Market rises for 3rd consecutive day; bank, auto, FMCG top contributors

Indian equity benchmarks Sensex and Nifty settled in the green for the third consecutive session on October 15, underpinned by gains in shares of banks, FMCG and auto heavyweights.

In the three successive sessions of gains, Sensex and Nifty have gained about 2 percent, while the overall market capitalisation of BSE listed firms has jumped to Rs 1,45,86,056.28 crore from Rs 1,43,21,595.59 crore on October 10, making investors richer by Rs 2.64 lakh crore.

Positive global cues set the mood for the domestic market after reports emerged that China confirmed signing ‘Phase One’ of the trade deal with the US.

Besides, investors cheered the prospects of a smooth Brexit after the European Union’s chief Brexit negotiator signalled that a deal with Britain over the terms of their separation was still possible this week.

Analysts are of the view that going forward, the ongoing earnings will remain a major trigger for the market, while global cues too will have their say.

“The on-going earnings season is likely to set the tone for the Indian markets as some of the heavyweights would be declaring their results this week. We expect that more than the earnings announcement, the outlook given by the management would hold importance, especially for consumption-driven companies. On the global front, market participants would keep a close watch on the US-China trade talks along with the movement in currency and crude oil prices,” said Ajit Mishra, Vice President – Research, Religare Broking.

Sensex closed 292 points, or 0.76 percent, up at 38,506.09 with 24 stocks in the green and 6 in the red.

Vedanta, Mahindra & Mahindra and ONGC closed as the top gainers in the Sensex index, whereas Bharti Airtel, Infosys and Tata Motors emerged as the top losers in the index.

The Nifty pack finished 87 points, or 0.77 percent, higher at 11,428.30, with 41 stocks up and 9 down.

Technical analysts said the next levels to watch out for Nifty are between 11,500 and 11,600.

“Below 11,400, Nifty would find support at 11,340 and a close below the same would further weaken the sentiment. However, while looking at the market breadth and stocks specific performance, Nifty is more likely to hit the level of 11,550 in the near term,” said Shrikant Chouhan, Senior Vice-President – Equity Technical Research at Kotak Securities.

In line with the benchmark Sensex, the BSE Midcap index rose 0.72 percent, however, the Smallcap index fell 0.11 percent, underperforming the benchmark.

Among the Sectoral packs, BSE Telecom fell 2.15 percent, followed by Teck and IT, which fell 0.80 percent and 0.66 percent, respectively.

Rest all sectoral indices settled in the green, with BSE Auto (up 2.36 percent) and Metal (up 1.56 percent) as the top gainers.

Top news of the day:

Hyderabad-based GVK Group is under the scanner of the Ministry of Corporate Affairs (MCA) after a whistle-blower alleged siphoning of funds, contracts given to related parties, issue of fake bills to inflate the cost, and undue custom and excise duty benefits derived by raising bogus bills.

A NASA scientist, David Burns, has devised a special spacecraft that does not require propellants to reach for the stars. He also claims that the machine may be able to move almost at the speed of light.

Government is looking into whether hefty discounts offered on Walmart-owned Flipkart and Amazon.com during their online festive sales violate foreign investment rules, a commerce ministry official told Reuters.

Stocks in news:

Shares of Hindustan Unilever (HUL) climbed 2.41 percent to Rs 2,063.35 on BSE, a day after the company reported a 21 percent year-on-year (YoY) jump in net profit at Rs 1,848 crore for the July-September quarter on the back of better volume growth.

Shares of Yes Bank inched up 1.50 percent to Rs 40.60 after the lender sold stake in Fortis Healthcare.

Shares of Indiabulls Housing Finance fell 4.47 percent to Rs 189.05 despite the company said it is mulling buyback of shares.

Shares of Container Corporation of India (CONCOR) added 2.78 percent to settle at Rs 595.60 after HSBC upgraded the stock to buy from reduce and raised the target price to Rs 675 from Rs 337 per share.

Shares of Adani Transmission jumped 5.82 percent to finish at Rs 238.05 after the acquisition of transmission service provider in Gujarat.

JSW Energy shares rallied 5.35 percent to Rs 63.05, a day after the committee of creditors approved the company’s resolution plan for Ind-Barath Utkal.

Global update:

European stocks climbed to two-week highs on Tuesday, as investors cheered comments from the European Union’s chief Brexit negotiator that a deal with Britain over the terms of their divorce was still possible this week, reported Reuters.

Among Asian peers, China’s Shanghai Composite Index fell 0.56 percent while Korea’s ended flat. Nikkei settled with a strong gain of 1.87 percent.The Great Diwali Discount!
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