Sensex adds 428 pts over US-China trade deal

Benchmark index Sensex closed near its life-time high on Friday after signs of easing US and China trade tension ignoring weak macroeconomic situation in the country.

Official data on Thursday showed that retail inflation has soared to 5.54 per cent in November, a steep rise of 92 basis points from October. This added to the already declining growth and multi-decade high unemployment, sparking fears of stagflation.

The Sensex closed 428 points higher at 41,009.71. It touched an intra-day high of 41,055.80. The Nifty settled at 12,086.70 gaining 115 points.

"Carrying on from the previous session, markets rallied further on Friday. The gains came on the back of positive global cues triggered by US reaching a 'deal in-principle' with China," said Deepak Jasani of HDFC Securities.

Broad market indices such as the BSE Mid Cap and Small Cap indices gained less, thereby underperforming. Market breadth was positive, and metal and IT stocks were the top gainers. The top loser was the BSE Telecom index.

"Currently global factors are looking up in the backdrop of strong US job data, status quo from Federal Open Market Committee (FOMC) and trade optimism. While strong mandate for Conservative Party in the UK election may channelize a smooth Brexit bringing cheer to domestic investors," said Vinod Nair, Head of Research at Geojit Financial Services.IANS