Markets continue to trade in high sprit

Benchmarks continued to trade near day's high in late afternoon deals with rate-sensitive shares gaining the most ahead of the RBI monetary policy review tomorrow. Sentiments remained up-beat with the report that foreign investors pumped in more than Rs 20,000 crore into the Indian capital market in the month of September, making it the highest net inflow in 11 months. Some support also came with the report that 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. On global front, European stocks were trading higher on Monday, as investors ponder the possibility of a settlement between Deutsche Bank and the U.S. Department of Justice.

Back home, auto stocks lead the gains as most of the auto makers reported better than expected sales number in the month of September. In scrip specific development, Coal India jumped after the world’s largest coal miner by output, reported provisional production of 35.24 million tonnes (mt) in September 2016, as against a target of 41.51 million tones.

The BSE Sensex is currently trading at 28194.45, up by 328.49 points or 1.18% after trading in a range of 27919.89 and 28229.98. There were 28 stocks advancing against 2 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 2.08%, while Small cap index was up by 2.16%.

The top gaining sectoral indices on the BSE were Realty up by 2.56%, Metal up by 2.31%, Auto up by 2.15%, Consumer Durables up by 2.07%, Oil & Gas up by 2.02%, while there were no looser on the BSE sectoral front.

The top gainers on the Sensex were Maruti Suzuki up by 3.50%, Hero MotoCorp up by 2.86%, GAIL India up by 2.45%, Mahindra & Mahindra up by 2.40% and Adani Ports & Special up by 2.40%. On the flip side, TCS down by 0.28% and Infosys down by 0.19% were the top losers.

Meanwhile, India’s manufacturing sector lost momentum in September, as growth of new orders eased from 20-month high of August, however it was above the crucial 50.0 threshold for the ninth consecutive month. The seasonally adjusted Nikkei India Manufacturing Purchasing Managers' Index (PMI) - a composite single-figure indicator of manufacturing performance - was down to 52.1 in September from 52.6 in August. The PMI figures also showed an intensification of inflationary pressures, both input costs and output charges increased at quicker rates.

As per the report, improved client demand supported the upswing in order books and growth was reportedly hampered by strong competition for new work. Foreign new orders for Indian-manufactured goods expanded markedly in September, at the quickest rate in 14 months. While companies scaled up their buying levels and hired additional workers, the pace has flagged compared to previous months. Amid reports of orders being fulfilled directly from stocks, post-production inventories fell again in September. On the other hand, holdings of raw materials and semi-manufactured goods rose for the tenth successive month.

Further, average purchase costs increased at a faster pace in September, but was weak compared to its long-run trend. The main item reported to be up in price was steel. Manufacturers attempted to protect profit margins as output charges were raised further. Despite ticking higher, the rate of inflation was historically muted. However, output is still rising at a decent clip and the sector looks likely to have delivered a stronger contribution to Gross domestic product (GDP) growth in Q2 FY2016/17.

The CNX Nifty is currently trading at 8720.75, up by 109.60 points or 1.27% after trading in a range of 8635.00 and 8732.95. There were 47 stocks advancing against 4 stocks declining on the index.

The top gainers on Nifty were Zee Entertainment up by 7.18%, Maruti Suzuki up by 3.63%, Indusind Bank up by 3.28%, Hero MotoCorp up by 2.85% and BPCL up by 2.60%. On the flip side, Bharti Infratel down by 1.04%, TCS down by 0.38%, Wipro down by 0.18% and Infosys down by 0.03% were the top losers.

Asian markets were trading in green; Taiwan Weighted jumpped 67.35 points or 0.73% to 9,234.20, Jakarta Composite surged 84.55 points or 1.58% to 5,449.36, Nikkei 225 climbed 148.83 points or 0.9% to 16,598.67 and Hang Seng shined 287.28 points or 1.23% to 23,584.43. China stock exchange, South Korea stock exchange and Malaysian stock exchange was closed on account of national holiday.

European markets were trading in green; France’s CAC increased 14.98 points or 0.34% to 4,463.24, UK’s FTSE 100 surged 78.4 points or 1.14% to 6,977.73 and Germany’s DAX jumped 105.48 points or 1.01% to 10,511.02.