The key equity barometers continued to trade with strong gains in mid-morning trade. The Nifty, however, traded below the 18,150 level. Auto shares extended gains for sixth consecutive session.
At 11:29 IST, the barometer index, the S&P BSE Sensex, was up 423.89 points or 0.70% to 61,170.48. The Nifty 50 index gained 129.60 points or 0.72% to 18,141.80.
In the broader market, the S&P BSE Mid-Cap index rose 0.67% while the S&P BSE Small-Cap index gained 0.26%.
The market breadth was strong. On the BSE, 1,961 shares rose and 1,361 shares fell. A total of 149 shares were unchanged.
The US Fed, which begins its two-day meeting Tuesday, is reportedly expected to deliver a fourth straight 75-basis-point rate hike on Wednesday in its attempt to tame inflation. Investors will also focus on the communication of the outlook.
On the numbers front in the US, the release of JOLTS job openings, construction spending and ISM manufacturing PMI data will remain on investor's radar.
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Economy:
The seasonally adjusted S&P Global India Manufacturing Purchasing Managers' Index (PMI) stood at 55.3 in October, up from 55.1 in September.
The latest figure was above its long-run average (53.7), indicating a stronger improvement in the health of the sector. The upward movement in the headline figure largely reflected stronger increases in employment and stocks of purchases.
Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence, said: "Manufacturers continued to loosen the purse strings as they expect demand buoyancy to be sustained in coming months.
There was a marked rise in input purchasing, with firms adding to their inventories to better align with client purchasing. Capacities were again expanded to accommodate for improving sales. The Future Output Index component indicated robust business optimism towards the year-ahead outlook for output.
Buzzing Index:
The Nifty Auto index rose 0.16% to 13,403.10. The index has added 5.57% in six sessions.
Sona BLW Precision Forgings (up 2.77%), Samvardhana Motherson International (up 1.55%), Tube Investments of India (up 1.14%) and Tata Motors (up 1.07%) were the top gainers.
Among the other gainers were Bharat Forge (up 0.47%), Mahindra & Mahindra (up 0.36%) and Bosch (up 0.11%).
On the other hand, Eicher Motors (down 0.96%), Ashok Leyland Ltd (down 0.78%), Balkrishna Industries (down 0.69%), TVS Motor (down 0.62%) and Maruti Suzuki (down 0.39%) moved lower.
Bajaj Auto rose 1.23%. The two-wheeler maker's total sales declined 10% to 3,95,238 units in October 2022 compared with 4,39,615 units sold in October 2021.
Escorts Kubota declined 2.49%. The company's total tractor sales rose 7.2% YoY to 14,492 units sold in October 2022 from 13,514 units sold in October 2021. The Construction Equipment Segment in October 2022 sold 384 machines as against 462 machines sold in October 2021, recording de-growth of 16.9% on a year-on-year basis.
Global markets:
Asian stocks are trading higher on Tuesday despite mild losses from Wall Street overnight as investors turned their focus to the Federal Reserve's policy meeting this week for hints on what comes next.
The Caixin manufacturing Purchasing Managers' Index for October showed that factory activity contracted for the third month in a row. The reading came in at 49.2. In September, the manufacturing PMI was at 48.1.
Hong Kong's gross domestic product fell by 4.5% in the third quarter of the year compared with the same period a year ago, advance estimates from the Census and Statistics Department showed Monday. That's the worst contraction since the second quarter of 2020. Fixed capital formation, or investment, decreased by 14.3%, while exports and imports also fell.
South Korea's trade deficit widened to $6.7 billion for the month of October from a revised figure of $3.78 billion in September, data from the customs agency showed. Imports rose 9.9% to $59.18 billion from the same period a year ago, while exports dropped 5.7% to $52.48 billion.
Meanwhile, the Reserve Bank of Australia raised interest rates by 25 basis points for the second consecutive time, in line with expectations. This is the seventh consecutive tightening move by the RBA in a bid to control inflation in the country.
US stocks lost ground on Monday as investor focus turned to the Federal Reserve's policy meeting this week.
As per reports, the central bank may raise interest rates by 75 basis points on Wednesday, but investors will look for any signals the Fed may be considering a deceleration in interest rate hikes in the future.
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