After witnessing a gap-up opening, headline indices - Sensex and Nifty - leaped higher, logging strong gains on October 8.
The 30-share pack Sensex vaulted 590 points and Nifty crossed 11,905 in intraday trade.
Sensex closed 304 points, or 0.76 percent, up at 40,182.67 and Nifty settled at 11,834.60, up 96 points, or 0.82 percent. BSE Midcap closed 0.29 percent up and Smallcap index fell 0.26 percent.
Here are the top 5 factors that are boosting market sentiment:
TCS Q2 beats the Street
The market witnessed strong gains a day after Tata Consultancy Services (TCS) posted better-than-expected September quarter earnings which influenced the sentiment.
The company's profit after tax came at Rs 7,475 crore for the quarter ended September 2020 against Rs 7,008 crore in the previous quarter. A CNBC-TV18 poll had estimated the number to the tune of Rs 6,744 crore.
Consolidated revenue from operations for the quarter stood at Rs 40,135 crore, higher than the Rs 38,322 crore reported in the June quarter of FY21 and a CNBC-TV18 poll of Rs 39,330 crore.
Moreover, the share buyback announcements by TCS and Wipro triggered strong buying in IT stocks as their sectoral indices on BSE jumped over 4 percent.
Many brokerages came out with positive reviews on TCS' Q2 scorecard.
Strong Asian cues
The Indian market followed trends of its Asian peers that rallied higher as renewed hopes for more US stimulus helped restore investor confidence.
A gauge of Asian shares climbed to a one-month high on Thursday, as renewed hopes for more US stimulus helped restore investor confidence with markets now pricing in a Democratic victory during elections in November, reported Reuters.
Foreign money inflow
Foreign institutional investors (FIIs) net bought shares worth Rs 1,093.81 crore in the Indian equity market on October 7, as per provisional data available on the NSE.
On October 6, FIIs net bought shares worth Rs 1,101.76 crore, while on October 5 FIIs net bought shares worth Rs 236.71 crore. The trend of FII buying also influenced market sentiment.
India Inc on fundraising spree
Companies garnered more than Rs 1 lakh crore from the capital markets in August, a surge of 64 percent from the preceding month, with a private placement of debt instruments emerging as the most preferred route for financing business needs.
The funds have been mopped-up mainly for business expansion plans, loan repayments and working capital requirements.
According to data available with the markets regulator Sebi, companies raised a total of Rs 1.1 lakh crore in August as compared to Rs 66,915 crore in July 2020 by way of issuing equity and debt securities.
Experts point out that it shows the revival of business sentiment after the COVID-19 hit the economy and businesses.
The Nifty witnessed a significant recovery from sub-11,000 levels and is trading at around 11,750. Momentum and options data suggest a positive setup and continuation of the up-move.
Chandan Taparia, Vice President and Analyst-Derivatives at Motilal Oswal Financial Services said that the Nifty50 has been making higher lows for the last eight trading sessions and supports are gradually shifting higher.
On October 7, it formed a bullish candle and gave the highest daily close since February 26, 2020.
"Now, the Nifty has to continue to hold above 11,600 for a further up-move towards 11,900 and 12,000 while on the downside, major support exists at 11,550 then 11,450 zones," he said.
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