The Indian stock market ended on a positive note on Wednesday, October 5, 2023, as investors cheered the easing of Covid-19 restrictions and the improvement in the manufacturing sector. The BSE Sensex rose 405.31 points or 0.62% to close at 65,837.14, while the NSE Nifty gained 114.15 points or 0.59% to settle at 19,543.60.
L&T, M&M, HDFC Bank among top performers
Among the Sensex constituents, Larsen & Toubro (L&T) was the top gainer, surging 3.35% to Rs 3,080.65 per share. The engineering and construction giant reported a 49% year-on-year growth in its order inflow for the second quarter of FY24 at Rs 42,343 crore.
Mahindra & Mahindra (M&M) was another major contributor to the rally, rising 2.77% to Rs 894.80 per share. The automaker announced that it will launch its electric SUV, eXUV300, in the first quarter of 2024.
HDFC Bank also supported the market sentiment, advancing 1.56% to Rs 1,664.05 per share. The private sector lender said that it has received approval from the Reserve Bank of India (RBI) to appoint Sashidhar Jagdishan as its managing director and chief executive officer for a period of three years.
Other notable gainers on the Sensex were Hindustan Unilever (HUL), Titan Company, Oil and Natural Gas Corporation (ONGC), Eicher Motors and Hindalco Industries.
IT stocks under pressure amid rising US bond yields
On the flip side, information technology (IT) stocks witnessed selling pressure amid rising US bond yields and a stronger dollar. The US 10-year Treasury yield climbed to a three-month high of 1.54% on Tuesday, as investors anticipated higher inflation and interest rates in the world’s largest economy.
Tata Consultancy Services (TCS), Infosys, HCL Technologies and Tech Mahindra were among the top losers on the Sensex, shedding between 0.6% and 1.8%.
Broader markets outperform benchmarks
The broader markets outperformed the benchmarks, as midcap and smallcap stocks continued to attract buying interest. The BSE Midcap index rose 1.05% to 27,287.64, while the BSE Smallcap index gained 1.18% to 30,056.67.
The sectoral indices on the BSE also ended in the green, except for IT and Teck. The BSE Capital Goods index was the best performer, jumping 2.41%, followed by BSE Auto index (up 1.82%) and BSE Bankex index (up 1.28%).
Market outlook
Analysts expect the market to remain upbeat in the near term, as the festive season demand and the economic recovery boost corporate earnings. However, they also caution against the risks of rising commodity prices, global volatility and Covid-19 variants.
“The market is likely to maintain its positive momentum in October as well supported by strong Q2 earnings expectations especially from cyclical sectors which are likely to see sharp recovery in revenues and margins,” said Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services.
“However, investors would keep an eye on rising bond yields globally which could lead to some volatility going ahead,” he added.
