India’s Sensex and Nifty, the main stock indexes, had a very good start to Monday, because of good reports on the last three months from the big banks HDFC Bank and ICICI Bank – and also because world markets were getting better, as the trade war between the US and China seemed to be getting less bad. The S&P BSE Sensex went up 672.92 points to 84,625.11, and the NSE Nifty 50 went up 208.10 points to 25,917.95.
What Went Up
On the Sensex, the companies doing the best were Reliance Industries, Axis Bank, HDFC Bank, Kotak Mahindra Bank, and Infosys – all going up between 1 and 3 percent. The two biggest private banks in the country, HDFC Bank and ICICI Bank, both made a lot of profit in July-September, and their loans were better than before. HDFC Bank’s shares went up 1 percent, but ICICI Bank’s went down a little – by about 2 percent. Reliance Industries went up 2.7 percent, even though it didn’t make as much profit as people had thought, because many stock-brokers said its main businesses, its shops, and what it was expected to earn in the future were all strong. The whole market also did better, with medium-sized and small companies going up 0.7 and 0.2 percent.
What the Experts Say
Dr. VK Vijayakumar, main investment planner at Geojit Investments, said the force in the market, from a lot of buying by Indian companies and news of good sales of cars and home goods for the festival season, would probably continue, with more good news to come. The first results from the July-September period show that earnings are going up a lot, especially from HDFC Bank and Reliance. Sectors with the chance to grow are expected to do better than others as the market gets closer to new highs.
Anand James, main market planner at Geojit Investments, said that the firm close on Friday meant the market would go up on Monday. People are looking for it to go up further, but there may be more changes in price if certain levels aren’t reached.
What’s Happening in the World
Asian shares went up on Monday after reports of possible political agreements in Japan and China’s good results in the last three months, despite the trade war with the US. European markets also showed good numbers for the future, along with Wall Street, as people waited for the earnings season.
Gold prices stayed the same after going up last week, but oil prices went down because people were worried there was too much oil, because of the trade war. The Indian rupee got stronger against the US dollar, because of rises caused by the central bank and people in India buying dollars.
Figures from institutions showed that foreign and Indian companies were both making big moves in the share market on October 17th. Foreign companies bought shares worth almost 309 crore rupees, and Indian companies were net buyers of 1,526.6 crore rupees.
Generally, the Indian markets are going up after a weekend with a lot of earnings news, with good signs for continued growth and good feelings from investors driving the strong trend on.
