)
Benchmark indices have extended the gains with Sensex and Nifty gaining by over 1% each. Buying among FMCG, metal and oil shares along with firm Asian markets have supported the market sentiment.
At 12:30PM, the 30-share Sensex gained 235 points at 18,851 and the 50-share Nifty added 68 points at 5,540 levels.
According to Devang Shah, Portfolio Manager- PRO TECH-PMS, Sharekhan, “Short term Outlook for the market still remains positive till nifty trades above 5230 levels. & We are going to see further pull back rally to extend towards higher levels targets.5530 is crucial resistance to watch out for short term, sustain above it will lead to rally towards 5750-5810 levels in short term”.
Asian shares climbed to a two-week high on Monday, and the Australian dollar and copper gained, as China said its manufacturing expanded in August at the fastest pace in more than a year.
A delay in potential US military action against Syria, as US President Barack Obama sought Congressional support, also helped boost short-term risk appetite.
China's bullish purchasing managers' index added to recent positive data from the US and Europe, raising hopes the global economy was on a firmer footing.
Back home, BSE FMCG and Metal indices have surmounted by nearly 3% each followed by counters like Realty, Oil & Gas, Consumer Durables, Banks, PSU and Healthcare, all gaining between 1-2%. Infact, all the major BSE sectoral indices are trading in green zone.
The main gainers on the Sensex at this hour include Tata Steel, ITC, JSPL, ICICI Bank, RIL, Sesa Goa, HDFC, Maruti Suzuki and Hero Moto, all surging between 2-4%.
Metal stocks have risen after data showed a China's manufacturing gauge rose to a 16-month high in August. Shares of public sector oil marketing companies rose after a hike in petrol and diesel prices, effective from midnight of 31 August 2013.
Financial shares have rebounded after witnessing sharp fall during last few trading sessions.
Mahindra and Mahindra (M&M) has moved lower by 3% at Rs 761 in otherwise firm market after reporting 17% year-on-year (yoy) drop in its auto sales at 37,897 units for the month of August 2013 on account of the continued weakness in the passenger vehicle (PV) segment. The company had sold 45,836 units in the month year ago.
Tata Motors is trading lower by 2% after the company continued its poor sales performance during the month of August 2013 as the domestic commercial (CV) and passenger vehicle (PV) volumes maintained the downward trajectory following weak consumer demand and slowdown in industrial activity.
The market breadth in BSE remains firm with 1,223 shares advancing and 699 shares declining.
