Sensex zooms 297 pts to reclaim 35K; rupee, corp earnings drive optimism

MUMBAI: The equity benchmark Sensex continued its winning run for the third straight session on Tuesday, rising 297 points to scale the key 35,000-level on positive macro signs like strengthening rupee and healthy start to the corporate earning season.

Meanwhile, the rupee strengthened by 25 paise to 73.58 (intra-day) against the US dollar in the forex market.

Besides, easing global crude prices and positive cues from Asian markets and a higher opening in European shares too fuelled the rally. Brent was trading 0.25 per cent lower at USD 80.58 a barrel on Tuesday.

"Market maintained a positive momentum as healthy start to the earnings season and gaining strength in rupee supported the sentiment. Though rally was broad based, financials led from the front... Earnings season will dictate the trend in the market as investors are gradually shifting their focus from global volatility to domestic triggers," Vinod Nair, Head of Research, Geojit Financial Services said.

The 30-share Sensex stayed in the positive zone during the session and shuttled between 35,215.79 and 34,913.06, before settling 297.38 points or 0.85 per cent higher at 35,162.48.

The NSE Nifty after regaining the 10,600-mark hit a high of 10,604.90 on the back of widespread gains, and finally concluded 72.25 points or 0.69 per cent higher at 10,584.75.

"The Nifty was higher today again supported by mid- and small-cap stocks. The broader indices gained more ground than the Nifty. Banking stocks were mixed with PSU Banks taking the lead. Global cues were also mixed where US markets were down but most other markets appear to have stabilised," Rohit Srivastava, Fund Manager PMS, Sharekhan by BNP Paribas said.

Domestic institutional investors (DIIs) bought shares worth Rs 294.78 crore, while foreign institutional investors invested Rs 67.86 crore on Monday, as per provisional data issued by the stock exchanges.

Brokers said after a recent meltdown in line with global rout, domestic markets are back on track ahead corporate results.

Shares of the country's second largest IT company, Infosys fell 0.39 per cent after cautious investors trimmed their positions ahead of July-September quarter earnings.

The sentiment got support from other Asian markets which rose modestly after a week of heavy losses, although cooling factory-gate inflation in China and increasing tensions between Saudi Arabia and the West have capped gains.

The broader markets depicted a firm trend as investors raised bets on hopes of encouraging earnings, lifting the small-cap index by 1.88 per cent and mid-cap index by 1.03 per cent.

Buying was led by oil&gas, infrastructure, banks, PSU, capital goods, realty, auto and healthcare space counters.

M&M emerged as the top gainer among Sensex constituents by rising 3.97, followed by Adani Ports at 3.54 per cent.

Other major gainers were ONGC, SBI, ICICI Bank, Axis Bank, RIL, Asian Paint, HUL, HDFC Ltd, Yes Bank, Bharti Airtel, Vedanta Ltd, Tata Motors, TCS, L&T, Sun Pharma, Tata Steel, Coal India and ITC Ltd, gaining up to 3.44 per cent.

Hero MotoCorp edged up 0.23 per cent ahead of quarterly results, due later in the day.

However, HDFC Bank, Bajaj Auto, Maruti Suzuki, PowerGrid, Bajaj Auto, HDFC Bank, Sun Pharma, NTPC and Maruti Suizuki, fell up to 0.77 per cent on profit-booking.

Shares of oil marketing companies such as BPCL and IOC remained strong, rising up to 2.06 per cent on falling global crude oil prices.

Among the sectoral indices, oil&gas emerged best performer by climbing 1.84 per cent followed by infrastructure 1.79 per cent, realty 1.36 per cent, PSU 1.28 per cent, capital goods 1.28 per cent, bankex 1.20 per cent, FMCG 0.77 per cent, power 0.75 per cent, auto 0.70 per cent, healthcare 066 per cent, IT 0.46 per cent, consumer durables 0.43 per cent, teck 0.38 per cent and metal 0.21 per cent.

Coming to the global markets, most of the Asian stocks gained with Japan's Nikkei surging 1.25 per cent, while Taiwan rose 0.81 per cent. Indonesia up 0.45 per cent and Thailand surged 0.12 per cent.

China's Shanghai Composite Index, however, fell 0.85 per cent and Hong Kong's Hang Seng declined 0.13 per cent.

European markets too were higher in their late morning deals with Frankfurt's DAX rising 0.348 per cent, while Paris CAC 40 up 0.28 per cent. London's FTSE was too up 0.01 per cent.