Sensex tests 39K, Bank Nifty scales 30K; Vedanta, Hindustan Petroleum, Ashok Leyland stocks gain
The BSE Sensex once again tested the psychological 39,000 levels after logging 396 points gain after the closing bell. The 50-stock Nifty index went up 131 points and closed at 11,571 levels in the closing bell trade session.
Stock Market News: On account of fresh buying by the foreign institutional investors (FIIs) in the Indian share market post-Narendra Modi's address to the American investors at Bloomberg Business Forum 2019, the Indian indices witnessed heavy rally after the two days pause on Tuesday and Wednesday. The BSE Sensex once again tested the psychological 39,000 levels after logging 396 points gain after the closing bell. The 50-stock Nifty index went up 131 points and closed at 11,571 levels in the closing bell trade session. The Bank Nifty index shot up 416 points and closed at 30,002 levels.
Speaking on the current market surge Prakash Pandey, MD & CEO at Plutus Advisors said, "This rise was expected as the Nifty is poised to touch 12,000 levels in coming to few trade session. Sectors like Banking, auto, metal and oil, gas and energy would be the major drivers of this fresh rally in the Indian stock market."
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Adani Green Energy, Shipping Corporation of India, Vedanta, NALCO, Coal India and Jindal Steel and Power stocks were the major gaining shares in the intraday trade session while DHFL, Reliance Power, Reliance Capital, Suzlon India, YES Bank, MRF and IDBI Bank stocks were the major losing shares today.
Metal stocks led the bull run today as the BSE Metal index shot up over 4 per cent in the intraday trade post-closing bell session. Metal major Vedanta share price shot up 6.47 per cent, shares of Hindustan Zinc soared 6.05 per cent, Jindal Steel & Power shares scaled near 5 per cent, NDMC stocks went northward around 6.25 per cent, National Aluminium Company or NALCO counter skyrocketed 5.7 per cent, Steel Authority of India Ltd or SAIL surged 4.1 per cent while Tata Steel counter added 3.85 per cent.
Oil and Gas stocks also witnessed some fresh buying on Thursday trade. Oil and Gas major Bharat Petroleum Corporation share price shot up 3.27 per cent, Hindustan Petroleum Corporation shares skyrocketed 6.15 per cent, shares of Indian Oil Corporation Ltd or IOCL surged 3.2 per cent while Sensex heavyweight and energy major Reliance Industries Ltd or RIL share price soared 1.31 per cent.
Reacting on the stock market rally Rahul Mishra, AVP (Derivatives), Emkay Global Financial Services said, “NIFTY started September month around 10800 level and was struggling to cross the 11000 resistance as the initial stimulus from FM could not help improving investor’s sentiments. Country’s economic growth of 5 per cent (lowest in last 6 years) combined with global cues further hit the sentiments and NIFTY gave up all the gains for the year 2019. However, the latest stimulus of slashing the corporate tax was perceived well across the market and the Indian equity benchmarks clocked their biggest intraday move almost in a decade, market recovered ~7-8% in just 6 sessions. With the revised tax rate INDIA has become one of the lowest tax rate region in ASIA. NIFTY is currently trading above 50 and 200 DMA and we believe 11300 will be the support level, 11600 will be good resistance and we may see supply around this level. From derivative point of view, FIIs have doubled their position in Index future during the month so far. The monthly option data suggest that the NIFTY range for the month of October will be 11000-11500, however, 12000 call holds a decent open interest making it the next resistance.”
Among major Asian markets, the Japanese Nikkei 225 index scaled 0.13 per cent, South Korean Kospiwent up 0.05 per cent, Hang Seng shot up 0.37 per cent while the Shanghai market shed 0.89 per cent.