Market Wrap October 27: SENSEX, NIFTY50 resume rally after a day's pause on strong global cues

The Indian equity benchmarks resumed their rally on Monday, October 27, after a pause in the previous session on the back of strong global cues. The benchmarks have surged in last seven out of eight sessions and during the course the SENSEX has advanced 3.35%.

In Monday's session, the SENSEX rose as much as 720 points and NIFTY50 index moved above its important psychological level of 26,000 at the day's highest level driven by gains in index heavyweights like Reliance Industries, Bharti Airtel, HDFC Bank, State Bank of India, Eternal and ITC.

The SENSEX ended 567 points higher at 84,779 and NIFTY50 index advanced 171 points to close at 25,966 mirroring gains in equities globally.

Global market update

Asian markets ended higher on optimism over easing trade restrictions by the United States after reports suggested that US and China reached an agreement on a range of contentious topics ahead of talks between US President Donald Trump and China's President Xi Jinping to finalise a deal and ease trade tensions that have rattled global markets.

After two days of talks in Malaysia wrapped up Sunday, a Chinese official said the two sides reached a preliminary consensus on topics including export controls, fentanyl and shipping levies, according to a report by news agency Bloomberg.

US Treasury Secretary Scott Bessent said that Trump’s threat of 100% tariffs on Chinese goods “is effectively off the table” and he expected the Asian nation to make “substantial” soybean purchases as well as offer a deferral on sweeping rare earth controls. The US wouldn’t change its export controls directed at China, he added, Bloomberg report added.

Meanwhile, expectations of rate cut by the US Federal Reserve also sparked bullish sentiment for equities. US markets ended at record highs on expectations of rate cut by the US Federal Reserve on better-than-expected inflation data.

Sectoral landscape

Back home, buying was visible across sectors as 13 of fifteen major sectoral gauges compiled by the National Stock Exchange ended higher led by the NIFTY PSU Bank index's over 2% gain. NIFTY Oil & Gas, Auto, Metal, Realty, Bank, IT and Financial Services indices also rose between 0.4-1.5%.

Broader markets also witnessed buying interest as NIFTY Midcap 100 index rose 0.93% and NIFTY Smallcap 100 index climbed 0.82%.

Stock reactions

Among the individual shares, Vodafone Idea shares rose as much as 9.56% to hit an intraday ₹10.54 on Monday amid news reports that the Centre said it was willing to reconsider the telco's request in the AGR case and the Supreme Court allowed the Union to take a decision, as it is in the policy domain.

Shares of Bharat Rasayan declined as much as 8.89% to an intra-day low of ₹10,722 after the company’s board approved the subdivision of its equity shares and the issue of bonus shares in a 1:1 ratio to eligible shareholders.

Shares of the Noida-based information technology company, Coforge, rose as much as 6.05% to hit an intraday high of ₹1,866.60 after it reported its September quarter earnings post market hours on Friday.

NIFTY50 gainers and losers

Grasim was top gainer in the NIFTY50 index, the stock rose 3.22% to ₹2,932. SBI Life, Bharti Airtel, State Bank of India, Reliance Industries, Eternal, Hindalco and Tata Motors Passenger Vehicles also rose between 1.66-3%.

On the flipside, Kotak Mahindra Bank, Bharat Electronics, Bajaj Finance, Adani Enterprises and ONGC were laggards in the NIFTY50 index.

The overall market breadth was neutral as 2,179 shares ended higher while 2,113 closed lower on the BSE.