Nifty holds 7,900, Oil shares slip, ONGC down 2%

Benchmark indices continue to trade firm on sustained buying by fund and retail investors after the government announced more reforms and recommended the promulgation of an ordinance to facilitate e-auction of coal blocks for private companies for captive use and allot mines directly to state and central PSUs.

 

At 11.22 AM, the 30-share Sensex is up 129 points at 26,559 and the 50-share Nifty has gained 38 points to trade at 7,918.

 

Meanwhile, overseas investors snap five-day selling streak, buying shares worth 10.40 billion rupees ($169.9 million) on Monday, according to NSE data.

 

Rupee:

 

The Indian rupee contiues to trade higher at Rs 61.27 to the US dollar after the government on Monday decided to open up the coal industry to private players, raising hopes of more reforms.

 

Asian Markets:

 

Asian markets trimmed early gains and investors remained cautious despite the third-quarter growth data allayed concerns about an entrenching slow down in the Chinese economy. China's economy grew 7.3% between July and September from a year earlier, slightly above expectations. Other data showed factory output rose 8.0 percent in September from a year earlier, beating expectations for a 7.5% increase and up from August's six-year low of 6.9%. Shedding its gains from Monday, NIkkei has declined around 0.7% while Hang Seng and Shanghai Composite were trading marginally lower.

 

Sectors & Stocks:

 

On the sectoral front, BSE Power index is the top gainer up over 2% followed by Metal, Capital Goods, Consumer Durables and Realty indices trading higher between 1-2%. However, BSE Oil & Gas and Healthcare indices are losing sheen on the BSE. 

 

Shares of metal and power companies are trading higher by up to 2.5% on the BSE after the government on Monday said it would promulgate an ordinance to resolve issues arising out of the cancellation of coal blocks. Further, China's economy growth at 7.3% between July and September from a year earlier, slightly above expectations has influenced the trading sentiments.

 

Among individual stocks, Sesa Sterlite, Hindalco, NTPC, Tata Power and Tata Steel have gained between 1-6% on the 30-share Sensex.

 

The financial space is trading higher in the morning trades. ICICI Bank is up 1.6% while HDFC Bank is up over 1% ahead of its second quarter earnings. Axis Bank and SBI have gained over 1% each.

 

In the Capital Goods space, BHEL and L&T have gained 3.5% and 1% each on renewed buying.

 

Auto stocks which firmed up yesterday on expectations that lower diesel prices would lead to higher demand continue to trade higher in today’s trade.  Maruti Suzuki, Tata Motors and Hero MotoCorp are up between 1-1.6%.

 

GAIL, Bharti Airtel and Wipro are some of the notable names in green among others.

 

On the flip side, heavy selling is evident in the healthcare space. Drug makers, Sun Pharma, Dr Reddy’s Lab and Cipla are trading lower up to 1%.

 

Reliance Industries has extended its yesterday’s decline and is trading with marginal losses as the company will not get the new gas price for its currently producing Dhirubhai-1 and 3 gas fields in eastern offshore KG-D6 till it makes up for the shortfall in production in the past four years.

 

IT exporters and FMCG stocks are witnessing profit taking after the rupee strengthened against the US dollar. Infosys, TCS  and ITC are down  between 0.3-1%.

 

Oil and Gas major ONGC is down 1.6% on account of profit taking.

 

In the broader market, the BSE Mid-cap and BSE Small-cap indices are up between 0.8-1%.

 

Market breadth is strong with 1,397 gainers and 840 losers on the BSE.