Sensex jumps 181 points to 1-week high; banks, auto shares shine
Mumbai: Festive spirits sparked strong buying in consumer durables banks, auto and realty stocks, helping the benchmark Sensex post a robust 181-point gain on Thursday to close at one-week high of 18,791.93, tracking positive trends in global markets.
The BSE benchmark index resumed in a quiet manner but gained momentum post-noon as investors pumped in fresh funds. After touching day's high of 18,806.56, the Sensex closed at 18,791.93 -- up 181.16 points or 0.97 percent. This is the highest closing for the index since 18,804.75 on October 11.
Brokers said some short-covering activity ahead of the expiry of October contract next week amid renewed hopes of cut in interest rates by RBI in the forthcoming monetary policy meeting on October 30, also helped boost sentiment.
As many as 24 scrips in Sensex closed with gains led by Tata Power, SBI, Tata Motors, Hero MotoCorp, TCS, L&T, CIL and ICICI Bank. Gains in ITC, HDFC Bank, HDFC also helped the index move higher. Likewise, the 50-share NSE index Nifty rose by 58.45 points, or 1.03 percent to close at 5,718.70.
Brokers said the uptrend was backed by stocks of realty, consumer durables and banking sectors on hopes that demand will pick up pace in the festival season, boosting earnings. Across the market, 1727 scrips rose while 1,125 shares fell.
"Stocks opened on a positive note following global cues as data indicated improvement in economic growth of China. Recent results from some of banking majors also triggered further buying in banks. Europe was also positive," said Nidhi Sarswat, Senior Research Analyst, Bonanza Portfolio.
Among sectors, the Realty sector index gained the most by rising 2.58 percent, followed by Banking index (2.09 percent), Consumer durable index (1.50 percent) and Auto index (1.4 percent).
The market also received support on firming global trends as China's economic data indicated some stabilisation in the world's second largest economy, while positive US housing data eased worries about global slowdown. Most Asian markets closed with gains in 1-2 percent range while Europe was trading higher in afternoon deals.
European shares were trading mixed in their early trade. Key benchmark indices in UK (FTSE) and Germany (DAX) were up by between 0.19-0.38 percent, while France's CAC 40 was down 0.18 percent.
US stocks rose higher yesterday after the latest data indicated that the US housing market continues to improve.
Meanwhile, an United Nations agency report said today India is expected to see a slower economic growth of 5.9 percent in the current fiscal even as there are reasons to believe the "economy has turned the corner".
Back home, 24 stocks finished with gains while six ended with losses in Sensex. Major gainers were Tata Power (3.13 percent), SBI (2.8 percent), Tata Motors (2 percent), Hero MotoCorp (1.89 percent), TCS (1.85 percent), L&T (1.73 percent), Coal India (1.65 percent), ICICI Bank (1.46 percent), HDFC Bank (1.36 percent) and ITC (1.32 percent).
M&M (1.25 percent), Hindalco (1.16 percent), HDFC (1.15 percent), Sterlite (1.1 percent), Jindal Steel (1.07 percent), Bajaj Auto (1.07 percent) and Tata Steel (1.01 percent) also notched up smart gains.
Among the sectoral indices, the BSE-Realty rose by 2.58 percent, followed by Bankex (2.09 percent), BSE-CD (1.50 percent), BSE-Auto (1.40 percent), BSE-CG (1.31 percent), BSE-Power (1.12 percent) and BSE-PSU (1.04 percent).
Talking about NSE Nifty, Shubham Agarwal, Associate VP & Senior Technical Equities Analyst, Motilal Oswal Securities said: "Nifty after making multiple lows around the important support band of 5620-5640, has been able to rebound for a pullback.
"However, an immediate resistance is placed at 5740 post which the index can head towards 5820. Volumes on Nifty futures were higher than average which indicates improved sentiments."
Shares of mid-cap and small-cap also moved up moderately on buying from retail investors as its indices shot up by 1.16 percent and 0.86 percent, respectively. The total turnover rose to Rs 2,271.04 crore from Rs 2,066.84 crore on Wednesday.