Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

4 Reasons Why Sensex Rallied 659 Points Today
Thu, 8 Sep Closing

4 Reasons Why Sensex Rallied 659 Points Today

After opening on a strong note, Indian share markets extended gains as the session progressed and ended near the day's high.

Gains were extended as index heavyweight stocks saw more traction while falling crude oil prices supported sentiment.

At the closing bell, the BSE Sensex stood higher by 659 points (up 1.1%).

Meanwhile, the NSE Nifty closed higher by 174 points (up 1%).

Shree Cements, BPCL, and Axis Bank were among the top gainers today.

Tata steel, Hindalco, and SBI Life Insurance on the other hand, were among the top losers today.

The SGX Nifty was trading at 17,820, higher by 189 points, at the time of writing.

The broader markets ended on a positive note. The BSE Mid Cap index up by 0.3% while the BSE Small Cap index ended higher by 0.6%.

Sectoral indices ended on a mixed note with stocks in the banking sector, and IT sector witnessing most of the buying.

--- Advertisement ---
Investment in securities market are subject to market risks. Read all the related documents carefully before investing

India's Lithium Megatrend is an Emerging Opportunity for Investors

We all know how oil producing countries made fortunes in the last century.

But now, the world is moving away from oil... and closer to Lithium.

Lithium is the new oil. That's the reason why India is focusing heavily on expanding its lithium reserves.

If you can tap into this opportunity, then there is a potential to make huge gains over the long term.

See Full Details Here
Details of our SEBI Research Analyst registration are mentioned on our website - www.equitymaster.com
---------------------------------------------

On the other hand, stocks in the metal sector, power sector, and realty sector witnessed selling pressure.

Shares of SKF India, Adani Enterprises, and Timken India hit their 52-week high today.

If stocks trading close to their all-time highs interest you, check out how to invest in multibagger stocks to get started.

Outside the home ground, Asian share markets ended on a mixed note.

At the close in Tokyo, the Nikkei ends up by 2.3%, while the Hang Seng dived 1%. The Shanghai Composite ended lower by 0.3%.

US stock futures are trading on a positive note with Dow Jones futures trading flat.

The rupee is trading at 79.9 against the US$.

Gold prices are currently trading higher by 0.2% at Rs 50,506 per 10 grams.

Meanwhile, silver prices for the latest contract on MCX are trading higher by 0.8% at Rs 54,027 per kg.

Note that gold prices have fallen and have taken quite a knock in recent weeks. Silver prices too have fallen a lot in recent days.

The question on everyone's mind now is when will gold and silver prices recover?

Once the Fed signals an end to the rate hikes (or hints at it) and when investors are confident the US economy will emerge from the recession, that's when we see gold and silver prices recovering.

Here are four reasons why Indian share markets rallied today.

#1 FII Inflows

Foreign investors continued to be net buyers in the Indian market. On 7 September 2022, foreign institutional investors (FIIs) net bought shares worth Rs 7.5 bn.

FIIs have poured in Rs 26.5 bn in the domestic equity markets so far in September.

With this short recovery, investors' nerves have calmed. But it remains to be seen when the stock markets will fully recover.

#2 Crude Oil Prices Fall

Crude oil prices steadied at levels not seen since before Russia's invasion of Ukraine.

Oil prices recovered slightly from the overnight plunge but remained below US$90 a barrel for the first time since early February.

#3 Buying Returned to Index Heavyweights

Strong demand for IT and banking stocks also boosted sentiment. Stocks including ICICI Bank, Bharti Airtel, and Infosys pushed the markets higher as they contributed nearly half of index gains.

#4 Rupee Factor

The rupee has been falling for quite some time now. But today, it appreciated. The rupee appreciated 27 paise to Rs 79.68 against the US dollar in opening trade, tracking its Asian peers, and easing crude oil prices.

Rupee's appreciation often attracts FIIs as it adds to the return for foreign investors.

Speaking of stock markets, Rahul Goel, CEO at Equitymaster talks with Gautam Baid about portfolio building, asset allocation, and stock picking in the latest episode of Investor Hour podcast.

In news from the FMCG sector, ITC was among the top buzzing stocks today.

Share price of ITC hit fresh multi-year high today as company scouts alternate structures for hotel business.

ITC share rose 1% intraday today as it plans to explore alternate structures for their hotel business.

It could soon be a separately listed entity, carved out of the parent cigarette-to-branded packaged food conglomerate.

The company would pursue the 'asset-right' strategy for its hotel business to ensure that the diversified conglomerate remains competitive and contemporary, and continues to deliver superior performance

Commenting on this, Chairman of ITC, Sanjiv Puri said,

    Pursuing asset-right strategy sometime now and there are large number of hotels that have come in under Welcome hotels. The new brand called 'Storii' and 'Momentous' also will start soon.

    We are also getting interest from markets outside of India which we are right now in process of exploring. As and when something comes up we will progress.

The primary rationale for doing the alternate structure is to make sure that company remains competitive, contemporary, agile, and continue to deliver superior performance.

With over 100 hotels in 70 destinations across six distinct brands, ITC's hotel group integrates India's renowned tradition of hospitality and warmth, with globally benchmarked facilities and services.

Meanwhile, ITC continues to strengthen its competitive position across cigarette and FMCG segments driven by high innovation intensity and distribution reach.

The three non-FMCG divisions - Paper, hotel and Agri - clocked the highest-ever quarterly revenue along with healthy EBIT growth for the quarter ended June 2022.

ITC is one of the best dividends paying stocks. We did an editorial back in January 2022 listing the best dividend stocks you can count on.

Apart from that, we also covered an editorial a couple of months ago explaining why the prospects for ITC look good. You can read it here - ITC: Load, Aim...Fire.

Despite the market volatility throughout the year, ITC shares have outperformed the market by gaining 50% YTD. Take a look.


Moving on to news from the steel sector, Pennar Industries shares were in focus today.

Pennar Industries share rose 2.9% intraday today on the back of a new order.

Pennar Industries, a leading engineering products and solutions company, secured orders worth Rs 5.1 bn across its various business verticals.

Pennar Industries is engaged in the manufacture of steel products, including cold rolled steel strips (CRSS) and cold formed metal profiles.

As Indian steel sector is in its growth phase, you should check out the best steel stocks in India.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary


Equitymaster requests your view! Post a comment on "4 Reasons Why Sensex Rallied 659 Points Today". Click here!