Benchmark indices were trading in a narrow range with modest losses in mid-afternoon trade. The Nifty struggled to cross 10,850 level due to absence of strong buying support. Auto stocks firmed up after Minister of Road Transport and Highways of India, addressed the 59th SIAM Annual Convention.
At 14:25 IST the S&P BSE Sensex was down 99.98 points or 0.27% at 36,624.50. The Nifty 50 index declined 10.75 points or 0.1% at 10,833.60.
The S&P BSE Mid-Cap index was up 0.01%. The S&P BSE Small-Cap index outperformed the benchmark and was up 0.6%.
The market breadth was strong. On the BSE, 1378 shares rose and 914 shares fell. A total of 152 shares were unchanged.
Auto stocks rallied after Nitin Gadkari, Minister of Road Transport and Highways of India, addressed the 59th SIAM Annual Convention. Auto stocks were on the rise. Tata Motors (up 5.35%), TVS Motor Company (up 2.28%), Mahindra & Mahindra (up 2.18%), Escorts (up 2.04%), Maruti Suzuki India (up 1.87%), Bajaj Auto (up 1.35%), Ashok Leyland (up 1.04%), Hero MotoCorp (up 0.89%) and Eicher Motors (up 0.51%) advanced.
The conference titled "Moving into a New Era of Auto Industry" focused on future of auto segment. The Minister of Road Transport and Highways of India clarified that govt does not intend to ban petrol & diesel vehicles. He clarified that the government was well aware of the contribution that India's automobile industry was making to the country's exports and employment. The minister further added that he will take up the industry demand for GST cut with finance minister. On the issue of flagging automobile sales, he said the industry should suggest ways to the government to revive growth. To auto boost sales, Gadkari said, automakers should consider starting a non-banking finance company for lending to buyers.
The S&P BSE Auto index was up 1.75% at 15,506.73.
Shares of HDFC Asset Management Company hit an intraday high of Rs 2697.35 which is also a record high for the counter. The stock was trading 1.2% higher at Rs 2603.45. The stock has outperformed the market over the past one month, up 25.17% compared with 0.07% rise in the Sensex.
Laurus Labs gained 1.99% after the company said that it received the establishment inspection report from the US drug regulator for API units in Visakhapatnam. The company reported that it has received the establishment inspection report (EIR) from US Food and Drug Administration (USFDA) for its API units 1 & 3 in Visakhapatnam, for the inspection conducted in June 2019.
Meanwhile, the yield on 10-year benchmark federal paper fell to 6.513% at 14:12 IST compared with 6.556% at close in the previous trading session.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 71.915, compared with its close of 72.12 during the previous trading session.
In the commodities market, MCX Gold futures for 4 October 2019 settlement declined 0.77% at Rs 39,515.
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