Shares advance as crude slips, rupee recovers

The market climbed on Friday in line with global stocks as crude prices fell and the rupee extended gains to touch a one-month high. The barometer index, the S&P BSE Sensex, rose 579.68 points or 1.68% to 35,011.65, as per the provisional closing data. The Nifty 50 index rose 177.40 points or 1.71% to 10,557.85, as per the provisional closing data. Global shares rose on hopes of a trade agreement between China and the United States. The Sensex ended above the psychologically important 35,000 mark after moving above and below that level in intraday trade. Weakness in IT shares capped gains.

 

Among secondary barometers, the BSE Mid-Cap index rose 0.78%. The BSE Small-Cap index rose 0.76%.

The market breadth, indicating the overall health of the market, was strong. On BSE, 1600 shares rose and 1063 shares fell. A total of 145 shares were unchanged.

Maruti Suzuki India (up 6.44%), Vedanta (up 6.39%), Tata Motors (up 5.87%), IndusInd Bank (up 4.91%), Hero MotoCorp (up 3.82%) and Adani Ports & Special Economic Zone (up 3.66%), were the major Sensex gainers.

Wipro (down 3.2%), TCS (down 1.16%), Infosys (down 0.5%), Sun Pharmaceutical Industries (down 0.1%) and State Bank of India (down 0.04%), were the major Sensex losers.

Bajaj Auto rose 2.89% after the company reported 32% growth in its total vehicles sales to 5.06 lakh units in October 2018 over October 2017. Bajaj Auto's total domestic sales rose 29% to 3.19 lakh units, while total exports rose 38% to 1.86 lakh units in October 2018 over October 2017. The announcement was made during market hours today, 2 November 2018.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 72.535, compared with its close of 73.455 during the previous trading session.

In the global commodities markets, Brent for January 2019 settlement was up 18 cents at $73.07 a barrel. The contract had fallen $2.15 a barrel or 2.87% to settle at $72.89 a barrel during the previous trading session.

Overseas, shares in Europe and Asia jumped on Friday on hopes of a trade agreement between China and the United States.

US stocks rallied to close higher Thursday, with the S&P 500 gaining for its third straight session for the first time in six weeks, on cautious optimism that US-China trade tensions could ease in the near term.

Stocks added modestly to their gains after President Donald Trump, in a Thursday morning tweet, hinted at progress in early trade talks with China. The president also said in his morning tweet that trade "discussions are moving along nicely" and meetings between the two leaders at the upcoming G-20 summit are being scheduled.

On the US data front, the ISM manufacturing index fell to a six-month low of 57.7%. Respondents cited rising costs as a concern. The IHS Markit final US Manufacturing Purchasing Managers' Index printed at 55.7 for October, up slightly from 55.6 in September. A reading of at least 50 indicates improving conditions.

Nonfarm productivity growth grew at a 2.1% annualized rate in the third quarter. Unit labor costs rose by 1.2%.

The number of newly unemployed Americans seeking jobless benefits fell in the seven days ended 27 October to 212,000.

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