Barometers hit fresh intraday high in mid-afternoon trade, supported by rally in banks shares. At 14:28 IST, the barometer index, the S&P BSE Sensex, surged 614.35 points or 1.61% at 38,682.59. The Nifty 50 index added 166 points or 1.48% at 11,413.55.
Sentiment was upbeat as the central government yesterday issued new guidelines for opening up of more activities in areas outside the containment zones. Encouraging macroeconomic data and positive global cues also supported buying.
In the broader market, the S&P BSE Mid-Cap index was up 0.83% while the S&P BSE Small-Cap index rose 0.81%.
Buyers dominated market breadth. On the BSE, 1499 shares rose and 1058 shares fell. A total of 148 shares were unchanged.
Foreign portfolio investors (FPIs) sold shares worth Rs 712.48 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 409.47 crore in the Indian equity market on 30 September, provisional data showed.
India reported 9,40,705 active cases of COVID-19 infection and 98,678 deaths while 52,73,201 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
The headline seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) increased from 52 in August to 56.8 in September, signalling back-to-back improvements in the health of the sector. Moreover, the latest reading was the highest in over eight-and-a-half years.
India's Eight Core Industries output contracted by 8.5% in August 2020. Contracting for the sixth consecutive month, the output of eight core infrastructure sectors dropped by 8.5% in August, mainly due to decline in production of steel, refinery products and cement. The production of eight core sectors had contracted 0.2% in August 2019, showed data released by the Commerce and Industry Ministry on Wednesday. Barring coal and fertiliser, all sectors crude oil, natural gas, refinery products, steel, cement and electricity recorded negative growth in August.
Numbers to Track:
In the foreign exchange market, the partially convertible rupee rose to 73.13 compared with its previous closing 73.76.
The yield on 10-year benchmark federal paper fell 5.991% compared with previous closing of 6.015% in the previous trading session.
MCX Gold futures for 5 October 2020 settlement fell 0.01% to Rs 50,400.
In the commodities market, Brent crude for November 2020 settlement fell 23 cents to $42.07 a barrel. The contract fell 0.19% to settle at $40.95 in the previous trading session.
The Nifty Bank index soared 3.43% to 22,188.15n. The index has gained nearly 4% in two days.
IndusInd Bank (up 10%), RBL Bank (up 5%), Bandhan Bank (up 4.5%), Axis Bank (up 4.16%), ICICI Bank (up 4.14%), Federal Bank (up 3.19%), Kotak Mahindra Bank (up 2.91%) and SBI (up 2.56%) were top gainers in Bank Nifty.
Stocks in Spotlight:
Shree Renuka Sugars rose 1.56% to Rs 9.10 after the company said that it will commence operations at its port-based refinery at Haldia (West Bengal) in the first half of October 2020. "The Haldia refinery can refine up to 2000 tons of raw sugar per day," the sugar maker said in a filing issued after market hours yesterday.
Mahindra & Mahindra (M&M) rose 0.78%. The company's Farm Equipment Sector (FES) sold 43,386 tractors in September 2020, an increase of 17% as against 37,011 tractors sold in September 2019. The tractor sales jumped 77% in September 2020 from 24,458 units sold in August 2020. Domestic tractor sales in September 2020 were at 42,361 units, up 18% from 36,046 units during September 2019. Exports for the month rose 6% YoY to 1,025 units.
Meanwhile, M&M's total auto sales declined 17% to 35,920 units in September 2020 from 43,343 units sold in September 2019. Sequentially, however, the company's auto sales increased 18% in September 2020 from 30,426 units sold in August 2020.