Investors cheer China data, Sensex up 385 points

Markets on Thursday ended on a firm note with the 50-share Nifty regaining the psychologically important level of 5,900 on back of significant buying in metal and mining stocks.

Risk appetite got a boost after a gauge of China’s services industries jumped to a six-month high raising hopes that the world’s second-biggest economy will sustain a rebound after a two-quarter slowdown.

Mirroring the optimism, the 30-share Sensex gained 385 points or 1.97% to end at 19, 902 and the 50-share Nifty rose 130 points or 2.24% at 5,909.70.

China’s non-manufacturing Purchasing Managers Index climbed in September to 55.4 from 53.9 in August, government data showed.

The broader markets ended higher with mid-caps and small-caps adding 1-1.3 per cent on the BSE.

The market breadth was positive. Out of 2,560 stocks traded, 1,463 stocks advanced while 948 stocks declined on the BSE.

RUPEE

Rupee rose to a one-week high today after the current account deficit (CAD) for April-June quarter was in line with what the Street expected.

At 3:45PM, the partially convertible rupee was trading at 61.82 per dollar against the Tuesday’s close of 62.46 on the Interbank Foreign Exchange.

GLOBAL MARKETS

Asian stocks ended mixed on robust China data but investors watched for progress on ending a budget impasse that has shut down the US government.

Japan’s Nikkei rose 0.1% to 14,157, Hong Kong’s Hang Seng gained 1% to 23,214 while Singapore’s Straits Times fell 0.2% at 3,144. Financial markets in China are closed for holidays until October 8. South Korea’s market is also closed today.

European markets traded mixed. France’s CAC declined 0.3% to 4,146, Germany’s DAX declined 0.05% to 8,624 while UK’s FTSE was up 0.2% to 6,450.

STOCK MOVERS

Domestically, the key sectoral gainers were metal, banks, IT, auto, capital goods while FMCG sector declined on the BSE.

The laggards were HUL shedding 2%, ITC declined 1.2%, NTPC fell 0.1% on the BSE.  

The gainers were TCS rising 4%, Sesa Sterlite added 7%, Bajaj Auto gained 5.4% while HDFC Bank was up 4% on the BSE.

The key stock movers included counters such as Zensar Technologies that rose 4% as the company has announced large multiyear wins in the manufacturing sector in the US.

Shares of Sun Pharma rose 2%  after the company through its subsidiary and Intrexon Corporation, a leader in synthetic biology, announced a joint venture to develop controllable gene-based therapies for the treatment of ocular diseases.

Tata Communications surged 5% extending its Tuesday’s rally, after the company said it is in exclusive talks with Vodacom for sale of Neotel, its South African subsidiary.

Jet Airways gained 4% on reports that the Securities Exchange Board of India (Sebi) approved the Etihad Airways’ plan to buy a 24% stake in the company as both carriers revised their deal to comply with conditions set by the markets regulator.