Benchmarks trade slightly in green in early deals

After making a good start, Indian equity markets have pared most of their early gains but are still managing to retain the green terrain, tracking positive global cues, after China unexpectedly reduced its interest rates. At present, Sensex and Nifty were trading above the crucial 27,500 and 8,300 levels respectively. However, Rupee opened lower against the dollar on Monday and was trading at 65, down 17 paise at the Interbank Foreign Exchange that kept pressurizing the markets. Markets are likely to remain volatile as traders roll over positions in the futures and options segment from the near month October series to November series. The derivatives expiry is on Thursday, October 29.

On the global front, the US markets ended higher on Friday. The Asian markets were trading in green as China's surprise decision to cut its key interest rate and upbeat earnings results from U.S. technology companies boosted investor sentiment.

Closer home, all the sectoral indices on BSE are trading in green led by Auto, Capital Goods, Power, Metal and IT. The market breadth on BSE was positive in the ratio of 924: 781while 80 scrips remained unchanged. 

The BSE Sensex is currently trading at 27520.98, up by 50.17 points or 0.18% after trading in a range of 27495.27 and 27618.14. There were 24 stocks advancing against 6 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.05%, while Small cap index added 0.07%.

The top gaining sectoral indices on the BSE were Auto up by 0.65%, Capital Goods up by 0.52%, Power up by 0.52%, Metal up by 0.37% and IT up by 0.18%, while there were no losers.

The top gainers on the Sensex were Bajaj Auto up by 1.75%, Hindalco up by 1.47%, Tata Motors up by 1.19%, Tata Steel up by 1.04% and Vedanta up by 0.98%. On the flip side, Coal India down by 0.62%, Cipla down by 0.49%, HDFC Bank down by 0.44%, ITC down by 0.43% and Bharti Airtel down by 0.35% were the top losers.

Meanwhile, amid the skyrocketing retail prices of pulses and fear of spurt back in inflation, an Assocham study has stated that Inflation may have dropped significantly from last year, but most Indians still find prices of goods and services consumed on a daily basis growing beyond their comfort level.

The industry body in its study has said that despite fuel prices coming down and moderate rise in wages, the cost of education and health services, the two critical areas of interest to the middle class has gone up, much higher than the headline number of CPI for September of 4.41%. It noted that the CPI inflation for education was up close to 6 per cent and health 5.4 per cent for September, 2015. “With severe shortages of education and health facilities in the public sector, the middle class has to depend on the private sector schools, colleges and hospitals and their costs have become quite high.

The chamber's study showed that other items of use for the middle-class, like meat, fish, milk and milk products, have also seen significant price increase between 5 and 5.5 per cent.Assocham has further stated that 'While the RBI has in the last instance reduced the policy rate by 50 basis points, the average transmission is not above 30 bps despite so much of prodding by the government and the Reserve Bank of India (RBI)”.

Assocham Secretary General D S Rawat said that 'While the annual increase in prices of these services may not show huge rise, the base price of such facilities is so high that it is becoming increasingly difficult for a large number of people in cities and small towns to afford them.' He suggested that public expenditure on health and education be raised significantly, both at the Central and state government levels.

The CNX Nifty is currently trading at 8302.70, up by 7.25 points or 0.09% after trading in a range of 8292.25 and 8336.30. There were 32 stocks advancing against 18 stocks declining on the index.

The top gainers on Nifty were Bajaj Auto up by 1.46%, Hindalco up by 1.41%, HCL Tech. up by 1.15%,  Tata Motors up by 1.14% and Tata Power up by 1.07%. On the flip side, Asian Paints down by 3.92%, Coal India down by 0.76%, ACC down by 0.67%, Cipla down by 0.66% and Ambuja Cement down by 0.65% were the top losers.

Asian markets were trading mostly in green, KOSPI Index increased 1.31 points or 0.06% to 2,041.71, Shanghai Composite increased 24.59 points or 0.72% to 3,437.03, Jakarta Composite increased 39.64 points or 0.85% to 4,692.78, Taiwan Weighted increased 50.94 points or 0.59% to 8,724.75, Hang Seng increased 74.98 points or 0.32% to 23,226.92, Nikkei 225 increased 227.43 points or 1.21% to 19,052.73,

On the flip side, FTSE Bursa Malaysia KLCI decreased 0.69 points or 0.04% to 1,710.2.4