Bulls kept the momentum going on Dalal Street for third consecutive session on Tuesday as the Sensex gained nearly 300 points and all sectoral indices ended in the green despite mixed global cues. Stable rupee and crude oil prices, and healthy start to September quarter earnings season aided the rally.
Banks & financial, auto, energy, and select FMCG and technology stocks were prominent gainers, which all pushed the frontline indices to near two-week high.
The 30-share BSE Sensex climbed 297.38 points to 35,162.48 and the 50-share NSE Nifty rallied 72.30 points to 10,584.80, the highest level since October 4, 2018.
“Market maintained a positive momentum as healthy start to the earnings season and gaining strength in rupee supported the sentiment. Though rally was broad based, financials led from the front,” Vinod Nair, Head of Research, Geojit Financial Services told Moneycontrol.
He feels earnings season will dictate the trend in the market as investors are gradually shifting their focus from global volatility to domestic triggers.
The broader markets outperformed benchmark indices with the BSE Midcap rising 1.14 percent and Smallcap up 1.68 percent on positive advance:decline ratio. More than two shares gained for every share falling on the BSE.
While maintaining cautious view on market, Jayant Manglik, President at Religare Broking said the movement in USD-INR and crude oil prices would be actively tracked by the investors. “Further, rising US yields are a concern to equity as an asset class and emerging economies like India. Hence, under uncertain market conditions, traders & investors should be selective in stock picking.”
The Indian rupee gained 35 paise to close at 73.47 against the US dollar while Brent crude futures, the international benchmark for oil prices, slipped 0.76 percent to $80.17 a barrel, at the time of writing this article.
Federal Bank (up 7.8 percent) and South Indian Bank (up 16 percent) were prominent gainers among banks after strong September quarter earnings. Delta Corp also reacted positively to its earnings with nearly 6 percent gain. However, Indiabulls Housing Finance fell 4.4 percent and IndusInd Bank lost 0.4 percent post earnings.
Infosys was down half a percent ahead of earnings announced after market hours. The country’s second largest IT company reported sequential revenue growth of 3.2 percent in dollar terms and 4.2 percent in constant currency terms for the quarter ended September 2018 with winning of $2 billion worth of deals in Q2. It has retained full year guidance for constant currency revenue growth of 6-8 percent and EBIT margin at 22-24 percent.
Reliance Industries (up 2.11 percent), ICICI Bank (up 2.33 percent), HDFC (1.35 percent), M&M (3.83 percent), SBI (2.7 percent), Adani Ports (3.77 percent), Axis Bank (2.13 percent), ONGC (3.4 percent) and Tech Mahindra (3.48 percent) were leading contributors to Nifty’s gains while HDFC Bank, JSW Steel, Eicher Motors and Bharti Infratel were prominent losers.
On the global front, Asian stocks ended on a mixed note following slide on Wall Street overnight. China’s Shanghai Composite was down 0.85 percent whereas Japan’s Nikkei gained 1.25 percent.
European stocks were also mixed at the time of writing this article. France’s CAC and Germany’s DAX gained 0.3 percent each whereas Britain’s FTSE declined third of a percent.