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Benchmark share indices ended higher after the government proposed to open up the coal industry to the private sector and auction cancelled coal blocks. Further, foreign investors which turned net buyers in equities also helped improve investor sentiment.
The 30-share Sensex closed up 146 points at 26,576 and the 50-share Nifty closed up 48 points at 7,928.
In the broader market, BSE Mid Cap index gained around 0.9% while BSE Small Cap index closed up around 0.2%
The market breadth ended positive with 1,473 advances against 1,337 declines
The government on Monday said it would promulgate an ordinance to resolve issues arising out of the cancellation of coal blocks. The ordinance will address issues related to coal supply to companies of central and state governments, as well as private companies in the cement, steel and power businesses. It will also address valuation of the land to be taken over from those who have lost coal blocks.
Foreign institutional investors turned net buyers in equities to the tune of Rs 1,040 crore on Monday after remaining net sellers in the previous five sessions.
The Rupee is trading at 61.28 against US Dollar appreciating from its close at 61.36 on Monday. Hopes of more reforms have strengthened the Rupee.
Global markets
Asian markets trends remain mixed as the as the third-quarter Chinese growth data failed to boost sentiments. Chinese GDP grew at 7.3% in the third quarter which is higher than the market expectations of 7.2% however lower than the 7.5% figure of the preceding quarter. A breakdown of the data from China showed industrial output rose a better-than-expected 8% in September from a year earlier, up from August's six-year low of 6.9% growth.
Japan’s Nikkei declined the most with around 2% loss. Shanghai index lost around 0.7% while Hang Seng ended flat.
European shares have opened higher as hopes of a monetary stimulus program to be undertaken by European Central Bank are gaining ground though investors remain cautious about the impact of Chinese growth data. CAC 40 has gained around 1%, DAX around 1.3% while FTSE is up around 0.5%
Sectors and stocks
BSE Power and Realty indices ended with the highest gains of around 2.5% while BSE Metal, Consumer Durables, Auto and Bankex indices closed with more than 1% gain. BSE Oil &Gas and Healthcare indices lost 0.1-0.7% each.
HDFC Bank closed with a gain of around 0.1% after it posted a 20% rise in quarterly net profit at Rs 2,380 crore compared to Rs 1,982 crore in the preceding fiscal, though the numbers are below market estimates of around Rs 2,425 crore.
ICICI gained around 3% on the back of strong performance by its peer HDFC Bank. SBI and Axis Bank closed with gains of 0.7-1% each. Bank stocks firmed up on the back of government's coal reforms.
GAIL closed with gains of more than 4% following the hike in gas prices.
Bharti Airtel ended up around 2% after rival Idea Cellular’s earnings came better than market estimates. Bharti Airtel and Idea both operate on GSM technology and have similar kinds of subscribers.
Metal stocks surged on the back of strong industrial data from China, Sesa Sterlite gained 4%.
Jindal Steel and Power surged 7% after the government announced coal sector reforms and clarification from the company following a media report that the CBI has filed fresh FIR. The company said that all its actions are in keeping with the legal framework of the country and that it complies with the law in letter and in spirit.
Country's largest two wheeler maker Hero MotoCorp ended up around 2% on plans to invest over Rs 5,000 crore across the globe, including manufacturing plants at Colombia and Bangladesh and new facilities at Gujarat and Andhra Pradesh.
NTPC ended up around 2.6%. Macquarie Capital Securities has upgraded NTPC to 'outperform' citing the positive impact on the company of the proposed coal reforms. Tata Power ended up 1.1%.
In the capital goods segment, BHEL gained more than 4% while L&T closed up around 1.5%.
Other major gainer was Tata Motors which ended up more than 1%.
Among IT stocks, Wipro surged around 2.8% while Infosys lost around 1%.
Among losers, Reliance declined around 0.6% as the proposed hike in gas price is below company’s requirements.
ONGC closed down more than 2% on profit booking while Coal India closed down around 1.4%, shedding gains made after the cancellation of coal blocks as the company is already outstretched and is unable to take up any new blocks.
Mahindra and Mahindra lost more than 2%.
Punjab National Bank closed down around 2.6%, after reporting a lower-than-expected net profit of Rs 575 crore for the second quarter ended September 2014 (Q2), due to higher employee cost. The state-owned lender had profit of Rs 505 crore in the same quarter last fiscal.
Among other stocks, Financial Technologies plunged 20% on reports that the government has directed the company be merged with group company National Spot Exchange
Zee Media slipped around 4% after the company posted net loss of Rs 12.8 crore in the July-September quarter of 2015 fiscal, as compared to the net profit of Rs 4.27 crore in the previous corresponding quarter.
Stone India surged around 14% after the company said it received first export order from China.
Shares of two-wheeler maker TVS Motor Company closed higher by 5% extending its 9% rally in past two days after the company said the foreign institutional investors (FIIs) stake in the company touched nine year high during September 2014 quarter.
Exide Industries slipped around 5% after the Bank of America -Merrill Lynch downgraded the company's stock to 'neutral' citing erosion of pricing power and growing strength of main rival Amara Raja Batteries Ltd.
Shares of BGR Energy Systems closed over 4% after the power company bagged orders worth Rs 250 crore in the electrical sub-stations segment of its electrical projects division.
