Dalal Street moved traded with renewed enthusiasm on Tuesday with the focus clearly on key macroeconomic data. Extended rally in Asian stock too rubbed off on Indian equity markets.
The 30-share BSE Sensex moved past the 32000 mark yet again to close at 32158.66, after surging 276.50 points, or 0.87%. The benchmark index had last moved through 32000 on 7 August, and has gained 220.19 points in the previous three sessions.
The broader Nifty, on the other hand, scaled a high of 10097.55 before closing up 87 points, or 0.87% at 10093.05, the highest closing since August 1 when it settled at 10114.65.
Tata Steel topped the gainers' chart rallying 3.30% to hit an over six-year high of Rs 683.15 after the company concluded a new agreement under which its UK business stands separated from the British Steel Pension Scheme (BSPS). Sun Pharma, Tata Motors, Hindustan Unilever and Mahindra and Mahindra, Axis Bank, Lupin, Cipla, HDFC Bank, ICICI Bank, TCS, Infosys, were among other gainers on Sensex.
The total market valuation of all listed companies on the BSE today touched a lifetime high of Rs 135.83 lakh crore buoyed by strong gains in the broader market. Broader markets turned green, with mid- and small-cap indices rising up to 1.08%. At close of trade today, market capitalisation (m-cap) of BSE-listed companies stood at Rs 1,35,83,958 crore.
On the sectoral front, realty was in a sweet spot, up 2.11%, followed by healthcare index, oil and gas and FMCG.
Both the key domestic indices extended the gains for the fourth consecutive day on the back of hopes of upbeat July IIP data and retail inflation for August. The India’s Industrial Production (IIP) recovered to grow only mildly in July rising to 1.2% as manufacturing output displayed muted growth with the introduction of goods and services tax. Consumer price index (CPI)-based inflation continued to rose 3.36% from 2.36%, climbing for the second month in a row.
Rally in global markets owing to US stocks jumping to a fresh record high Monday on fading geopolitical worries of North Korea and Hurricane Irma’s impact, downgraded risk aversion.
Speculators covered up short positions at some counters on fears of buying activity picking up momentum going ahead, experts said.
The India VIX Index -- a gauge of expected stock-price swings -- dropped 4.9%, extending a four-day retreat to more than 10%.
DIIs took shares worth a net Rs 877.37 crore while foreign portfolio investors (FPIs) sold equities of Rs 392.52 crore Monday, showed provisional data.
Most Asian markets remained firm. European indices advanced in early trade on positive leads from Asia and a record close on Wall Street.
“Barring the uncertain geopolitical events, we should see a steady market now that the global equities have stabilised,” said Vaibhav Sanghavi, co-chief executive officer at Mumbai-based Avendus Capital Alternate Strategies Pvt. “Quarterly numbers post-GST will be watched closely for determining future course of earnings,” he said, referring to the introduction of the goods and services tax in July.
Companies start reporting results for the July-to-September period from second week of October. Earnings growth will rebound “into double digits,” CLSA India Pvt. Said.
“The macro environment seems favorable as the disruptive forces” of demonetization and GST fade, analysts led by Mahesh Nandurkar wrote.
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