A morning walk down Dalal Street | Nifty must hold above 10,280 for move towards 10,480

A day of fireworks on D-Street exactly 1 week before Diwali. The S&P BSE Sensex rallied over 500 points while the Nifty50 came close to 10,400 levels.

The final tally – Sensex closed 550 points higher at 34,442 while the Nifty50 jumped 188 points to end at 10,386. Market witnessed short covering rally after the government issued a statement asserting that autonomy of the central bank is essential within the framework of the RBI Act.

Section 7 of the RBI Act, when invoked, allows the government to consult with and give instructions to the Governor of the RBI on certain issues that it believes are serious and are in public interest. Interestingly, Section 7 has never been invoked in independent India. And it was not because everything has been hunky dory over the past seven decades.

Sectorally, IT, consumer durable, finance, pharma stocks rose 2-4 percent while metals sector was the only sector on the losing front, down 1.4 percent.

Broader marker too witnessed a gains of over 1 percent. Sensex gainers: HDFC, IndusInd Bank, Infosys up 4-5 percent. Sensex losers: Tata Steel, Maruti Suzuki, Adani Ports down 1-2 percent.