After opening the day on a strong note tracking the trend on SGX Nifty, Indian share markets continued their momentum throughout the day and ended on a firm footing.

However, benchmarks BSE Sensex and NSE Nifty trimmed gains towards the end.

Indian indices took cues from the overnight rally on Wall Street and soared.

The wholesale price-based inflation fell to 10.7% in September 2022 for the fourth consecutive month due to a decrease in the cost of food, fuel, and manufactured goods further driving the market sentiment.

At the closing bell on Friday, the BSE Sensex stood higher by 685 points (up 1.2%).

Meanwhile, the NSE Nifty closed up by 171 points (up 1%).

Infosys, HDFC Bank, and HDFC were among the top gainers today.

ONGC, Mahindra & Mahindra, and JSW Steel, on the other hand, were among the top losers today.

The SGX Nifty was trading at 17,204 up by 247 points, at the time of writing.

Broader markets ended on a flat note with the BSE Midcap index and the BSE SmallCap index ending 0.1% lower.

Sectoral indices ended on a mixed note with stocks in the IT sector, finance sector, and banking sector witnessing most of the buying.

On the other hand, stocks from the realty sector, power sector, and auto sector witnessed selling pressure.

Among the best banking stocks, HDFC Bank and Kotak Bank gained over 2%.

Shares of TVS Motors, Sun Pharma, and RITES, hit their 52-week highs today.

Infosys, Reliance, and HDFC Bank were among the most active shares on the BSE today.

Asian stock markets ended on a strong note. The Nikkei ended higher by 3.3%, while the Hang Seng was up 1.2%. The Shanghai Composite ended 1.8% higher.

The rupee is trading at 82.3 against the US$.

Gold prices for the latest contract on MCX are trading down by 0.6% at Rs 50,884 per 10 grams.

Meanwhile, silver prices for the latest contract on MCX are trading lower by 0.7% at Rs 57,140 per kg.

Here are four reasons behind today's rally.
 

Reasons why Indian Market Rallied Today

#1 Upbeat global cues

After a six-day losing streak, shares in the US market staged a comeback on Thursday, with Dow Jones soaring 2.8% and Nasdaq rallying 2.2%. Asian peers Nikkei and Hang Seng also ended on a strong footing.

#2 Rupee factor

The rupee has been falling for quite some time now and recorded its all-time low on Monday this week. This falling trend reversed today as it appreciated. The rupee appreciated by 7 paise to 82.2 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.

#3 Falling crude oil prices

Brent crude remained down this week by 3% after two weeks of gains amid recession concerns. Brent crude was today trading at US$95 a barrel.

#4 IT stocks uplift sentiment

After beating street estimates in their Q2 performance, a heavy volume was seen in IT stocks. IT giants Infosys, HCL Tech and Mindtree gained in the range of 3-5% post-declaration of their results.

Infosys beat estimates and reported results while also announcing a buyback plan. Meanwhile, HCL Tech raised its revenue guidance for 2023.

Speaking of stock markets, Rahul Shah talks about ITC's performance in the volatile market, in his latest video.

ITC has defied the trend in a market, where even the highest-quality firms have had trouble providing investors with favorable returns.

In the news from the banking sector, Federal Bank's share price was among the top buzzing stocks today.

The share price of Federal Bank jumped 5% after strong Q2 results.

The company reported a net profit of Rs 7 bn, up 53% YoY from Rs 4.6 bn in the same quarter last year.

The NII (Net Income Interest) of the bank rose by 19% YoY to Rs 17.6 bn during the quarter from Rs 14.7 bn last year.

While the NIM (Net Interest Margin) improved to 3.3% in the quarter, higher by 10 basis points YoY.

With the reduction in the gross Non-Performing Assets (NPA) to 2.5% from 2.7% in the previous quarter, the asset quality has also shown improvement. This was the lowest recorded gross NPA in the last 24 quarters.

Net NPA also dipped to 0.78% from 0.94% in the previous quarter. This was the lowest recorded net NPA in 34 quarters.

However, provision and contingencies were recorded at Rs 2.7 bn, down from Rs 2.9 bn in September 2021.

The total deposits in the September quarter of 2022 rose to 3.2%. The CASA (Current Accounts and Saving Accounts) deposits grew by 2%.

Despite the prevailing volatility, shares of Federal Bank have gained more than 48% in 2022.

Moving on to news from the engineering sector, Apollo Micro Systems' share price was also in focus today.

Shares of Apollo Micro Systems surged 10% intraday today on Rs 1.9 bn warrant issue.

Shares of the smallcap company hit its 52-week high in the early deals on the issuance of warrants to tune in Rs 1.9 bn.

Upon the issue of warrants, an amount equivalent to 25% of the total issue size shall be called upfront from the proposed allottees. The warrants will be issued on a preferential issue basis.

Apart from this, the company's board also approved increasing the authorized share capital to Rs 360 m of Rs 10 each.

Apollo Microsystems is an electronic, electro-mechanical, engineering designs, manufacturing, and supplies company. The company has also participated in several indigenous missile programs, underwater electronic warfare, underwater missile programs, and many more.

In the last year, Apollo Micro System shares have almost doubled shareholders' money by delivering 98% returns.

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