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Last Updated : Oct 05, 2015 05:03 PM IST | Source: Moneycontrol.com

World stocks lift Sensex 565pts, Nifty above 8100; banks up

Experts feel the market may cross 27000 level on the Sensex soon but getting above 28000-mark may depend on September quarter earnings that will kick off next week with Infosys.


Moneycontrol Bureau


It was a spectacular start to the week as the Sensex surged more than 600 points intraday Monday and the Nifty surpassed 8100-mark, tracking strong global cues. Bank Nifty outperformed benchmarks, rising 3 percent on hopes of more rate cuts going ahead as disappointed US jobs data may delay interest rate hike by Federal Reserve.


The 30-share BSE Sensex surged 564.60 points or 2.15 percent to 26785.55 and the 50-share NSE Nifty jumped 168.40 points or 2.12 percent to 8119.30. The broader markets underperformed benchmarks as the BSE Midcap gained 1.8 percent and Smallcap rose 1.6 percent.

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Experts feel the market may cross 27000 level on the Sensex soon but getting above 28000-mark may depend on September quarter earnings that will kick off next week with Infosys.


India is looking like an island of prosperity among emerging markets, says Nandita Parker, general partner at Karma Capital Management LLC.


With the US Federal Reserve liftoff getting delayed, the market, especially emerging markets, are getting enough time to adjust to the first rate hike, whenever that might happen, she says, adding investors in the US are positive on the country.


Global markets were strong today. Asian markets like Hang Seng, Nikkei and Straits Times rallied 1.6-2 percent while China was shut for the national day holiday until Wednesday. Key European indices like FTSE, CAC and DAX gained 2-3 percent (at 16 hours IST) after a weak US employment report on Friday dampened expectations that the Fed will start raising interest rates soon.


Back home, the Indian rupee appreciated further, up 21 paise to 65.29 a dollar on strong equity markets rally.


Meanwhile, finance ministry heads are confident of exceeding 7.5 percent (GDP) growth, saying rate cuts and higher government capital expenditure will have multiplier effect. They see government's tax revenue collections close to budgeted levels and hence, there is no need for big plan expenditure cuts to meet fiscal deficit target.


India and Germany have signed 13 government-to-government MoUs on renewable energy, solar energy development and security co-operation as part of German Chancellor Angela Merkel's visit to India. PM Modi expects Germany to increase investments in India and sees stronger co-operation in defence and clean energy.


Among sectoral indices, the CNX Metal, Auto, Realty and IT gained 1-3 percent.


In the banking & financial space, ICICI Bank surged 5 percent while Axis Bank, HDFC Bank and State Bank of India gained 2-3 percent.


HDFC rallied 4.7 percent after the company successfully raised around Rs 10,000 crore via a mix of warrants and non-convertible debentures to qualified institutional investors. The housing finance company allotted 3.65 crore warrants at an exercise price of Rs 1,475 per share.


Tata Motors topped the buying list on Sensex, up more than 6 percent after reporting strong JLR sales in the United States and medium & heavy commercial vehicle sales in September. JLR US sales increased 61 percent year-on-year. Macquarie says Tata Motors is the top pick in Indian Auto sector and is also a Macquarie Marquee recommended stock.


Bajaj Auto rose 3 percent after better-than-expected sales data in September. The company said domestic market share will exceed 20 percent in festive season. However, Maruti Suzuki lost 3.6 percent after Jefferies downgraded the stock to underperform from buy and slashed target price by 20 percent.


Larsen and Toubro shares gained 4 percent after Citi has upgraded the stock to buy from neutral, citing negative newsflow more than priced in. Bharti Airtel was up 2 percent as Goldman Sachs has reiterated buy rating on the stock and added it to conviction list as it feels sell-off looks overdone and earnings are set to rise. The brokerage sees 40 percent upside.


Tata Steel (up 5.8 percent), Hindalco Industries (up 4.7 percent), Reliance Industries (up 2.8 percent), ONGC (up 3.4 percent), Hero Motocorp (up 4 percent), NTPC (up 3 percent) and BHEL (up 2 percent) were other prominent gainers. However, Dr Reddy's Labs and Lupin declined 1 percent each.


In the broader space, REC and PFC surged 7-11 percent on reports that the Cabinet is likely to clear financial restructuring plan for state power distribution companies soon.


Godrej Consumer Products rallied 6.6 percent after Bank of America Merrill Lynch (BoAML) has maintained its buy rating on the stock and target price of Rs 1,500. It expects GCPL to maintain margin-led growth momentum in Q2FY16 on stable growth in domestic business (mainly led by household insecticides and hair colour), and strong constant currency (CC) growth in Latin America/Africa, but weakness in Indonesia.

The market breadth was positive as about 2005 shares advanced against 786 shares declined on the Bombay Stock Exchange.



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First Published on Oct 5, 2015 04:26 pm
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