Sensex and Nifty closed over 1% higher today led by gains in banking, auto, consumer durables and metal stocks. While Sensex ended 396 points or 1.03% higher at 38,989, Nifty gained 1.15% or 131 points to 11,571. Vedanta (6.47%), Mahindra and Mahindra (6%) , and ONGC (4.15%) were the top Sensex gainers. Of 30 Sensex stocks, 23 ended in the green.
Top Sensex losers were YES Bank (4.93%), Infosys (1.28%) and HCL Technologies (0.86%). On Wednesday, Sensex closed 503 points lower at 38,593 and Nifty ended the day's trade at 11,440 mark, declining by 148 points.
Experts see market moving upward in the near term and advise investors to buy on dips to earn profits. Ajit Mishra, Vice President, research at Religare Broking said, "We reiterate our bullish view on the Nifty and advise continuing with "buy on dips" approach. It has the potential to test 11,700-11,800 in the near future thus any intermediate dip should be considered as a buying opportunity. We're still seeing limited participation, thus suggest keeping caution during stock selection."
Here's a look at factors which sent Sensex and Nifty into recovery mode today.
PM says more reforms in offing
Prime Minister Narendra Modi on Wednesday pitched India as 'the' investment destination for global investors, saying reforms by his government are just the beginning of a long innings. Speaking at the Bloomberg Global Business Forum in New York, Modi promised to personally act as a bridge for businesses and said India has a government which respects corporates and wealth creators. The assurance which came days after the corporate tax rate cut led to positive sentiment in Indian market today.
Rally in global markets
World shares were mostly trading higher today after President Donald Trump suggested a costly tariff war with China could be resolved soon. Germany's DAX advanced 0.5% to 12,296.76 and the CAC 40 in Paris climbed 0.8% to 5,626.55. Britain's FTSE gained 1.1% to 7,371.02. Wall Street looked set for gains, with futures for the Dow and the S&P 500 up 0.2%. In Asia, Tokyo's Nikkei 225 picked up 0.1% to 22,048.24 while Hong Kong's Hang Seng gained 0.4% to 26,041.93. The recovery in global markets fuelled a rally in domestic indices today.
Fall in crude oil price
Global oil futures benchmark Brent has been falling this week. On Wednesday, the crude rates fell 1 per cent after US crude stockpiles rose and Saudi Arabia reported a faster-than-expected recovery in oil production. Brent crude traded at September 9 level, just over the $62 mark.
The strong September derivatives expiry today signals a marked improvement in sentiment of investors. Markets gained 5 percent in September series with huge demand for auto and financial stocks which were the worst performers in the previous downturns. Traders rolling out bullish bets for the October derivatives series led to buoyant sentiment in domestic indices.
Edited by Aseem Thapliyal