The upswing is led by metals, auto and financial stocks
The Bombay Stock Exchange sensitive index, Sensex, has risen by 120 points on Wednesday on the auspicious occasion of ‘Dhanteras', and ahead of Coal India's debut on Thursday. In sync with the firm global sentiment, the Sensex settled higher by 120.05 points at 20465.74 against 20345.69 on Tuesday. The 50-share Nifty Index of the National Stock Exchange gained 0.68 per cent and closed at 6160.50 against 6119 on Tuesday. The upswing was led by metals, auto and financial stocks.
Analysts said all eyes are now on decision from the U.S. Fed meet on its policy, especially on further economic stimulus to boost global economy and review from central banks in the U.K. European Union and Japan.
Metal stocks attracted strong buying and BSE Metal Index was the top performer among 13 sectoral indices. Sterlite rose 3.7 per cent to Rs. 176.10, Tata Steel by 1.8 per cent to Rs. 609.40 and Jindal Steel by 1.5 per cent to Rs. 708.45. Analysts said the sector saw buying after Indian steel makers announced price cuts of 2-3 per cent effective from November 1.
Major auto companies too were in demand, as most of the auto makers reported the highest ever monthly sales in October that was supported by the underlying momentum and a push from the festive season.
Tata Motors jumped 2.7 per cent to Rs. 1,185.30, Hero Honda by 0.7 per cent to Rs. 1,865.15 and M&M by 0.32 per cent to Rs. 759.55.
“This is seasonal trend and around this time of the year, manufacturers usually clear their channel inventories to meet the strong demand emanating from festivals such as Dushera, Id and Dhanteras,” Elara Securities analyst Amol Bhutada said. Financial stocks gained after the Reserve Bank of India's statement that the likelihood of further rate hike in immediate future is low.
SBI gained 2.19 per cent to Rs. 3,272.05, HDFC 1.91 per cent to Rs. 715.80, ICICI Bank 0.58 per cent to Rs. 1,237.60 and HDFC Bank 0.24 per cent to Rs. 2,357.80.
Rupee edges up
The rupee edged up by two paise to 44.35/36 against the dollar on Wednesday. It closed at 44.37.38 on Tuesday. At the interbank foreign exchange market, the rupee opened higher at 44.30/31 a dollar against its previous close of 44.37/38. It later moved in a range between 44.24 and 44.4250 before settling at 44.35/36. — PTI