After a series of setbacks in the last 10 days, the Sensex on Thursday jumped 348 points, its biggest one-day rise in three months, amid expectations of a better-than-expected corporate earnings season.
After opening higher, the benchmark Sensex, led by a rally in Reliance Industries (RIL) shares, settled up 348.23 points, or 1.09 per cent, at 32,182.22. This is its best single-day performance since July 10 when it soared 355.01 points. On Wednesday, the index had dropped 90 points for the first time in four sessions as investors took profit. The 50-share NSE Nifty rose above the key 10,000-mark to 10,096.40 at the close, up 111.60 points — or 1.12 per cent — its biggest one-day gain since May 25 when it rallied 149.20 points.
The rupee appreciated by another 6 paise to end at a fresh one-week high of 65.08 on continued selling of the greenback.
Oil and gas, healthcare, FMCG and auto counters drove the rally. Investors became richer by Rs 1.46 lakh crore as market capitalisation of BSE listed firms rose to Rs 137.56 lakh crore. “Indusind Bank results were better than expectations. We will know about RIL on Friday. Overall we expect the earnings season to be better this year,” said a dealer.
According to Jayant Manglik, President, Religare Securities, the sentiment was boosted on reprots of a jump in the direct tax collection figure in the first six months of the current fiscal. Besides, participants were encouraged by reports that the newly constituted Economic Advisory Council (EAC) has advised the government to stick to the fiscal prudence path and identified the core areas to work upon in order to boost economy and job creation.”
The minutes from the US Federal Reserve’s September policy meeting pointed to a rate increase one additional time this year despite subdued inflation, signalling “patience in removing policy accommodation”. Index for Industrial Production (IIP) and inflation data slated for the day heightened investors’ interest as they went on a buying binge at a time of a rising trend overseas.
Reliance Industries led the rally, surging 3.82 per cent to end at Rs 872.50 ahead of the second quarter earnings slated for Friday. TCS gained 1.92 per cent to Rs 2,548.55 as investors built up bets ahead of its earnings numbers. Sun Pharma gained 2.59 per cent to Rs 539.40 after the company said it has received establishment inspection report (EIR) from the US health regulator for its Dadra facility. IndusInd Bank ended 1.47 per cent higher at Rs 1,742.60 after the company today posted 215 per cent increase in net profit for the September quarter.
The BSE energy index was the biggest mover, rising 1.95 per cent followed by telecom, realty and FMCG. The BSE small-cap added 1.15 per cent while mid-cap ended 0.98 per cent higher. Aiding the bullish fervouor, a firm trend was seen in Asia while Europe also opened higher, boosted by another record show on Wall Street.