 "Sensex hits fresh highs; TCS, Infosys up more than 2%")
After a flat start, benchmark indices have gained momentum and are trading firm in the noon trades with Sensex hitting all time high of 27, 359 led by gains in technology and financial stocks ahead of the F&O expiry.
At 1 PM, the 30-share Sensex is up 251 points at 27,349 and the 50-share Nifty is up 73 points at 8,164.
In the broader market, both BSE Mid cap and Small cap indices have gained between 0.2-0.5%.
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Across the Globe:
Asian markets continue to trade mixed. Nikkei shares have risen to a fresh three-week high on optimism about the U.S. economy and is up by around 0.8%, boosted also by impressive corporate earnings and a weaker Yen. Hang Seng has declined 0.6% on gloomy company results while Shanghai Composite has gained around 0.1% after the State Council, China's cabinet, said on Wednesday it will promote consumption in six sectors, including e-commerce, new energy, housing, tourism, education and sport.
The Federal Reserve on Wednesday, 29 October 2014, ended its monthly bond purchase program and signaled confidence the US economic recovery would remain on track despite signs of a slowdown in many parts of the global economy. "The Committee continues to see sufficient underlying strength in the broader economy to support ongoing progress toward maximum employment in a context of price stability," the central bank's policy committee said in a statement following a two-day meeting. The timing and pace of rate hikes would depend on incoming economic data, the Fed said.
Sectors & Stocks:
On the sectoral front, BSE Realty is the top index up over 2.5% followed by IT, Consumer durables and Oil & Gas indices. However Power and Auto indices are losing sheen on the BSE.
Among IT shares, Infosys and TCS have gained around 2.5% each while Wipro has gained above 1%. Shares of IT exporters which earn major part of their revenues from exports to the US firmed up post US Federal Reserve Bank's encouraging comments about the US economy.
Tech Mahindra is up over 4% after its reported encouraging July-September quarter earnings backed by strong growth in the US and better client mining.
Among pharma shares, Dr Reddy’s has rebounded after closing weak yesterday and is gaining more than 1.5% while Sun Pharma has gained around 0.2% and Cipla is flat.
An upsurge is observed in the financial stocks. HDFC twins and Axis Bank have gained between 0.5-1%. ICICI Bank is up 0.5% ahead of the quarterly results.
YES Bank has moved higher by 2.5% to Rs 656, also its record high on National Stock Exchange (NSE), after reporting a better-than-expected 30% year on year jump in net profit at Rs 483 crore for the second quarter ended September 2014 (Q2), on back of healthy net interest income and lower provisioning. The private sector lender had profit of Rs 371 crore in the same quarter last fiscal.
Oil and Gas shares also witnessed buying at lower levels after the recent correction. Reliance Industries, ONGC and GAIL are up between 0.7-1.5%. Reliance is seen to be benefitting from diesel deregulation as it can allow the company to revive its retail outlets. According to a Business Standard report which quoted the retailers, the company has decided to re-open the company-owned pumps first and it will spend Rs 50 lakh on renovating each one of them.
State-owned Oil and Natural Gas Corp (ONGC) has edged past Reliance Industries (RIL) to be the highest-ranked Indian energy firm on this year's Platts Global 250 Rankings.
Shares of real estate companies are trading higher by up to 6% after the government has relaxed the norms for allowing foreign direct investment (FDI) in the construction development sector. The move will boost affordable housing projects and smart cities across the country.
On the flip side, auto shares have lost sheen and are down on profit booking. M&M has lost 1% while Bajaj Auto along with Maruti Suzuki which is under pressure ahead of its quarter earnings to be released later today are trading flat.
Among Sensex heavyweights, ITC is up 0.2%. The company’s plan to develop a market for e-cigarettes is set to hit a roadblock with the Union health ministry planning to impose a ban on all products described as “Electronic Nicotine Delivery Systems (ENDS)”.
Telecom major Bharti Airtel is trading flat on caution ahead of the quarterly results.
Market breadth is positive on the BSE with 1,441 advances against 1,160 declines.