Bulls heave a sigh of relief, Sensex up 347 points; Nifty above 11050

Bulls heave a sigh of relief, Sensex up 347 points; Nifty above 11050
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Mumbai, Sep 25: After days of relentless correction, bulls can finally heave a sigh of relief today. The Nifty has managed to reclaim 11,000 and end above it, while the Sensex surged 347 points.
Financials were the big movers as a sharp recovery in this space boosted sentiment on D-Street. A rally in automobiles and pharmaceuticals also aided the upmove.
Traders may have looked to cover their shorts, while long term investors could have hunted for value picks among banking names, which have been at the centre of this corrective phase.
The downfall in equities intensified last week after the stock of DHFL halved its value in one session. This spilled over to other names among NBFCs as concerns over liquidity weighed on most stocks in this space.
Additionally, gains in names such as Sun Pharma led to the rally in Nifty Pharma index. Glenmark Pharma was another name in focus after reports emerged that the US FDA had completed inspection of its Baddi facility and issued no observations for it. This is usually seen as a positive cue for such companies as the plant or unit could be cleared without any negative comments.
Interestingly though, the rally comes at a time when macros were in troubled waters again. Brent crude traded above USD 81 per barrel, implying higher import bill for countries like India. This also negatively impacted oil marketing companies, whose input costs could rise. Aviation names were also lower as a result of crude’s sharp surge.
At the close of market hours, the Sensex ended higher by 347.04 points or 0.96% at 36652.06, while the Nifty closed up 100.10 points or 0.91% at 11067.50. The market breadth is negative as 1,069 shares advanced, against a decline of 1,564 shares, while 178 shares were unchanged.
“Bulls staged a smart comeback post five straight session of losses with Nifty Index gaining 0.9% to close at 11,064. The markets witnessed considerable volatility during the day, swinging both ways however, positive statements from LIC Chairman on IL&FS and news of successful raising of funds by Indiabulls Housing finance boosted investor sentiments,” Jayant Manglik, President, Religare Broking, said in a statement.
Stocks in the News
Mangalam Drugs & Organics was locked at 5 percent upper circuit after it received WHO approval for a drug to treat HIV virus.
Yes Bank fell over 3 percent after surging over 3 percent in the morning ahead of board meeting which will decide on the action plan to choose a successor to Rana Kapoor.
Infosys rose 1 percent after Infosys Public Services Inc (IPS) was awarded a CAD USD 80.3 million contract by Public Services and Procurement Canada (PSPC) to modernize and automate their procurement processes.
Shares of Dilip Buildcon fell 4 percent after surging 5 percent intraday as the company was declared lowest bidder by the Water Resource Department, Kota.Suven Life Sciences added 3 percent after it was granted product patents for Sri Lanka as well as Canada.
Shares of Dena Bank gained more than 2 percent after the Board approved the bank’s proposed merger with Bank of Baroda and Vijaya Bank.
Fuel retailers as well as aviation stocks corrected further on Tuesday after crude oil prices moved closer to four-year high amid looming US sanctions against Iran and reluctance by oil producing countries to increase output.
National Aluminium Company (NALCO) rose 2 percent after global brokerage house Macquarie raised target price on the stock.