Stimulus hopes, strong macro data push Sensex 629 points higher

Investors got richer by Rs 1.7 lakh crore as the total market cap of BSE-listed firms reached Rs 156.96 lakh crore. ​​

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India VIX plunged 6.41% to settle at 18.27, reflecting declining fear among traders.
NEW DELHI: Domestic equity indices got a big boost on Thursday ahead of an extended weekend as hopes of US stimulus, another phase of ‘unlock’ and a host of positive macro data data lifted the morale of investors on Dalal Street.

Top automakers said their sales were better than last year, some even clocking record volume, which is a positive sign ahead of the festive season.

A mulitude of macro numbers such as gasoline sales, factory activity and GST collections also showed an uptick, bolstering investor sentiment. Gasoline sales jumped to pre-Covid levels while the GST collections for last month came in at Rs 95,480 crore. India’s factory activity too expanded at its fastest pace in over eight years in September as a relaxation in coronavirus lockdown restrictions drove a surge in demand and output, a private survey showed.


Meanwhile, gains in the US and Asian markets also helped the sentiments back home.

The 30-share pack Sensex advanced 629.12 points or 1.65 per cent to 38,697.05. Its broader peer NSE Nifty moved in tandem and climbed 169.40 points or 1.51 per cent. The 50-share index settled at 11,416.95.

Investors got richer by Rs 1.7 lakh crore as the total market cap of BSE-listed firms reached Rs 156.96 lakh crore.
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"Positive global cues, led by US stimulus hopes, sent indices off to a flying start today. A 10% month on month rise in GST collections coupled with Unlock Guidelines lent strength to the rally with financials leading the way. Late afternoon trade also saw auto stocks joining the party backed by better volume numbers," said S Ranganathan, Head of Research at LKP Securities.

Market at a glance:
  • Chemcon Chemicals hits lower circuit after listing at 115% premium
  • CAMS lists at 23% premium but drifts 8% point lower
  • IPO subscription so far: Likhitha Infra (6.71x), Mazagon Dock (136x) and UTI AMC (1.93x)
  • RIL drops further despite getting another cheque for its retail venture
  • Auto names rally after September sales data cheers investors
  • India VIX plunges 6.41% to settle at 18.27, reflecting declining fear among traders
  • 122 stocks hit 52-week highs: Blue Dart, APL Apollo, Ipca Labs, Welspun India, Intellect Design among top names

The stock market will remain closed for trading on Friday as the nation will observe Gandhi Jayanti on October 2.

Among bluechip names, IndusInd Bank was the biggest gainer, surging 12.44 per cent to Rs 593. It was followed by Bajaj Finance, Axis Bank, Bajaj Auto, ICICI Bank, Tech Mahindra and Adani Ports that rose 3-5 per cent.
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There were very few losers among Nifty constituents. Dr Reddy’s Laboratories slid the most, ending 1.31 per cent down at Rs 5,120. ONGC, ITC, NTPC, Titan, Hindalco, RIL, BPCL, Eicher Motors and Wipro were among other names that closed in the red, albeit with marginal cuts.

NSE snip 1
Top Nifty gainers & losers
Broader market indices underperformed by a wide margin. Nifty Smallcap gained 0.66 per cent while Nifty Midcap rose 0.84 per cent. Nifty 500, the broadest index on NSE, closed with gains of 1.28 per cent.
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Shriram Transport Finance Company, Indiabulls Ventures, Manappuram Finance, PVR, Equitas and Inox Leisure were among the top gainers from the mid and smallcap indices, rising in the range of 5-8 per cent.

Vodafone Idea, Navin Fluorine, Mphasis, Sunteck Realty, GMM Pfaudler and Persistent Systems were among the top losers from broader market space, closing down 2-4 per cent.
Traders chose to carry most long positions over a three day weekend reflecting risk-on sentiments. The focus has now shifted back to largecaps and frontline stocks.

-Deepak Jasani, Head of Retail Research, HDFC Securities

In the sectoral space, Nifty Private Bank was the biggest gainer, up 4.11 per cent followed by Nifty Financial Service that advanced 3.08 per cent. Nifty Media was also among the top gainers, rising 2.8 per cent, after the government said it will allow opening of cinema halls. All sectoral indices on NSE closed in the green.

Market breadth was in favour of the gainers with 1,541 stocks ending in the green while 1,128 names ending with cuts. As many as 122 securities hit 52-week highs, mostly from the smallcap space. Meanwhile, 62 names hit 52-week lows, mostly from the microcap space. About 280 stocks hit upper circuit limit and 242 lower circuit limit.

Markets world over were in the green. London’ FTSE rose 0.87 per cent, Paris’ CAC 0.59 per cent and Frankfurt’s DAX 0.08 trading in the afternoon trade. In Asia, all markets closed in the green. Indonesia was the biggest gainer, up over 2 per cent. Tokyo trading was disrupted due to technical glitch while South Korea, Hong Kong and China were closed for trading.

Let’s prepare for Monday:
  • Angel Broking: Shares of the broker will most likely debut on bourses on Monday.
  • Forex Data: RBI will release forex reserve data for week ended September 25, which will show how much dollar has the central bank been buying.
  • US stimulus: Marketmen will track development on $2.2 trillion stimulus bill that may give a fillip to the market.
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