Indian market witnessed buying in the last one hour of the trade on August 8 after media reports suggested that the government was likely to exempt foreign portfolio investors (FPIs) from a higher tax surcharge that was introduced in the budget.
The short-covering rally pushed the S&P BSE Sensex higher by more than 600 points, while the Nifty50 closed above 11,000 levels to post its biggest one-day gain in three-months.
The final tally on D-Street: the S&P BSE Sensex up 636 points, or 1.74 percent, and the Nifty50 176 points higher at 11,032.
“Market got a breather towards the close and reclaimed the 11,000-level due to the expectation that the government is likely to be lenient on a higher surcharge on FPIs which influenced bears to cover their short positions,” Vinod Nair, Head of Research, Geojit Financial Services Ltd, told Moneycontrol.
Prospects of lower interest rate and “strength in rupee” would ease liquidity crunch, he said.
Sectorally, the S&P BSE Auto index rose 2.7 percent, the S&P BSE Energy index gained 3.1 percent and the S&P BSE IT index was up 1.9 percent.
Broader market underperformed as the S&P BSE Midcap index rose 0.42 percent, while the S&P BSE Smallcap index ended 0.74 percent higher.
Top Nifty gainers include HCL Technologies (up 6% post Q1 results), Tata Motors (up 5.6%), JSW Steel (up 4.4%), and M&M (up 4.1%). Reacting to results, Tata Steel, and Cipla fell 2-3 percent and were among the top Nifty losers.
Stocks in news
Aurobindo Pharma rallied 7 percent after June quarter earnings beat analyst expectations.
Shares of Cummins India declined more than 7 per cent after the company cut its full-year growth guidance amid the slowdown.
Shares of Siemens added 4 percent as the company posted better numbers for the June quarter.
Shares of HCL Technologies rose more than 6 percent as brokerages maintained a buy rating on the stock despite a decline in the company’s Q1 net profit.
Take Solutions rose more than 5 percent on the back of robust numbers for the June quarter.
European markets were trading positive on August 8.
Asian markets mostly ended higher after a surprise jump in China’s July exports despite a prolonged trade war with the United States.Subscribe to Moneycontrol Pro and gain access to curated markets data, exclusive trading recommendations, independent equity analysis, actionable investment ideas, nuanced takes on macro, corporate and policy actions, practical insights from market gurus and much more.