Sensex rallies 377 pts, all eyes shift to RBI meet tomorrow

Sensex rallies 377 pts, all eyes shift to RBI meet tomorrow
x
Highlights

Market turned more decisive as the Sensex today jumped over 377 points -- its biggest single-day gain in about a month -- and the NSE Nifty scaled the 8,700 mark in anticipation of a rate reduction at the RBI policy meet tomorrow.

​Mumbai: Market turned more decisive as the Sensex today jumped over 377 points -- its biggest single-day gain in about a month -- and the NSE Nifty scaled the 8,700 mark in anticipation of a rate reduction at the RBI policy meet tomorrow.

Improving sales numbers from automakers, a sign of revival in discretionary spending, the rupee holding higher against the dollar and no further flare-up on the geopolitical front added fuel to the rally.

A rebound globally on easing worries about future of German giant Deutsche Bank and a firming oil price provided a perfect setting.

Sentiment was buoyed after a monthly survey showed that the manufacturing PMI print for September, at 52.1, came in above the 50 mark for the ninth month, signalling expansion.

The 30-share BSE barometer after opening higher hit a high of 28,273.02 before settling at 28,243.29, a significant jump of 377.33 points, or 1.35 per cent, its biggest single-session rally since September 6 when it had climbed 445.91.

The gauge had gained 38.43 points in the previous volatile session on Friday.

The broader NSE Nifty retook the 8,700 level to end at 8,738.10 by surging 126.95 points, or 1.47 per cent, after moving between 8,745.20 and 8,635.

"The market rebounded as investors expect a positive futuristic view from the new RBI monetary policy committee tomorrow even though consensus points to a hold in key rates," said Vinod Nair, Head of Research, Geojit BNP Paribas Financial Services.

Auto stocks, led by Maruti Suzuki, were in the driver's seat. The country's largest car maker came out on tops, surging by over 3.70 per cent, after it posted over 31 per cent growth in passenger vehicle sales in September.

Hero MotoCorp (up 3.18 per cent), M&M (2.64 per cent), Bajaj Auto (1.52 per cent) and Tata Motors (1.11 per cent) were in a sweet spot too.

As many as 28 components of the 30-share Sensex pack ran up while TCS and Infosys finished lower.

Other big movers of the day are Adani Ports (3 per cent), Power Grid (2.72 per cent), L&T (2.67 per cent) and Asian Paints (2.54 per cent).

On the sectoral front, realty rose the most by 3.01 per cent followed by consumer durables 2.65 per cent, infra 2.61 per cent, metal 2.45 per cent and banking 1.59 per cent.

Broader markets continued to show a firm trend as retail investors propped up their bets, with the BSE small-cap index rising 2.67 per cent and mid-cap 2.40 per cent.

Foreign portfolio investors (FPIs) sold shares worth a net Rs 1,028.31 crore last Friday, showed provisional data.

Asian shares closed higher on receding fears about Deutsche Bank after a source said the German banking giant was nearing a settlement with the US Justice Department amid strong leads from Wall Street's rally on Friday.

Hong Kong's Hang Seng went up 1.23 per cent while Japan's Nikkei rose 0.90 per cent. Chinese markets were closed today for a public holiday. European stocks also witnessed a rise.

Show Full Article
Print Article
Next Story
More Stories
ADVERTISEMENT
ADVERTISEMENTS