Sensex, Nifty gain 6th day in a row; investor wealth soars Rs 6.36 lakh cr

Positive global sentiment and hopes of better quarterly numbers kept the Indian market benchmarks in the green for the sixth session in a row, leading to a three-month closing high.

After opening lower, the equity barometer Sensex jumped higher as investors cheered the new Brexit deal between the UK and European Union, while hopes of positive quarterly numbers kept the mood of the market upbeat.

Shares of Reliance Industries, HDFC Bank, Larsen & Toubro, Tata Consultancy Services and Maruti Suzuki emerged as the top contributor to the rally in the market.

The 30-share Sensex closed 246 points, or 0.63 percent higher at 39,298.38, with 24 stocks in the green, while Nifty finished 76 points, or 0.65 percent up at 11,661.85, with 35 stocks up and 15 down.

“Market is extending the gains in anticipation of better quarter results from next week after the subdued start this week. Globally, improvement in sentiments on Brexit deal and trade talks are helping the market led by positive inflows from FIIs,” said Vinod Nair, Head of Research at Geojit Financial Services.

In these six sessions of gains, both key indices have jumped about 4 percent and the market capitalisation of BSE-listed firms jumped to Rs 1,49,57,618.99 crore from Rs 1,43,21,595.59 crore on October 10, making investors richer by Rs 6.36 lakh crore. On October 18 alone, investors became richer by Rs 1.67 lakh crore.

Sectors and stocks:

Barring Nifty Media, which fell 1 percent, all sectoral indices logged gains today, with Realty, Metal and PSU Bank rising up to 2 percent.

On the broader market front – S&P BSE Midcap index was up 1.78 percent while the S&P BSE Smallcap index gained 1.65 percent.

Top Nifty gainers: Yes Bank, Coal India, Adani Ports.

Top Nifty losers: Zee Entertainment, Tata Motors, Cipla.

Stocks in news:

Shares of Yes Bank extended their gains into the fifth consecutive session, closing 8.44 percent higher at Rs 51.40 on BSE on October 18. In these five sessions, the stock has jumped 30 percent.

Shares of Bharat Heavy Electricals (BHEL) surged 22.22 percent to Rs 54.45 on the report of government likely to cut its stake in the company.

Shares of Indiabulls Housing Finance saw a sharp gain of 17.42 percent to settle at Rs 231.50 after the company offered pre-mature redemption of all non-convertible debentures (NCDs) maturing in November and December this year.

Shares of Zee Entertainment Enterprises fell 5.55 percent to Rs 250, a day after the company reported a 6.9 percent year-on-year growth (YoY) in September quarter profit at Rs 413.2 crore, impacted by slow revenue growth and weak operating margin. Brokerages have come out with mixed reviews of the company’s Q2 performance.

Shares of TVS Motor Company ended 4.45 percent higher at Rs 456.60, buoyed by the company’s decent Q2 show. The company has reported a 20 percent jump in its Q2FY20 standalone net profit at Rs 255 crore against Rs 211.31 in the same quarter in 2018.

Shares of Delta Corp jumped 4.90 percent to Rs 187.40 after ace investor Radhakishan S Damani picked up more than 1 percent stake in the casino gaming company.

Technical View:

Nifty made a bullish candle on the daily chart.

The index is now near the September high of 11,694. Once the high gets taken out, Nifty can head towards 11,790, which is the 78.6 percent retracement of the June – August decline, Gaurav Ratnaparkhi, Senior Technical Analyst at Sharekhan by BNP Paribas said.

Three levels to watch : 11,553, 11,685, 11,713

Max Call OI: 12,000, 11,700

Max Put OI: 11,400, 11,500

For the medium term, analysts say Nifty may attempt to touch the all-time high of 12,103.

“From a trading perspective, buy on dips would be the strategy to go with. For Nifty, 11,550-11,500 will be the key support area to watch out for,” Gaurav Ratnaparkhi of Sharekhan said.The Great Diwali Discount!
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