After opening in the green, the stock market's special one-hour Muhurat Trading session closed on a positive note.
Sensex ended 295.70 points higher or 0.49 percent at 60,067.62. The broader Nifty added 91.80 points or 0.51 percent at 17,921. About 2,535 shares have advanced, 514 shares declined, and 146 shares are unchanged.
Suto and PSU Bank indices added over a percent each while the midcap and smallcap indices are up 0.5-1 percent each.
Market opens on positive note
The stock market indices opened on a buoyant note during the special one hour Diwali muhurat trading session to mark the beginning of Samvat 2078, the Hindu New year.
A special hour-long session held every year on Diwali day - the Muhurat trade - marks the start of the Hindu New Year for the domestic equity market.
"Bollywood Actress Bhagyashree with Ashish Chauhan, MD & CEO BSE Indiaand others Ringing the Opening Bell to mark the Deepavali Muhurat Trading," BSE India tweeted.
Before the opening, a Laxmi puja was also performed here in Mumbai.
Ashish Chauhan performed the Puja along with his family members at BSE office located at Dalal Street in Mumbai's Kala Ghoda. Bhagyashree was also present during the puja and offered prayers to Goddess Laxmi. With the completion of this Puja, the special one-hour long 'Mahurat Trading' session commences in BSE. The market will close at 7.15 pm
The initial trade saw the key equity indices - S&P BSE Sensex and NSE Nifty50 -- make handsome gains. The 30-scrip Sensex made gains during the initial period of the trade session. It was at 60,192.36 points, up 420.44 points, or 0.70 per cent, from its previous close at 59,771.92 points.
Consequently, the Nifty50 of the National Stock Exchange (NSE) gained 115.65 points, or 0.65 per cent around 6.25 p.m., to trade at 17,944.85 points from its previous 17,829.20 points.
Brokers said buying activity gathered momentum as investors opened their books on the first session of Samvat 2078.
All BSE sectoral indices were in the green, led by auto, consumer durables, bankex and oil and gas. M&M led the gainers' pack, spurting 2.76 per cent, followed by ITC, Kotak Bank, L&T, SBI, Bajaj Auto and Nestle India.
Meanwhile, foreign institutional investors (FIIs) net sold shares worth Rs 401.48 crore on Wednesday, while domestic institutional investors bought to the tune of Rs 195.55 crore, as per exchange data.
Palak Kothari, Research Associate, Choice Broking said, "On the auspicious day of Muhurat trading, we are expecting markets to be bullish as on the back of the global and SGX Nifty market, the index can show gap-up opening. The Index has support at 17,600 levels, a sustained above the same can show upside momentum while crossing above 18030-18050 levels can show upside movement with fresh buying position. One can initiate a long position in the index till it doesn't breach 17,600 levels, buy on dips is suggested."
Stock specific movement can be expected as HPCL, SBICARD, DABUR, SBIN are looking strong on charts. "We are advising clients to invest in quality stocks as we are expecting markets to be rallied in the upcoming week. At present, the Index has support at 17,600 level while 18,030 levels can be treated as immediate resistance crossing above the same can 18,300-18,400 levels," Kothari said.
Dhiraj Relli, MD & CEO, HDFC Securities said, "After a great year for equity markets, investors are looking forward to markets continue rising though not at the same pace. Global headwinds in the form of rising inflation and withdrawal of monetary stimulus may impact the momentum, but strength in Indian macros and improving micros may help offset these. Investors need to conduct portfolio review, asset allocation review, and raise the quality of stocks held in their portfolio."
The stock market had a spectacular year on the back of the support from retail investors and domestic institutions. The base of equity investment in the country has also increased with record additions of new Demat accounts. Another encouraging sign is the IPOs. So far, in 2021, over 40 companies have floated their IPOs to raise more than Rs. 70,000 crore, said Marwadi Shares and Finance.
The continuous support from the government to ease the stress of the telecom sector, the production-linked incentives for auto and auto-part manufacturers also helped to lift the mood in the stock market amidst the pessimism.
Gold prices up
Gold price rose during Muhurat trading session. On the Multi-Commodity Exchange (MCX), December gold price fell 0.23 per cent to Rs 47,540 for 10 grams at 1830 hours on November 4.
