Sensex Today Zooms 787 Points; 4 Reasons Why Indian Share Markets Are Rising; Nykaa Share Price Rallies 20%

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After opening the day on a firm note, the Indian share market continued its momentum and extended gains as the session progressed to end 1.3% higher.

Indian share markets ended on a strong note, as softening crude prices helped ease inflation worries.

The rally was further heightened by stocks in the IT sector, auto sector, and banking sector as all sectoral indices ended in the green.

Metal stocks remained somewhat under pressure in today's session but still managed to gain.

At the closing bell, the BSE Sensex stood higher by 787 points (up 1.3%).

Meanwhile, the NSE Nifty closed higher by 225 points (up 1.3%).

HDFC, Mahindra & Mahindra, and Eicher Motors were among the top gainers today.

Apollo Hospital, DR Reddys Laboratories, and NTPC, on the other hand, were among the top losers today.

The SGX Nifty was trading at 18,058, up by 224 points, at the time of writing.

The BSE Midcap index ended higher by 1.2% while the BSE SmallCap index ended higher by 0.5%.

All sectoral indices ended in the green with stocks in the auto sector, capital goods sector, telecom sector, and energy sector witnessing most of the buying.

Among the best banking stocks, HDFC Bank inched 2.5% higher.

Shares of Maruti Suzuki, Eicher Motors, and Titan hit their 52-week highs today.

Asian stock markets ended on a mixed note. The Nikkei ended the day higher by 1.8%, while the Hang Seng plunged by 1.2%. The Shanghai Composite ended 0.7% lower.

The rupee is trading at 82.8 against the US$.

Gold prices for the latest contract on MCX are trading up by 0.3% at Rs 50,360 per 10 grams.

Meanwhile, silver prices for the latest contract on MCX are trading flat at Rs 57,500 per 1 kg.
 

4 Reasons Why Sensex Rallied Today

#1 Falling crude prices: Crude oil prices continued to fall, with the price of Brent crude at US$94.67 per barrel. It was caused by weaker-than-anticipated factory activity data from China and the worries that the country's expanding COVID-19 limitations would reduce demand.

#2 FII outflow slows down: Foreign institutional investors, or FIIs, have moderated the pace of redemptions in the Indian market after being net sellers in the previous two months. In fact, for the last two days, they were net buyers.

#3 Upbeat global cues: Following the conclusion of the tech bloodbath, Wall Street kicked off Friday on a high note, with Nasdaq inching higher by 2.8%.

Asian stock markets followed suit. The Nikkei index ended higher by 1.8% today.

#4: Dollar takes a breather: The sharp rise in the US dollar index, which had hastened up the outflow from the Indian indices, has also calmed down by roughly 1% over the past five days, reaching the 110-mark.

The rupee today appreciated 10 paise to 82.37 against the US dollar in early trade, tracking a fall in crude oil prices.
 

L&T secures significant EPC order from Saudi Arabia

In the news from the engineering sector, shares of Larsen and Toubro jumped 2%, hitting a 9-months high today.

Larsen & Toubro's Power Transmission & Distribution company has received numerous engineering, procurement, and construction (EPC) orders. The order is worth around Rs 10-25 bn in the current quarter to develop transmission lines and substations in Saudi Arabia.

Over 400KM 380kV overhead transmission lines will be engineered, designed, purchased, and built. Also, a new 230kV gas-insulated substation with related automation and protection systems will be created.

Commenting on it, Larsen and Toubro, in exchange filling, said,

These repeat orders from the largest electric energy system provider in the MENA region, the filing added, demonstrate the core strengths of the business and the customer confidence it has gained over decades of its association in Saudi Arabia.

The upgrading of the transmission network bodes well for providing reliable, safe, and efficient energy delivery.

It has started a comprehensive National Renewable Energy Program to achieve the ideal generation mix envisioned in its 2030 strategic goal.

Larsen & Toubro is an Indian multinational engaged in EPC projects, hi-tech manufacturing, and services. It operates in over 50 countries worldwide.

The company 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.
 

Minda Corporations partners Daesung Eltec

Moving on the news from the auto ancillary space, Minda Corporation jumped 3% today.

Minda Corporation has partnered with Daesung Eltec of South Korea to provide next-generation sophisticated driver assistance system solutions to India.

Through this partnership, the partners will provide advanced driver assistance systems (ADAS) for the passenger, commercial, and off-road vehicle segments.

Commenting on it, the Executive Director of Minda Corporation, Aakash Minda, said,

ADAS is a critical, futuristic technology with early signs of its adoption already visible in the Indian market. Current estimates from leading car manufacturers project that ADAS features relating to autonomous driving will become near ubiquitous in the next few years.

The partnership will feature a lane departure warning system, driver monitoring system, front collision warning system, and view monitoring system.

As part of the partnership, Daesung Eltec will assist Minda with the design, development, and validation of products and will be crucial in the design, validation, and setup of processes and manufacturing lines for ADAS systems.
 

DCX Systems IPO Receives Strong Response

Moving on to the news from the IPO space, DCX Systems IPO got fully subscribed on day one.

The IPO garnered bids of 16.6 m shares against an IPO size of 14.5 m shares outstanding. It got subscribed 1.1 times on its first day of bidding.

Following the company's successful mobilization of Rs 2.3 bn via anchor book last Friday, the offered size was decreased from 24 bn equity shares to 14.5 bn shares.

Retail investors initially exhibited strong interest, investing 5.3 times the number of shares given, while non-institutional investors' allotment received 85% of the subscriptions.

Against the 8.2 m shares available for qualified institutional investors, 4,032 shares have already been purchased by them.

Through its public offering, DCX Systems hopes to raise Rs 5 bn at a price range of Rs 197-207 per share. A fresh issue of Rs 4 bn and an offer-for-sale of Rs 1 bn are included in the offer, which expires on November 2.

The corporation will use the newly issued money for general corporate objectives, working capital needs, Capex investments in subsidiaries, and debt repayment.


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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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