Indian bourses continue firm trade led by Auto and Realty

Indian bourses continued to trade firm in the early noon session on the back of across the board value based buying in blue - chips after both India and Pakistan agreed to reduce tension along line of control. Sentiments remained up-beat since morning after India’s core sector output rose to 3.2% in August on the back of sharp rise in steel production and a pickup in cement, suggesting a lift in infrastructure and construction activity. Firm Asian cues on easing fears about future of German giant Deutsche Bank also aided to optimistic milieu.  Appreciation in the rupee too supported the sentiments. However, there was some cautiousness too with the report that the seasonally adjusted Nikkei India Manufacturing Purchasing Managers' Index (PMI) - a composite single-figure indicator of manufacturing performance - was slightly down to 52.1 in September from 52.6 in August. In scrip specific development, Maruti Suzuki India rallied 3.5 percent on reporting 29.4 percent growth in domestic passenger vehicle sales in September.  

On the global front, Asian markets were trading in green after Deutsche Bank seemed to catch a break from the US Department of Justice. Back home, the BSE Sensex is currently trading at 28166.52, up by 300.56 points or 1.08% after trading in a range of 27919.89 and 28217.63. There were 25 stocks advancing against 5 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 1.75%, while Small cap index was up by 1.88%.

The top gaining sectoral indices on the BSE were Auto up by 2.28%, Realty up by 2.26%, Metal up by 2.00%, Oil & Gas up by 1.79% and PSU up by 1.72%,  while IT down by 0.22% was the lone losing index on BSE.

The top gainers on the Sensex were Maruti Suzuki up by 3.73%, Adani Ports &Special up by 3.72%, Mahindra & Mahindra up by 2.80%, Hero MotoCorp up by 2.76% and Asian Paints up by 1.91%. On the flip side, TCS down by 0.64%, Infosys down by 0.52%, Hindustan Unilever down by 0.10%, Wipro down by 0.07% and ICICI Bank down by 0.04% were the top losers.

Meanwhile, buoyed by the sound progress in rollout of GST, better corporate earnings coupled with US Fed's decision not to lift interest rates, foreign investors pumped in more than Rs 20,000 crore into the Indian capital market in the month of September. Net investment by FPIs in the country stood at Rs 10,443 crore in equities last month, while the same for debt was Rs 9,789 crore, taking the total inflow to Rs. 20,233 crore, making it the highest net inflow in 11 months and the third consecutive month of positive inflows.

This was the highest net inflow in capital markets since October 2015 when FPIs had infused Rs 22,350 crore. With the latest inflow FPI investment tally in equities surged to Rs 51,293 crore in 2016 while for the debt market stood at Rs 2,441 crore, resulting in a net inflow of Rs 53,734 crore.

The inflow trend is likely to continue in coming weeks too as regulator the Securities and Exchange Board of India (SEBI) has decided to offer direct entry to well-regulated foreign investors for investing in corporate bonds. SEBI) will allow Category 1 (multilateral agencies, sovereign wealth funds) and Category II (banks, insurers, pension funds) FPIs to access the bond markets directly, besides allowing Category III (family offices, trusts) to access the bond markets through the electronic bidding platform.

The CNX Nifty is currently trading at 8709.75, up by 98.60 points or 1.15% after trading in a range of 8635.00 and 8727.30. There were 45 stocks advancing against 5 stocks declining on the index.

The top gainers on Nifty were Maruti Suzuki up by 3.88%, Adani Ports &Special up by 3.78%, Zee Entertainment up by 3.73%, Indusind Bank up by 3.18% and Mahindra & Mahindra up by 2.91%. On the flip side, TCS down by 0.79%, Bharti Infratel down by 0.66%, Infosys down by 0.40%, Wipro down by 0.37% and Hindustan Unilever down by 0.16% were the top losers.

The Asian markets were trading in green; Jakarta Composite increased 59.68 points or 1.11% to 5,424.48, Taiwan Weighted increased 67.35 points or 0.73% to 9,234.20, Nikkei 225 increased 148.83 points or 0.9% to 16,598.67 and Hang Seng increased 242.27 points or 1.04% to 23,539.42.

Stock exchanges of China, South Korea and Malaysia was closed on account of national holiday.