Sensex closes 1.09% up, Nifty near 10,100, RIL shares rise 4% ahead of earnings
Mumbai: The Sensex on Thursday surged more than 1%, or 348 points—its biggest one-day rise in three months—to close at 32,182, taking in its stride increased prospects of an imminent US interest rate hike. The minutes from the US Federal Reserve’s September policy meeting pointed to a rate increase one additional time this year despite subdued inflation, signalling “patience in removing policy accommodation”. IIP and inflation data slated for the day heightened investors’ interest as they went on a buying binge at a time of a rising trend overseas.
The NSE barometer Nifty too traded above the key 10,000- mark before closing above that level. Oil and gas, healthcare, FMCG and auto counters drove the rally. The 30-share Sensex after opening higher settled up 348.23 points, or 1.09%, at 32,182.22. This is its best single-day performance since 10 July when it soared 355.01 points. On Wednesday, the index had dropped 90 points for the first time in four sessions as investors took profit.
Investor optimism took the 50-share NSE Nifty above the key 10,000-mark to 10,096.40 at the close, up 111.60 points, or 1.12%, its biggest one-day gain since 25 May when it rallied 149.20 points. Intra-day, it scaled a high and a low of 10,104.45 and 9,977.10, respectively. With this rally, investors became richer by Rs1.46 trillion as market capitalisation of BSE listed firms stood at Rs137.56 trillion.
“Market regained from yesterday’s loss and stayed close to 10,100 mark ahead of economic data—inflation and IIP later today. Good demand on consumer stocks on arrival of festival season and ecstasy on pharma stocks amid positive regulatory approvals fuelled the market. Investor’s expectation on some tailwinds in IT stocks ahead of results kept the counter busy,” said Vinod Nair, head of research, Geojit Financial Services Ltd.
Sensex heavyweight Reliance Industries stole the show, surging 3.82% to end at Rs872.50 ahead of the second quarter earnings slated for Friday. TCS gained 1.92% to Rs2,548.55 as investors built up bets ahead of its earnings numbers.
A firm trend was seen in Asia while Europe also opened higher, boosted by another record show on Wall Street. Foreign portfolio investors kept on offloading shares worth net Rs107.95 crore on Thursday, showed provisional data from exchanges. Domestic institutional investors remained net buyers, picking up shares net Rs233.08 crore.
The bounce in the Sensex was also supported by Sun Pharma that gained 2.59% to Rs539.40 after the company said it has received establishment inspection report from the US health regulator for its Dadra facility. Axis Bank, Hindustan Unilever, Adani Ports and Hero MotoCorp all went up.
Private lender IndusInd Bank ended 1.47% higher at Rs1,742.60 after the company today posted 25% increase in net profit for the September quarter. The BSE energy index was the biggest mover, rising 1.95% followed by telecom, realty and FMCG. The BSE small-cap added 1.15% while mid-cap ended 0.98% higher.