Sensex rallies 200 pts; Nifty50 nears 8,600; ICICI Bank surges 2%

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NEW DELHI: The S&P BSE Sensex rallied over 200 points in morning trade on Tuesday led by gains in ICICI Bank, Infosys, HDFC, Axis Bank, and RIL.

The Nifty50 reclaimed its crucial level of 8,550 supported by gains in realty, metals, banks, autos, oil & gas, and power stocks.

At 09:20 am: The 30-share index was trading 176 points higher or 0.64 per cent at 27,706. It touched a high of 27,761.37 and a low of 27,652.76 in morning trade.

The Nifty50 was trading at 8,569 up 50 points or 0.57 per cent. It touched a high of 8,585.71 and a low of 8,555.90 in the first 30 minutes of trade.

The S&P BSE Midcap Index was up 0.76 per cent and BSE S&P Smallcap Index was trading 0.86 per cent higher.

GAIL India (up 1.5 per cent), Adani Ports (up 1.5 per cent), ICICI Bank (up 1.4 per cent), and Tata Steel (up 1.3 per cent) were the major Sensex gainers.

Bharti Airtel (down 0.7 per cent), Hero MotoCorp (0.48 per cent), Asian Paints (down 0.38 per cent), and Power Grid (down 0.26 per cent) were the major Sensex losers.

Domestic equity indices are likely to open on a flat to positive note on Tuesday, as investors react to Fed Vice-Chairman Stanley Fischer’s comments on US employment and inflation, ahead of quarterly numbers from a dozen domestic companies scheduled for release later in the day.

US output rose in September: Data released overnight showed industrial output in US inched up 0.1 per cent in September after falling 0.5 per cent in August. Industrial production rose at an annual rate of 1.8 per cent during the September quarter. This was the first quarterly rise for factory output since the September quarter of calendar 2015.

Stanley Fischer spoke on US economy: Fed Vice-Chairman Fischer said the US’ economic stability could be threatened by low interest rates. He said the Fed was close to its employment and inflation targets. That said, it would not be that simple for the US central bank to hike rates, Fischer said, sending out mixed signals.

11 companies to announce results: Mastek, Havells India, CanFin Homes, Panasonic Carbon India and Hatsun Agro Product are among 11 companies scheduled to report their quarterly earnings during the day. The results are expected to generate stock-specific action. Overall, some over eight dozen firms will post their quarterly numbers this week; among them are IT firms Wipro, Mindtree, KPIT Technologies and Zensar Technologies, cement major ACC, microfinance company Equitas Holgings, RBL Bank and Cairn India.

Cues from Singapore positive: At 8 am, Nifty50 futures on the Singapore Stock Exchange were trading 37.50 points higher at 8,569, indicating a positive opening for the domestic market.

“The market is undergoing a technical correction and there is some amount of caution coming in ahead of quarterly numbers, because those could be a bit unpredictable and there typically is stock-wise volatility around the time of earnings. Also, there are certain challenges coming up – US elections, a possible Fed rate hike, a drop in the pound and Brexit. Investors are adopting a wait and watch approach,” said Dipan Mehta, member, BSE & NSE.

Nifty50 formed ‘Hammer’ pattern on Monday: The Nifty50 formed a ‘Large Bear’ candle on the daily charts, which showed that the bears kept the selling pressure throughout the session. The index broke below its crucial support level of 8,540. It is also trading below its 50-day EMA placed at 8,653 level.
Analysts advised traders not to create any long positions on declines. Market history for October suggests whenever the market tried to bounce back, the bears have taken control.

Asian markets stay higher: The Chinese CSI300 rose 0.06 per cent to 3,279.95 on Tuesday morning. Japan’s equity benchmark Nikkei was trading 0.07 per cent higher at 16,911. Other Asian indices, including Hong Kong’s Hang Seng (up 1.05 per cent), South Korea’s Kospi (up 0.19 per cent) and Taiwan’s TWSE (up 0.03 per cent), were trading higher.

US markets settled lower on Monday: The Dow Jones Industrial Average declined 51 points, or 0.29 per cent, to close at 18,086. The S&P500 index edged 6.48 points, or 0.3 per cent, lower at 2,126. The Nasdaq Composite fell 14.34 points, or 0.27 per cent, to 5,199.