Mumbai
The Indian stock market began the post-Diwali session with a bang on Tuesday, with the benchmark Sensex surging 582 points to close at a near four-month high on hopes of more economic stimulus measures and income tax cuts.
Starting the first full session of Samvat 2076 on a bullish note, the 30-share Sensex soared over 666 points before settling 581.64 points, or 1.48 per cent, higher at 39,831.84. It hit an intra-day high of 39,917.01 and a low of 39,254.12.
Likewise, the broader NSE Nifty rallied 159.70 points, or 1.37 per cent, to close at 11,786.85.
Bourses saw a broad-based buying throughout the day as sentiment was further boosted by encouraging quarterly corporate earnings and US-China trade deal optimism.
On the Sensex chart, Tata Motors emerged as a standout performer surging about 17 per cent after the company reported narrowing of losses in the September quarter.
Other major gainers were Tata Steel, Yes bank, Axis Bank, Maruti Suzuki, Tech Mahindra and TCS -- rising as much as 7.09 per cent.
Shares of Reliance Industries (RIL) also ended 2.30 per cent higher after the company on Friday said it will set up a new subsidiary to bring all its digital initiatives and apps under a single entity, and infuse Rs 1.08 lakh crore equity into this new unit.
On the other hand, Bharti Airtel, Kotak Bank, PowerGrid and SBI fell up to 3.41 per cent.
Sectorally, BSE auto and metal indices rallied up to 4.25 per cent; followed by energy, industrials and IT indices, rising up to 2.32 per cent.
On the other hand, BSE telecom index was the only sectoral loser, 4.39 per cent.
Broader BSE midcap and smallcap indices too rose up to 1.12 per cent.
"Markets are surging towards all-time highs amid expectations of further stimulus measures and income tax cuts as well. Besides, the Q2 earning numbers from large-cap companies have been better than expectations so far, with no major negative surprises," Paras Bothra, President of Equity Research, Ashika Stock Broking, said.
Analysts said that the surge in the auto companies, post severe correction in the past one year, is driven by revival in volume sales this festive season along with hope of a possible rationalization of personal income tax by the government to boost consumption.
Early signs of improving in consumer spending in the festive season, the government's focus on stimulating the economy along with favourable global cues have taken the benchmark indices to four-month high level today.
The result season has also been fairly decent this time around and is not likely to result in any material downgrade in earnings estimates at Sensex/Nifty level.
Optimism over US-China trade deal and delay over Brexit decision till January likely to remove uncertainties in the medium term, he added.
Elsewhere in Asia, Shanghai, Hong Kong and Seoul ended on a negative note, while Tokyo closed in the green.
Europe was trading in the red in early deals.
Meanwhile, the Indian rupee closed with marginal gains at 70.84 against the US dollar.
Brent crude futures, the global oil benchmark, fell 0.97 per cent to USD 60.97 per barrel.
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