Samvat 2076 started on a positive note, with the markets advancing nearly 0.5% in the symbolic Muhurat trade session, helped by gains in Tata Motors and Mahindra & Mahindra.
At closing, the BSE’s 30-share Sensex advanced 0.46% or 190.71 points to at 39248.77 points, while the National Stock Exchange’s 50-share Nifty rose 0.36% or 42.05 points to 11625.95 points.
The Indian markets were open for a 1-hour trading session from 6.15 pm to 7.15 pm, marking Muhurat trade.
World stocks advanced on Friday as investors cheered signs of progress on negotiations between the world’s two largest economies, hoping they could ease a dispute that’s rattled global markets and weighed on growth.
It is believed that Muhurat trading brings wealth and prosperity to traders and investors throughout the year. Old account books are closed and new ones opened on the day. Due to the bias towards buy orders rather than sell orders, markets have generally ended on a positive note on this day.
All the sectoral indices closed higher except telecom and consumer durables index. Among gainers, BSE industrial index climbed 1.6% followed by Bse auto and basic materials which rose 1.3% and 0.8% . Telecom index fell 0.8%
19 of the 30 Sensex components were trading higher.
Tata Motors surges 18% after the board of Tata Motors has approved an allotment of equity share and warrants on a preferential basis to Tata Sons for an aggregate consideration of ₹6,494 crore.
Yes Bank gained 5% while Vedanta and Infosys rose 2% each.
Among loser, Maruti fell 0.8% while Bharti Airtel and HCL Technology declined 0.6% and 0.4% respectively.
Mahindra & Mahindra rose 1.7% after the company said it sold 13,500 vehicles on Dhanteras across the day
Analyst expects that going forward, investors would keep watch for federal reserve meeting, developments on US-China trade war, Brexit deal. On domistic basis, focused on the next leg of corporate earnings announcements, auto festival sales along with Infosys whistle-blower case and recourse sought by telecom companies against the recent supreme court ruling on Adjusted Gross Revenue ( AGR).
Federal Reserve will meet on 29-30 October and 40 economists polled by Bloomberg expect the fed to approve a quarter point reduction.
However, a benign domestic interest rate scenario amid stimulus measures of the government are expected to improve growth recovery and boost stock markets in Samvat 2076. According to analysts, despite global recession fears, an accommodative domestic monetary policy, stable political environment and reforms like the recent cut in corporate tax rates will keep markets buoyant n
"Going ahead, on the domestic front, we are of the view that with benign interest rate scenario (expect more rate cut of 25-50 bps ahead in FY20) amid controlled inflation and proactive measures of government will boost the affected sectors. This will bring growth recovery back on track. Nifty earnings, given the benefits of tax cuts and improved demand is likely to witness a healthy 20%+ CAGR over the next two years." Said ICICI Direct Research in a note to investors.
"Given the scenario, we see value emerging across the market cap spectrum with key filter being quality. We continue to advise investors to utilise equities as a key asset class for long term wealth generation by investing into quality companies with strong earnings growth and visibility, stable cash flows, RoE/RoCE" ICICI Direct Research report added.
In Samvat 2075, Sensex was up 12.31% while the 50-share index Nifty gained 10.75%. Though the gains by benchmark indices in Samvat 2075 was better than the previous year, it was a challenging time for investors with bouts of volatility in equities, tepid corporate earnings, liquidity crisis and slowing economic growth that started with the fiasco at non-banking financial companies that began with the Infrastructure Leasing and Financial Services Ltd (IL&FS) crisis, spreading gradually to other sectors such as auto, discretionary and some parts of staples.