 "Bombay Stock Exchange")
After a firm opening, markets continue to trade firm in the morning deals mirroring strength in the global peers on the back of firm US economic data. However, investors continue to remain on their toes as the countdown to Thursday’s Federal Reserve interest rate decision continues.
At 10:40 AM, the Sensex has gained 145 points to trade at 25,851 and the Nifty has climbed 34 points to trade at 7,863.
However, the broader markets are underperforming the large peers. BSE Midcap and Smallcap indices are trading flat. The market breadth is firm on the BSE with 1,108 advances versus 782 declines.
Meanwhile, the merchandise exports dropped 20.7% to $21.3 billion in August from $26.8 billion in the corresponding period last year owing to a slowdown in global markets and an uncertain global economic environment in view of a crisis in China.
MARKET OUTLOOK
“Nifty has been finding hurdle at 7880 levels from last two weeks. Hereafter the positive move may be witnessed if index manages to cross and hold above 7880 zones failing which it might slip backwards to the 7770 and 7750 levels. The markets will be watching FED meet and RBI policy so traders are required to remain cautious” according to Anand Rathi’s morning note.
“Sensex has been finding hurdle at around 25900 levels and now till the bulls manage to hold the index above 25600 levels, the support base buying may continue towards 25900 zones, while if it fails to hold 25500 zones then bears may again force the index to drift towards 25250 then 25000 zones,” further added.
STOCK TRENDS
On the sectoral front, 7 out of 12 sectoral indices are trading in green with BSE Healthcare and IT indices leading the rally up by 0.8%.
On the sectoral front, 7 out of 12 sectoral indices are trading in green with BSE Healthcare and IT indices leading the rally up by 0.8%.
Sun Pharma has bid to acquire US eye care company InSite Vision to expand its basket of specialty products and boost sales according to media reports. The stock is trading 2% higher.
Maruti Suzuki is tradin higher by 0.2% after the company stated that it is aiming for a double-digit growth in sales every year through this decade to hold on to its 45 per cent market share in India's passenger vehicle market.
Natco Pharma has raised Rs 340.88 crore by issuing shares to qualified institutional buyers. The company issued 16 lakh shares at a price of Rs 2,130.55 apiece. The stock is 1% up.
ONGC is likely to bid for some of the smaller fields it earlier surrendered as unviable following the unveiling of a new government policy to develop marginal oil and gas blocks. However, the stocks is down 0.4%.
Vedanta & Cairn India has received a nod from both exchanges BSE and NSE on the proposed merger of its oil and hydrocarbon arm Cairn India with itself. Vedanta has surged 1.33% while Cairn India is up over 1%.
Biocon has opened a facility to manufacture devices for its insulin portfolio. Spread over 10,000 square feet, the facility will manufacture pen like delivery devices for people with diabetes in India and other parts of the world. The stock has inched up in the morning trades.
The IT pack is trading firm in the morning trades on the back of a depreciating rupee. TCS, Wipro and Infosys are up between 0.6-1.5%.
On the other hand, capital goods majors BHEl and L&T are trading lower by 1.3% on account of profit booking.
NTPC, HUL and RIL are some of the prominent losers trading lower by 0.2%.
NTPC, HUL and RIL are some of the prominent losers trading lower by 0.2%.
GLOBAL STOCKS
Asian shares are trading firm tracking gains in the Wall Street higher on firm US economic data. However, investors braced for the possibility of the first interest rate hike in the United States in almost a decade.
U.S. shares rose 1 percent overnight, in part helped by data showing healthy growth in consumer spending, although retail sales for August were slightly below market expectations.
(with Reuters input)
(with Reuters input)
