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Sensex soars 453 points after Britain, EU reach Brexit deal, Nifty near 11,600; Yes Bank jumps 16%

FE Online
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The headline indices Sensex and Nifty surged on Thursday even as Britain and the European Union said Thursday that they have struck an outline Brexit deal, after days of intense deliberations though it must still be formally approved by the bloc and ratified by the European and U.K. Parliaments. The Sensex ended 453 points higher to reclaim the crucial 39,000-mark, while the Nifty ended the session near the 11,600-mark. YES Bank closed over 17 per cent higher to emerge among top Sensex gainer, after a report said that industrialists Sunil Mittal and Sunil Munjal have shown interest to buy a stake in the private sector lender. Bharti Enterprises Chairman Sunil Mittal and Hero Group founder promoter Sunil Munjal may acquire up to 5 per cent stake in private capacity in YES Bank, with another five could be sold to private investors, ET Now reported on Wednesday.

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Taking stock of the robust rally, Ajit Mishra Vice President, Research, Religare Broking said that the first half was dull but a sharp surge in the banking index in the latter half pushed the benchmark higher. "Besides, the news of Brexit deal between the UK and European Union further boosted the sentiment. All the sectoral indices, barring IT, ended in green and the broader indices too posted decent gains," he added. According to the expert, markets are currently dancing to the global tunes, in absence of any major event on the local front.  "Meanwhile, we're seeing volatile swings on the stock-specific front which usually happens during the earnings season. We suggest not to get carried away with the recent surge and maintain positive yet cautious approach," he said further. 

After trading on a positive note through the day, the 30-share Sensex surged at the fag end of the session to end 453.07 points, or 1.17% up at 39,052.06. It hit an intra-day high of 39,104.69 and a low of 38,557.43. Apart from top Sensex gainer Yes Bank, shares of Tata Motors, IndusInd Bank, SBI, Bajaj Auto, Asian Paints, Axis Bank, Tata Steel and Maruti Suzuki ended up to 10% higher. On the other hand, HCL Tech, Vedanta, PowerGrid, Kotak Bank, Infosys, ONGC, Tech Mahindra, L&T and HDFC Bank fell ended up to 1% lower. The Indian rupee gained nearly 24 paise to 71.19 against the US dollar intra-day.