Financials News

Sensex rallies 185 points on FBI relief for Hilary Clinton in personal email server probe

Sensex rallies 185 points on FBI relief for Hilary Clinton in personal email server probe

Mumbai: Ending its five-session losing run, BSE benchmark Sensex on Monday recouped nearly 185 points on positive global sentiments as chances of Hillary Clinton in the US election brightened following a relief from FBI in personal email server probe.

The US elections and outcome speculation caused nervousness in global markets last week but the news of a reprieve, mere two days ahead of polls, for Clinton from FBI brought cheers for investors as the investigative agency did not find any material evidence for potential criminal charges.

Besides, domestic equities got a major push from covering-up by speculators, who had been creating short positions.

Vinod Nair, Head of Research, Geojit BNP Paribas Financial Services Ltd, said, “Market reacted positively to the outcome of US FBI’s clean chit to the Democratic presidential candidate. Investors expressed an interim relief in the midst of escalating worry in the final lap of election battle. Further, short covering on pharma, bank stocks has also supported the rally.”

The Sensex opened gap-up at 27,552.27 and hovered between 27,591.15 and 27,398.72 before closing at 27,458.99, showing a gain of 184.84 points, or 0.68 per cent.

The gauge had lost 667.36 points in the previous five sessions. The Nifty after shuttling between 8,535.85 and 8,481.45 ended higher by 63.30 points, or 0.75 per cent, at 8,497.05.

Buying activity was so strong that all the sectoral indices, except capital goods, ended in the green, rising by up to l.94 per cent. Tracking overall trends, broader markets were also in better shape with the small-cap surging 1.19 per cent and the mid-cap index rising 0.59 per cent.

Foreign portfolio investors (FPIs) sold shares worth a net Rs 343.30 crore on Friday, as per provisional data. Globally, in the Asian region, Japan’s Nikkei moved up 1.61 per cent, Shanghai Composite was higher 0.26 per cent, while Hong Kong’s Hang Seng up 0.70 per cent.

European markets also joined Asian markets as Frankfurt’s DAX climbed 1.71 per cent, while the Paris CAC rose 1.81 per cent in their initial deals. London’s FTSE too surged 1.37 per cent. The US stocks futures too were trading in positive terrain ahead of Monday’s market opening.