Sensex gains 220 points, hits 40,000 for first time since July

Domestic stock market indices extended gains for the fourth straight day on Wednesday with Sensex ending the trading session above the important level of 40,000.

Sensex added 220 points or 0.55 per cent to end at 40,052 and Nifty50 index ended at 11,844, up 57 points or 0.49 per cent. Out of 50 components, 28 ended in the green and 22 in the red. 

During the early trade at around 10.35 am, Sensex was trading at 40,020.22 points, up by 188 points while Nifty was up 55.85 points at 11,842.60.

Sectoral indices at the National Stock Exchange were mixed with Nifty PSU bank up by 3.7 per cent, IT by 1.4 per cent and FMCG by one per cent.

Among stocks, energy major GAIL was a prominent winner with gains of 6.3 per cent at Rs 133.80.

IndianOil too showed gains of 1.9 per cent after Prime Minister Narendra Modi said a day earlier that India will invest 100 billion dollars in oil and gas infrastructure to meet energy needs of an economy that is being targeted to nearly double in five years.

The country's largest lender State Bank of India edged higher by 3.4 per cent to Rs 290.40 per share. Besides, Tata Consultancy Services, ITC, Nestle India, Bharti Airtel and Eicher Motors showed modest profits.

However, Bharti Infratel closed 5.2 per cent lower after witnessing gains during the morning session. Yes Bank, Cipla, Maruti and Britannia too closed in the red.

Meanwhile, Asian stock markets traded in the negative zone as the prospect of a rate cut by the US Fed was countered by worries that the US-China first-stage trade deal could be delayed.

Japan's Nikkei slipped by 0.57 per cent while South Korea's Kospi traded down by 0.59 per cent. The Shanghai Composite fell by 0.50 per cent and Hong Kong's Hang Seng index dipped by 0.44 per cent.

(With inputs from ANI)