Sensex surges 453 points: Key factors that took winning run to 5th day

NEW DELHI: Domestic benchmark equity indices scaled fresh highs on Wednesday as buying continued across sectors. Falling retail inflation and prospects of better corporate earnings are other key reasons driving markets.

An important trend in the market in recent days is the market resilience in spite of selling by both FIIs and DIIs. This new trend reinforces the dominance of retail investors and the success of the 'buy on dips' strategy, said an analyst.

"The mood of the global market is muted by inflation fears & high bond yields ahead of the release of US inflation data. However, the Indian market is robust due to the festival season. Best performers are auto, metal and power sectors in expectation of high demand," said Vinod Nair, Head of Research at Geojit Financial Services.


Investor wealth, reflected by total market cap of BSE-listed firms, climbed Rs 2.44 lakh crore to cross over Rs 270.75 lakh crore. In the last five sessions, they have grown richer by Rs 8.55 lakh crore.


How are bluechips doing
After opening in the green, benchmark indices continued to gain momentum. At close, BSE flagship Sensex was up 452.74 points, or 0.75 per cent, to 60,737.05 points. The index has advanced about 1,550 points in the last five sessions. NSE benchmark Nifty climbed 169.80 points, or 0.94 per cent, to 18,161.75 points.

In the 50-share pack Nifty, Tata Motors was the biggest gainer, up 21.11 per cent. M&M, Tata Consumer, ITC, Power Grid, Adani Ports, Grasim Industries and L&T were among other gainers.

Maruti Suzuki was the top loser in the pack, down 2.58 per cent. ONGC, SBI Life Insurance, Coal India, HUL, SBI and Nestle India were among those that traded in the red.

FACTORS DRIVING MARKETS
Good news
Inflation falls: The decline in CPI inflation to 4.35 per cent in September is positive since it supports the RBI's view on inflation and will allow the MPC to continue with the accommodative monetary stance.

Bad news
Tapering imminent?: Three Fed policymakers said on Tuesday the economy has healed enough for the central bank to begin to withdraw its crisis-era support, cementing expectations the Fed will start to taper its monthly bond purchases as soon as next month.

Crude oil: Oil prices are currently near multi-year highs, but were steadier in Asian morning trading. Brent crude fell 0.29 per cent to $83.18 a barrel, just off Monday's three-year high of $84.6, while US crude shed 0.2 per cent to $80.48 off Monday's seven-year high of $82.18.

Broader markets
Broader market indices were trading mixed, underperforming their headline peers. Nifty Smallcap was down 0.01 per cent while Nifty Midcap advanced 1.54 per cent. Broadest index on NSE, Nifty 500, was up 0.97 per cent.

Trident, Thyrocare Technologies, Dilip Buildcon, Indiamart Intermesh, Indian Hotel and BHEL were gainers from the space while SRF, Prestige Estate Projects, Oil India, TV18 Broadcast, Radico Khaitan and Suzlon Energy were under selling pressure.

Global markets
European markets were trading mixed. London-based FTSE was down 0.20 per cent while Paris and Frankfurt rose 0.24 per cent and 0.69 per cent, respectively. In Asia, Japan, Hong Kong and Taiwan slipped while rest of the markets registered gains.