Closing Bell: Sensex surges 724 points, Nifty ends above 12,100; metals shine
The Indian benchmark equity indices, Sensex and Nifty ended higher Thursday led buy led by gains in broad-based buying in metal, energy and banking stocks amid positive global cues.
The Sensex ended 724.02 points or 1.78 percent higher at 41,340.16 while the Nifty surged 211.80 points or 1.78 percent to close at 12,120.30. Nifty Bank ended over 2 percent higher.
Broader indices participated in the rally with Nifty Smallcap100 and Nifty Midcap100 indices gaining more than 1.7 percent each.
Rally in index heavyweights such as Reliance Industriesand Bajaj Finance.
Among sectors, Nifty Metal and Nifty Media rallied the most over 4 percent each followed by Nifty PSU Bank, Nifty FMCG, Nifty Auto and Nifty IT.
Hindalco Industries, IndusInd Bank, SBI, Tata Steel and BPCL led gains among Nifty50 constituents while Hero MotoCorp and HDFC Life Insurance were the only index losers.
HPCL's share price rally 10% post buyback announcement, strong Q2 earnings
Hindustan Petroleum Corporation Limited's share price rallied 10 percent on Thursday after the company reported a two-fold jump in its September quarter net profit, and also announced a buyback plan worth of Rs 2,500 crore.
The stock gained as much as 10 percent to Rs 205.35 per share on the NSE. At 1:58 pm, the shares traded 9 percent higher quoting Rs 203.6 apiece.
Rise in refining margins and inventory gains aided the net profit of the company, which came in at Rs 2,477 crore as compared to Rs 1,052 crore a year back.
The company earned $5.11 on every barrel of crude oil turning into fuel in Q2FY21 as compared to $2.83/barrel for the same quarter previous year. Besides, the firm also had a forex gain of Rs 524 crore.
It also announced a buyback of up to 100 million (10 crore) shares of Rs 250 apiece amounting to a total of Rs 2,500 crore. This will be done via open market route, said the company's exchange filing.
Ravindra Rao, VP- Head Commodity Research at Kotak Securities: Comex gold was trading modestly higher near $1,907/oz after a 0.7 percent decline the previous day. Gold traded higher as the possibility of a contested election in the US increased the safe-haven appeal.
Mixed US economic data, rising virus cases and hopes of additional stimulus measures also lent support. However, ETF outflows and a firm dollar weighed on prices.
Gold may witness choppy trade until US elections results are clear but general bias may be on the upside on hopes of additional measures.
PVR, Inox Leisure's shares rally after Maharashtra reopens cinema halls with 50% capacity from tomorrow
The share price of PVR and Inox Leisure soared on Thursday after Maharashtra government finally allowed cinema halls and multiplexes to reopen from tomorrow with 50 percent occupancy, outside the containment zones.
PVR's share price surged as much as 8.6 percent to Rs 1,194.15 apiece on the NSE while Inox Leisure's shares gained up to 5.7 percent to Rs 274.80.
Furthermore, the order from the state government said that people would not be allowed to have eatables inside the theatres.
This is apart from all the indoor stadiums, swimming pools and yoga institutes - again, outside containment zones - that will be allowed to function Thursday onwards, said the notification. All these facilities will have to strictly observe social distancing and sanitisation norms.
The Union government had allowed multiplexes, theatres and cinema halls to reopen about a month back (October 14) following strict standard operating procedures (SOPs). The Ministry of Home Affairs had then left it to states to take the final call on the matter.
Keshav Lahoti, Associate Equity Analyst, Angel Broking: Maharashtra accounts for ~25% revenue for the multiplex industry, so it is very important that theatres open in Maharashtra so that movies that are expected to get good occupancy plan their release. The Maharashtra Government allowed the reopening of cinema halls, theatres and multiplexes in the state from November 5 with 50% occupancy in areas outside containment zones only. We see this as a positive development for the multiplex industry.
We believe gradually things are improving for the industry. We don't have big expectations of box office collections around Diwali festival. Although, we believe movies releasing around Christmas should report decent box office collections. We are bullish on PVR and Inox Leisure as long term fundamentals are still intact for the industry and stocks have corrected ~40% due to Covid-19.
Vehicle bookings jump 100% in festive season, says Tata Motors
The vehicle bookings have jumped as much as 100 percent in the festive season, said Shailesh Chandra, the President of the passenger vehicle (PV) business of Tata Motors in conversation with CNBC-TV18.
He also said that the share of pent-up demand has decreased and the shift to personal mobility is driving demand.
“It has been overwhelming to see the response that we have in the festive season this year. In the Navaratri we saw a jump of more than 100 percent as far as bookings are concerned compared to last year’s Navaratri,” he said. Click here to watch the video