Shrugging off a weak start, Indian stock markets ended with sharp gains. The Sensex settled 581 points higher at 39,831 while Nifty ended 1.4% higher at 11,786. At day’s high, Sensex rose 667 points to 39,917, less than 100 points away from the important level of 40,000. Metal and auto stocks were in the spotlight today, with both Nifty Auto and Nifty Metal indices up around 4% each. The rupee also hit a one-month high of 70.68 against the US dollar.
Here are 10 updates from Indian stock markets:
1) The sentiment was boosted after new reports, citing sources, said that the government is working towards a revamp of tax structure on equities to boost sentiment.
2) Tata Motors shares jumped 17% today, following a similar rise on Diwali-day trading on Sunday. On Friday, Tata Motors posted a smaller-than-expected loss in the second quarter as a pick up in sales of its luxury car unit JLR in China helped it ride out weak vehicles sales in India, its home market. Indian markets were closed on Monday.
3) Domestically, Q2 numbers from large cap companies have beat the expectations and the pessimism is waning, said Ashish Nanda of Kotak Securities.
4) S Ranganathan, head of research at LKP Securities, said that markets buoyed today led by hopes of divestment and tax cuts as a slew of midcaps and under-owned stocks staged a smart upmove.
6) Metal stocks Tata Steel and Vedanta ended firm today, rising 7% and 3% respectively.
7) Optimism over US-China trade deal and the European Union extending Brexit deadline to 31 January, 2020, also boosted sentiment.
8) Gains in heavyweights RIL and TCS also helped support the market with both the shares up around 2.3% and 3.5% respectively.
9) Auto stocks M&M and Maruti also posted strong gains, rising 3.4% and 4% respectively. M&M said that on Dhanteras-day the auto division of the company delivered close to 13,500 vehicles across the country. “This figure was substantially higher than the deliveries last year on Dhanteras,” it added.
10) Shares of Bharti Airtel fell 3.4% after the company deferred earnings announcement till November 14, 2019 “on account of the fact that more clarity is needed on the AGR (adjusted gross revenue) matter arising out of recent judgement of Supreme Court.”