Mumbai: The market stretched its winning run to a fourth session on Tuesday. The Sensex rose 1,225.07 points, or 1.62 per cent, to close at 76,917.85. The Nifty gained 370.05 points, or 1.58 per cent, to settle at 23,810.85. Both closed at two-month highs.
Over four sessions the Sensex has added 3,671.82 points, about 5 per cent, and the Nifty 1,112 points, or 4.89 per cent. The market capitalisation of BSE-listed companies rose by roughly Rs 4.74 lakh crore in a single session to Rs 486.74 lakh crore.
FMCG led the sector table, up 3.65 per cent at 45,580.05. Realty rose 2.30 per cent, private banks 1.98 per cent, financial services 1.84 per cent, cement 1.79 per cent and auto 1.71 per cent. The PSU Bank index was the worst performer, down 1.26 per cent, with metal down 0.13 per cent.
Among Sensex stocks, Hindustan Unilever rose 4.16 per cent to Rs 1,975, Bharti Airtel 4 per cent to Rs 2,065.90 and HDFC Bank 3.62 per cent to Rs 724.80. Asian Paints gained 3.53 per cent, UltraTech Cement 3.05 per cent and ICICI Bank 2.80 per cent. Power Grid fell 2.27 per cent, SBI 1.77 per cent and NTPC 0.87 per cent.
Traders point to three drivers. Brent crude rose 0.72 per cent to $105.6 a barrel, but only after a 7 per cent slide in the previous session. Foreign institutional investors bought equities worth Rs 3,114.68 crore on Monday, exchange data show. And sentiment was lifted by reports that the market regulator SEBI has recommended scrapping long-term capital gains tax for foreign equity investors, with the final call resting with the government.
Earnings have helped too. The rupee closed 16 paise stronger at 94.74 against the dollar.
Finance Minister Nirmala Sitharaman has acknowledged retail investors' anxiety over capital gains taxes and foreign outflows, saying the government will consider stakeholder feedback ahead of the coming Budget.
The market now heads into the Diwali week with the Nifty up nearly 5 per cent from its recent low.