Sensex clocks 2nd biggest gain of 2015, up 565 points

Most Asian stocks ended higher on Monday after weak US jobs data eased worries that the US Fed would hike interest rates this year.

Benchmark shares indices surged on Monday to end over 2% higher, amid firm global cues, after fears of an immediate rate hike by the US Federal Reserve (US Fed) dimmed after weaker-than-expected US jobs data.   

Further, easing of redemption pressure from global emerging market funds also aided sentiment.   

The Sensex ended up 565 points - its second biggest gain of the year - to close at 26,786. The Sensex had gained 729 points on January 15, 2015.   

The 50-share Nifty also gained 165 points or 2.1% to close at 8,119.   

In the broader market, the BSE MidCap index and SmallCap index ended up 1.6-1.8% each. Market breadth ended strong with 1,996 gainers and 800 losers on the BSE.   

"The weak US jobs data does make the market believe that the rate cut by the US Fed won't happen in October but could be postponed to December or later.

Further, shortcovering along redemption pressures easing from global emerging market funds also aided the rally. Further, the rate cut by the RBI would help induce consumption over the medium term," says Vaibhav Sanghavi, Managing Director, Ambit Investment Advisors.  

The Indian rupee was trading higher by 27 paise at 65.24 to the US dollar on dollar sales by exporters and strong gains in domestic equities.  

GLOBAL MARKETS  

Most Asian stocks ended higher on Monday after weak US jobs data eased worries that the US Fed would hike interest rates this year. Shares in Japan and Hong Kong gained the most with benchmarks Nikkei and Hang Seng gaining over 1.5% each.  

European shares extended gains and were trading higher by over 2% on hopes that the US Fed won't hike interest rates soon following weak US jobs data. CAC-40, DAX and FTSE were up 2.1-3.2% each.  

SECTORS & STOCKS  

All sectoral indices were trading positive. BSE Capital Goods index was the top gainer up 3.3% along with Bankex, Power, Auto and Power indices among others.  

Financials were the top gainers. According to media reports Union Cabinet is likely to consider this week a proposal to recast Rs 4.3 lakh crore loans of nine state power distribution companies with a view to bring down their liabilities.  

Mortgage lender HDFC ended up 4.7% contributing the most to Sensex gaines along with HDFC Bank, ICICI Bank, SBI and Axis Bank which rose 1.9-4.9% each.  

ICICI Bank ended up 4.9%. The bank last week reduced its base rate by 35 basis points to 9.35%, which will be effective from today.  

Shares of AdaniPorts and Special Economic Zone (SEZ) and Larsen & Toubro (L&T) ended higher by 3-4% each on the bourses after both companies announced that they have inked a pact to oversee operations of KattupalliPort in Tamil Nadu.  

Tata Motors surged 6%. Reports suggest that Peugeot in talks with the company to make cars in India. Meanwhile,  passenger and commercial vehicles (including exports) were lower by 2% at 45,215 units, sold in September 2015, over 46,154 vehicles sold in September 2014.

In commercial vehicles, medium and heavy commercial vehicles (M&HCV) sales grew by 52% to 15,915 units in September 2015 over September 2014.

Bajaj Auto gained 2.8%. The company today reported 3.76% decline in total sales in September at 3,84,400 units as against 3,99,450 units in the same month last year.

However, Maruti Suzuki India was the top Sensex loser down 3.4% after global investment bank Jefferies downgraded the stock to "underperform" from "buy" and cut its target price to Rs 3,952.

Hero MotoCorp ended up 4%. LIC increased its stake in Hero MotoCorp to 7.16% at September end as compared to 4.77% for the quarter ended June.

NTPC gained 3%. The company will consider selling electricity to Bangladesh from its upcoming 750 MW plant at Kokrajhar in Assam once the neighbouring country finalises plans to buy power from Palatana project in Tripura.

IT major Infosys has surpassed private sector lender HDFC Bank, becoming the third most valued Indian firm in terms of market valuation, with TCS leading the top 10 companies chart, followed by RIL. Infosys ended up 0.6% and Reliance Industries ended up 2.8%.

Among other shares, Force Motors zoomed 15% on back of heavy volumes after the exchange raised the circuit limit of the stock from 5% to 20% with effect from today.