Sensex surges 580 points on strong Asian cues; auto, banks rally

Sensex surges 580 points on strong Asian cues; auto, banks rally

 

Mumbai, Nov 2: The S&P BSE Sensex rallied nearly 600 points on November 2 thanks to strong global cues as well as fall in rupee which appreciated against the US dollar.
For the week, the index rallied nearly 1,700 points or 5 percent and Nifty50 rose 523 points or 5.2 percent in the same period. D-Street registered its biggest weekly gain since May 2016.
The S&P BSE Sensex closed 579 points higher or 1.68 percent on Friday while the Nifty50 gained 172 points or 1.66 percent at 10,553.
On the sectoral front, the Nifty Auto index gained 4.1 percent, followed by the Nifty Metal index which was up 3 percent, and the Nifty Energy index rallied 1.9 percent on Friday.
For the week, all the sectoral indices except Nifty Pharma, and PSU Bank ended higher. The Nifty Bank index rose over 5 percent for the week to post its biggest weekly gain since May 2016. The Nifty Midcap index rose 7 percent in 5 days to post its biggest weekly gain since June 2014.
One big positive was rupee which appreciated by over 1 percent. Falling crude oil prices and a weaker dollar boosted the Indian rupee. It climbed over 1 percent on Friday and was trading higher by 95 paise at 72.50 per dollar versus previous close 73.45.
“Expectation of global trade deal and cheer in domestic auto sales numbers supported the market to extend its rally. Any consensus in the US-China trade negotiation could settle global market volatility and will attract investors to the beaten down stocks. Additionally, continued fall in oil prices and drop in yield eased liquidity concerns,” Vinod Nair, Head of Research, Geojit Financial Services said.
Top Sensex gainers: Maruti Suzuki (up 6.3 percent), Tata Motors (up 6.2 percent), and Vedanta (up 6percent)
Top Sensex losers: Wipro (down 3.2 percent), TCS (down 1.2 percent), and Infosys (down 0.65 percent)
Stocks in news:
Shares of Marico surged 5.3 percent as investors reacted positively to its earnings announcement for September quarter. Brokerage houses have termed the quarter to be in line with estimates, but expect a better show ahead due to reducing input costs.
Punjab National Bank has posted a loss of Rs 4,532.4 crore for the quarter ended September 2018 as provisions increased four-fold compared to year-ago and NII growth was tepid, though asset quality improved sequentially. The stock closed 7 percent down at Rs 69.05.
Shares of Hindalco Industries rose 4 percent after the company reported 54 percent jump in its Q2FY19 net profit at Rs 725 crore against Rs 470 crore in Q2FY18. The auto companies rallied 4 percent as stocks reacted to monthly sales data. Eicher Motors, Maruti Suzuki, Tata Motors and Bharat Forge were up 4-8 percent respectively.
Global Markets:
World share markets roared higher as hopes built that the United States and China were starting to repair their badly damaged trade relations.
Hong Kong’s Hang Seng index surged 4.21 percent while the Shanghai composite gained 2.7 percent. Japan’s Nikkei gained 2.6 percent and South Korea’s Kospi closed 3.53 percent higher.
Among European markets, France’s CAC and Germany’s DAX were trading 1.18 percent higher while Britain’s FTSE gained 0.6 percent at the time of writing this article.
Brent crude futures, the international benchmark for oil prices, fell 12 percent from October to trade around $73 a barrel as surging output by the world’s three largest producers outweighed supply concerns from the start of US sanctions against Iran’s petroleum exports which are effective from November 4.

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