Sensex ends at 60,138, Nifty surges 274 points on positive macro data

• Follow

After a three day of relentless sell-off domestic benchmark equity indices saw a strong pullback rally amid buoyant GST collection, Manufacturing PMI in expansion territory for the fourth month in a row and renewed buying interest following the recent correction. At close Sensex skyrocketed 831 points or 1.40% to recouping the 60,000-mark and ended at 60,138. While the Nifty 50 settled at 17,946 surging 274 points or 1.55%.

“Domestic indices bounced back on a positive footing from the recent sell-off, due to strong momentum in global markets, favourable domestic economic data and good Q2 results announcement. India’s manufacturing PMI increased to 55.9 in October from 53.7 in September as output and new orders improved amid easing Covid restrictions. The sustenance of the trend will depend on the views provided by Fed regarding the current easy money policy to be announced on Wednesday,” said Vinod Nair, Head of Research at Geojit Financial Services.

Gainers & losers

Top gainers & losers on the Sensex.

Sectoral indices

Among the sectoral indices, the Nifty Realty index swelled 4.03% as registration in Mumbai for the month of October hit a ten of 8,307. Even the Nifty Metal rallied 3.06% after state-owned steel mill SAIL reported a ten-fold jump in its net profit to Rs 4,338 crore. Nifty IT index advanced 2.56% after a sharp sell-off was witnessed last week. While Nifty Bank, Nifty Auto & Nifty FMCG rose anywhere between 1-1.6%.

The volatility gauge India VIX cooled off further by 1.09% to 17.23 levels.

Broader markets

The broader markets also mirrored the gains in benchmark indices as the BSE MidCap index jumped 442 points or 1.75% to 25,720. Whereas the BSE SmallCap index settled at 28,293 higher by 310 points or 1.11%.

Bulls outpowered bears in today’s session as 2,171 shares advanced while 1,137 declined and 193 remained unchanged.

Economy

The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) stood at 55.9 in October 2021, rising from 53.7 in September 2021. The latest figure pointed to the strongest improvement in overall operating conditions since February 2021. The figure was in expansion territory for the fourth month in a row.

Goods and Service Tax (GST) collections for October, the beginning of a demand-boosting festive season, came in at Rs 1.30 lakh crore, compared with Rs 1.17 lakh crore in September, indicating strengthening economic recovery in the second half of the fiscal year 2021-22.

October GST collections were not only the second-highest for the fiscal year, but the second-highest monthly collections since the introduction of the nationwide tax in 2017. The highest ever was also this year, at Rs Rs 1.41 lakh crore in April.

Global markets

European shares opened higher while Asian stocks were mixed on Monday, 1 November 2021, as investors reacted to economic data that showed a mixed picture of Chinese manufacturing activity in October.

China’s official manufacturing Purchasing Managers’ Index for October came in at 49.2 over the weekend, below the 50 level separating expansion from contraction. However, a private survey released Monday showed Chinese manufacturing activity growth in October expanding — with the Caixin/Markit manufacturing PMI coming in at 50.6.

Investors will be monitoring the US Federal Reserve’s two-day meeting Tuesday and Wednesday. The central bank is widely expected to announce that it will begin to unwind its $120 billion in monthly bond purchases and end the program entirely by the middle of next year.