Market wrap, Oct 9: Sensex jumps 646 pts, Nifty ends at 11,313; banks rally

The headlines –

>> Market stages smart recovery after six days of losses, Sensex rallies 646 pts, Nifty ends at 11,313;

>> DHFL hits over 10-year low after CDSL freezes promoters’ shareholding;

>> IT stocks slip ahead of TCS’s Q2 results due tomorrow; &

>> L&T, Whirlpool and Havells India among nine Indian firms that are expected to gain from an escalation in US-China trade tensions as the latter looks to shift manufacturing out of its country, says a recent report by Credit Suisse.

And, now the news in detail –

Snapping their six-day losing streak, the benchmark indices staged a smart comeback on Wednesday to end nearly 2 per cent higher, led by heavy buying in banking stocks.

The S&P BSE Sensex added 646 points or 1.72 per cent to end at 38,177.95 levels with IndusInd Bank (up over 5 per cent) being the top gainer and YES Bank (down 5 per cent) the biggest loser. Out of 30 components in the index, 8 stocks ended in the red and rest 22 in the green. The broader Nifty50 index of the National Stock Exchange (NSE) ended at 11,313.30 levels, up 187 points or 1.68 per cent.

Nifty Bank advanced a whopping 1,018.30 points or around 4 per cent to settle at 28,785.85 levels, with 11 out of 12 constituents ending in the green.

India VIX, the volatility guage, dropped over 4 per cent to 17.09 levels.

Among the sectoral indices on the NSE, barring IT, all the indices ended in the green. Nifty Private Bank index gained 3.47 per cent to 16,095 levels. Financial services, realty and metal counters, too, made merry in the trade.

In the broader market, the S&P BSE MidCap index rallied 189 points or 1.38 per cent to end at 13,869.35 levels, while the S&P BSE SmallCap index closed at 12,796.47, up 83 points or 0.66 per cent.

In other market statistics, the market breadth remained in favour of the bulls as out of 2,698 companies traded on the BSE, 1,281 advanced and 1,237 declined while 180 scrips remained unchanged. As many as 33 securities on the BSE hit 52-week high while 263 scrips hit their 1-year low. Further, around 148 companies on the BSE hit their upper circuit today while 276 hit their lower circuit limits.

Stocks that made news today –

Shares of Titan Company slipped 6 per cent to Rs 1,178 on the BSE during the session after the Tata Group company said that its revenue from the jewellery business could decline for the first time in the past four years in the September quarter (Q2FY20). The stock eventually settled at Rs 1,229 apiece, down 2.41 per cent.

Shares of IndiaMART InterMESH surged around 18 per cent to end at Rs 2,261.55.

Shares of Dewan Housing Finance Corporation (DHFL) hit an over 10-year low and were locked in the lower circuit limit of 10 per cent at Rs 26.05 on the BSE on Wednesday after PTI report suggested that Central Depository Services (CDSL) has frozen the company’s promoter shareholding as the company has not filed results for the first quarter.

In the global markets, Asian stocks fell the most in a week on Wednesday as the United States and China’s broadening dispute over trade and foreign policy showed little sign of coming to an end, weighing on global economic growth. MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.61 per cent. Chinese shares fell 0.32 per cent after briefly touching a five-week low.

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