Sensex Today Rallies 567 Points; 4 Reasons Why Indian Share Market Is Rising

After opening the day on a positive note, Indian share markets continued the momentum as the session progressed and ended the day on firm footing.

Domestic equities jumped on Tuesday mainly due to positive trends in the Asian market. A day after witnessing a sharp slump, both Sensex and Nifty gained significantly despite concerns over the Israel-Hamas conflict that has also pushed crude oil prices higher.

At the closing bell, the BSE Sensex stood higher by 567 points (up 0.9%).

Meanwhile, the NSE Nifty closed up by 178 points (up 0.9%).

Infosys and HDFC Bank were among the top gainers today.

Hindalco and Coal India were among the top losers today.

Check out the NSE Nifty heatmap to get the complete list of gainers and losers.

The Gift Nifty was trading at 19,729, up by 128 points, at the time of writing.

Broader markets ended on a positive note. The BSE Midcap index and the BSE SmallCap index rose 1.2%.

Sectoral indices ended on a positive note with stocks in the realty sector, metal sector, auto sector, and energy sector witnessing buying.

Shares of L&T Technology and TVS Motors hit their 52-week highs today.

Now track the biggest movers of the stock market using the stocks to watch today section. This should help you keep updated with the latest developments...

Asian share markets ended higher. The Hang Seng rose 0.8% while Nikkei ended 2.4% higher.

The rupee is trading at 83.24 against the US$.

Gold prices for the latest contract on MCX are trading marginally higher at Rs 57,610 per 10 grams.

Meanwhile, silver prices for the latest contract on MCX are trading 0.3% lower at Rs 68,900 per kg.
 

4 reasons why the Indian share market is rising

#1 Upbeat Global Cues

Positive trends in global markets have also contributed to the gains in the domestic market.

Asian shares rose on Tuesday in line with Wall Street's high note. MSCI's gauge of Asia Pacific stocks outside Japan was up 1.2%. Japan's benchmark Nikkei average rose 2.4% while Australia's S&P/ASX 200 rose for a fourth straight session to gain 1.2%.

Wall Street equities closed higher on Monday, led by energy stocks on rising crude prices.

#2 Oil Edges Lower

Oil prices edged down slightly on Tuesday after gaining more than 4% in the previous session as markets weighed the potential for supply disruptions as the conflict between Israel and the Palestinian Islamist group Hamas continued.

Brent crude fell 0.2% to US$ 87.97 a barrel, while US West Texas Intermediate crude eased 16 cents or 0.2% to US$ 86.22 a barrel.

#3 Rupee Factor

The Indian rupee rose 4 paise to $83.23 against the US dollar in early trade. The dollar index, which tracks the movement of the greenback against a basket of six major world currencies, declined 0.02% to 106.06 level.

#4 Index-heavyweight shares rally

The positive momentum in markets was further supported by a rally in shares of heavyweights.

Shares of Tata Motors, Tata Stee, and Bajaj Finance gained over 1% each today.
 

L&T's New Order Win

In news from the engineering sector, Larsen & Toubro (L&T) on Tuesday said that it has bagged significant orders for its water and effluent treatment vertical.

The company did not provide the value of the contracts but said the orders fall under a significant category, which ranges between Rs 10 bn and Rs 25 bn, as per its classification of contracts.

The water and effluent treatment business has secured an engineering, procurement, and construction order from the Public Health Engineering Department, Rajasthan to construct a water supply project for 648 villages of the district of Chittorgarh from the Chambal River under the Jal Jeevan Mission (Package-I).

Another order has come from the Guwahati Water Supply and Sewerage Board, Assam for the construction and commissioning of balance works of 107 MLD (minimal liquid discharge) capacity South Guwahati West Water Supply Project.

Larsen & Toubro is a US$ 23-billion Indian multinational company engaged in engineering, procurement, and construction projects, hi-tech manufacturing, and services.

L&T Shares hit a one-year high. To know why, check out Why L&T Share Price is Rising.

chart

Note that L&T has rewarded investors with 10 bonuses over the last 7 decades and the CAGR over the last 20 years stands at an impressive 25.6%.

L&T has been an investor's favorite stock for a long time and also a stock that makes it to the top 5 infrastructure stocks.

In line with its commitment to a sustainable future, L&T is poised to make significant strides in the green hydrogen landscape. 
 

Nifty Realty surges Most 2009. Here's why.

Moving on to news from the realty sector, realty stocks were among the most sought-after on 10 October 2023 amid optimism over the festival season that is about to commence and encouraging second-quarter business updates from companies. Consequently, the Nifty Realty index was the biggest sectoral gainer at noon.

Nifty Realty index was up 4.4%, led by gains in Prestige Estates, which surged more than 12%. Sobha, Godrej Properties, Oberoi Realty and DLF had gained between 4 and 7%.

In the first half of the current financial year (H1FY24), the Prestige Group said it registered record-breaking sales of Rs 110 m, up 69% from the year-ago period, and collections of Rs 53.8 bn, up 13%.

Unsold housing stocks in Tier 1 cities dropped to 5,08,464 units in the third quarter of this calendar year from 5,26,497 in the year-ago period, representing an 11% decrease.

On the other hand, new launches were up 2% in these cities at 97,871 houses in the September quarter from 96,408 in the year-ago period.

The September quarter saw an 11% decline in new launches from the previous quarter due to lower demand following a rise in property prices as well as mortgage rates but that hasn't deterred investors.


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Disclosure: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity ...

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