Markets rally as RBI policy, Q2 earnings take focus; Sensex tops 390 pts, Nifty 50 near 17,640; Bajaj twins, ICICI, Bharti Airtel, Dr Reddy's lift

The positive sentiment was across sectoral indices with banking and pharma stocks outperforming.

Oct 04, 2021 09:10 IST India Infoline News Service

Market Up
Indian markets kick-started this week's trading session on bulls with stellar buying sentiments witnessed across large-caps, small-caps and midcaps. On Monday, positive sentiment was across sectoral indices with banking and pharma stocks outperforming. The markets are reacting to the monthly performance of the metal and auto industries.

While a close watch will be kept on the banking sector as they will announce their credit and deposits performance for September 2021 (Q2FY22) quarter. Furthermore, the corporate earnings season for the second quarter of FY22 is just around the corner which has led traders hopeful for recovery amid the easing of Covid-19 curbs.

This week is set to be very busy with Markit Services PMI and Markit Composite PMI for September to be released on Tuesday, while RBI policy, deposit and bank loan growth for the fortnight ended September 24, and foreign exchange reserves for the week ended October 1 is scheduled to be released on Friday. Also, Tata Consultancy Services (TCS) will kick off the Q2FY22 earnings season on Friday.

Markets outlook will be shaped due to the above-mentioned factor.

At around 09.35 am, Sensex is trading at 59,157.99 higher by 392.41 points or 0.67%. The index has touched an intraday high and low of 59,169.10 and 58,952.11 respectively.

Nifty 50 performed at 17,637.50 up 105.45 points or 0.6%. The index has clocked the day's high and low of 17,643.10 and 17,581.35 respectively.

In terms of sectoral indices, on BSE, the Healthcare index advanced nearly 385 points and the Bankex zoomed 340 points.

Top bulls on Sensex were - ICICI Bank, HDFC, Bharti Airtel, Bajaj Finserv, Bajaj Finance, Dr Reddy's Lab, SBI and Axis Bank climbed more than 1% each.

Top bears on Sensex were - Tata Steel plunging 1% followed by Nestle diving 0.7%. Titan and Power Grid are marginally down.

Pharma stocks globally are in focus after Merck and Ridgeback Biotherapeutics announced that molnupiravir an investigational oral antiviral medicine, significantly reduced the risk of hospitalization or death at a planned interim analysis of Phase 3 MOVe-OUT trial in at-risk, non-hospitalized adult patients with mild-to-moderate COVID-19.

On the global front, Asian markets traded broadly on a mixed note with Hong Kong's Hang Seng nosediving more than 2%, while Japan's Nikkei 225 plunging nearly 1%. On the contrary, Australia's S&P/ASX surged nearly 1%.

Notably, the mainland China markets are closed for the majority of this week and will reopen on Friday. While, South Korea's KOSPI is shut down due to a holiday on Monday.

Also, trading in Hong Kong-listed shares of China Evergrande was paused as traders continue to monitor the development surrounding the defaulting of the realty giant. In the past weeks, Evergrande has missed two bond interest payments.

However, the Asian stocks shrugged off the stellar performance of Wall Street. Last week, on Friday, US markets commenced October with a bang as Dow Jones closed higher by nearly 500 points while Nasdaq gained 118 points. Bond yields shed to 1.48% that led to equities bouncing back while the US dollar index also sees profit-booking closing near 93.73. IT, materials and FMCG stocks bounce back as indices recover from oversold territory in the short term.

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