Bulls make a comeback and how! After the drubbing seen on Thursday, where indices lost over 2 percent in a single session, equity benchmarks reversed almost all of those losses and saw a strong end to the week. The Sensex ended over 700 points higher, while the Nifty ended above 10,450-mark.
Interestingly, the upmove was seen despite a negative handover from Wall Street, indicating that investors looked to shrug off any concerns coming in from this segment. Asian indices too showed resilience from such global cues too.
Barring tech stocks, there was buying across all sectors. Banks, automobiles, energy and metal names were the big gainers. The Nifty Midcap index is up around 3 percent.
According to CNBC-TV18, benchmarks posted biggest one-day gains since May 2016. In fact, the Sensex’s 732-point upmove has helped it turn positive for this calendar year.
The day began on a strong note, with the Sensex rising over 400 points. Indices soon extended their gains as buying across sector provided it the necessary support.
At the close of market hours, the Sensex ended up 732.43 points or 2.15% at 34733.58, while the Nifty closed higher by 237.80 points or 2.32% at 10472.50. The market breadth was positive as 2,024 shares advanced, against a decline of 630 shares, while 801 shares were unchanged.
Maruti Suzuki, Mahindra & Mahindra, and Eicher Motors are the top gainers. TCS and HCL Technologies were the big losers.
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Hindustan Unilever rose 3 percent ahead of second quarter results that will be announced after market hours on October 12, 2018.
GM Breweries rose 5 percent after it reported robust numbers in the quarter ended September 2018.
Meanwhile, shares of Yes Bank added 3 percent. The bank has appointed Korn Ferry to assist the committee in evaluating candidates to find out successor for outgoing MD and CEO.
Global investment firm HSBC has downgraded Tata Motors to Hold and slashed target price sharply to Rs 210 from Rs 350 per share amid lingering concerns over Jaguar Land Rover. The stock still managed to close half a percent higher.
KEC International share price rallied nearly 7 percent after global investment firm Macquarie maintained outperform rating on the stock on attractive valuations.
European stocks bounced back as global sentiment turned positive. Stoxx 600 index was up by 0.5 percent in early deals.
Meanwhile, Asian stocks saw a broad recovery despite a big tumble on Wall Street. The Dow Jones Industrial Average fell by more than 500 points. Hong Kong’s Hang Seng index advanced by 2.07 percent in afternoon trade. The Nikkei 225 saw gains of 0.46 percent to close at 22,694.66 while the Topix index ended largely flat at 1,702.45.