Muhurat Trading: Sensex Ends Nearly 200 Points Up; Nifty Above 11,600 
Brokers, along with their families, trade as ceremonial purchases of stocks are made during the session marking Diwali at the Bombay Stock Exchange in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Muhurat Trading: Sensex Ends Nearly 200 Points Up; Nifty Above 11,600 

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Closing Bell: Sensex Gains Nearly 200 Points; Nifty Ends Above 11,600

Indian equity benchmarks ended higher in a ceremonial and shortened trading session, thus starting Samvat 2076 on a positive note.

The S&P BSE Sensex rose 0.49 percent or 192 points to end at 39,250 and the NSE Nifty 50 rose 0.38 percent to 11,628. The broader markets represented by the NSE Nifty 500 Index rose 0.5 percent.

In the mid- and small-cap space, the NSE Nifty MidCap 100 rose 1.2 percent and the NSE Nifty SmallCap 100 rose 1.18 percent.

The market breadth was tilted in favour of buyers. About 1,317 stocks advanced and 386 shares declined on National Stock Exchange.

All the 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Auto Index’s 1.4 percent gain.

Market Commentary: Why Gaurav Bissa Is Cautious On Tata Motors

There is some more upside that can be expected (in Tata Motors), according to Gaurav Bissa, associate vice president at LKP Securities.

I’m not saying it’ll fall right away. But I would be cautious at these levels. The support is at levels of 130-132. For the long-term, the picture is still not very strong.

Market Commentary: Rahul Arora Thinks Nifty May Touch 14,000 By Next Samvat Only If…

“If we don’t have any more ‘Zees’, ‘Dewan Housings’ and ‘IL&FS’ in the next year, if there is no more deterioration in the U.S.-China relationship, and if we get that much-talked-about personal income tax cut, then my sense is the Nifty could be somewhere between 13,500-14,000 by next Samvat,” said Rahul Arora, CEO (institutional equities business) at Nirmal Bang Securities.

So, we are talking about 15-18 percent headline index gain from where we are now. That’s the blue sky scenario if nothing else was to go wrong, ceteris paribus. If globally things hold out, I don’t think crude will misbehave too much.

In a slightly uncertain global environment, I don’t think exports and imports are in your control in a very material way. So, you are down to CING (consumption, investment, and government spending). With the corporate tax cuts, the government’s fiscal deficit on books is 3.9 percent and off books is probably 4.4-4.3 percent (and then you add the state). There’s not too by way of government spending that can happen. So, you are down to CIN,” Arora said.

“Corporates will only invest when there’s demand. So, you have to revive demand to start off with. That’s where personal income taxes come in. The big theme is going to be to put money back in the hands of people so that they go out and start consuming. There’s probably a consensus that’s building up and why some auto stocks have started to do really well over the past month or so. I am far more optimistic in this Diwali than I have been over the last two or three Diwali,” he said.

F&O Check: Nifty 11,600 Put Option Contract Falls 22%

Nifty’s 11,600 put option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the contract, which is set to expire on Oct. 24, fell 21.6 percent to Rs 52.15. Over 3.66 lakh shares were added to the open interest which stood at over 22.94 lakh shares.

Market Commentary: What IIFL's Sanjiv Bhasin is Betting On

IIFL's Sanjeev Bhasin says insurance stocks are a no-brainer. Eicher Motors has turned out to be an outperformer despite pessimism on the scrip, he said. “But I am not very bullish on the over-owned large caps in terms of adding more positions.”

Stocks Moving On Heavy Volumes

Linde India

  • Stock rose as much as 4.8 percent to Rs 561.
  • Trading volume was more than four times its 20-day average.

Future Lifestyle Fashions

  • Stock rose as much as 4.1 percent to Rs 416.95.
  • Trading volume was more than three times its 20-day average.

IRCON International

  • Stock rose as much as 3.7 percent to Rs 423.
  • Trading volume was more than three times its 20-day average.
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