Sensex, Nifty rise on strong earnings, upbeat large caps
The BSE Sensex closed 40.99 points, or 0.12%, up at 34,991.91, and the Nifty 50 ended 6 points, or 0.06%, higher at 10,530
Mumbai: The BSE Sensex and NSE’s Nifty 50 advanced on Tuesday, boosted by strong quarterly corporate earnings so far and gains in large-cap stocks such as Reliance Industries and Tata Consultancy Services. The Sensex closed 40.99 points, or 0.12%, up at 34,991.91, and the Nifty 50 ended 6 points, or 0.06%, higher at 10,530. The BSE mid and small cap indices were down 0.62% and 0.06%, respectively. Among the sectoral indices on BSE, IT, teck, telecom, energy and realty gained, whereas consumer durables, metal, basic materials and FMCG led losses.
Primarily, a good set of corporate fundamentals is driving the buying and the recovery today, said Deven Choksey, founder, KR Choksey Investment Managers.
In global markets, broader Asian shares were supported by gains on Wall Street although the trading sentiment was tempered ahead of the U.S. midterm elections, the first major electoral test of President Donald Trump’s big tax cuts and hostile trade policies since assuming office.
Heavyweight IT stocks contributed to the gains, with shares of TCS rising as much as 2.2%. Tata Motors was up 1.7% after data from a UK auto trade association showed a surge in Jaguar registrations in October.
GAIL (India) Ltd extended gains into a third session, climbing 2.9% to its highest since Oct. 3. The state-run gas utility on Monday posted a 50% jump in second-quarter profit, and brokerages raised their target price on the stock. Oil-to-retail conglomerate Reliance Industries’s stock, up 1.3%, was the biggest boost to the NSE index.
Meanwhile, shares of country’s largest lender State Bank of India, which climbed in the previous session after reporting solid quarterly results, were down 2.9%. Private-sector lender Axis Bank’s stock fell 2.7%.
Shares of Cipla Ltd, India’s second-largest drugmaker by market capitalisation, stretched losses to the fourth straight session, falling as much as 5.8% to their lowest since June 5. The company on Monday reported quarterly profit that missed estimates, and warned of headwinds in the second half of the year.
With inputs from Reuters
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