Strong afternoon buying pushes Sensex 550 points higher, Nifty above 10350

Strong afternoon buying pushes Sensex 550 points higher, Nifty above 10350
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Mumbai, Oct 31: A dramatic session ended on a strong note, with the Nifty soaring past 10,380-mark. Investors could have placed positive bets on some commentary by the government in its ongoing spat with the Reserve Bank of India.
Additionally, financials received a boost after non-banking financial companies (NBFCs) witnessed a rally. PNB Housing Finance raised over Rs 2,450 crore through commercial papers (CPs) and that led to a positive momentum among such names.
The day began on a wobbly note as reports emerged that the government had begun talks under Section 7 of the RBI Act, which allows the government to issue directives to the Reserve Bank of India. Investors turned nervous after these and banks started getting negatively impacted.
However, a statement by the government on the issue which said that the government and regulators hold discussions regularly and willc continue to do so soothed the sentiment on the market.
The Sensex soaring over 550 points, while the Nifty closed above 10,350-mark.
Pharmaceuticals joined the bandwagon as well and a combination of all these factors boosted the market. Automobiles, consumption, infrastructure, and PSU banks were the other big gainers. In the broader markets, the Nifty Midcap index rose around 2 percent.
At the close of market hours, the Sensex ended up 550.92 points or 1.63% at 34,442.05, while the Nifty was higher by 188.20 points or 1.85% at 10,386.60. The market breadth is positive as 1,593 shares advanced, 946 shares declined, while 1,114 shares were unchanged.
Stocks in News
Shares of Emami fell 1 percent as the company reported weak numbers for the quarter ended September 2018.
Coal India fell 3.5 percent after the government decided to sell its stake in the company through an offer for sale.
Tech Mahindra soared 9 percent after its Q2 consolidated net profit jumped 19 percent to Rs 1,064 crore from Rs 898 crore. Tide Water Oil shares rallied as much as 10 percent ahead of a Board Meeting, which will consider a voluntary delisting from Calcutta Stock Exchange.
Power and automation technology company ABB India stock rallied 6 percent after healthy earnings growth for the quarter ended September 2018.
Shares of PNB Housing Finance rose 9 percent after it successfully raised Rs 2,450 crore through commercial papers (CPs).
Lupin reported a massive 41.2 percent fall in second quarter profit to Rs 268.5 crore,dented by lower operating income and US business. However, bottomline increased 32 percent sequentially. The stock, however, closed a percent higher.
Lastly, Dabur India was in focus after it reported a net profit of Rs 377.5 crore for the September quarter, a rise of 4.1 percent as compared to Rs 363 crore posted by the firm during the same period of last year. The stock ended 2 percent lower.
Global Markets
Stocks in Europe rallied as investors took cues from positive handover from Wall Street as well as monitored the earnings trends. Stoxx 600 rose 1.8 percent, with all sectors trading in positive ground.
Asian markets were largely higher on Wednesday. China markets saw gains by the trading day’s end. The Shanghai composite rose 1.35 percent to close at around 2,602.78 and the Shenzhen composite advanced by 1.392 percent to finish at about 1,294.22.
Experts advise exercising caution going ahead. “In the near term, we continue to maintain a cautious stance on the markets as volatility and choppiness is likely to remain high led by uncertain global cues and muted domestic sentiments.