Exuberance may continue on D-Street !
The Friday’s trading session on the Dalal street was a historic one and on Monday morning early indication from the SGX Nifty indicates there’s still some steam left on the upside as at the time of writing the SGX Nifty was trading higher by 162 points, above the 11,500 mark.
Majority of the stocks in Asia pacific were not in a good shape in early deals on Monday as investors were circumspect on the state of US-China trade talks. The Hong Kong’s Hang Seng was down by 0.32 per cent and the China’s Shanghai Composite has lost 1.15 per cent. Meanwhile, markets in Japan are closed for a holiday.
Back home, Friday turned out to be a fabulous day of trading on the D-Street as market participants lauded Finance Minister Nirmala Sitharaman’s move to slash effective corporate tax and this was just what the doctor ordered to revive animal spirits in a sluggish Indian economy. The key benchmark indices witnessed the biggest rally on a single day in a decade. The Sensex jumped 5.3 per cent to end above important psychological 38,000 mark, while the Nifty reclaimed important psychological 11,250 mark by soaring 5.3 per cent. The broader indices also witnessed gigantic move with Nifty Midcap and Smallcap surging 5.86 and 3.92 per cent, respectively. All the sectoral indices, barring Nifty IT, traded in line with the benchmark index and posted exceptional gains wherein Nifty Auto and Nifty banking topped the gainer's list.
The US stocks ended the final trading session of the week with losses after reports of the lower-level Chinese trade officials cutting their visit short ahead of the early next month’s high-level talks. At the close, the Dow lost 0.6 per cent, the S&P 500 dropped 0.5 per cent and the tech-heavy Nasdaq composite slipped 0.8 per cent.
The European indices finished mixed on Friday. The Germany’s DAX added 0.08 per cent and the France’s CAC 40 rose 0.56 per cent. While the UK’s FTSE 100 slipped 0.16 per cent.