The Indian stock market is trading at day’s high on October 7 with Sensex up 692.30 points, or 1.17 percent, at 59882.03, and the Nifty jumping 200.20 points, or 1.13 percent, at 17,846.20 ahead of the RBI monetary policy.
The market rally was largely led by gains from the auto sector, which jumped close to 4 percent. The top gainers from the auto space included Tata Motors, surging over 9 percent followed by Ashok Leyland, Mahindra & Mahindra and Maruti Suzuki, which gained 4-5 percent each.
The realty index surged over 6 percent led by stocks including Sobha which surged over 13 percent followed by Godrej Properties, DLF, Oberoi Realty and Prestige Estates which jumped 4-9 percent each.
According to Mohit Nigam, Head – PMS, Hem Securities, the Indian economy is in a much better position than viewed in the RBI’s August meeting, as indicated by improving high frequency indicators such as e-way bills, steel consumption, import of capital goods and vehicle sales. Manufacturing has also rebounded post second wave but we believe recovery remains uneven and needs support through coordinated fiscal-monetary action.
“The Reserve Bank of India (RBI) is likely to keep repo rate unchanged and there is a low probability of hike in reverse repo rate by 10 to 20 bps and is likely to signal unwinding of its accommodative stance on monetary policy from December 2021. The RBI’s announcement would however be closely watched to see how it addresses underlying and emerging concerns on the inflation front given the oil, natural gas and coal prices showing no signs of abating,” he said.
As market edges higher, 274 stocks hit new 52-week high on BSE including names like Titan Company, Sobha, Chambal Fertilisers, Tata Motors, PAGE Industries, Godrej Properties, Bata India, IRCTC, United Spirits and Tata Elxsi among others.
Among individual names, share price of Titan Company spiked over 10 percent, hitting new 52-week high. The company’s market capitalisation breached the 2 lakh crore mark and was tarding at Rs 2,10,050.21 crore at 12:49 hours.
“Titan Company is up mainly due to the company recording revenue growth of 78% YoY in Q1 FY22. It is targeting to gain market share in the jewellery segment due to strong focus on wedding segment, huge scope for store expansion (40-50 stores every year), and gold harvest and gold exchange schemes,” said Amarjeet Maurya – AVP – Mid Caps at Angel One.
“Further, the shift from unorganized (currently 70%) to organized (currently 30%) in the jewellery segment will benefit branded players like Titan due to strong brand positioning and superior quality. Thus, we are positive on stock,” he added.
The other index gainers included Mahindra & Mahindra, Maruti Suzuki, IndusInd Bank, Tata Motors and HCL Tech.
The midcap and small cap indices also edged higher, adding over a percent each. The top midcap gainers included Oberoi Realty, Aditya Birla Fashion, Godrej Properties, PAGE Industries and Indian Hotels among others while the top smallcap gainers were Best Agrolife, Nureca, Sobha, GM Breweries and Chambal Fertilisers.
Catch all the market action on our live blog
All eyes will now be on the RBI policy and rate sensitive stocks which may get impacted as the economy continues to recover and manufacturing starts to rebound.
Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
