Nifty reclaims 8650 mark; Banking stocks lead

The Indian stock market ended with smart gains on Tuesday as the Sensex and Nifty hit its highest level since October 13, 2016. The Nifty Bank index, which gained 2.2%, was the top performing sectoral gauge led by ICICI Bank. This was the indices biggest single day jump since May 25 of this year.

The buying was so fierce that not a single sectoral index on the BSE ended with losses; finance, banking, capital goods, metal, industrial, pharma, FMCG, realty and auto stocks ended among the top gainers. Even the mid-cap and the small-cap stocks participated in today’s rally.

Finally, the BSE Sensex ended with a gain of 521 points at 28,051. The BSE Sensex opened at 27,657 touched an intra-day high of 28,054 and low of 27,653.

The NSE Nifty closed with a gain of 158 points at 8,678. The NSE Nifty opened at 8,556 hitting a high of 8,685 and low of 8,556.

The Sensex surged over 500 points while the Nifty50 reclaimed the crucial level at 8,650. Meanwhile, strong gains in global markets also supported the rally in the domestic equity market.

Investors now await a government meeting on the GST for clarity on rates. The three-day meeting of the GST Council, comprising federal and state finance ministers, will decide the main tax rate and those for different sectors.

Among the 50-stocks of Nifty, Adani Ports, ICICI Bank, HDFC, Tech Mahindra, Tata Steel, HCL Tech, Yes Bank and BHEL were among the gainers on NSE, whereas Bharti Infratel, Asian Paints, ONGC and BPCL were among the losers today.

The India VIX (Volatility) index was down 7.13% at 14.5375. Out of 1,492 stocks traded on the NSE, 356 declined and 1,093 advanced today.

The rupee was trading up 18 paise at 66.70 per US dollar.

On the global front, Asian stock markets rose on Tuesday ahead of China’s release of quarterly growth data and a policy meeting of the European Central Bank later in the week. Japanese shares recovered from a weak start to end modestly higher ahead of the earnings season starting later this week. Hang Seng and Shanghai Composite closed 1% each, while Nikkei 225 closed marginally higher.

European shares were trading in green, up by over 1%.

Sensex jumps over 250 points; Metal, Banking stocks lead

The Indian equity market started the Tuesday’s trading session in the positive zone. At 11:34  AM, the S&P BSE Sensex is trading at 27,773 up 243 points, while NSE Nifty is trading at 8,590 up 69 points.

The BSE Mid-cap Index is trading up 0.98% at 13,422 whereas BSE Small-cap Index is trading up 0.95% at 13,233.

Tata Steel, HDFC, ICICI Bank, RIL, ITC, GAIL and Adani Ports are among the gainers, whereas Asian Paints, Bharti Airtel, ONGC and TCS are losing sheen on BSE.

Some buying activity is seen in realty, banking, finance, metal, IT, oil & gas, industrial and consumer durables sectors, while telecom is showing weakness on BSE.

The INDIA VIX is down 3.40% at 15.1225. Out of 1,879 stocks traded on the NSE, 385 declined, 1,194 advanced and 300 remained unchanged today.

A total of 71 stocks registered a fresh 52-week high in trades today, while nine stocks touched a new 52-week low on the NSE.

The rupee opened higher by nine paise at 66.79/$ as against the previous close of 66.88/$.

Asian markets opened in the green after days of consolidation as markets seem set to bounce back from oversold territory.

The event line up of US elections in early November & the Fed rate outlook seems to be getting mostly priced in as markets discount the uncertainty.

The major concern of bond yields rising in the US may still be the only imponderable market will have to grapple with going forward. Select outperformance in emerging markets continues to be the theme of 2016 with Ibovespa the Brazilian stock index hitting fresh new 52 week highs.

Nifty broke 8550 with adventurous shorts forcing new recent lows & hitting sentiment in an oversold market. However given the recent improvement in macro's this sell off could be the chance most investors who missed the summer rally to buy stocks. Big corporate deleveraging, low inflation, revival in capital expansion & bond yields at the lowest in 7 years coupled with stable rupee all add up to Indian economy in top shape.

With global uncertainty now seemingly getting mostly priced in we expect November to see Nifty heading back to recent highs after the earnings & US elections play out.

On the political front, the GST council is slated to begin today.  RBI minutes of monetary policy meet will be released today.

Wall Street closed modestly lower on Monday. The Dow Jones industrial average fell 51.98 points, or 0.29% to 18,086.4, the S&P 500 lost 6.48 points, or 0.3% to 2,126.5 and the Nasdaq Composite dropped 14.34 points, or 0.27% to 5,199.82.

In forex markets, major currencies were confined in broad trading ranges on the back of soggy US data and the absence of fresh triggers. Gold price rose, partly lifted by steady flows into exchange-traded funds and a dip in the dollar after touching seven-month highs. Federal Reserve Vice Chairman Stanley Fischer said weak productivity, aging population and slow foreign economic growth are holding back interest rates. US industrial output meanwhile rose marginally in September. Oil prices remain at higher levels. 

Nifty trades above 8,550

At 9:28 AM, the S&P BSE Sensex is trading at 27,714 up 183 points, while NSE Nifty is trading at 8,573 up 52 points.

The BSE Mid-cap Index is trading up 0.79% at 13,397 whereas BSE Small-cap Index is trading up 0.86% at 13,332.

ICICI Bank, Adani Ports, Tata Steel, Axis Bank, GAIL and Tata Motors are among the gainers, whereas Bharti Airtel, Hero MotoCorp,and Asian Paints are losing sheen on BSE.

Some buying activity is seen in realty, banking, finance, metal, IT, oil & gas, industrial and consumer durables sectors, while telecom is showing weakness on BSE.

The INDIA VIX is down 5.31% at 14.8225. Out of 1,857 stocks traded on the NSE, 278 declined, 1,182 advanced and 379 remained unchanged today.

A total of 48 stocks registered a fresh 52-week high in trades today, while SIX stocks touched a new 52-week low on the NSE.

The rupee opened higher by nine paise at 66.79/$ as against the previous close of 66.88/$.

Asian markets opened in the green after days of consolidation as markets seem set to bounce back from oversold territory.

The event line up of US elections in early November & the Fed rate outlook seems to be getting mostly priced in as markets discount the uncertainty.

The major concern of bond yields rising in the US may still be the only imponderable market will have to grapple with going forward. Select outperformance in emerging markets continues to be the theme of 2016 with Ibovespa the Brazilian stock index hitting fresh new 52 week highs.

Nifty broke 8550 with adventurous shorts forcing new recent lows & hitting sentiment in an oversold market. However given the recent improvement in macro's this sell off could be the chance most investors who missed the summer rally to buy stocks. Big corporate deleveraging, low inflation, revival in capital expansion & bond yields at the lowest in 7 years coupled with stable rupee all add up to Indian economy in top shape.

With global uncertainty now seemingly getting mostly priced in we expect November to see Nifty heading back to recent highs after the earnings & US elections play out.

On the political front, the GST council is slated to begin today.  RBI minutes of monetary policy meet will be released today.

Wall Street closed modestly lower on Monday. The Dow Jones industrial average fell 51.98 points, or 0.29% to 18,086.4, the S&P 500 lost 6.48 points, or 0.3% to 2,126.5 and the Nasdaq Composite dropped 14.34 points, or 0.27% to 5,199.82.

In forex markets, major currencies were confined in broad trading ranges on the back of soggy US data and the absence of fresh triggers. Gold price rose, partly lifted by steady flows into exchange-traded funds and a dip in the dollar after touching seven-month highs. Federal Reserve Vice Chairman Stanley Fischer said weak productivity, aging population and slow foreign economic growth are holding back interest rates. US industrial output meanwhile rose marginally in September. Oil prices remain at higher levels.