Sensex resumes rally after 1-day hiatus, rises 273 points on gains in Airtel, bank stocks

NEW DELHI: Buoyed by somewhat favourable AGR verdict and strong global cues, stock market bulls made a comeback on Dalal Street on Tuesday lifting domestic equity indices.

However, the session was marked by volatile movements as investors braced judgement on the AGR dues, new margin norms kicking in and the reaction to the Q1 GDP numbers. August auto sales data also led to individual stock movements.

The 30-share Sensex rose 272.51 points or 0.71 per cent to 38,900.80, thanks to heavy buying in Bharti Airtel, select private bank and financial stocks. NSE flagship Nifty advanced 82.75 points or 0.73 per cent to 11,470.25.

"Indian markets exhibited heightened volatility following publishing of GDP data and SC ruling in the AGR case for telecom companies. Global cues were positive following Chinese factory data which indicated demand increasing. Liquidity, driven by high FII inflows in August, has provided good support for the markets,” said Vinod Nair, Head of Research at Geojit Financial Services.

Market at a glance

• SC allows telcos to pay AGR over 10 years; Voda Idea slumps 13%
• BSE Telecom top sectoral gainer on BSE; Bharti Airtel spikes 7%
• India VIX eases, tanks 5% to close below 22-level
• Broader market indices also back to winning ways, gain up to 1%
• 81 stocks at 52-week highs: Adani Green, IndiaMart and L&T Infotech top names
• Worst is over, India experiencing a V-shaped recovery, says CEA
• India's factory activity grows for first time in five months in August

Improvement in factory activity after a long gap and positive comments from KV Subramanian, the Chief Economic Advisor also helped the sentiments. Now, the investor focus will shift to the recovery in the economy and progression of coronavirus for further clues.

Among bluechip stocks, Bharti Airtel topped the gainer’s chart, jumping 7.11 per cent to Rs 549.60 after the Supreme Court’s decision. JSW Steel, Hindalco, Asian Paints, Bajaj Finance, NTPC and Tata Steel followed with gains of 4-7 per cent.

On the other hand, Bharti Infratel was the top Nifty loser, down 5.11 per cent to Rs 188.40 after the company decided to proceed with its merger with Indus Towers. ONGC, Axis Bank, Adani Ports, Infosys, Tech Mahindra and Zee Entertainment were among other major losers.

Broader market indices traded in line with their headline peers. Nifty Smallcap added 0.37 per cent and Nifty Midcap 0.82 per cent. Both indices have fallen significantly in the previous session.

PVR, Balrampur Chini Mills, Affle India, Ipca Laboratories, Jindal Steel and AU Small Finance Bank gained in the range of 5-7 per cent. GNFC, Spandana Sphoorthy, Wockhardt Pharma, Future Retail, Endurance Technology and Mahanagar Gas were top losers, down up to 10 per cent.

Most sectoral indices gained thanks to low level buying in their constituents. Nifty Metal was the top gainer, up 3.15 per cent. Nifty Pharma also advanced 2.34 per cent. Nifty FMCG and Nifty Media also registered decent gains. Nifty PSU Bank and Nifty IT, however, slipped marginally.

Market breadth was in favour of losers with 1,199 stocks ending in the green while 1,458 names closing with cuts. As many as 81 securities hit 52-week highs, mostly from the smallcap space. Meanwhile, 43 names hit 52-week lows, mostly from the microcap space. About 211 stocks hit the upper circuit and 337 lower circuit limit.

Globally, stocks in France and Germany were trading with gains while the market in London was down over a per cent. Tokyo’s Nikkei and Hong Kong’s Hang Seng closed flat but main indices of Taiwan, South Korea, Indonesia and China ended the day with gains.

Let’s prepare for tomorrow

• Moratorium case: The Supreme Court would hear the issue of interest being charged by lenders on deferred EMIs of term loans following the lifting of the moratorium.

• Auto sales: More auto companies will report sales data for August that may lead to stock-specific movements.