Nifty stays above 8,050; metal, auto stocks rally

Benchmark indices continued to trade at higher levels in late noon trades on sustained buying in metal and auto stocks. Further, US Federal Reserve policy meet outcome and October F&O expiry will be keenly watched by market participants.

At 2.15 PM, the 30-share Sensex is up 154 points at 27,035 and the 50-share Nifty has gained 41 points to trade at 8,068.

 

In the broader markets, the Small-cap index has gained 0.5% and the Mid-cap index edged higher by 0.7% almost in line with the benchmark index.

 

Meanwhile, the Indian rupee was trading higher at Rs 61.30 compared to previous close of Rs 61.32 ahead of the Fed meet outcome.

 

Across the globe:

 

Asian markets were trading higher tracking overnight gains in US stocks on the back of robust corporate earnings. Japanese were the top gainers in the region with the Nikkei up 1.4%. Shares in China were also trading firm with Shanghai Composite was up 1.5% while Straits Times was up 0.3% and the Hang Seng surged 1.3%.

 

European stocks are trading firm on Wednesday, following the previous session’s rally and tracking sharp gains on Wall Street as robust corporate results help offset brewing worries over the pace of global growth. CAC 40, FTSE and DAX are trading between 0.3-0.9% higher.

 

Sectors & Stocks:

 

On the sectoral front, BSE Auto is the top gaining index up 1.7% followed by BSE Metal, Consumer Durables, FMCG and Oi & Gas indices trading higher between 1-1.4%. However, BSE Healthcare and Power indices are losing sheen and are down between 0.2-0.5%.

 

Auto stocks edged higher on buzz of strong sales during the Diwali festive season. Hero MotoCorp is up 1.5% after the RBI allowed hike in FII shareholding in the company upto 49%. Maruti Suzuki is marginally up on launching the new version of its bestseller Swift which is 10% more fuel efficient. Tata Motors extended gains and is up 3% followed by M&M which has climbed 2.5%.

 

Stocks of capital goods have shrugged the reports that the union cabinet is likely to consider a proposal today, 29 October 2014, to liberalise foreign direct investment in construction sector. BHEL and L&T have dropped between 0.5-1.2%.

 

However, metal and mining stocks have gained in today’s trade. Tata Steel, Hindalco and Coal India have climbed between 1-4%. On the other hand, Sesa Sterlite has lost 0.3% ahead of the quarterly results.

 

Oil & Gas stocks have climbed in the today’s trade. Brent crude oil prices edged higher as investors awaited guidance from the Federal Reserve on US monetary policy later in the day and after industry data on US inventories came in more or less as expected. RIL, ONGC have advanced between 0.5-2%.

 

Dr Reddy's Laboratories Ltd, India's second-largest drugmaker by revenue, reported a 17% drop in its second-quarter profit, pushing its shares down nearly 3%. Sun Pharma is down 0.85. However, Cipla is up over 1%.

 

The technology stocks are trading higher on fresh buying. Infosys, Wipro and TCS have climbed between 0.5-2%.

 

Telecom major Bharti Airtel is down 1% on account of profit taking.

 

GAIL, HDFC twins and SBI are some of the notable names in red among others.

 

NTPC, the country's largest power generator, is down 0.45 in the noon trades. The company plans to foray into wind energy sector with its first project in Karnataka. The company will soon float tenders for first such project with a capacity of 100 Mw, a top company official said.

 

Market breadth is strong with 1,529 gainers and 1,252 losers on the BSE.