Sensex surges over 450 points on delayed Fed rate hike hopes Analysis for Oct 05, 2015

Posted By: Religare
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Mirroring strong cues from the global peers, the key domestic benchmark indices continued to soar during the late noon trading session as a weaker than expected US jobs data dampened hopes of a hike in the interest rates by the Fed this year.

At 14:15 hours, the 30-share benchmark index Sensex was trading at 26698.2, up by 477.25 points or by 1.82 per cent, while the NSE Nifty was at 8093.75, up by 142.85 points or by 1.8 per cent.

A weaker-than-expected US jobs data have cheered the market participants as that may further push the US Fed rate hike and give the markets some more time to prepare for a hike.

Sentiments remained up-beat with reports that the government may extend export incentives such as cheap credit to even large players in sectors like pharmaceuticals, chemicals and electronics. Appreciation in Indian rupee too supported the sentiments.

Amid the bullish trade so-far, Sensex touched an intraday high of 26719.12 and an intraday low of 26375.31, while the NSE Nifty touched an intraday high of 8097.6 and an intraday low of 8005.1.

Major gainers on the D-street included, Sensex pack were Tata Motors Ltd. (Rs. 316.65,+6.62%), Housing Development Finance Corporation Ltd. (Rs. 1252.15,+4.41%), Hindalco Industries Ltd. (Rs. 73.70,+4.24%), Tata Steel Ltd. (Rs. 221.10,+4.22%), Larsen & Toubro Ltd. (Rs. 1547.15,+3.88%), among others.

However, some profit booking was witnessed in index heavyweights including Maruti Suzuki India Ltd. (Rs. 4427.00,-3.34%), Dr. Reddy's Laboratories Ltd. (Rs. 4177.60,-1.24%), Lupin Ltd. (Rs. 2082.75,-1.15%), Hindustan Unilever Ltd. (Rs. 807.10,-0.91%), Sun Pharmaceutical Industries Ltd. (Rs. 889.10,-0.19%), among others.

Shares of Maruti Suzuki India dipped 4 per cent after the global investment bank Jefferies downgraded the stock to "underperform" from "buy" and cut its target price to Rs 3,952.

Among the sectors, capital goods and bankex indices emerged as top gainers, adding 3.02 per cent and 2.45 per cent, respectively.

The Market breadth, indicating the overall strength of the market, was positive. On BSE out of total 2704 shares traded, 1884 shares advanced, 717 shares declined while 103 remained unchanged.

On the global front, Asian markets ended the day on a positive note amid expectations that Beijing will take steps to accelerate growth and the U.S. Federal Reserve will hold interest rates steady for longer. Meanwhile, European counters were trading firm with CAC, DAX and FTSE all trading in green with a gain of over one and a half per cent.

Story first published: Monday, October 5, 2015, 14:48 [IST]
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