Sensex Soars Nearly 1,300 Pts To Reclaim 58,000 Mark
D-street bulls staged a stunning comeback on Tuesday, a day ahead of Dusshera on the back of gains in banks and metal stocks, as well as an overnight rise in on Wall Street and other global equities.
Investor sentiment also got a boost ahead of the Q2 earnings season and expectations of upbeat results. Ahead of the festive season, investors are optimistic about retail demand across segments.
At close, the Sensex was up 1,276.66 points or 2.25 per cent at 58,065.47, while its broader peer, the Nifty was up 387 points or 2.29 per cent at 17,274.30. All the sectoral indices ended in the green with auto, capital goods, bank, metal, IT, power and realty up 2-3 per cent.
On the Nifty, IndusInd Bank, Adani Ports, Coal India, Hero MotoCorp and Bajaj Finance were among the top gainers. While Power Grid Corporation, Dr Reddy’s Laboratories were the only two users on the index.
IndusInd Bank shares added 5.5 per cent after it posted an 18 per cent jump in net advances in the second quarter.
Shares of Mahindra and Mahindra Financial Services rose 12 per cent after the company reported strong loan disbursement and improved collection efficiency in September.
"Technically, after a sharp intraday correction, the index bounced back sharply. Post gap up opening it held the level of 17,100/57,500 and succeeded to close above the same. It also formed a higher bottom formation on intraday charts which indicate continuation of uptrend in the near future. The short-term market structure is positive but due to the temporary overbought condition we could see range bound activity in the near future," said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
Foreign institutional investors (FII) turned net buyers in the beginning of the week, purchasing 5.91 billion rupees ($72.48 million) worth of domestic equities on Monday, provisional data available with the National Stock Exchange showed.
Markets will remain closed on Wednesday on account of Dussehra festival celebrations across the country.
