As the Sensex approaches 1,300 points, investors’ wealth has crossed ₹5.66 lakh cr in 1 day. | Job Binary

Indian markets rallied strongly on Tuesday, with the Sensex nearing the 58,100 mark and the Nifty 50 rising above 17,280. All sectoral indices witnessed gains with banking, capital goods, metals and IT stocks emerging as the top performers. Mid-caps are outperforming small-cap stocks, though both baskets have bought significantly. Domestic equities followed positive global cues in preparation for Q2 earnings for FY23. The Indian currency rose against the dollar in the forex market as Treasury yields fell and the greenback fell. The flow of foreign funds has also increased. In addition, crude oil prices rose ahead of the OPEC+ meeting, where production cuts are expected. Investors’ wealth increased even more thanks to the bullish stance 5.66 crores in 1 day.

The Sensex rose 1,276.66 points, or 2.25%, to close at 58,065.47. The benchmark hit an intraday high of 58,099.94.

Meanwhile, the Nifty 50 rose 386.95 points or 2.29% to end at 17,274.30. The benchmark rose to an all-day high of 17,287.30.

In terms of sectoral indices on the BSE, the Bankex index rose 1,188.54 points, while the IT and Capital Goods index gained 728.85 points and 713.98 points. Metal index increased by 612.06 points. Meanwhile, the Bank Nifty on the NSE rose 1,080.40 points.

Mitul Shah – Head of Research, Reliance Securities said, “Indian stocks closed higher following positive global cues as the market gears up for the upcoming earnings season.”

As on October 4, the market capitalization of BSE-listed firms was 2,73,92,739.78 million from 5,66,318.84 mln 2,68,26,420.94 crores on previous day.

Vinod Nair, Head of Research, Geojit Financial Services said, “The domestic market ended the day on an upbeat note reflecting strong overnight gains on Wall Street and domestic business data from banks. Unexpected slowdown in US manufacturing PMI. Hopes for US Fed to slow pace of policy tightening .Then US bond yields fell along with the US dollar.”

In the interbank forex market, the Indian rupee strengthened on Monday against a weaker dollar, while bond yields fell. The local unit closed at 81.52 against the US dollar after closing at 81.8725 per dollar the previous day. The rupee touched a day high of 81.3650.

Anindya Banerjee, VP, Currency Derivatives & Interest Rate Derivatives, Kotak Securities said, “The USDINR spot closed at 81.52, down 35 per cent on lower US Dollar Index and lower US yields. A rally in stocks also helped. In the near term, US economic data such as ISM services and the US NFP report will provide direction. We expect a range of 81.20 and 82.

Further, Jatin Trivedi, VP Research Analyst, LKP Securities said, “The rupee traded strongly, up 0.30% or 0.25p against the dollar, where the dollar index settled below $112, giving some time to other currencies. Positive FIIs on the rupee lead to growth. Weak global recession position excluding India has lost ground. But crude oil prices have shown positive activity, which may dampen ongoing sentiment as OPEC announces production cut numbers amid recession-feared demand. 81.00-81.80.”

In addition, in the first two days of October, the flow of funds of foreign investors (FDI) accelerated. FIIs were pumped on Tuesday 1,344.63 mln. in the stock market. On October 3, FIIs became net buyers with inflows 590.58 million. Overall, FIIs were net sellers in September 18,308.30 million.

Also, Shah added, “The market suffered deep losses in the first nine months of the year as central bank officials signaled interest rate hikes and continued monetary tightening.”

Going forward, Shrikant Chouhan, head of equity research (retail), Kotak Securities, said, “The short-term market structure is positive, but due to temporary overbought conditions, we may see volume-related activity in the near term. Now for traders, 17200-17150/57800-57600 will be the main support zone, while 17400-17425/58300-58400 will act as the important resistance zone for the index. Buying on intraday corrections and selling on rallies would be a great strategy for day traders.

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