Sensex gains 103 points to end above 27,000 led by commodities

Oil shares were among the top gainers amid a rebound in global crude oil prices along with metal and auto shares

Benchmark share indices hit their highest level in over six weeks led by commodity shares tracking a recovery in global crude oil prices while beaten down metal shares surged amid value buying and short covering at lower levels.

The 30-share Sensex ended up 103 points to end above 27,000 at 27,036 for the first time since August 21, 2015 and the 50-share Nifty ended up 25  points at 8,177.

In the broader market, BSE MidCap and SmallCap indices ended up 0.1-0.4%. Markets breadth ended positive with 1,692 gainers and 1,060 losers on the BSE

"Global crude oil prices were ruling at oversold levels and the recent comments from oil producing nations especially Russia aided the rebound although this may be a temporary phenomenon while beaten down metal stocks witnessed short covering at lower levels," said Daljeet Kohli, Head of Research, IndiaNivesh Securities.
 
Meanwhile, the International Monetary fund (IMF) lower its forecast on global growth of 3.1% this year citing modest pickup in advanced economies and a slowdown in emerging markets, primarily reflecting weakness in some large developing nations and oil-exporting countries.

Meanwhile, the IMF has lowered India’s growth forecast for FY16 to 7.3 per cent from its July forecast of 7.5 per cent.

RUPEE

The Indian rupee extended gains and was trading higher by 36 paise at Rs 65.04 on dollar sales by banks and exporters and weakness in the dollar overseas.

CRUDE OIL

Crude oil prices rebounded with Brent crude for November was trading over $52 a barrel amid weakness of the US dollar. Further, US crude oil output fell in September as companies reduced production because of weak crude oil prices.

SECTORS & STOCKS

BSE Metal index was the top gainer along with Realty, Auto, Oil and Gas indices. BSE IT index was the sole loser.

In the metal pack, Hindalco jumped 9.6%, Vedanta surged 6% and Tata Steel ended 4% higher.

Oil & Gas shares gained tracking a rebound in global crude oil prices. Oil and Natural Gas Corporation surged 4% and Cairn India jumped 5% while Reliance Industries ended up 2%.

Auto shares gained on hopes of higher demand ahead of the festive season with most them announcing new launches. Tata Motors, Bajaj Auto, M&M and Hero MotoCorp ended up 0.5-2.3% each.

HDFC ended up 1.5%. The company has raised Rs 5,000 crore from low- cost non-convertible debentures (NCDs) and a further amount of about Rs 5,400 crore would come in from warrants, both of which got listed with a huge premium today.

Sun Pharmaceutical Industries rose 1.8% after the pharma maor sought shareholder approval to raise up to Rs 12,000 crore through convertible debentures or a qualified institutional placement (QIP).

ICICI Bank ended flat. The bank has reduced the interest rate on its home loans by only 25-30 basis points (bps), even though it reduced its base rate by 35 bps last week.

Among other shares, sugar companies are trading higher for the second straight day after commodity prices have jumped 24% in the past two months on expectations of improved demand during the festival season in the domestic market and on global forecasts of shortage during the next crushing season.

Dhampur Sugar Mills, Shree Renuka Sugars, Bajaj Hindustan Sugar, Balrampur Chini Mills, Sakthi Sugars, Dwarikesh Sugar Industries, Thiru Arooran Sugars, Dalmia Bharat Sugar and Industries ended higher by 5% to 15% on the BSE.

Shares of logistics companies are trading higher on the bourses after the Prime Minister Narendra Modi said on Tuesday that he was hopeful of rolling out the GST (goods and services tax) Bill in 2016.  Gati ended up 12%.

Among other shares, Granules India ended up 3% after the pharmaceutical firm said that foreign institutional investors (FIIs) have increased their stake in the company by more than four percentage points in July-September quarter.

KEC International gained over 1% after the company announced that it has won new orders worth Rs 668 crore in its Transmission & Distribution, Cables and Renewables (solar) businesses.

HMT surged 19% after the company said that it has signed a Memorandum of Understanding (MoU) with Germany company, Fraunhofer-Gesellschaft, for technology upgradation.