Smart rally in the oil and gas stocks and metal shares tracking a rebound in the overnight global commodity prices lifted sentiments.
Markets closed higher for the fifth straight session on sustained buying, amid firm global cues, after hopes of an interest rate hike by the US Federal Reserve waned on the back of sluggish US jobs data.
A stupendous rally in the shares of Tata Motors contributed the most to the gains as revival in the JLR units is expected on China's auto stimulus hopes.
The 30-share Sensex soared 147 points to close at 26,933 and the 50-share Nifty jumped 34 points to end at 8,153.
The broader markets ended in line with the peers with BSE MidCap and SmallCap indices up between 0.3-0.7%.
Market breadth ended firm with 1,589 gainers and 1,151 losers on the BSE.
A smart rally in the oil and gas stocks and metal shares tracking a rebound in the overnight global commodity prices lifted the benchmarks higher.
However, the upside was capped as investors become wary ahead of the September quarter earnings due to begin in the next week.
The Nikkei/Markit Services Purchasing Managers' Index eased to 51.3 in September from August's 51.8 but marked its third straight month above the 50-level that separates growth from contraction.
MARKET VIEW
“Technicals suggest that 8200 now is a short term resistance where we believe that the index could consolidate. However, interestingly the midcaps picked up good pace today, which is a positive sign.
Banknifty has underperformed so far in this month, however, we believe if we cross 18000 on Banknifty then it could trigger short covering in the index,” Said Kunal Bothra, Head-Advisory, LKP Securities.
“We believe that if the Nifty consolidates for a couple of days then it could boost many midcaps from their swing ranges and give decent sized trading breakouts. Support for Nifty from a short term is now placed at 7980 levels,” headed.
RUPEE
The rupee is seen to snap the five say winning streak after touching a 6-week high and is trading at 65.36 against the US dollar owing to capital outflows and strengthening of dollar against other currencies overseas.
KEY STOCKS
On the sectoral front, 7 out of 12 sectoral indices have closed in the green with BSE Consumer Durables gaining over 4%. With the ensuing festive season consumer goods such as air-conditioners, washing machines, televisions, jewellery and other home appliances are likely to remain in demand. In the consumer durables pack, PC Jeweller, Rajesh Exports, Titan, Blue Star and Symphony gained between 1-9%.
Also, the government hopes to roll out a new goods and services tax (GST) in 2016 which further boosted the sentiments.
Shares of ITC ended higher by 4% after the company decided to foray into the dairy segment with the launch of its new product Aashirvaad ghee this Diwali.
A smart rally in the oil and gas stocks and metal shares tracking a rebound in the overnight global commodity prices has lifted the benchmarks higher.
In the oil and gas space, ONGC, RIL and GAIL gained between 1-3%. In the metal pack, Vedanta, Hindalco and Tata Steel surged between 0.8-1.3%.
Sun Pharma closed 1.3% higher after Ranbaxy Pharmaceuticals, its US subsidiary,and its partners Cipher Pharmaceuticals Inc. (Cipher) and Galephar Pharmaceutical Research, Inc. (Galephar) settled a patent litigation with Actavis over the generic version of Absorica, a drug used to treat acne Absorica (isotretinoin capsules).
Coal India jumped 4% after Credit Suisse upgraded the stock to "outperform" from "neutral" citing power distributors' restructuring and attractive valuations. Mortgage Lender, HDFC slashed home loan rates by 25 basis points to 9.65%.
The lender will offer an additional discount of five bps to women. The stock ended with marginal gains.
Larsen & Toubro and HCC are among the lowest bidders for seven Mumbai Metro rail blocks. Mumbai Metro Rail Corporation (MMRC) has received 31 bids from nine consortiums to develop seven sections of the Colaba-Bandra-Seepz corridor.
L&T ended 0.2% higher. On the flip side, Maruti Suzuki lost 1.3% after Jefferies downgraded the auto major to underperform from buy.
Infosys fell 2.25% on caution ahead of its July-September results on Oct. 12. Banking stocks ended in red on profit-taking after rising sharply in the previous session.
HDFC Bank and Axis Bank shed 1% each. Bajaj Auto reported a 3.76% decline in total sales in September at 3,84,400 units as against 3,99,450 units in the same month last year.
The stock lost 0.3%.
GLOBAL MARKETS
Asian markets closed mixed with China markets closed for trading today.
Shares in Japan and Singapore were up 1% each with both the Nikkei and Straits Times up 1-1.1% each while Hang Seng was trading marginally down by 0.2%.
European shares were trading flat with negative bias in early trades as investors booked profits after sharp gains in the previous session. CAC-40, DAX and FTSE-100 were down 0.1-0.3% each.
