Nifty bounces back, ends above 6100

Major headlines

Hindustan Unilever Q2 net profit jumps 32% yoy; the stock closes 1.36% higher

Rural Electrification Corporation Q2 net profit surges 25% yoy; the stock ends 2.56% lower

Adani Power Q2 net profit at Rs125.84 crore; the stock closes 0.15% higher



Indian indices

The Indian markets bounced back in today’s trade after witnessing a sell-off in the previous session. Financial (barring HDFC Bank), cement, auto, healthcare and select metal companies' shares along with the index heavyweights supported the markets. The strong global cues also helped the markets to post significant gains on the first day of the week. Buying in Reliance Industries, Tata Consultancy Services, NTPC, Bharti Airtel and Hindustan Unilever, lifted the Nifty above 6100 levels.

Hindustan Unilever gained by 1.4% post better-than-expected numbers. It reported revenues at Rs4,764.67 crore and net profit at Rs566 crore as against expectation of Rs4,632 crore and Rs497 crore, respectively. In Mid-cap space, M&M Financial, Vardhman Textile, IRB Infrastructure Developers, S Kumars Nationwide and KS Oils surged by 5-7.4% while Sterlite Technologies, Petronet LNG, Gujarat Pipavav, Clariant Chemicals and SKF India declined by 2.4-5%.

The Sensex began the session at 20200, higher by 34 points making such level its day’s low. The index gathered pace and extended gains tracking strong Asian markets, hitting the day’s high of 20452 in the morning session. In the afternoon trades, the Sensex trimmed some of its gains. However, the Sensex remained in the positive zone throughout the day.

At the finishing line, the Sensex shut the session at 20303, higher by 137 points. The Nifty closed at 6106, up by 40 points.

Bond update: The Indian rupee opened at 44.40 per dollar against 44.58.

Market Outlook: Tonight in the US, we have existing home sales data for September.

Market sentiment

The market breadth was positive as rising stocks outnumbered the falling ones. Out of the 3,091 stocks on the BSE, 1,713 advanced while 1,239 fell. Hundred and thirty-nine stocks traded unchanged.

Sectoral and stock screening

The consumer durables (CD) and auto stocks witnessed buying interest, with BSE CD and BSE Auto gaining by 2.37% and 1.23% respectively. On the other hand, BSE Information Technology (IT) was hit the most, down by 0.31%, followed by BSE Fast Moving Consumer Goods (FMCG) that slid by 0.20% and BSE TECk was down by 0.08%.

Among 'A' group stocks, Mahindra & Mahindra Financial was the topper, rose by 7.24%, followed by IRB Infrastructure that surged by 6.58% and Shree Renuka Sugars advanced by 4.95%. On the losers’ side, Petronet LNG slid by 4.06% on poor Q2 results, followed by Wipro that fell by 4.04% and Piramal Healthcare declined by 3.89%.

Viewing volumes

Indian shipbuilding company - Pipavav Shipyard was traded the most, with over 0.68 crore shares changing hands on the BSE, followed by wind turbine major - Suzlon Energy (0.32 crore shares), industrial finance company - IFCI (0.24 crore shares), Essar Group firm - Essar Oil (0.23 crore shares) and India’s second largest developer - Unitech (0.22 crore shares).

Global signals

The European markets surged, with the FTSE 100 index extending three weeks of gains, after Group of 20 finance chiefs pledged to avoid competitive devaluation as they sought to calm fears of a global trade war.

The Asian markets closed on a higher note, except Nikkei index after a weekend meeting of global finance chiefs vowed to avoid a currency war that could derail the global economic recovery.

The US stock index futures point to a higher opening on the Wall Street. The earnings of Amgen, Lorillard Inc, Plum Creek Timber, Roper Industries and Texas Instruments will be eyed. On the macro data front, existing home sales for September will be in focus.