Sensex Ended 461 points Higher & Nifty settled at 10,460

The return of strength in the markets comes ahead of the start of corporate earnings season and release of key macroeconomic data.

Stock markets, registered strong gains today boosted by advances across sectors except IT. BSE benchmark index Sensex ended 461 points higher at 34,760 while the NSE Nifty settled at 10,460, up 159 points from its previous close.

That marked a gain of 1.4 per cent and 1.5 per cent for the key BSE and NSE indices respectively. A rise in the rupee battered by around 16 per cent so far this year against the US dollar along with easing of concerns about the non-banking financial companies pushed the markets higher, according to analysts.

Things to know:

1) Banking, financial services and auto stocks led the gains today. Top gainers on the 50-scrip Nifty index included Bajaj Finance, Bajaj Finserv, Axis Bank, State Bank of India and Eicher Motors – closing between 5.5 per cent and 10 per cent higher.

2) The return of strength in the markets comes ahead of the start of corporate earnings season and release of key macroeconomic data.

3) The rupee rose as much as 23 paise against the dollar to hit an intraday high of 74.16, recovering from a record closing low registered the previous day.

4) Advances in other Asian peers and stronger domestic equities helped the trading sentiment, while the announcement of the first open market bond purchase for October aided bonds.

5) The Nifty IT a sectoral index on the NSE settled 1.5 per cent lower. Weakness in the rupee augurs well for exporters such as IT companies, as it boosts their profitability.

6) Analysts however expect the pressure in the equity markets to continue going forward.

7) “There has been a considerable meltdown in the past 10-15 days and it’s natural to see some bounce after that… There are rumours about NBFC space being addressed. The news about SBI buying assets may have helped,” news agency Reuters cited Dhananjay Sinha, head-institutional research, Emkay Global Financial Services, as saying.

8) State Bank of India said on Tuesday it is stepping up its target to buy “good quality” asset portfolios from NBFCs, bringing cheer to the sector which has been beaten after defaults by Infrastructure Leasing & Financial Services. Analysts say that allayed some concerns about the non-banking financial sector struggling with a cash crunch.

9) Domestic institutional investors (DIIs) net purchased equities worth Rs. 1,526 crore on Tuesday, while net sale by foreign institutional investors (FIIs) stood at Rs. 1,242 crore, according to provisional data from the NSE.

10) All eyes are now on the earnings season with information technology major Tata Consultancy Services Ltd set to report September-quarter earnings on .

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