Markets surge after opening flat on back of gains in the metal shares; Asian markets remain subdued on weak GDP data from China. The Sensex is trading flat, up 115 points to 19,987, and the Nifty has risen 36 points, at 6018.
Asian markets are trading mixed; China’s economic growth ebbed in the third quarter, investors have shrugged-off overheating concerns in China as Inflation was marginally higher at 3.6%. Shanghai Composite index has risen 0.2%. Hong Kong's Hange Seng index has gained 0.4% on back of gains in financial stocks. Japan's Nikkei share average surged 0.2%, resource related and commodity shares are lending support. Seoul Composite and Strait Times are trading marginally in the red.
The Coal India issue was subscirbed 12 times yesterday which has led to some profit booking on the Indian bourses. Vikram Kotak, CIO from Birla Sun Life said, "large-sized and attractively priced IPOs like Coal India have surely led to some profit-booking in the secondary market." Furthermore, 'stellar performance of Indian equity markets with Sensex delivering 12% returns in September has led the equity markets to take some breather and consolidate," added Kotak.
Kotak expects the equity market to trade in an 8-10 per cent range in the near-term.
cement stocks are under pressure in the morning session, ACC and Ambuja Cement are the top losers on Nifty, down 2.1% and 1.8% each.
Financials are leading the losses, HDFC Bank has declined 0.5%, Punjab National Bank and Kotak Mahindra Bank are trading marginally in the red.
Top gainers on the Nifty are Power Grid Corporation, up 2%, followed by GAIL, up 1%, Bharti Airtel, and Cipla, are also up 1% each.
From the metal space, Sterlite and Hindalco have risen almost 0.8% each.
