Investor wealth rises by Rs 1.81 trillion as Sensex rallies

Mumbai: The massive rally that took the Sensex to record highs have made investors richer by Rs 1.81 trillion.

The market capitalisation (m-cap) of the BSE-listed companies rose to Rs 154.55 trillion as the BSE benchmark surged 530 points to hit a fresh closing high of 40,889.23.

“Signs of a cooling in rhetoric between the US and China has contributed to a resumption in foreign flows into India — today’s (Monday) market move is in line with similarly strong sentiment across Asian markets,” S. Hariharan, head (sales trading), Emkay Global Financial Services, said.

“The prolonged trade war between the US and China was weighing heavily on Indian indices. Positive statements made by officials (from both the countries) last week indicating that a trade pact is likely by the end of December 2019 are being welcomed,” Sandeep Nayak, executive director and CEO of Centrum Broking, said.

Analysts said FIIs are preferring emerging markets such as India as the recent easy monetary stance of US Federal Reserve and the European Central Bank has improved liquidity in world markets.

“Whereas, India’s economy is seeing a demand revival especially in the sectors of auto and consumer durables. The government providing relief to telecom companies over spectrum related dues and impending price increase planned by players has also revived interest in the sector,” Nayak said.

From the 30-share pack, 28 stocks closed the day with gains led by Bharti Airtel, Tata Steel, IndusInd Bank and Axis Bank.

On the BSE, 1,413 scrips advanced, while 1,086 declined and 208 remained unchanged.

 Analysts said indications that US and China will conclude a deal by next month lifted the sentiment across the globe.

Apart from that the reconstruction of Sensex indices and new developments over divestment to curb fiscal deficit provided confidence in Indian market.

Expectations of further cut in interest rate by the RBI gave advantage to rate-sensitive stocks.