INSUBCONTINENT EXCLUSIVE:
NEW DELHI: An across the board buying pitchforked stock barometer Sensex by over 700 points today, led by pharma, FMCG, financials and IT
During the day, the gauge even rallied by more than 800 points
The turnaround came after two straight sessions of losses
The NSE Nifty closed firm, up 221 points, at 10,251 while the BSE Sensex rallied 718 points to 34,067
Both posted gains of more than 2 per cent
Let's take a look at factors that propelled the market to a higher orbit.
Strong buying in heavyweights: Shares of ICICI Bank, Reliance
Industries, Larsen Toubro, State Bank of India, Tata Consultancy Services and Axis Bank saw decent traction today
ICICI Bank surged over 10 per cent, contributing most to the rally in Sensex
Shares of the company jumped after the bank beat Street estimates in its September quarter earnings
The bank posted a 55.84 per cent year-on-year fall in standalone profit at Rs 908.88 crore for the quarter ended September
Analysts in an ETNow poll had estimated the profit figure at Rs 815 crore
Bond yield eases: The 10-year bond yield fell significantly in nearly a month by 0.80 per cent to 7.81 per cent on Monday
That came as a shot in the arm for battered investors.
RBI's OMO plan music to ears: RBI's plan of buying Rs 400 billion of government bonds
via open-market operations (OMO) in November, aimed at injecting liquidity into the system, came as a welcome relief for market, which has
been nervous about the liquidity crunch after defaults at a major infrastructure financing company
billion of government bonds via open-market operations in November as it seeks to inject liquidity into the market, Reuters said
Global leads shine: A turnaround in global cues gave hope to investors at home
European shares opened in positive territory on Monday in a tentative rebound from a sell-off, Reuters reported
UK's FTSE 100, Germany's DAX and French CAC 40 climbed up to 1 per cent.
Crude prices drop: Oil prices eased today as the rise in the dollar
and concerns of slowing demand owing to weak economic growth weighed on
However, the prospects of a tight supply looms after US sanctions on Iran crude exports kicks in
The market is expecting an increased supply from Saudi Arabia as it has promised to keep the oil market adequately supplied
Brent crude oil futures and US West Texas Intermediate (WTI) crude futures were in the red
Earnings hopes alive: Even though September earnings have been mixed so far, the market has still not given up on hope
Close to 800 BSE companies are due to post their second quarter earnings this week
Tata Power today posted an 88.46 per cent surge in second-quarter profit on Monday, underpinned by higher revenue from its power business
Market seems to be riding on the hope of better numbers going ahead
Of the 30 shares on the Sensex, only seven ended with losses, with the rest in the green
ICICI Bank was the top index performer (up 10.82 per cent), followed by SBI, Adani Ports, LT, Axis Bank and Reliance Industries
Among Nifty constituents, 42 stocks shut shop with solid gains
Indiabulls Housing Finance, with gains of over 12 per cent, led the way
ICICI Bank, SBI, Adani Ports and Dr Reddy's Labs were next in line.
On the NSE, it was all green mark across all sectoral indices
Nifty PSU Bank index rallied 7.99 per cent buoyed by the news of measure aimed to addressing liquidity crunch and upbeat quarterly results
"Most PSU lenders have reported profit and their asset quality has shown improvement," Yuvraj Choudhary, analyst, Anand Rathi Securities,
told Reuters.
The Nifty Pharma too staged a stellar show with gains of over 5 per cent
Metals, realty, private bank, IT financials too scored healthy gains.
How spectacular was the rally1
The Sensex added Rs 3.08,855.62 crore in market cap today.
2
Rally on the Nifty led to addition of more than Rs 1 lakh crore to investor wealth.
3
ICICI Bank saw creation of Rs 20,000 crore investor wealth.
4
All sectors on NSE and BSE ended in the green.
5
The advance-decline ratio stood at 2:1 meaning for gain in every two stocks, one stock fell.
Expert-takeVinod Nair, Head of Research, Geojit
Financial Services
"Despite mixed Q2 results, the Nifty got support today after touching the key level of 10,000
Bond yield reduced to 7.8 per cent while the rupee and oil prices moderated
Although the rally was broad-based, financials and pharma outperformed the broader market
The extension of this trend will largely depend on liquidity condition and global sentiment."
