Sensex jumps 362 points, posts biggest daily gain in more than 2 months
Sensex rose 1.42% to close at 25,880.77, while Nifty added 1.33% to end at 7,727.05
Mumbai: The BSE Sensex posted on Tuesday its biggest daily gain since 6 June, rising for a second straight session, helped by news that Tata Motors Ltd. had tripled its quarterly net profit.
The broader Nifty’s fall of 3.5% since its record high on 25 July until last week was also starting to look overdone, according to some analysts, given continued expectations for an improving domestic economy.
Investors will now keenly await data on India’s June industrial production and July consumer prices due after the close of markets for a better indication of the health of the economy.
“The selling pressure has got absorbed and the correction was mostly overdone. I think the overall outlook remains positive, but one should stay stock-specific," said Suresh Parmar, head, institutional equities at KJMC Capital Markets.
The BSE Sensex rose 1.42% or 361.53 points to close at 25,880.77, while the Nifty added 1.33% to end at 7,727.05.
Among the top gainers, Tata Motors surged 6.2%, marking its biggest daily percentage gain since 10 September, 2013, when its luxury unit Jaguar Land Rover Ltd (JLR) unveiled a $2.4 billion investment in a new range of cars aimed at the mass market.
On Monday, Tata Motors said April-June net profit more than tripled on the back of strong sales from JLR.
Others gained on earnings optimism. Sun Pharmaceutical Industries Ltd. gained 2.7% ahead of its quarterly results later in the day.
Tata Steel Ltd. closed up 1.4% ahead of earnings on Wednesday.
Eicher Motors Ltd. gained 8.2% after April-June quarter earnings beat analyst estimates.
Also getting a lift were Housing Development Finance Corp. Ltd. (HDFC), which surged 5%, while HDFC Bank Ltd. rose 1.8% on speculation the two may see their weightages increase in a rebalancing of global indexes by index provider MSCI, due by mid-month.
Power and infrastructure stocks also gained on short-covering. Tata Power Co. Ltd., which fell more than 5% in the past four sessions, rose 0.55%, while Larsen and Toubro Ltd. (L&T) closed 1.8% higher and NTPC Ltd. finished up 2.7%.
However, Hindustan Petroleum Corp. Ltd. (HPCL) fell 1% after its quarterly net profit lagged estimates. Reuters
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