Sensex gains over 200 points, Nifty holds 8,300; Midcaps underperform

Benchmark indices continue to hold on to their gains with Sensex and Nifty trading by almost 1% after the European Central Bank (ECB) hinted that it will inject more stimulus. The firm trend is also led by strong buying among Oil & Gas, Banks and FMCG shares.

At 12:35 pM, the 30 share Sensex was at 27,505, up by 217 points while the CNX Nifty was at 8,306 points, up by 54 points.

The broader markets, are however, underperforming the benchmark indices- BSE Midcap and Smallcap indices are up 0.3-0.4%.

The market breadth is positive with 1,428 advances against 962 declines on the BSE.
 
In the currency front, the rupee pared some of its initial gains against the US currency, but was still quoted higher by 24 paise at 64.88 per dollar on sustained dollar selling by banks and exporters amid firm stock markets.

Meanwhile, foreign portfolio investors (FPIs) sold shares worth a net Rs 48.33 crore on Wednesday, 21 October 2015, as per provisional data released by the stock exchanges.

Further, Reserve bank of India (RBI) said on Thursday it will allow lenders to count short-term bullion deposits under the gold monetisation scheme as part of their cash reserve ratio or statutory liquidity ratios, increasing the appeal of the plan for the sector.

GLOBAL MARKETS

Asia extended a global stock rally on Friday after the European Central Bank signaled its readiness to inject more stimulus, helping the dollar scale a fresh two-month peak against the euro.

European stocks also looked set to open higher, with financial spreadbetters expecting Britain's FTSE 100 to open up 0.4%, Germany's DAX 1.3% and France's CAC 40 as much as 1.2%.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 1.7%, and set for a gain of around 1% for the week.

Japan's Nikkei stock index closed 2.1% higher, ending the week up 2.9%.

The Shanghai Composite index added 1.4%, on track for a weekly gain of 0.7%.

SECTORS & STOCKS

Sectors like Banks, Oil & Gas and FMCG are trading higher by over 1% each. BSE Healthcare, Metal Power and Realty indices are up almost 1% each. However, BSE Capital Goods index has slipped by 0.5%.

The top gainers from the Sensex pack are NTPC, ITC, ONGC, GAIL and Axis Bank.

Crude oil prices edged up, taking heart from the improved risk sentiment but still pressured by concern about high US crude inventories and the stronger dollar. ONGC and Reliance Industries are up between 1.4-1.7% each.

From the financial space, Axis Bank, SBI, ICICI Bank, HDFC and HDFC Bank are up 1-2%.

Bajaj Auto is set to launch four new motorcycles in the market soon as part of its plans to capture over 22% share by the end of this fiscal.

Sun Pharmaceutical Industries said that the company along with its subsidiary has entered into a settlement agreement with Acorda Therapeutics. Inc. to resolve the pending patent litigation involving Ampyra (dalfampridine) extended-release tablets in the United States. The stock has gained 1%

On the losing side, Bharti Airtel, Maruti Suzuki, Wipro, L&T and Vedanta are down 1-3%.  

Wipro reported 7% net profit growth in the September quarter to Rs 2,235 crore. The company, however, cautioned that lower productivity for clients during the holiday season in the US and Europe could hit business in the October-December quarter.

With revenue of Rs 12,513 crore, it met the lower end of its guidance. Margins, at 20.7 per cent, were slightly lower than the 21 per cent reported in the previous quarter.

Among other shares, Aurobindo Pharma is trading higher by 2% at Rs 827 on the BSE after the company announced that it has received final approval from the US Food & Drug Administration (USFDA) to manufacture and market Tramadol Hydrochloride Extended release tablets USP, 100 mg, 200 mg and 300 mg.

Ideal Cellular has dipped 6% to Rs 143 on the BSE in otherwise firm market after the company’s July-September quarter (Q2) consolidated revenues slid 1.2% quarter-on-quarter (QoQ) to Rs 8,690 crore led by a fall in voice pricing and voice minutes of use due to an increasing rural subscriber base and seasonal effects.

With Reuters input