After a highly volatile session, benchmark equity index Sensex closed on Tuesday 273 points higher amid positive global cues. The gains were led by index heavyweights such as Bharti Airtel, HUL and Reliance Industries. Steep appreciation in the rupee against the US dollar also added to the momentum. The BSE Sensex settled 272.51 points or 0.71 per cent higher at 38,900.80. Similarly, the NSE Nifty advanced 82.75 points or 0.73 per cent to close at 11,470.25.
Bharti Airtel, Bajaj Finance, Asian Paints, Tata Steel, NTPC and SBI were among the other gainers. On the other hand, ONGC, Axis Bank, Tech Mahindra, Infosys and ICICI Bank were among the laggards.
"After the dismal GDP data, market participants are now hoping for more stimulus package announcements from the government. Meanwhile, participants would keep a close watch on India-China border tension and global markets for cues. Indications are in the favor of consolidation and we could see the next leg of decline below 11,340 in Nifty. Defensive viz. pharma, FMCG etc tend to do well in such a scenario so traders should plan their positions accordingly," said Ajit Mishra, VP - Research, Religare Broking.
Here are 7 things to know before Wednesday's opening bell:
Markets ended on a positive note after an extremely volatile session on the back of the Supreme Court judgement on the telecom Adjusted Gross Revenue (AGR) dues. The Supreme Court granted 10-year time to telecom firms such as Vodafone Idea, Bharti Airtel and Tata Teleservices for paying the AGR-related dues to the Department of Telecommunications (DoT) with certain conditions.
The gross GST collection in August stood at Rs 86,449 crore, down from Rs 87,422 crore collected in July. The revenues for August are 88 per cent of the GST collected in the same month last year.
The Centre and the RBI told the Supreme Court on Tuesday that the moratorium period on repayment of loans during the COVID-19 pandemic is "extendable" by two years and several steps have been taken to help the stressed sectors. The banking shares are expected to see movement in tomorrow's trading session.
India's manufacturing sector activity re-entered the growth territory in August, driven by a rebound in production volumes and new work, amid an improvement in customer demand following the resumption of business operations. Seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) rose from 46 in July to 52 in August.
Margin pledge rules
SEBI's new rules on margin pledge kicked in from Tuesday. The market regulator expects the new norms to introduce transparency and prevent brokerages from misusing clients' securities. It's impact will be closely analysed by the traders in tomorrow's trading session.
Bourses in Shanghai, Hong Kong and Seoul ended with significant gains, while Tokyo was in the red. Stock exchanges in Europe were largely positive in early deals.
"Going ahead, the market may consolidate for some time as it gets accustomed to new margin norms. Market will keep a close watch on India-China border tensions and global markets for cues. Technically, Nifty has formed a support near 11350 zones. However, it needs to surpass 11550 for a move towards 11750-11800. Any weakness in the market should be looked as a buying opportunity by the long term investors to add quality stocks in their portfolio," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.
"The near term trend status remains negative for the Nifty. Today's upside bounce may be a minor cheering factor for bulls to make a comeback, but the market is expected to reverse down from the highs in the next 1-2 sessions. The recent swing high of 11794 is unlikely to be breached on the upside in the short term. Immediate support is placed at 11365," said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.