Market surges on strong global cues

Telecom, oil and power sector stocks led rally for key benchmark indices. The barometer index, the S&P BSE Sensex, was up 379.61 points or 1.47% at 26,158.27, as per provisional closing data. The 50-unit CNX Nifty was up 105.60 points or 1.35% at 7,948.90, as per provisional closing data. The Sensex provisionally settled above the psychological 26,000 mark after alternately moving above and below that level in intraday trade so far. The Sensex pierced the psychological 26,000 mark as gains in global stocks boosted sentiment on the domestic bourses a day after the Reserve Bank of India (RBI) surprised financial markets by announcing a steeper-than-expected 50 basis points reduction in repo rate after a regular monetary policy review yesterday, 29 September 2015. Key indices remained in positive zone throughout the trading session.

The Sensex hit its highest level in more than a week when it jumped 401.04 points or 1.55% to 26,179.70 in late trade. The Nifty also hit its highest level in more than a week when it jumped 114.40 points or 1.45% at the day's high of 7,957.70 in late trade.

The market breadth indicating the overall health of the market was strong. On BSE, 1,677 shares gained and 982 shares declined. A total of 115 shares were unchanged. The BSE Mid-Cap index was up 1.71%, outperforming the Sensex. The BSE Small-Cap index was up 1.07%, underperforming the Sensex.

The total turnover on BSE amounted to Rs 4334 crore, higher than turnover of Rs 3053.09 crore registered during the previous trading session.

Shares of index heavyweight and cigarette major ITC gained 2.81% to Rs 329.35 on high volume of 84.23 lakh shares. A bulk deal of 78.27 lakh shares was executed on the stock at Rs 326.85 per share at 09:57 IST on BSE today, 30 September 2015.

FMCG shares were in demand. Hindustan Unilever (up 3.68%), Britannia Industries (up 3.77%), Tata Global Beverages (up 1.35%), Jyothy Laboratories (up 4.29%), Nestle India (up 2.98%), Godrej Consumer Products (up 3.01%), Bajaj Corp (up 1.87%), Colgate Palmolive (India) (up 1.52%), Marico (up 2.45%), Dabur India (up 0.15%), GlaxoSmithKline Consumer Healthcare (up 0.34%) and Procter & Gamble Hygiene & Health Care (up 5.16%) edged higher.

Metal and mining stocks edged higher on renewed buying. Hindalco Industries (up 4.04%), Hindustan Zinc (up 2.85%), NMDC (up 1.58%), Hindustan Copper (up 0.66%) and National Aluminium Company (up 0.57%), edged higher. Vedanta was down 0.87%.

Steel stocks gained on reports that the domestic steel producers are expected to take advantage of the hike in safeguard duty and increase prices by up to Rs 1,500 per tonne. Tata Steel (up 5.84%), Jindal Steel & Power (up 3.68%), JSW Steel (up 4.14%) and Steel Authority of India (up 1.68%) edged higher. It may be recalled that the government in this month imposed a provisional safeguard duty of 20% on import of certain hot rolled flat steel products with a view to protect domestic producers from the recent surge in inward shipments from countries like China.

State-run coal mining giant Coal India gained 3.23% to Rs 324.75 on high volume of 56.43 lakh shares. A bulk deal of 51.16 lakh shares was executed on the stock at Rs 318.30 per share at 09:25 IST on BSE today, 30 September 2015.

In overseas markets, European shares edged higher, with shares of automakers boosted by a Chinese tax cut on small cars while miner Glencore rallied after saying it had no solvency issues. Trading in US index futures indicated that the Dow could jump 181 points at the opening bell today, 30 September 2015. US stocks finished mostly higher yesterday, 29 September 2015, as a stronger-than-expected reading on consumer confidence and rising house prices pointed to a stronger US economy.

In Asia, Japanese stocks surged on expectations for more monetary and fiscal stimulus after the latest data showed that Japanese industrial output fell unexpectedly for the second straight month in August. Chinese stocks nudged higher after a private consumer sentiment index reached its highest level in over a year in September 2015.

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