Sensex gains 550 points, Nifty closes at 10,386; banking, IT stocks lead gains
The Sensex and Nifty closed higher in today's trade powered by gains in IT and banking stocks. While the Sensex closed 550 points or 1.63% to 34,442, Nifty gained 188 points or 1.85% to end at 10,386. HDFC (5.51%), IndusInd Bank (4.47%) and Infosys (4.02%) were the top Sensex gainers.
Coal India which started its two-day offer for sale for 3% stake today was the top Sensex loser. The stock closed 3.53% lower at 266.15 on the BSE.
Other Sensex losers were Tata Steel (2.25%), Maruti (1.33%) and Adani Ports (0.85%).
Market breadth was positive with 1,612 stocks closing higher compared to 941 ending lower on the BSE. Banking and IT stocks led the gains on indices.
While BSE bankex gained 480 points or 1.72% to 28,359, the IT index rose 3.53% or 494 points to 14,531 level. BSE consumer durables index also surged 2.32% or 434 points to Rs 19,142 level. Metal stocks were the sole losers with BSE metal index slipping 178 points or 1.40% to 12,524 level.
The Reserve Bank of India announcing additional liquidity measures led to improved sentiment in the market. The apex bank on Tuesday announced it would inject Rs 12,000 crore into the system through purchase of government securities on November 1.
Last week, the central bank announced to inject Rs 40,000 crore into the system in November through purchase of government securities.
BSE mid cap and small cap indices rose 1.56% and 1.38% respectively.
On Tuesday, the Sensex and Nifty closed lower on profit booking amid fresh worries over trade war between US and China. While the Sensex slipped 176 points lower to 33,891, Nifty lost 52.45 points to 10,198.
Meanwhile, on a net basis, foreign portfolio investors (FPIs) sold shares worth Rs 1,592.02 crore on Tuesday, while domestic institutional investors (DIIs) bought shares worth Rs 1363.04 crore, as per provisional data.
Global markets were broadly higher on Wednesday after big American companies reported strong earnings for the third quarter, soothing fears that rising interest rates may deter corporate investment. In Europe, Britain's FTSE 100 rebounded 1.7 percent to 7,151.86. Germany's DAX rose 1.6 percent to 11,471.98 and France's CAC 40 rallied 2.1 percent to 5,080.74. Wall Street was set for early gains. Dow futures added 0.6 percent to 24,997.00. The broader S&P 500 futures was 0.7 percent higher at 2,703.90.
Japan's Nikkei 225 index jumped 2.2 percent to 21,920.46 and the Shanghai Composite index added 1.4 percent to 2,602.78. Hong Kong's Hang Seng rose 1.6 percent to 24,979.69. The Kospi in South Korea gained 0.7 percent to 2,029.69. Australia's S&P-ASX 200 reversed early losses, finishing the day 0.4 percent higher at 5,830.30. Shares were higher in Taiwan and throughout Southeast Asia.