Stock market benchmark Sensex climbed 120 points today on the auspicious occasion of 'Dhanteras', and ahead of Coal India's debut tomorrow, to close at its highest level in three weeks on strong capital inflows.
In sync with the firm global sentiment, the Bombay stock Exchange's 30-share sensitive index settled the day higher by 120.05 points, or 0.59 per cent, at 20,465.74-- its best close since October 14, when the index had ended at 20,497.64.
The wide-based 50-share Nifty Index of the National Stock Exchange gained 0.68 per cent to finish the day at 6,160.50.
The upswing was led by metals, auto and financial stocks. The only laggard was oil & gas sector, with index heavyweight Reliance Industries Ltd among the major drags. RIL shed 0.8 per cent.
Analysts said all eyes are now on decision from the US Fed meet on its policy, especially on further economic stimulus to boost global economy and review from central banks in the UK, EU and Japan.
"Markets managed to garner smart gains on the auspicious occasion of 'Dhanteras', which is synonymous with wealth and prosperity. Besides, CIL's performance will decide the movement on the Street tomorrow," India Infoline Head of Research Amar Ambani said.
Metal stocks attracted strong buying and BSE Metal Index was the top performer among 13 sectoral indices. Sterlite rose 3.7 per cent, the most on Sensex, Tata Steel and Jindal Steel both 1.8 per cent and Hindalco 1.5 per cent.
Analysts said sector saw buying after Indian steel makers announced price cut of 2-3 per cent effective from November 1.
Major auto companies too were in demand, as most of the auto makers reported the highest ever monthly sales in October that was supported by the underlying momentum and a push from the ensuing festive season.
Tata Motors jumped 2.7 per cent, Hero Honda 0.7 per cent and M&M 0.32 per cent.
"This is seasonal trend and around this time of the year, manufacturers usually clear their channel inventories to meet the strong demand emanating from festivals such as Dushera, Id and Dhanteras," Elara Securities analyst Amol Bhutada said.
Financial stocks gained as investors took sigh of relief, after the Reserve Bank of India's statement that likelihood of further rate hike in immediate future is low. The central bank yesterday announced short-term lending and borrowing rates by 25 basis points.
SBI gained 2.19 per cent, HDFC 1.91 per cent, ICICI Bank 0.58 per cent and HDFC Bank 0.24 per cent.
"Although the overall action was aggressive than expected, the accompanying statement was much milder, with the Reserve Bank acknowledging that the likelihood of further rate hike in immediate future is low,"Edelweiss Capital note said.
ACC advanced 2.51 per cent, after the company reported an impressive rise in cement dispatch for October, analysts said.
