Equity indices darted up for the fourth day on Tuesday (November 1) to close at over nine-month highs, buoyed by positive macroeconomic data and a bullish trend overseas.
A recovering rupee and continuous foreign fund inflows added to the momentum, said traders. The 30-share BSE Sensex climbed 374.76 points or 0.62 per cent to settle at 61,121.35, closing above the 61,000-level for the first time since January 17, 2022.
On similar lines, the broader NSE Nifty advanced 133.20 points or 0.74 per cent to end at 18,145.40.
NTPC was the top gainer among the Sensex constituents, spurting five per cent, followed by PowerGrid, Dr Reddys, Infosys, TCS, UltraTech Cement, HCL Technologies, Sun Pharma and Asian Paints.
Only four stocks logged losses, Axis Bank, Maruti, Reliance Industries and Tata Steel, dropping as much as 3.76 per cent.
“The bulls are driving the trend in the domestic market with backing from FIIs and the global markets. The PMI numbers show that manufacturing activity in India remained strong in October and that pricing pressures were kept in check as new orders and production increased, albeit slowly.
“Investors are keeping an eye on the central bank’s policy meetings for any indications of a slowdown in the pace of rate hikes,” said Vinod Nair, Head of Research at Geojit Financial Services.
Manufacturing activities in India remained robust and price pressures were contained in October as new orders and production rose, according to a monthly survey released on Tuesday.
The seasonally-adjusted S&P Global India Manufacturing Purchasing Managers Index (PMI) was up from 55.1 in September to 55.3 in October.
GST revenues registered the second highest collection ever at ₹1.52 lakh crore in October, reflecting pick up in economic activity in the festive season, showed official data.
The collections in October 2022 recorded a 16.6 per cent rise from over ₹1.30 lakh crore collected in the same month in 2021.
“Despite several events lined up during the week including Fed policy meeting, global markets surged on back of healthy quarterly results. Positive momentum continued in the Indian equities as well with Nifty gaining another 133 points to close at 18145, its highest closing since 17th January 2022. Sector wise, action was seen in metal and pharma stocks.
“Going ahead, Indian markets are likely to continue with their positive momentum with bouts of volatility. Investors would now await the Federal Reserve meeting outcome and commentary that is due on Wednesday,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
The BSE midcap gauge jumped 1.04 per cent and the smallcap index climbed 0.26 per cent.
Almost all BSE sectoral indices ended higher, with power jumping 2.18 per cent, followed by utilities (2.11 per cent), IT (1.77 per cent), tech (1.67 per cent), healthcare (1.61 per cent) and commodities (1.45 per cent).
Bankex emerged as the only laggard.
Global markets maintained their winning run ahead of key central bank meetings this week. Elsewhere in Asia, markets in Seoul, Tokyo, Shanghai and Hong Kong ended higher.
Stock exchanges in Europe were trading in the green in mid-session deals. Wall Street had ended lower on Monday (October 31). International oil benchmark Brent crude was trading 1.45 per cent higher at USD 94.16 per barrel.
The rupee appreciated 10 paise to close at 82.71 (provisional) against the US dollar on Tuesday, as the greenback retreated from its elevated levels. Foreign Institutional Investors (FIIs) were net buyers on Monday as they bought shares worth ₹4,178.61 crore, as per exchange data.
(With inputs from agencies)