After opening on a strong note, Indian share markets extended gains as the session progressed to register this year's third-highest daily close.

Benchmark indices bounced back in style and registered more than 2.5% gains.

The rally was led by the falling crude oil prices and the appreciating rupee. Most of the sector surged more than 2% today.

At the closing bell, the BSE Sensex stood higher by 1,564 points (up 2.7%).

Meanwhile, the NSE Nifty closed higher by 446 points (up 2.6%).

Bajaj Finance, Bajaj Finserv, and IndusInd were among the top gainers today.

There were no losers today as all stocks from benchmark indices ended in green.

The SGX Nifty was trading at 17,813 up by 432 points, at the time of writing.

Broader markets ended on a positive note. The BSE MidCap climbed 1.9% and the BSE SmallCap index ended higher by 1.4%.

Barring the telecom sector, all sectoral indices ended on a firm note today with stocks in the realty sector, IT sector, power sector, and finance sector witnessing most of the buying.

Shares of Page Industries, SFK India, and Bajaj Auto hit their 52-week highs today.

Ruchira Papers also announces a bonus issue in a 1:10 ratio with 10 October as the record date.

Reliance and Bajaj Finance were amongst the most active shares on the BSE today.

Asian stock markets ended on a mixed note. The Nikkei ended the day higher by 1.1%, while the Hang Seng inched lower by 0.4%. The Shanghai Composite ended 0.4% lower.

The rupee is trading at 79.5 against the US$.

Gold prices for the latest contract on MCX are trading down by 1.1% at Rs 50,894 per 10 grams.

Meanwhile, silver prices for the latest contract on MCX are trading lower by 0.7% at Rs 54,830 per 1 kg.

Here are four reasons why Indian share markets rallied today.
 

#1 FII Inflows

This month, FIIs have poured in about US$ 6 bn into Indian equities. This is the biggest inflow since December 2020.

With this short recovery, investors' nerves have calmed. But it remains to be seen when the stock markets will fully recover.
 

#2 Crude Oil Prices Fall

Oil prices dipped 0.7% today to US$104.2 a barrel after climbing 4.1% yesterday. The decline was because of the fear of inflation that will dent the demand for fuel.
 

#3 Strong Sectoral Gains

All the sectoral indices ended in the green today with auto, realty, and banking sectors leading the rally. It was a terrific Tuesday for the majority of sectors.
 

#4 Rupee Factor

The rupee has been falling for quite some time now. But today, it is appreciated. The rupee appreciated by 7 paise to 79.84 against the dollar, tracking the positive trend in equity markets.

The rupee's appreciation often attracts FIIs as it adds to the return for foreign investors.

In news from the FMCG sector, Hindustan Unilever was among the top buzzing stocks today.

The share price of HUL surged more than 3% today after the company launched the transform plastics challenge.

FMCG major Hindustan Unilever (HUL) has launched a program called Transform Plastics Challenge to back Indian tech startups working in the space of plastic waste management.

Under the program, HUL will invest Rs 16 m each in five homegrown tech startups that are developing solutions for plastic waste, plastic reuse, and compostable packaging. The said investment will be made in the form of grant and equity investments.

As a part of the program, the selected startups will also receive mentorship and additional support to grow their businesses.

The company is committed to collecting and processing plastic and further, aims to use 100% recyclable plastic for packaging by 2025.

Speaking of HUL, here's some interesting data on the stock, between 2002 to 2010, HUL's stock price went nowhere...have a look at the chart below:

A Journey of No Returns in a So-Called Safe Stock

The stock was basically in an 8-year coma. The returns could barely even make up for the inflation.

However, over the 2010 to 2020 period, HUL delivered a whopping return of 30% CAGR!

Moving on to news from the power sector, TD Power surged more than 6% today.

The Board of TD Power today approved a stock split in the ratio of 1:5.

The sub-division of one equity share with a face value of Rs 10 will be split into five equity shares with a face value of Rs 2.

The company is one of the leading manufacturers of AC Generators with output capacity in the range of 1 MW to 52 MW for prime movers such as steam turbines gas turbines hydro turbines wind turbines diesel and gas engines.

More By This Author: