Sensex, Nifty extend gains to 2nd day as metal shares sparkle

Mumbai, Oct 3 (PTI) Benchmark indices Sensex and Nifty advanced for the second straight session on Friday, powered by buying in metal and telecom stocks following a firm trend in global markets.

After swinging between gains and losses for most of the session, the 30-share BSE Sensex climbed 223.86 points, or 0.28 per cent, to settle at 81,207.17. During the day, the index touched a high of 81,251.99 and a low of 80,649.57, gyrating 602.42 points.

As many as 2,710 stocks advanced while 1,490 declined and 139 remained unchanged on the BSE.

The 50-share NSE Nifty edged higher by 57.95 points, or 0.23 per cent, to 24,894.25.

On the weekly front, the BSE benchmark climbed 780.71 points or 0.97 per cent, and the Nifty went up by 24,894.25 points or 0.97 per cent.

"After a period of range-bound trading, the market closed on a positive note, supported by gains in metal and consumer durables stocks. Optimism over a potential Fed rate cut in October, a weakening dollar, and stable base metal prices drove the rally in metal indices.

"Consumption stocks are on a buzz led by reforms, a good monsoon and moderation in inflation, upsizing demand as disposable income increases," Vinod Nair, Head of Research, Geojit Investments Limited, said.

From the Sensex firms, Tata Steel climbed the most by 3.40 per cent, followed by Power Grid, Axis Bank, Kotak Mahindra Bank, Larsen & Toubro, Bharat Electronics and Bharti Airtel.

In contrast, Tech Mahindra, Maruti, UltraTech Cement and Bajaj Finserv were among the major laggards.

"The market's move was largely driven by domestic factors. The RBI’s recent monetary policy -- holding rates steady while upgrading the growth outlook and lowering inflation guidance -- continued to boost confidence in rate-sensitive sectors, particularly banking. Additionally, earnings updates ahead of the reporting season reinforced the positive undertone," Ajit Mishra - SVP, Research, Religare Broking Ltd, said.

The BSE smallcap gauge jumped 1.09 per cent, and the midcap index went up by 0.78 per cent.

The BSE metal index jumped 1.85 per cent, with companies, such as Lloyds Metals and Energy surging 6.18 per cent, National Aluminium Company (3.10 per cent), and Jindal Stainless (2.87 per cent).

Among other sectoral indices, industrials jumped 1.28 per cent, telecommunication (1.16 per cent), consumer durables (1.15 per cent), commodities (1.12 per cent), capital goods (1.02 per cent) and utilities (0.95 per cent).

"Capital goods sector remained under focus on the back of reiteration from the Finance Minister that the government’s commitment to increase capital expenditure to support growth remains intact," Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd, said.

Realty and healthcare were the laggards.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,605.20 crore on Wednesday, while Domestic Institutional Investors (DIIs) bought stocks worth Rs 2,916.14 crore, according to exchange data.

In Asian markets, Japan's Nikkei 225 index settled sharply higher, while Hong Kong's Hang Seng index ended lower. The stock market in China and South Korea's Kospi were closed for a public holiday.

Equity markets in Europe were trading higher in mid-session deals.

US markets ended in green on Thursday.

Global oil benchmark Brent crude climbed 0.86 per cent to USD 64.61 a barrel.

"Brent crude prices fell for the third straight session to a 16-week low as concerns over a potential US government shutdown and expectations of higher OPEC+ supply weighed on the market. Lower crude prices ease concerns on India’s import bill and inflation, which is positive for domestic equities," Khemka said.

Equity markets were closed on Thursday for Mahatma Gandhi Jayanti and Dussehra.

On Wednesday, the Sensex jumped 715.69 points, or 0.89 per cent, to settle at 80,983.31, and the Nifty climbed 225.20 points, or 0.92 per cent, to 24,836.30.

Positive momentum is likely to be sustained in the market, aided by accommodative monetary policy, a supportive monsoon season, and festive-led demand recovery, traders said. PTI SUM SUM BAL BAL