With rate cut hopes at the central bank’s review policy on Tuesday and robust auto sales figures, especially auto stocks led by Maruti Suzuki, investors’ sentiments pushed the markets to the biggest single-day gain in about a month. The BSE benchmark Sensex, on Monday, jumped over 377 points with around 15 per cent rise in its index, while the NSE Nifty also behaved in the same manner, scaling upto the 8,700 mark in the bourse.
Improving sales numbers from automakers, the rupee holding higher against the dollar and no further flare-up on the geopolitical front, added fuel to the rally. A rebound globally on easing worries about future of German giant Deutsche Bank and a firming oil price provided a perfect setting.
The rupee also ended marginally higher by 2 paise at 66.59 against the US dollar on mild selling of the American currency by exporters and banks. The domestic unit resumed higher at 66.54 as against the last Friday’s closing of 66.61 at the inter-bank foreign exchange market and strengthened further to 66.45 on sustained bouts of dollar selling.
Besides, PMI figures for September at 52.1, which boosted the investors’ sentiment and came in above the 50-mark for the ninth month, helped both the bourses enjoy bull-ride to such a biggest rally.
“The market rebounded as investors expect a positive futuristic view from the new RBI monetary policy committee on Tuesday even though consensus points to a hold in key rates,” said Vinod Nair, Head of Research, Geojit BNP Paribas Financial Services.
However, the 30-share BSE index after opening higher hit a high of 28,273.02, before settling at 28,243.29, a significant jump of 377.33 points, or 1.35 per cent, its biggest single-session rally since September 6 when it had climbed 445.91. The gauge had gained 38.43 points in the previous volatile session on Friday. The broader NSE Nifty retook the 8,700 level to end at 8,738.10 by surging 126.95 points, or 1.47 per cent, after moving between 8,745.20 and 8,635.
Country’s largest car maker Maruti Suzuki were on the driver’s seat and came out on tops, surging by over 3.70 per cent, after it posted over 31 per cent growth in passenger vehicle sales in September. Similarly, Hero MotoCorp (up 3.18 per cent), M&M (2.64 per cent), Bajaj Auto (1.52 per cent) and Tata Motors (1.11 per cent) were in a sweet spot too.
As many as 28 components of the 30-share Sensex pack ran up while TCS and Infosys finished lower. Other big movers of the day are Adani Ports (3 per cent), Power Grid (2.72 per cent), l&T (2.67 per cent) and Asian Paints (2.54 per cent). On the sectoral front, realty rose the most by 3.01 per cent followed by consumer durables 2.65 per cent, infra 2.61 per cent, metal 2.45 per cent and banking 1.59 per cent.
Broader markets continued to show a firm trend as retail investors propped up their bets, with the BSE small-cap index rising 2.67 per cent and mid-cap 2.40 per cent. Foreign portfolio investors (FPIs) sold shares worth a net Rs 1,028.31 crore last Friday, showed provisional data.
Asian shares also closed little higher on receding fears about Deutsche Bank after a source said the German banking giant was nearing a settlement with the US Justice Department amid strong leads from Wall Street’s rally on Friday.
Hong Kong’s Hang Seng went up 1.23 per cent while Japan’s Nikkei rose 0.90 per cent. Chinese markets were closed on Monday for a public holiday. European stocks also witnessed a rise. london’s FTSE climbed 1.11 per cent and France’s Paris CAC 0.31 per cent. Frankfurt was shut owing to a public holiday in Germany.
The market breadth remained positive as 2,228 stocks ended in the green while 660 finished in the red while 117 ruled steady. The total turnover on BSE rose to Rs 3,841.40 crore, from Rs 3,594.73 crore last Friday.