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The market spurted on Wednesday led by rally in financial shares. Gains were triggered by value buying after recent steep fall in share prices. The central bank's decision to inject liquidity into the system through purchase of government bonds also improved sentiment.

The Sensex rose 461.42 points or 1.35% to settle at 34,760.89, its highest closing level since 4 October 2018. The index rose 558.88 points, or 1.63% at the day's high of 34,858.35. The index rose 47.03 points, or 0.14% at the day's low of 34,346.50.

The Nifty 50 index rose 159.05 points or 1.54% to settle at 10,460.10, its highest closing level since 4 October 2018. The index rose 181.30 points, or 1.76% at the day's high of 10,482.35. The index rose 17.20 points, or 0.17% at the day's low of 10,318.25.

Among secondary barometers, the BSE Mid-Cap index rose 4.23%. The BSE Small-Cap index rose 3.67%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was strong. On BSE, 2060 shares rose and 606 shares fell. A total of 135 shares were unchanged.

Among the sectoral indices on BSE, the S&P BSE Realty index (up 4.44%), the S&P BSE Consumer Durables index (up 3.77%), the S&P BSE Finance index (up 3.55%), the S&P BSE Bankex (up 3.53%), the S&P BSE Industrials index (up 3.44%), the S&P BSE Capital Goods index (up 3.40%), the S&P BSE Consumer Discretionary Goods & Services index (up 3.16%), the S&P BSE Auto index (up 2.82%), the S&P BSE Power index (up 2.69%), the S&P BSE Utilities index (up 2.54%), the S&P BSE Basic Materials index (up 2.29%), the S&P BSE Metal index (up 1.88%), the S&P BSE Healthcare index (up 1.80%), the S&P BSE Telecom index (up 1.77%), the S&P BSE Oil & Gas index (up 1.76%), the S&P BSE FMCG index (up 1.66%) and the S&P BSE Sensex index (up 1.35%), outperformed the Sensex. The S&P BSE Energy index (up 1.26%), the S&P BSE Teck index (down 1.07%) and the S&P BSE IT index (down 1.52%), underperformed the Sensex.

National Aluminium Company (Nalco) rose 9.34% after the company said that its board will meet on 12 October 2018 to consider the proposal for buyback of the fully paid-up equity shares of the company.

Shares of the non-banking finance companies (NBFCs) surged after State Bank of India (SBI) reportedly said that it will increase its planned purchase of portfolios from non-banking financial companies.

Among NBFC shares, Shriram Transport Finance Corporation (up 13.18%), Bajaj Finserv (up 10.06%), Edelweiss Financial Services (up 9.99%), Bajaj Finance (up 9.91%), Mahindra & Mahindra Financial Services (up 9.79%), Muthoot Finance (up 9.23%), Cholamandalam Investment and Finance Company (up 9.19%), Muthoot Capital Services (up 7.75%), Reliance Capital (up 6.85%), LIC Housing Finance (up 6.72%), Manappuram Finance (up 6.7%), IDFC (up 6.55%), IIFL Holdings (up 4.19%) and Indiabulls Housing Finance (up 3.61%), edged higher.

State-run SBI jumped 5.88%. SBI reportedly said it will increase its portfolio purchase of loans from non-banking finance companies (NBFCs) this year as it looks to provide the much needed liquidity to the funds-starved sector, and simultaneously fulfil its priority-sector obligations. The bank is looking for opportunities both in priority and non-priority sectors. The bank had initially planned for a growth of Rs 15,000 crore through portfolio purchase during the current year, which is now being enhanced. As per the bank's internal assessment, there may be an opportunity to buy an additional portfolio in the range of Rs 20,000 to Rs 30,000 crore.

Among other banks, Axis Bank (up 6.62%), Yes Bank (up 4.44%), ICICI Bank (up 4.18%), Vedanta (up 2.86%) and Kotak Mahindra Bank (up 2.66%), edged higher.

Shares of aviation companies rose after media reports suggested that the government has sought for Election Commission's nod for cutting excise duty on jet fuel. Jet Airways India (up 7.78%), Spicejet (up 4.37%) and Interglobe Aviation (up 2.98%), edged higher.

On the macro front, based on an assessment of prevailing liquidity conditions and also of the durable liquidity needs going forward, the Reserve Bank of India (RBI) has decided to conduct purchase of the following Government securities under Open Market Operations for an aggregate amount of Rs 12000 crore on 11 October 2018 through multi-security auction using the multiple price method.

In the foreign exchange market, the rupee recovered against the dollar. The partially convertible rupee was hovering at 74.18, compared with its close of 74.39 during the previous trading session.

In the global commodities markets, Brent for December 2018 settlement was up 2 cents at $85.02 a barrel. The contract had risen $1.09 a barrel or 1.30% to settle at $85 a barrel during the previous trading session.

Asian shares ended mixed on Wednesday after a mixed finish on Wall Street overnight. US stocks closed mostly lower Tuesday after a volatile session as investors continued to fret over the implication of higher bond yields on equities. The Nasdaq, however, snapped a three-day losing streak in line with a rebound in technology shares.

US President Donald Trump said Tuesday that he did not like the Federal Reserve's decision to continue hiking interest rates. The US central bank last raised its benchmark interest rate by a quarter point in September, while raising its expectations for economic growth for this year and next.

On the US data front, the National Federation of Independent Business small-business optimism index fell 0.9 point in September, falling from a 45-year high to a seasonally adjusted level of 108.8.

#The shares of Punjab National Bank Ltd recommended around Rs.62.65 yesterday today touched Rs.67 and closed at Rs.66.35. The rising interest rate scenario and positive management commentary will take the scrip to Rs.72, within this week, if this rally continues. 

#The shares of State Bank of India today reached my 1st target of Rs.271 and touched Rs.280.45. It closed at Rs.278.65 up 5.97%. Higher interest rates boost bank profits as they increase the spread between what banks earn by funding longer-term assets, such as loans, with shorter-term liabilities.

#The stock of Global Offshore Services Ltd, the erstwhile Garware Shipping Corporation/Garware Offshore Services was recommended on Twitter and also to the Premium Members based on the crude oil price hike;  at around Rs.12. The scrip closed at Rs.13.1 today, having touched Rs.13.25, intraday. Incorporated on Sep. 20, 1976, Global Offshore Services Ltd belongs to Garware group of companies. It operates in one business segment, chartering of its fleets on hire basis. Average age of its fleet on a consolidated basis, stands at just over 6 years & could be considered to be one of the “younger” fleets in the sector.  One positive development regarding reducing the overcapacity in the sector is that Demolition of OSVs is increasing. Also, it is not expected that all such unemployed units will be reactivated. It is pertinent to mention that over-supply of vessels was caused by over-ordering during the previous boom and easy bank credit. 

It will not too much of an exaggeration to reiterate that Rise in Crude Oil prices is directly proportion to the OSV market, in which companies like Global Offshore Ltd work.  Offshore oil production is projected to increase at a CAGR of 2% from 2017 to 2027, to reach 31.1 m bpd (30% of global oil output). Already with the rise in oil prices, there is some momentum in oil exploration activities in the North Sea market. The year on year demand in 4000+DWT PSV category has increased by 15%. Charter rates in the spot market have also increased in North Sea. Therefore, there is a RAY of HOPE of the sector fundamentals improving in future as the Crude Oil Prices are moving North. The scrip fell from around Rs.850 to the current price of Rs.13.10. Therefore, if the things work as per plan, then this single piece could make you millionaire in the long term. However, there is always a high risk associated with this kind of stock.

#The scrip of Yes Bank Ltd recommended to the Premium Members at around Rs.185 today touched its 2nd target of Rs.237, before closing at Rs.233.90, up 4.12%. The 1st target of Rs.221 was reached a couple of days back. 

#The Nifty did get support along 10286 levels, as was mentioned a number of times to the Premium Members on their Whatsapp. For tomorrow's Nifty Values, one should subscribe to the Premium Membership. If you are really interested in making money you need to join a professional team. With reasonably accurate F&O predictions you can make good money out of Option Trading, with Small Capital. Just take into note how much money people would have made in Yes Bank Ltd and Punjab National Bank Ltd through OPTIONS.  Also, if you have lost money earlier, then bring some cash, I will help to recover that amount. Also, I'm generally active in Twitter during the market hours. You can join me there at: suman2009s.

~~With inputs from Capital Market Live News....