Sensex hits 18-month high, Nifty ends at highest closing level since March 3, 2015; Tata Motors top gainer

The S&P BSE Sensex on Tuesday jumped 446 points to hit its 18-month high level, while the broader Nifty50 surged past its 8,950-mark, its highest closing level since March 3, 2015.

The headline indices rallied led by gains in rate sensitive stocks such as banking and auto stocks after Urjit Patel assumed charge as the 24th governor of Reserve Bank, succeeding Raghuram Rajan. 

The 30-share index ended the day at 28,978, up 445.91 points, while broad-based 50-share index quoted 8,943, up 133.35 points at close.

Sentiment was also boosted by gains in Asian stock markets as traders trimmed the probability of a Fed rate hike this month to 21 per cent from 24 per cent on Thursday, according to CME Group's FedWatch programme, after a tepid US payrolls data last week.

Domestic markets were closed on Monday, making Tuesday the first trading session since data on Friday showed US employment growth slowed more than expected in August after two straight months of robust gains.

Foreign investors have been buying into shares apart from those in other emerging markets this year, bringing the total net investments in the year to $6.05 billion.

"September rate hike talks have been put to rest now. Therefore, this liquidity-driven rally is expected to continue for the time being, which is comforting our markets," said Pankaj Pandey, head of research at ICICI Securities.

Tata Motors was the best performer on both the benchmark indices and added over 8 per cent intraday to hit its fresh 52-week high on the bourses.

Car maker Maruti Suzuki India gained 2 per cent after data showed its total production rose 3.2 per cent in August.

 

Among the losers, Jubilant Foodworks plunged as much as 9.9 per cent to a more than two-month low after the operator of Domino's Pizza and Dunkin Donuts chains in India posted a 31 per cent drop in its June-quarter profit on Saturday.

Shares of Inox Wind tanked over 16 per cent after the wind turbine maker reported 80 per cent decline in consolidated net profit at Rs 11.82 crore in the June quarter.