Markets extend winning run; Sensex settles jumps 453 points & Nifty ends at 18162

Rising for the fifth straight session, domestic benchmark indices hit fresh highs on Wednesday, October 13, 2021, as the macro-economic tailwinds put stocks in top gear. India's retail inflation eased again in September, falling to a five-month low of 4.35 per cent, while the Index of Industrial Production (IIP) rose to 11.9 per cent (YoY) in August.

The S&P BSE Sensex gained 452.74 points, or 0.75 per cent, to close at a new closing high of 60,737.05. The Nifty 50 index closed with a gain of 169.80 points, or 0.94 per cent, higher at a fresh high of 18,161.75. Earlier in the day, the frontline indices had hit fresh record peaks of 60,836.63 and 18,197.80, respectively.

The Nifty Bank rose 114.25 points, or 0.30 per cent, to settle at 38,635.75. In the broader market, the BSE MidCap index jumped 1.56 per cent and the SmallCap index rose 0.59 per cent. BSE MidCap hit a fresh lifetime high of 26,589.90 in the intra-day trade. Meanwhile, the BSE SmallCap index hit a fresh lifetime high of 29,846.19.

India VIX, which measures the implied volatility of Nifty 50 options, rose 1.59 per cent to 16.10-level.

The market breadth was positive. On the BSE, 1,766 shares rose and 1,569 shares fell. In the Nifty 50 index at the NSE, 34 stocks advanced and 15 shares declined, while one remains unchanged. The top five gainers on Nifty were Tata Motors (up 21.11 per cent), Mahindra & Mahindra (up 5.81), Tata Consumer Products (up 4.36 per cent), ITC (up 3.98 per cent) and Power Grid (up 3.47 per cent). The top five losers were Maruti (down 2.58 per cent), ONGC (down 2.17 per cent), SBI Life (down 1.76 per cent), Coal India (down 1.55 per cent) and Hindustan Unilever (down 1.06 per cent).

Economy

In its latest World Economic Outlook report, released on Tuesday, the International Monetary Fund (IMF) said that the Indian economy is expected to grow by 9.5 per cent in 2021 and 8.5 per cent next year. The global growth projection for 2021 has been revised down marginally to 5.9 per cent and is unchanged for 2022 at 4.9 per cent.

India's industrial production rose 11.9 per cent in August, according to the data released by the National Statistical Office (NSO) on Tuesday. The manufacturing sector, which constitutes 77.63 per cent of the Index of Industrial Production (IIP), grew 9.7 per cent in August, mining sector output rose 23.6 per cent in August, while power generation increased 16 per cent. Retail inflation growth in India based on Consumer Price Index (CPI) eased to 4.35 per cent in September following a 5.30 per cent in August, data showed.

The Federal Open Market Committee on Wednesday is also set to release its minutes from the September meeting. Britain's economy returned to growth in August after contracting for the first time in six months in July, keeping intact financial market bets that the Bank of England will begin raising interest rates before the end of the year. GDP grew by 0.4 per cent in August, a shade under market expectations in a poll of economists.