PMI data, renewed FII buying propel key indices
Factory output coupled with new orders amid price pressure boosted investor sentiment; FIIs turn buyers; IT, metal, power lead the rally; Investors waiting triggers from ongoing results season and the US Federal Reserve meeting outcome on Wednesday
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Mumbai: Rising for four sessions in a row, S&P BSE Sensex moved above 61,290, and ended the session on Tuesday with a net gain of 374.76 points or 0.62% at 61,121 points. The BSE benchmark index vaulted 1,578 points in the last four straight trading sessions. NSE Nifty also moved up by 133.20 points or 0.74% to 18,145.40 points.
Going ahead, FIIs flows, ongoing results season and the US Federal Reserve meeting outcome on Wednesday are the key factors to watch out.
"The bulls are driving the trend in the domestic market with backing from FIIs and the global markets. The PMI numbers show that manufacturing activity in India remained strong in October and that pricing pressures were kept in check as new orders and production increased, albeit slowly. Investors are keeping an eye on the central banks' policy meetings for any indications of a slowdown in the pace of rate hikes," says Vinod Nair, head (research) at Geojit Financial Services.
Pharma, power and IT stocks were the major gainers, while index heavyweight Reliance Industries and select banking shares ended on a tepid note. The key benchmark indices extended gains as strong corporate earnings, and renewed FII buying lifted sentiment.
Among the Sensex 30 shares, power majors - NTPC and PowerGrid were the top gainers, up 5.3 per cent and 3 per cent, respectively. Dr.Reddy's, Infosys and TCS also jumped over 2 per cent each. Sun Pharma was also up 2 per cent after the pharma major reported double-digit top line growth.
On the flip side, Axis Bank fell nearly 4 per cent following a block deal on the BSE wherein 1.2 per cent equity of the company changed hands. PNB shares tumble over 6 pc after Q2 earnings
Shares of Punjab National Bank (PNB) on Tuesday fell over 6 per cent after the firm reported a 63 per cent decline in standalone net profit for the September quarter.
In the broader market, the BSE Midcap index jumped a per cent, while the Smallcap index added 0.3 per cent. The overall breadth too was positive, with 1,838 stocks advancing versus 1,610 declining shares on the BSE.
Sectorally, the BSE Power index soared over 2 per cent. The IT, Healthcare were up around 1.7 per cent each, and the Metal index too was up a per cent.
