Key share indices ended near days high on November futures and options series as traders rolled over positions to the December series. Firm global cues and consistent buying among Auto, Banking, Capital Goods and Oil & Gas shares led the strong rally.
The Bombay Stock Exchange’s 30-share Sensex provisionally closed at 19,177 up 335 points or 1.78%. The National Stock Exchange’s 50-share S&P CNX Nifty provisionally closed at 5,824 up 96 points or 1.68%.
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Updated at 14:25 hrs
Key share indices have extended the gains and have reached near day highs ahead of November futures and options series set to expire today as traders roll over positions to the December series.
Firm global cues and consistent buying among Auto, Banking, Capital Goods and Oil & Gas have buoyed the sentiments among local investors. The rise also comes after the political logjam over allowing foreign direct investment (FDI) in the retail sector seems to have given way to a discussion in Parliament, which allows voting post the debate.
Meanwhile, Goldman Sachs raised India to 'overweight' from 'market-weight', citing growth recovery and inflation moderation ahead. The investment bank pegged December 2013 Nifty target at 6,600 points.
By 1420, Sensex surged by 261 points at 19,103, and the Nifty was up 75 points at 5,803 levels. The Sensex and the Nifty reached an intra-day high of 19,110 levels and 5,806 mark, respectively.
On the global front, Asian markets have surged as investors cheered U.S. President Barack Obama and House Speaker John Boehner's optimism about a deal to solve the upcoming “fiscal cliff". Hang Seng, Nikkei and Taiwan Weighted have advanced 1% each in trades.
European markets too have opened higher with CAC, DAX and FTSE gaining between 0.4-1%.
Back home, BSE Realty index has spurted by over 3% followed by counters like Auto, Banks, Metal, Capital Goods, Oil & Gas, Consumer Durable, FMCG, PSU and Healthcare, all gaining between 1-2%. However, BSE IT and TECk indices are trading marginally lower.
From the Auto space, Tata Motors and Bajaj Auto have surged by over 4% each. According to reports, Tata Motors will halt production at its block here for three days from today, following poor demand.
Banking and financial shares which are a proxy to the economy also witnessed consistent buying demand on expectations that the RBI will start cutting interest rates in the coming months to support the slowing economy. ICICI Bank, HDFC and HDFC Bank have surged between 1-3%.
Capital Goods major L&T has surged by over 2%. L&T Finance Holdings sold its entire 4.67 per cent stake in private sector lender Federal Bank for about Rs 363 crore.
From the metals space, Sterlite is the top Sensex gainer, up nearly 5%. Hindalco, Tata Steel and Coal India have gained by almost 1% each.
Index heavyweight Reliance Inds have surged by nearly 2%.
Other notable gainers include Cipla, Tata Power, ONGC, GAIL, Sun Pharma, DRL and ITC.
On the losing side, Infosys is the top Sensex loser, down over 1%.
Among other shares, KNR Constructions has rallied 17% to Rs 122 after the company said that it has bagged an EPC (engineering, procurement and construction) order worth Rs 790.50 crore from KNR Walayar Tollways Private Limited.
The broader indices are trading firm in line with the benchmarks – BSE Midcap and Smallcap indices are up 1% each.
The market breadth in BSE remains healthy with 1,633 advancing and 1,168 shares declining.