Sensex settled 428 points, or 1.05 percent, higher at 41,009.71 while Nifty closed the day with a gain of 115 points, or 0.96 percent, at 12,086.70.
Across the board healthy buying lifted equity benchmarks higher by a percent on December 13.
Sensex settled 428 points, or 1.05 percent, higher at 41,009.71 while Nifty closed the day with a gain of 115 points, or 0.96 percent, at 12,086.70. Midcaps and Smallcaps, too, witnessed decent gains but underperformed the benchmark Sensex. BSE Midcap closed 0.92 percent up and the Smallcap index settled 0.82 percent up.
Let's take a look at key factors that triggered a sharp rally in the market:
Trade deal hopes
The hopes of a trade deal between the US and China are keeping the market in the positive terrain. Reuters reported that the United States has agreed to reduce some tariffs on Chinese goods and delay a tranche of tariffs as part of a 'phase one' deal. An amicable deal between the world's two biggest economies will bring relief to most markets of the world, experts said.
Prospects of a smooth Brexit
A decisive victory of Britain's Conservative Party in the UK elections has strengthened the prospects of a smooth Brexit. Experts believe that the UK Prime Minister will be able to deliver Brexit within weeks, ending the three-and-a-half years of political instability in Britain.
Fresh sops coming?
The market expected some fresh government measures to address the slowdown in the economy.
"The market is expecting fresh measures from the government. Hopes around this is infusing positive sentiment in the market," said Rajnath Yadav, Fundamental analyst at Choice Broking.
However, no fresh measures were announced by the Finance Minister today.Positive global cuesPositive global sentiment extended to the Indian market. As per Reuters, European shares neared a record high on Friday on hopes of an orderly Brexit after a landslide election victory for British Prime Minister Boris Johnson and signs of a last-ditch trade deal between the United States and China.
Nifty formed a bullish candle on daily charts.
The sharp upside momentum continued in Nifty today for the third consecutive sessions and closed the day with decent gains. A long bull candle was formed today with back to back opening upside gaps (both the upside gaps are unfilled). Technically, this pattern indicates a sharp comeback of bulls from the lower levels.
"Nifty as per weekly timeframe formed a long bull candle with lower shadow. This candle pattern was formed immediately after the formation of a bearish engulfing type pattern in the last week. This is a positive indication and one may expect further upside in the short-term. A sustainable move above 12,158 could nullify the negative implication of bearish engulfing," said Nagaraj Shetti, Technical & Derivative Analyst at HDFC securities.Shetti said one may expect Nifty to reach up to 12,150-200 levels by the next week and there is a possibility of an emergence of selling pressure again around all-time highs.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.