After holding firm in early afternoon trade, key benchmark indices extended gains in afternoon trade. At 13:15 IST, the barometer index, the S&P BSE Sensex, was up 429.76 points or 1.64% at 26,650.71. The 50-unit CNX Nifty was up 125.75 points or 1.58% at 8,076.65. The Nifty retained the psychological 8,000 level after crossing that level in opening trade. The rally on the domestic bourses was a part of the rally in global stocks triggered by expectations that the US Federal Reserve will delay the first interest rate hike in almost a decade after a lackluster US jobs data released on Friday, 2 October 2015. The Sensex surged 430.44 points or 1.64% at the day's high of 26,651.39 in afternoon trade, its highest level in more than five weeks. The Nifty also hit its highest level in more than five weeks when it jumped 125.95 points or 1.58% at the day's high of 8,076.85 in afternoon trade.
In overseas stock markets, European stocks surged as weak US employment data fueled speculation the US Federal Reserve won't increase interest rates this year. Asian stocks edged higher on expectations Beijing will take steps to accelerate growth and as prospects of a near-term interest rate hike by the Federal Reserve ebbed in the wake of last week's weaker-than-expected US employment data for September 2015. The possibility of the Fed delaying the lift-off date for rates also meant its loose policy, which has helped shore up risk assets globally by providing cheap cash, would continue a little longer. The US central bank has kept interest rates near zero since the end of 2008 in an effort to stoke economic growth in the aftermath of the global financial crisis. US stocks closed on a positive note during the previous trading session on Friday, 2 October 2015, thanks to a late-afternoon rally, but a weak US jobs report added to worries that the economy is slowing.
Closer home, broad market depicted strength. There were more than two gainers against every loser on BSE. 1,839 shares rose and 712 shares declined. A total of 81 shares were unchanged. The BSE Mid-Cap index was up 1.53%. The BSE Small-Cap index was up 1.43%. Both these indices underperformed the Sensex.
Metal and mining stocks gained on expectations Beijing will take steps to accelerate growth. Tata Steel (up 4.03%), Steel Authority of India (Sail) (up 2.46%), Vedanta (up 1.38%), JSW Steel (up 2.35%), National Aluminium Company (up 1.14%), Jindal Steel & Power (up 7.82%), Hindalco Industries (up 3.61%), NMDC (up 1.12%) and Hindustan Copper (up 1.02%) edged higher. Hindustan Zinc shed 0.25%. China is the world's largest consumer of steel, copper and aluminum. According to a latest report from the World Bank, China's economy is expected to grow at about 7% in 2015 and the growth will gradually moderate thereafter as its economy continues to shift toward a model more dominated by domestic consumption and services.
Uttam Galva Steels spurted 15.51% to Rs 38.35 after a large bulk deal of 1.07 crore shares was executed at Rs 33.70 per share at the onset of the trading session on BSE. On BSE, so far 1.10 crore shares were traded in the counter as against average daily volume of 69,020 shares in the past one quarter.
Sugar stocks gained on renewed buying. Bajaj Hindusthan (up 2.4%), Dhampur Sugar Mills (up 4.79%), Sakthi Sugars (up 1.33%), Balrampur Chini Mills (up 2.06%), Triveni Engineering & Industries (up 0.94%), Shree Renuka Sugars (up 2.3%) and Dwarikesh Sugar Industries (up 0.69%) gained.
Index heavyweight and engineering and construction major L&T advanced 3.57% to Rs 1,542.50. The stock hit high of Rs 1,543.65 and low of Rs 1,505 so far during the day.
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