Sensex jumps 291 points, Nifty above 11,400; key reasons behind rally

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Published: October 15, 2019 4:56:55 PM

The headline indices Sensex and Nifty surged on Tuesday, led by a rally in auto and FMCG stocks amid positive global cues.

Sensex, Nifty50, NSE, BSE Metal Index, FPI, BSE Telecom, corporate tax rateThe Sensex ended 292 points higher at 38,506, while the Nifty ended the session 88 points up at 11,428.30.

The headline indices Sensex and Nifty surged on Tuesday, led by a rally in auto and FMCG stocks amid positive global cues. The Sensex ended 292 points higher at 38,506, while the Nifty ended the session 88 points up at 11,428.30. Vedanta, M&M, ONGC, Hero MotoCorp and Maruti were among the biggest gainers in the Sensex pack, rising up to 3.79 per cent. On the other hand, Bharti Airtel, Infosys, Tata Motors, HCL Tech and Tech Mahindra fell up to 2.53 per cent. Elsewhere in Asia, bourses in Shanghai, Hong Kong ended in the red, while those in Seoul and Tokyo ended higher.

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Taking stock of the robust rally, Ajit Mishra Vice President, Research, Religare Broking Ltd said that the Indian markets witnessed healthy buying interest led by stable global markets. “The on-going earnings season is likely to set the tone for the Indian markets as some of the heavyweights would be declaring their results this week. We expect that more than the earnings announcement, the outlook given by the management would hold importance especially for consumption driven companies,” he said. According to the expert, apart from domestic cues, market participants would keep a close watch on US-China trade talks along with movement in currency and crude oil prices going forward.

Meanwhile, FMCG giant Hindustan Unilever closed higher after the company reported a 21.18% on-year rise in standalone net profit for the quarter ended on September 30. The stock rose by 2.41 per cent to close at Rs 2,063.35 on the BSE. Intra-day, shares jumped 3 per cent to Rs 2,077. “Hindustan Unilever’s (HUL) Q2 FY20 revenue growth came in line, while EBITDA and PAT spurt of 21 per cent and 21.5 per cent YoY, respectively, surpassed our estimates,” according to a report by Edelweiss Research. IT major Wipro on Tuesday posted 35% yearly rise to Rs 2,552 crore in the second quarter of the ongoing fiscal as against compared with 1,889 crore in the corresponding period of the previous fiscal. The software exporter recorded better-than-expected results amid global spending squeeze among its clients.

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