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It was a great trading day for those invested in banking stocks which helped benchmark indices close above their highest levels since November 2010. Heavy buying in index heavyweights was witnessed; robust China GDP numbers also gave a boost to sentiment.
China's economy grew 7.8% in July-September, its fastest pace this year, as firmer foreign and domestic demand lifted factory production and retail sales, the Reuters report suggests.
Metal stocks hailed China data with Tata Steel, Sesa Sterlite, Jindal Steel and Power, JSW Steel and Hindalco adding between 1-5% on the Bombay Stock Exchange (BSE). China is the world's largest consumer of copper and aluminum.
The 30-share BSE Sensex surged a whopping 2% or 467 points at 20,882 levels while the broader Nifty index ended at 6,189 levels up over 2% or 143 points from its previous close. Broader markets were upbeat too with small-cap and mid-cap indices adding between 0.7-1% on the BSE.
"The Nifty has found strong support at its 50 DMA and since then it has shown strength managing to surpass the 100 DMA as well as the critical 200 DMA. The Relative Strength Index (RSI) is also trading well above the 60 mark showing strength in the current upmove"
“Nifty has entirely negated the bearish sentiment signaling that further upside could be in store. Momentum and trend strength indicators are hinting at a strong upside. Hence, if the inverted Head and shoulder projections unfold the way it should, then we will see Nifty attempting 6,580. However, a sustained close only above 6,142 would keep this breakout valid,” says Hadrien Mendonca, Technical analyst at India Infoline.
Asian markets finished mixed as of the most recent closing prices. The Hang Seng gained 1.06% and the Shanghai Composite rose 0.24%. The Nikkei 225 lost 0.17%.
European markets are higher today with shares in France leading the region. The CAC 40 is up 0.41% while London's FTSE 100 is up 0.29% and Germany's DAX is up 0.16%.
Back home, buying interest in banks was renewed after Axis and IndusInd posted robust second quarter earnings results. The rupee appreciated in early trades against the dollar on the back of positive global cues. Currency strengthening against the dollar was also among the major reasons why banks rallied.
The partially convertible INR pared initial gains towards the end of the day and is currently trading at Rs. 61.19-a-dollar compared to its previous close of Rs 61.22 per dollar.
All sectoral indices on the BSE ended the day in green led by banks, metal and Capital goods which ended 3-4% higher.
Among the index heavyweights, Reliance Ind was up 2.2%, Infosys was up 1%. Sesa Sterlite shares are up more than 7.5% and is currently the top Sensex gainer
Top Sensex gainers were Sesa Sterlite, Tata Steel, ICICI Bank, L&T and HDFC Bank while Bajaj Auto was the only loser.
Advance decline ratio favoured the bulls as 1417 stocks advanced against a decline seen in 1075 at the BSE.
Other movers and shakers
Shares of Dewan Housing Finance Corporation has zoomed over 13% to Rs 147.10 on back of heavy volumes on the bourses. According to market sources a multiple block deals happened on the counter.
Larsen and Toubro (L&T) is trading firm, up by 4% at Rs 872.35, ahead of July-September (Q2) earnings today.
Just Dial surged 7.7% higher to end at Rs 951.30 over reports that the company's board will discuss new business opportunities.
SpiceJet has surged 3.39% to close at Rs 21.35 on back of heavy volumes at the BSE on reports that Qatar Airways is in talks with the company to buy minority stake in Indian low cost airline.
