Stock Market

NEW DELHI: An across the board buying pitchforked stock barometer Sensex by over 700 points today, led by pharma, FMCG, financials and IT.

During the day, the gauge even rallied by more than 800 points.

The turnaround came after two straight sessions of losses.

The NSE Nifty closed firm, up 221 points, at 10,251 while the BSE Sensex rallied 718 points to 34,067.

Both posted gains of more than 2 per cent.

Let's take a look at factors that propelled the market to a higher orbit. Strong buying in heavyweights: Shares of ICICI Bank, Reliance Industries, Larsen Toubro, State Bank of India, Tata Consultancy Services and Axis Bank saw decent traction today.

ICICI Bank surged over 10 per cent, contributing most to the rally in Sensex.

Shares of the company jumped after the bank beat Street estimates in its September quarter earnings.

The bank posted a 55.84 per cent year-on-year fall in standalone profit at Rs 908.88 crore for the quarter ended September.

Analysts in an ETNow poll had estimated the profit figure at Rs 815 crore.

Bond yield eases: The 10-year bond yield fell significantly in nearly a month by 0.80 per cent to 7.81 per cent on Monday.

That came as a shot in the arm for battered investors. RBI's OMO plan music to ears: RBI's plan of buying Rs 400 billion of government bonds via open-market operations (OMO) in November, aimed at injecting liquidity into the system, came as a welcome relief for market, which has been nervous about the liquidity crunch after defaults at a major infrastructure financing company.

India’s bonds, rupee and stock markets all broke free on Monday as they took their lead from the RBI’s announcement that it will buy Rs 400 billion of government bonds via open-market operations in November as it seeks to inject liquidity into the market, Reuters said.

Global leads shine: A turnaround in global cues gave hope to investors at home.

European shares opened in positive territory on Monday in a tentative rebound from a sell-off, Reuters reported.

UK's FTSE 100, Germany's DAX and French CAC 40 climbed up to 1 per cent. Crude prices drop: Oil prices eased today as the rise in the dollar and concerns of slowing demand owing to weak economic growth weighed on.

However, the prospects of a tight supply looms after US sanctions on Iran crude exports kicks in.

The market is expecting an increased supply from Saudi Arabia as it has promised to keep the oil market adequately supplied.

Brent crude oil futures and US West Texas Intermediate (WTI) crude futures were in the red.

Earnings hopes alive: Even though September earnings have been mixed so far, the market has still not given up on hope.

Close to 800 BSE companies are due to post their second quarter earnings this week.

Tata Power today posted an 88.46 per cent surge in second-quarter profit on Monday, underpinned by higher revenue from its power business.

Market seems to be riding on the hope of better numbers going ahead.

Of the 30 shares on the Sensex, only seven ended with losses, with the rest in the green.

ICICI Bank was the top index performer (up 10.82 per cent), followed by SBI, Adani Ports, LT, Axis Bank and Reliance Industries.

Among Nifty constituents, 42 stocks shut shop with solid gains.

Indiabulls Housing Finance, with gains of over 12 per cent, led the way.

ICICI Bank, SBI, Adani Ports and Dr Reddy's Labs were next in line. On the NSE, it was all green mark across all sectoral indices.

Nifty PSU Bank index rallied 7.99 per cent buoyed by the news of measure aimed to addressing liquidity crunch and upbeat quarterly results.

"Most PSU lenders have reported profit and their asset quality has shown improvement," Yuvraj Choudhary, analyst, Anand Rathi Securities, told Reuters. The Nifty Pharma too staged a stellar show with gains of over 5 per cent.

Metals, realty, private bank, IT financials too scored healthy gains. How spectacular was the rally1.

The Sensex added Rs 3.08,855.62 crore in market cap today. 2.

Rally on the Nifty led to addition of more than Rs 1 lakh crore to investor wealth. 3.

ICICI Bank saw creation of Rs 20,000 crore investor wealth. 4.

All sectors on NSE and BSE ended in the green. 5.

The advance-decline ratio stood at 2:1 meaning for gain in every two stocks, one stock fell. Expert-takeVinod Nair, Head of Research, Geojit Financial Services "Despite mixed Q2 results, the Nifty got support today after touching the key level of 10,000.

Bond yield reduced to 7.8 per cent while the rupee and oil prices moderated.

Although the rally was broad-based, financials and pharma outperformed the broader market.

The extension of this trend will largely depend on liquidity condition and global sentiment."





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