Markets continue to trade firm in early noon session

Indian equity benchmarks continued to trade firm in early noon session on the back of value based buying in blue - chips after recent losses and core sector growth rising to 4 month high of 3.2 per cent in September. Besides, a firming trend at other Asian markets too triggered fresh round of buying by funds. Sentiment got a boost with Moody's Investors Services projecting stable growth rate for India and stating that the economy would grow at 7.5 percent in the current fiscal and improve marginally in the following year. Appreciation in the rupee too supported the sentiments. The rupee recovered by 22 paise to 65.44 against the dollar in early trade on fresh selling of the American currency by exporters and banks. At present, Sensex and Nifty were trading above the crucial 26,600 and 8,050 levels respectively, with gains of around half a  percent. The broader markets were trading in-line with the larger peers with BSE Mid-cap and Small-cap indices trading up by 0.43% and 0.65%, respectively. While there were no losers on the sectoral front, the metal, power, IT, PSU and Bankex stocks outperformed

On the global front, Asian markets were trading mostly in green, as the morale of investors got a boost from the overnight rally on Wall Street. Back home, in scrip specific development, share of TVS Motor Company was trading up by over 4% after the two-wheeler maker reported 14% year-on-year (y-o-y) increase in total sales at 274,622 units in October 2015, the highest sales growth in past six months. The company had sold 241,044 units in the same month last year. Nilkamal rallied 13% after the company reported a strong 276% year on year (YoY) growth in net profit at Rs 25.74 crore for the quarter ended September 30, 2015 (Q2), due to lower raw material cost.

The market breadth on BSE was positive, out of 2361 stocks traded, 1489 stocks advanced, while 801 stocks declined on the BSE.

The BSE Sensex is currently trading at 26682.63, up by 123.48 points or 0.46% after trading in a range of 26630.59 and 26732.24. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.34%, while Small cap index was higher by 0.69%.

The top gaining sectoral indices on the BSE were Metal up by 0.96%, Power up by 0.90%, IT up by 0.76%, PSU up by 0.66%, Bankex up by 0.60%, while there were no losers on the sectoral space.

The top gainers on the Sensex were NTPC up by 3.09%, Hindalco up by 2.84%, Vedanta up by 1.70%, Mahindra & Mahindra up by 1.27% and Tata Steel up by 1.26%. On the flip side, GAIL India down by 1.19%, ITC down by 0.59%, Bharti Airtel down by 0.56%, BHEL down by 0.40% and Lupin down by 0.40% were the top losers.

Meanwhile, the core sector in the country once again locked themselves into a faster growth trajectory, rising to 3.2% in September as compared to 2.6% in August, fastest in four months, on the back of strong pick up in fertiliser production and electricity generation. The eight industries - crude oil, petroleum refinery products, natural gas, fertilisers, coal, electricity, cement and finished steel have a weight of 38% in the overall Index of Industrial Production (IIP) had grown at 2.6 percent in the same month of last year. The combined Index of Eight Core Industries stood at 166.8 in September, 2015, which was 3.2% higher compared to the index of September, 2014. Its cumulative growth during April to September, 2015-16 was 2.3%, lower than 5.1 percent the first six months of the last financial year.

Among eight core sectors, Fertilisers having 1.25% weight in IIP index continued to grow at the highest rate registered a growth of 18.1% in September, 2015 as compared to 12.59 per cent in August. It was negative at 11.6 in same month of last fiscal. Its cumulative index during April to September, 2015-16 increased by 8.0% over the corresponding period of previous year. Electricity generation, having 10.32% weight, increased by 10.8% in September, 2015 as against 3.9% same period last fiscal. Its cumulative index during April to September, 2015-16 increased by 4.1% over the corresponding period of previous year.

The coal sector having 4.38% weight expanded by a slower pace of 1.9 per cent in September this year as against 7.6 per cent in the same month last fiscal. However, it was higher than 0.4 per cent in August. Its cumulative index during April to September, 2015-16 increased by 4.2% over corresponding period of previous year. The Natural Gas production, having 1.71% weight, increased by 0.9% in September, 2015. Its cumulative index during April to September, 2015-16 declined by 2.1% over the corresponding period of previous year. Petroleum Refinery production having weight age of 5.94% increased by 0.5 % in September, 2015. Its cumulative index during April to September, 2015-16 increased by 3.6% over the corresponding period of previous year. It was better on yearly basis, but there was dip on month-on-month basis.

On the flip side, Crude Oil production, having 5.22 % weight, decreased by 0.1% in September, 2015 over September, 2014. Its cumulative index during April to September, 2015-16 increased by 0.4 % over the corresponding period of previous year. Steel production, having weightage of 6.68%, declined by 2.5 percent as compared to (-) 5.9 percent in the previous month. The sector had shown a growth of 6.6 percent in September 2014. Cumulative index during April to September, 2015-16 declined by 0.4% over the corresponding period of previous year. Cement Sector, having 2.41% weight, decreased by 1.5 % in September, 2015 as against a growth of 5.4 percent in August. The segment had posted a growth of 3.7 percent in September 2014-15. Its cumulative index during April to September, 2015-16 increased by 1.3 % over the corresponding period of previous year.

Growth in eight core industries rose to four-month high in September indicating a gradual recovery in the infrastructure sector that hold the key to revival of the economy. The performance by the core sector is likely to get reflected in the IIP numbers due October 12.

The CNX Nifty is currently trading at 8083.30, up by 32.50 points or 0.40% after trading in a range of 8069.90 and 8100.35. There were 34 stocks advancing against 15 stocks declining on the index.

The top gainers on Nifty were NTPC up by 3.17%, Hindalco up by 2.78%, ACC up by 1.54%, PNB up by 1.54% and Power Grid up by 1.51%. On the flip side, Asian Paints down by 1.48%, GAIL India down by 1.38%, ITC down by 0.65%, BHEL down by 0.47% and Bharti Airtel down by 0.44% were the top losers.

Asian markets were trading in green; FTSE Bursa Malaysia KLCI increased 7.06 points or 0.42% to 1,671.13, Shanghai Composite increased 9.95 points or 0.3% to 3,335.03, KOSPI Index increased 13.37 points or 0.66% to 2,048.61, Jakarta Composite increased 67.49 points or 1.51% to 4,532.45, Taiwan Weighted increased 98.42 points or 1.14% to 8,713.19 and Hang Seng increased 284.52 points or 1.27% to 22,654.56.