Sensex jumps 1,225 points for a fourth straight gain as FMCG shares lead

India's main share indices rose sharply for the fourth session in a row on Tuesday, led by consumer goods companies. The BSE Sensex closed 1,225.07 points, or 1.62%, higher at 76,917.85, and the NSE Nifty 50 gained 370.05 points, or 1.58%, to 23,810.85, according to closing figures reported by Business Standard and HDFC Sky.

The two indices have now gained about 5% over four sessions and are at their highest in nearly two months, HDFC Sky's market report said. It linked the rally to lower crude oil prices, renewed buying by foreign investors and better-than-expected September-quarter results. Not every report agrees on how long the run is: Zee Business described Tuesday as the second straight day of 1,200-point gains.

Who gained and who lost

Consumer goods companies led the market. Hindustan Unilever was the biggest gainer among the 30 Sensex shares, rising 4.16% to Rs 1,975, according to the HDFC Sky report. Reports differ on the size of the sector's rise: HDFC Sky put the Nifty FMCG index up 2.5%, while Business Standard reported a gain of about 3%.

Among Nifty 50 companies, BSE Ltd rose 5.03%, Nestle India 4.47%, Tata Consumer Products 4.29%, Asian Paints 3.99% and Bharti Airtel 3.77%. Realty, private banks and car makers also rose. State-run banks went the other way. The Nifty PSU Bank index fell about 1.4%, and SBI dropped 1.7% to Rs 970.25 on the day it reported a 14.3% rise in quarterly profit, driven by lower provisions rather than stronger core earnings. Power Grid was the biggest Nifty loser, down 3.04%. ONGC, Infosys and Adani Enterprises also fell.

Smaller companies rose less than the benchmarks: the Nifty Midcap index gained 0.8% and the Smallcap index 0.3%. On the BSE, 2,362 shares rose and 1,862 fell. Several companies jumped on results, including Marico and the rice maker KRBL, up about 10% each, HDFC Sky reported.

Oil, rupee and foreign money

The biggest outside influence on Indian markets remains the US-Iran crisis around the Strait of Hormuz. India imports most of its crude oil, so a lower price helps its trade balance, inflation and company margins. HDFC Sky reported that Brent crude had fallen about 7% to around $105 a barrel on hopes of a negotiated settlement between Washington and Tehran. It recovered about 1% after reports of fresh US strikes on Iran's Qeshm Island.

The rupee closed 16 paise stronger at 94.74 to the US dollar, from 94.90, HDFC Sky said. Foreign institutional investors bought a net Rs 3,115 crore of Indian shares on Monday, according to provisional NSE data quoted in the report, while domestic institutions sold a net Rs 392 crore. Foreign investors were net buyers in four of the five sessions before Tuesday.

What happens next

Investors are watching the result of Tuesday's US midterm elections, oil prices and any progress in the US-Iran talks mediated by Qatar and Pakistan. The September-quarter results season continues through the week. Ukraine's grid was hit by a large Russian attack overnight, and Middle East shipping remains disrupted, so oil prices are likely to stay volatile.