrol.
“We saw a relief rally but the pain may not be over yet. It looks like money is moving towards defensives which carries low risk and there is potential for growth. We are recommending, corporate banks such as Axis Bank,” he said.
Stocks in news
Shares of ADAG stocks remained under pressure after Anil Ambani was held guilty of contempt in the Ericsson debt payment case
Duke Offshore locked at 20 percent upper circuit as the company won a contract from Daewoo-Tata projects JV.
Majesco gained 3 percent after the American Public Life Insurance Company (APL) selected Majesco L&A and Group Core Suite platform as the foundation of its digital business transformation strategy.
HG Infra Engineering gained 10 percent as the company declared lowest bidder (L-1) for new EPC project under NHAI for construction of 6-lane access controlled Greenfield Highway of Sangariya-Rasisar section of NH-754K in the state of Rajasthan.
CG Power rallied 5 percent after the National Stock Exchange removed from its F&O ban list.
Global Updates
European markets are trading flat with positive bias amid US-China trade talks.
Most of the Asian market ended on a positive note after US President Donald Trump commented that trade talks with China are going well, and the trade deadline in March may be pushed back.
The Shanghai Composite gained 0.2 percent to close at 2,761.22, while Hang Seng index rose about 0.9 percent to end at 28514.05.
Japan’s Nikkei 225 rose 0.6 percent to finish at 21,431.49 and Kospi added 1.09 percent to close at 2,229.76.