Indian equities finish higher, join Asian markets in trade deal rally

Benchmark indices Sensex and Nifty managed to close with gains after a volatile session on Monday as positive sentiment reflected on domestic bourses after a breakthrough in US-China trade talks. After swinging 448 points during the day, the 30-share Sensex ended 87.39 points, or 0.23%, higher at 38,214.47. It hit an intra-day high of 38,513.69 and a low of 38,066.13. Likewise, the NSE Nifty moved up 36.10 points, or 0.32%, to 11,341.15. Gains on the benchmark gauges were restricted by cautious participants awaiting retail inflation data due after market hours. Meanwhile, wholesale inflation eased to more than a three-year low of 0.33% in September, official data showed.

Read: Sensex Drops Over 200 Pts As RBI Cuts GDP Forecast; Bank Stocks Tank

Tata Motors is the top gainer

On the Sensex chart, Tata Motors was the top gainer rallying 5.32%. ONGC rose 4.73% after Oil Minister Dharmendra Pradhan said the state-owned firm was free to sell its stake in the HPCL. Among other prominent gainers were Bharti Airtel, IndusInd Bank, Sun Pharma, Axis Bank, Maruti Suzuki, Bajaj Auto and TCS. On the other hand, Infosys was the top laggard on the index, shedding 3.68%, after the company reported a 2% decline in its consolidated net profit for the July-September quarter. Other losers included Bajaj Finance, PowerGrid, L&T, Kotak Bank -- dropping up to 2.37%. Sectorally, BSE telecom, realty, auto, oil and gas, metal, basic materials, healthcare, and energy indices rallied up to 2.24%. While BSE IT, tech, power and capital goods indices fell up to 0.90%.

Read: BSE Sensex Climbs 396 Points With Nifty Soaring To 133 Points

'Ripple effect on the Indian market'

Broader BSE midcap and smallcap indices too advanced up to 0.44 per cent. "Signs of progress in trade negotiations between the US and China had a ripple effect on the Indian market. However, market pare gains towards close due to tepid outlook on second-quarter results and expectation of a rise in CPI inflation. Auto and banks gained in expectation of festival demand while PSU banks declined due to liquidity issues," Vinod Nair, Head of Research at Geojit Financial Services, said. Market sentiment, however, remained volatile amid concerns over an economic slowdown after the World Bank said India's growth rate is projected to fall to 6% after a broad-based deceleration in the initial quarters of this fiscal year.

Read: Sensex, Nifty Rally For 2nd Day On Tax Booster; Close At 2-month High

Asian stocks rally

Meanwhile, the Indian rupee depreciated 20 paise to close at 71.23 against the US dollar. Brent crude futures, the global oil benchmark, plunged 2.26% to USD 59.14 per barrel. Asian stocks rallied on news that the US had reached a "very substantial" Phase 1 trade deal with China. Bourses in Shanghai, Hong Kong, Seoul and Tokyo ended significantly higher, while those in Europe were trading in the red as investors' focus remained on Brexit developments. 

Read: Sensex Gains Over 900 Points And Nifty Rises Over 300, Post Tax Cut