The equity benchmark indices settled higher on Monday, taking their winning run to the fourth day in a row, buoyed by robust quarterly earnings from heavyweights like HDFC Bank, Reliance Industries and positive global cues.
Sensex jumped 411.18 points or 0.49 percent to settle at 84,363.37. During the day, it zoomed 704.37 points or 0.83 percent to 84,656.56. The Nifty surged 133.30 points or 0.52 percent to 25,843.15.
Reliance Industries, Bajaj Finserv, Jio Financial Services, Infosys and Tech Mahindra were among the major gainers, rising up to 3 percent.
Key factors behind market rise on Diwali day
1) Strong buying in heavyweight stocks: Reliance Industries rose over 3 percent after the company posted strong September quarter earnings.
Consolidated net profit of the company has seen a healthy growth of 14.3 percent on-year to Rs 22,092 crore during the quarter, with strong topline and operating numbers. Gross revenue rose to Rs 2.84 lakh crore for the second quarter of current fiscal, growing 10 percent over the corresponding period of last fiscal, with double-digit growth in Jio and retail businesses.
HDFC Bank gained 1.54 percent after posting a 10 percent rise in consolidated net profit at Rs 19,610.67 crore for the September quarter.
Reliance delivers robust performance in Q2 on strong O2C, Jio, retail businesses
2) Positive global trends support rally: Across Asia, key markets were trading higher amid easing US-China trade tensions, with South Korea’s Kospi, Japan’s Nikkei 225, Shanghai’s SSE Composite and Hong Kong’s Hang Seng index all in the green. US stocks had also closed on a positive note on Friday, providing further support to investor sentiment.
3) Foreign inflows: Foreign Institutional Investors (FIIs) were net buyers on Friday, purchasing equities worth Rs 308.98 crore. Domestic Institutional Investors (DIIs) also remained net buyers, investing Rs 1,526.61 crore.
4) Crude oil declines: Brent crude, the global oil benchmark, declined 0.36 percent to USD 61.07 per barrel. Lower crude prices typically ease inflationary pressures and improve India’s trade balance, supporting market confidence.
5) Rupee rises: The rupee appreciated 14 paise to a month’s high of 87.88 against the US dollar in early trade, aided by foreign fund inflows, softer crude prices and firm domestic equities.
Technical view
Anand James, Chief Market Strategist at Geojit Financial Services, said Friday’s firm close set the stage for further gains on Monday.
"Eyes are on 25,875–25,900 levels, with a fair possibility for an extension if Nifty manages to sustain above 26,018. Failing to hold those levels could trigger volatility, with immediate support seen around 25,630," he added.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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