It’s a Happy Diwali for D-Taurus! Main factors driving the markets up

Samvat 2079 started bullish for investors on Dalal Street, with benchmark indices gaining about 1% during Monday’s special Muhurat trading session.

Nifty50 crossed 17,700 points and finished 0.9% higher at 17,738 points. Its BSE counterpart Sensex reached 59,900 points and tested a high of 59,994.25 before finishing 0.9% higher at 59,832 points. Among Nifty50 shares,

hit another 52-week high, while reaching a lifetime high.

Small cap stocks continued to be the flavor of the season as investors chose quality names with favorable risk-reward numbers. Major movers in this space include Edelweiss Financial Services, Sunteck Realty, Multi Commodity Exchange of India, Indigo Paints, Tejas Networks, Ratnamani Metals & Tubes, Greenpanel Industries, Borosil Renewables and Finolex Cables, which gained 3-6%.

Indian stocks have been pitted against competitors in Asia, where major markets ended deep budget cuts on Monday.

Here are the few factors that made the market higher:

Banks led the trade, with Nifty Bank hitting a month-long high of 41,427. This was due to the strong profits of some of the major banks. Except all other parts of Nifty Bank ended up in green. Shares were up 2% on reporting high double-digit net profit growth for the September quarter. Axis Bank, which tested a 52-week high of Rs 918.45, ended with a 1% gain. Most experts have found banks among their top Diwali picks, given strong credit growth and asset quality improvement. The other major movers were Nestle India, Housing Development Finance Corp, Larsen & Toubro, Mahindra & Mahindra and Reliance Industries.

Nestle India was indeed among the favorites in the FMCG package for investors. Shares of Maggi noodle maker rose nearly 3% to settle at Rs 20,875.05. The stock reached a lifetime high of Rs 21,050 earlier in trading.

Despite not-so-exciting gains, RIL’s shares joined the party on D-Street and rose more than 1% in trading. However, it ended with an increase of only 0.3%.

Solid trends in European markets contributed to bullish sentiment in domestic equities. Former Chancellor Rishi Sunak who was announced as the next Prime Minister of the United Kingdom (UK) boosted the mood across the European continent. Benchmark indices in Europe rose 1-2%.

US markets also opened in the green, extending gains from the previous session. Dow Jones Industrial Average was up more than 1%.

Global crude oil prices fell after data showed Chinese oil imports fell in September. China’s crude oil imports fell 2% year-on-year in September, according to reports. A drop in the price of crude oil is positive for India as it is a net importer of the commodity. Lower crude oil prices will reduce the trade deficit and also help the local currency.

More to come…

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