Why were HDFC and Tata Motors in the limelight in the markets on 06 October?

At a sectoral level it was banks and autos that actually spurred the Nifty 1.38% higher to 11,662 and the Sensex higher by 600 points on 06 October. Incidentally, this is the highest Nifty close in 7 months since the pandemic impact first hit the Indian shores.

At a macro level, the markets were pleased that the credit policy will be announced as early as 09 October and that the new MPC members were also inclined to adopt a dovish stance. In addition, markets are also betting on a solid economic recovery in next 2 quarters.

In terms of specific stocks, the rally was driven by two heavyweight stocks; HDFC and Tata Motors. Both stocks gained over 8% on Tuesday. For HDFC, the big thrust was that the loan business, especially the individual loan business was almost back to pre-COVID levels. Even moratorium borrowers had come down.

On the other hand, Tata Motors benefited substantially from the better than expected numbers of JLR for the month of September as growth was above 53%. Most of the key markets like China, Japan and the EU region showed strong growth for JLR, the biggest contributor to the top line and the bottom line of Tata Motors.