SENSEX surges 564 points, NIFTY50 gains for fourth straight session as crude falls

The NIFTY50 index surged for a fourth session in a row while the 30-share SENSEX snapped its two-day losing streak on Monday, September 21, as investor sentiment turned positive tracking a drop in crude prices in global markets.

The SENSEX rose as much as 692 points and NIFTY50 index touched an intraday high of 23,467 led by gains in index heavyweights like HDFC Bank, Reliance Industries, Eternal, Larsen & Toubro, Ultratech Cement and ITC.

The SENSEX ended 564 points higher at 74,859 and NIFTY50 index advanced 106 points to close at 23,452.

Lower crude oil is beneficial for Indian economy as India imports majority of its crude requirements hence a surging crude can lead to higher import bill leading to higher inflation, analysts noted.

12 of 15 major sector gauges compiled by the National Stock Exchange (NSE) ended higher led by the NIFTY Pharma index's 1.16% gain. NIFTY Realty, Healthcare, FMCG, Consumer Durables and Oil & Gas indices also rose between 0.5% and 1.15%.

On the other hand, metal, select IT and PSU bank shares witnessed selling pressure.

Broader markets ended on a subdued note as NIFTY Midcap 100 index declined 0.3% and NIFTY Smallcap 100 index slipped 0.07%.

Among the individual shares, Patanjali Foods rose as much as 10%, its biggest single-day move in a year, to an intraday high of ₹399.40 on the BSE after its Chief Executive Officer (CEO) Sanjeev Asthana said that the company continues to see healthy urban demand, while higher input costs and the rural slowdown remain key factors to watch.

Tega Industries shares surged as much as 10% to hit their 52-week high of ₹2,149 after it secured an order worth ₹126 crore from Kalpataru Projects International.

The order covers the design, engineering, manufacture, inspection, transportation and supply of the equipment, along with supervision of erection, testing, commissioning and performance guarantee demonstration, as per the terms of the contract.

Marine Electricals shares rallied around 8% as investors reacted to the company’s latest capacity expansion update with the launch of its new manufacturing facility in Goa.

Eternal was top gainer in the NIFTY50 index, the stock rose 2.77% to ₹335. HCL Technologies, ITC, Sun Pharma, Reliance Industries, Max Healthcare, Titan, HDFC Life and SBI Life also rose between 1.5% and 2.5%.

On the flip side, Bharti Airtel, Adani Ports, Bajaj Finance, power Grid, Adani Enterprises, Wipro, Grasim, Infosys, Tata Steel and Tata Motors PV were top losers in the NIFTY50 index.

The overall market breadth was neutral as 1,735 shares ended higher while 1,858 closed lower on the NSE.