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Diwali Dhamaka! Sensex surges as Street cheers govt’s excise duty cut – Economic Times

MUMBAI: Staying true to tradition, the domestic stock market rang in the new Samvat 2078 on a positive note aided by firm cues from global markets and the government’s move to cut excise duty on retail fuel on Wednesday.

Benchmark indices closed higher for the 12th in the last 16 sessions on Thursday as risk appetite among investors was high despite the recent drawdown in domestic equities. The Nifty50 index closed 0.49 per cent higher at 17,916.8 points, while the BSE-Sensex ended at 60,067.6 points, up 0.5 per cent.

The participation in the Muhurat trading session was robust as cash market turnover soared 21 per cent to Rs 11,535 crore as compared to last year’s session.

Aiding the mood was the government’s decision to cut excise duty on petrol and diesel, which fired up stocks from the automobile to the logistic sector. Nifty Auto index closed 1.6 per cent higher as investors believe that lower fuel costs could aid demand for automobiles.

Shares of logistic companies also rose on the perception that lower diesel prices will provide relief to the sector’s margins. Shares of VRL Logistics, Allcargo, and Container Corporation of India rose 2-7 per cent in the session.

“The biggest risk to investors right now is their own behaviour. I think 15-20 per cent returns over the next 2-3 years are reasonable as economic expansion is just beginning,” Ravi Dharamshi, MD and founder, Valuequest Investment Advisors told ETNow.

Shares of Eicher Motors rose nearly 6 per cent and ended as the top gainer on the Nifty50 index as investors cheered the company’s better-than-expected earnings for the September quarter.

Shares of Central Depository Services (CDSL) rose over 4 per cent as investors continue to put faith in platform companies and on further growth in dematerialized accounts in the country.

Meanwhile, Zomato, Devyani International, Barbeque Nation and Jubilant Foodworks rose 2-7 per cent in the session as investors bet on strong Diwali sales for these companies and a firm December quarter due to an upswing in consumer demand.

In the broader market, the Nifty Midcap 100 and Nifty Smallcap 100 index closed the session with hefty gains of 0.8 per cent and 1.3 per cent, led by buying from retail investors.

Overall, the breadth of the market was slightly negative as declining stocks outnumbered advancing ones on the National Stock exchange.