The equity benchmark indices ended sharply higher on Friday (October 9), with the Sensex rising 879 points to 72,472 and the Nifty 50 gaining 289 points to 22,520, as the market recovered nearly 80% of Thursday’s fall. Buying was broad-based, with all sectoral indices except oil and gas ending in the green.
The Nifty Bank index closed 742 points higher at 55,257, while the Midcap index gained 905 points to 58,787. Market breadth favoured advances, with the advance-decline ratio at 3:2.
Here are five key reasons behind the market rally:
1. IT index gains 3% as TCS reports in-line Q2 results
The information technology (IT) index rose 3%, with Tata Consultancy Services (TCS) reporting second-quarter results in line with expectations. The gains came even as global chip stocks saw a sell-off.
ALSO READ | ITC shares are trading at multi-year lows – Here are the most important triggers and risks to track
2. Hospital stocks rise; Apollo Hospitals gains 5%
Hospital stocks advanced after the cap on cancer drugs turned out to be lower than expected. Apollo Hospitals ended 5% higher.
3. ITC jumps 4% after GQG exits through block deals
ITC was among the Nifty’s top gainers, surging 4% after GQG exited the company through block deals. Adani Ports closed 3% higher, while GMR Airports rose 5% following block deals.
4. Colgate, gold financiers gain; Inox Wind rises 7%
Colgate gained 5% following an update on the inverted duty structure from the Goods and Services Tax (GST) Council. Gold financing companies advanced, tracking an increase in gold prices, with Manappuram Finance rising 3%.
Among midcap stocks, Inox Wind gained 7% on healthy volumes.
ALSO READ | Here’s why Colgate-Palmolive shares jumped over 7% on Friday
5. BSE, Anand Rathi decline; Avenue Supermarts falls 2%
The Bombay Stock Exchange (BSE) was the Nifty’s top loser, falling over 1% ahead of the Securities and Exchange Board of India’s (SEBI) final Common Application System (CAS) paper. Anand Rathi declined 5% ahead of its second-quarter results, while Avenue Supermarts fell 2%.
From the Sensex basket, ITC Ltd, Tata Consultancy Services Ltd, Infosys Ltd, HCL Technologies Ltd, Larsen & Toubro Ltd and Shriram Finance Ltd were the major gainers.
Market This Week (October 5 to 9)
The equity benchmarks snapped their eight-week losing streak, with Friday’s surge helping the Sensex and Nifty gain nearly 1% each for the week. The Nifty Bank index advanced over 1%, while the Midcap index ended the week unchanged.
ALSO READ | ‘Buy Info Edge’, say 90% of analysts tracking it after Q2 updates; Check new price targets
Among sectoral indices, metal, realty and power recorded the steepest declines, falling up to 4%. Capital markets, fast-moving consumer goods (FMCG) and public sector bank (PSU Bank) indices were the top gainers, rising up to 3%.
Thirty Nifty stocks delivered negative returns during the week, with losses extending up to 7%. Adani Enterprises, Max Healthcare, JSW Steel, Hindalco Industries and Bharat Electronics (BEL) were among the top Nifty losers.
On the gaining side, Trent, BSE, Kotak Mahindra Bank, Tata Consultancy Services (TCS), Bharti Airtel and ITC were among the top Nifty performers.
ALSO READ | IT stocks: Valuations turn attractive, but earnings recovery key to upside, says Equirus
Among midcap stocks, LIC Housing Finance, ICICI Lombard General Insurance, Blue Star and Persistent Systems were the top gainers. Bandhan Bank, Avenue Supermarts, Jindal Steel and Power (JSPL), Siemens Energy and Mankind Pharma were among the top midcap losers.