MARKET WRAP: Sensex gains 582 pts, Nifty ends at 11,787; Tata Motors up 16%

All that happened in markets today.

Solid buying in counters such as auto, banks, and metals helped benchmark indices settle with around 1.50 per cent gains on Tuesday. Investor sentiment got a major boost on better-than-expected September quarter results of companies such as Tata Motors, ITC, and State Bank of India (SBI). That apart, news reports that the government may scrap dividend distribution tax (DDT) also cheered market participants. Besides, optimism around US-China trade deal, too, aided the bulls. 

The S&P BSE Sensex added 582 points or 1.48 per cent to end the session at 39,832 levels, with Tata Motors (up over 16 per cent) being the top gainer and Bharti Airtel (down over 3 per cent) the biggest loser. The index reclaimed the crucial 39,800 level for the first time since July 5. Out of 30 components, 26 ended in the green and rest 4 in the red. RIL, TCS, Axis Bank and Tata Motors contributed the most to the Sensex's gains while Bhari Airtel, SBI, and Power Grid emerged as the biggest drags.

Market breadth was in favour of advances as out of 2,677 companies traded on the BSE, 1,439 advanced and 1,027 declined while 211 remained unchanged. 

On the NSE, the benchmark Nifty50 index settled at 11,786.85, up 160 points or 1.37 per cent. 

Both the frontline indices rose to over four-month high.  

Volatility index India VIX jumped nearly 5 per cent to 16.35 levels. 

On the sectoral front, barring media stocks, all the indices on the NSE ended in the green. Nifty Auto index gained the most - up 4.29 per cent to 8,450. 

In the broader market, the S&P BSE MidCap gained 161 points or over 1 per cent to end at 14,603 while the S&P BSE SmallCap ended at 13,384, up 73 points or 0.55 per cent. 

BUZZING STOCKS

Among individual stocks, HUL, ICICI Bank, and Reliance Industries (RIL) hit record highs during the session. 

Shares of Tata Motors jumped nearly 17 per cent to Rs 172.55 on the BSE on better-than-expected Q2 results. The auto major had settled over 16 per cent higher during the one-hour Muhurat Trading session on Sunday, that marked the beginning of new Samvat year - 2076. In the two trading sessions, the stock has jumped 36 per cent. 

Shares of Bharti Airtel slipped up to 4 per cent in the opening deals on Tuesday after the company deferred its September quarter results till November 14 saying it needed more clarity on adjusted gross revenue (AGR) matter. The company was slated to release its financial results today. The stock settled at Rs 360, down nearly 3.50 per cent. 

Metal stocks such as Tata Steel, Jindal Steel, SAIL and JSW Steel advanced up to 9.5 per cent on the NSE  on reports government could allow integrated steel producers to divert a portion of iron ore from their captive mines for use by other joint venture entities. That apart, optimism around US-China trade deal also boosted investor sentiment.

GLOBAL MARKETS 

Asian shares crept to a three-month peak on Tuesday after Wall Street hit all-time highs amid hopes of progress in Sino-US trade talks and for another dose of policy stimulus from the Federal Reserve this week. Japan's Nikkei led the way with a rise of 0.4 per cent to reach ground last trod a full year ago, while Shanghai blue chips dithered either side of flat.

MSCI’s broadest index of Asia-Pacific shares outside Japan nudged up 0.2 per cent and touched its highest since late July. E-Mini futures for the S&P 500 extended their gains by 0.1 per cent and EUROSTOXX 50 futures dipped 0.1 per cent.

In commodities, oil prices edged lower ahead of US stockpile numbers. Brent futures were down 6 cents at $61.51 a barrel, having fallen 0.7 per cent on Monday. US West Texas Intermediate (WTI) crude was down 12 cents at $55.69, after falling 1.5 per cent in the previous session.

(With inputs from Reuters)

4:01 PM

MARKET COMMENT | Vinod Nair, Head of Research, Geojit Financial Services

"A strong momentum is seen in the market as healthy Q2 earnings from big corporate and attractive valuation for mid & small caps is providing a favorable risk-reward to investors. This positivity is likely to stay in the short to medium term as concerns of the market are fading with tax cut and govt’s intention to come out with more reforms in direct & indirect taxation. The clouds over global market is gradually settling down with developments in trade deal and Brexit, while rate cut expectation from FED will further add impetus to emerging markets like India."

3:59 PM

Sectoral gainers and losers on the NSE

3:58 PM

Top gainers and losers on the S&P BSE Sensex

3:38 PM

CLOSING BELL

The S&P BSE Sensex rallied 582 points or 1.48 per cent to end at 39,832 while NSE's Nifty50 index ended at 11,787, up 160 points or 1.37 per cent.

3:25 PM

Govt forms secretaries' panel on steps to ease financial stress in telecom

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3:24 PM

MARKET CHECK

3:06 PM

BROKERAGE RADAR | HDFC Securities on Marico

Marico disappointed on volume growth owing to rural slowdown. Hair oil category growth was sluggish in 2Q. Copra deflation and international performance drove healthy EBITDA growth. We recently downgraded Marico to NEUTRAL as RM tailwinds are expected to moderate and near-term positives were priced-in. We value Marico at 35x on Sep-21 EPS arriving at a TP of Rs 391.

3:03 PM

MRKET CHECK | Top 5 losers on the BSE at present

2:53 PM

Dividend distribution tax could be scrapped, reports IANS

A bonanza is in the offing for the stock markets as the Prime Minister's Office (PMO) and the Finance Ministry are working on measures which may include dividend distribution tax (DDT) being scrapped. In this regard, the Department of Economic Affairs (DEA) and Revenue Department officials in the Finance Ministry have held meetings with PMO officials, the news agency reported. 

2:46 PM

NEWS ALERT | Trial court approves settlement agreement for Welspun India w.r.t pending claims in the US

2:43 PM

Tata Sons stake in Tata Motors to rise to 43.73% post preferential issue

Tata Sons, the promoter of major operating companies of the Tata Group, will increase its shareholding in Tata Motors to 43.73 per cent after the proposed Rs 6,500 crore preferential issue by the automobile manufacturer.

 

Last week, Tata Motors' board had approved raising of Rs 6,500 crore via preferential allotment of securities to Tata Sons. READ MORE

2:37 PM

NEWS ALERT | AGR verdict: Committee of Secy to suggest measures to mitigate financial stress by Telcos: sources to CNBC TV18

-- Telcos have made case w.r.t future spectrum payment, viable pricing of data/voice, financial stress

-- SC verdict will enhance stress in sector

2:35 PM

Govt likely to order SFIO probe into financial irregularities at DHFL

The Registrar of Companies, Mumbai office, has submitted its report on Dewan Housing Finance Corporation (DHFL) to the Ministry of Corporate Affairs a couple of days ago, an official said. READ MORE 

2:31 PM

Sector watch | Nifty Auto index trades near day's high

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Buzzing | Vodafone Idea extends decline