NEW DELHI: It’s a see-saw battle between bulls and bears on Dalal Street!
If Monday was a bloody show by bears, bulls decimated them on Tuesday recouping all losses thanks to strong global cues and low-level buying by investors. Outperformance of select bluechips also boosted the gains.
The 30-share Sensex jumped 748 points to close at 37,688, while peer Nifty climbed 211 points to end at 11,103 points. Nifty Midcap and Nifty Smallcap indices added over a per cent each, underperforming their headline peers.
Here are the key factors driving markets:
RIL close to a deal, HDFC Banks gets CEO
Investors flocked to buy shares of Reliance Industries and HDFC Bank on separate news pieces.
Reports suggested that Mukesh Ambani-led company was close to inking a deal with Future Group to acquire their retail business. Shares of RIL jumped 6.72 per cent to Rs 2,143. The scrip alone contributed about 400 points towards Sensex’s gain.
Meanwhile, shares of HDFC Bank jumped after the company said it has found its new CEO and has got RBI approval for the same. The stocks that gained over 4 per cent to Rs 1,043, was the second biggest contributor to the Sensex.
Auto sales lift mood of Motown
An improved sales performance by automotive companies in July gave hope to investors that recovery was more or less here. Auto stocks were in demand as the Nifty Auto index climbed 1.64 per cent.
Maruti Suzuki, India’s largest carmaker, surged over 3 per cent to Rs 6,355. HeroMoto also spiked nearly 3 per cent to Rs 2,709. Bajaj Auto, Balkrishna Industries, Motherson Sumi and Eicher Motors were among other top gainers.
US factory data encouraging
Strong US manufacturing data boosted sentiment throughout the world. An industry gauge released overnight indicated US manufacturing activity expanded in July at the fastest pace in more than a year, although hiring remained subdued.
Buying on dips
The buying was also intensified as indices have been falling for four straight sessions. Before today’s trade, Sensex had fallen in six instances in seven sessions. Hence, the valuations of many largecap stocks had cooled off. This resulted in buying on dips.
Asian markets jump
All Asian market indices closed the day in green. Japanese Nikkei 225 was up 1.7 per cent, Singapore’s Strait Times added 1.24 per cent while Hong Kong based Heng Seng advanced 2 per cent.
South Korean Kospi, Indonesia’s Jakarta composite and Chinese Shanghai Composite gained up to 1.5 per cent.
The MSCI world equity index, which tracks shares in 49 countries, was up 0.4 per cent after reaching a five-month high just after 0700 GMT. MSCI’s main European Index was flat on the day.
