Indian bourses opened at all-time highs in early trade on Tuesday powered by expectations that the United States and China may finalise a trade deal by the end of the year.
The BSE Sensex touched 41,000 mark for the first time on Tuesday, registering a 200-points gain in the early trade over previous day’s close. The index touched an intra-day high of 41,102. Nifty also hit a new high of 12,126 in intra-day trade. Nifty had seen a peak of 12,103 points in June this year.
Siddharth Khemka, Head of Retail research, Motilal Oswal Group, said: "Improvement in global cues like the easing of the US-China trade war, range-bound crude oil prices, monetary easing by the US Fed and new highs in US equity markets are aiding sentiments.”
"We believe that the current momentum can sustain in the near term on the back of liquidity flows and positive sentiments," Khemka added.
On Monday, the Sensex gained 530 points to close at a record high of 40,889. Nifty 50 index gained 159.35 points to close at 12,073.75.
The Indian Rupee, too, joined the rally. In early trade on Tuesday, Rupee was up at 71.66 against the US dollar, against a previous close of 71.73.
“Most of the Asian markets were trading with a positive bias in morning and in line with global cues. Our market started the week on a positive note. Right from the word go, the index witnessed a buying momentum and with participation from the broader markets,” said market analyst Sameet Chavan at Angel Broking.
Chinese President Xi Jinping has said that Beijing would prefer to strike a trade agreement with the United States and the country is working to try not to have a trade war with the US.