Benchmarks continue to trade higher with solid gains

Markets were continuing their rally mood in the afternoon session on across-the-board buying by funds as well as retail investors. Healthy buying was observed in blue-chip stocks like Power Grid, Tata Steel and NTPC. Sentiments remained positive as Commerce and Industry Ministry said that foreign direct investment (FDI) in India has increased by 16 percent to $27.1 billion during April-August period of FY21 as compared to $23.35 billion received in same period last year. It noted that the total FDI, which includes reinvested earnings, grew by 13 percent to $35.73 billion. Adding optimism, ratings agency ICRA’s report stated that the India's economic recovery has ‘broadened and strengthened’ in September 2020 from the pandemic-induced lows seen in April 2020. It said that as many as nine of the tracked 15 non-financial high frequency indicators recorded growth in September 2020, while five posted a narrower year-on-year (YoY) contraction in that month. Meanwhile, retail inflation for farm workers and rural labourers eased only marginally to 6.25 per cent and 6.1 per cent, respectively in September as food prices remained high.

On the global front, Asian markets were trading mostly in green as investors continue to watch for developments on U.S. coronavirus stimulus talks. Back on street, the overall market breadth on BSE was in the favour of advances which thumped declines in the ratio of 1523:921, while 157 shares remained unchanged.

The BSE Sensex is currently trading at 40955.07, up by 410.70 points or 1.01% after trading in a range of 40757.27 and 40976.02. There were 26 stocks advancing against 4 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.87%, while Small cap index was up by 0.57%.

The top gaining sectoral indices on the BSE were Realty up by 3.10%, Metal up by 2.97%, Utilities up by 2.30%, Power up by 2.24% and PSU was up by 2.07%, while FMCG down by 0.26% were the losing indices on BSE.

The top gainers on the Sensex were Power Grid up by 4.17%, Tata Steel up by 3.69%, NTPC up by 3.47%, Indusind Bank up by 3.02% and ICICI Bank was up by 2.76%. On the flip side, TCS down by 0.67%, Nestle down by 0.57%, Hindustan Unilever down by 0.48% and HCL Tech was down by 0.40% were the top losers.

Meanwhile, the Automotive Component Manufacturers Association of India (ACMA) has said that the uptick in the passenger vehicles segment, coupled with car parc of second-hand vehicles, on account of increased use of personal cars is expected to lead to a rise in aftermarket demand. It said the automotive industry is shifting gears as it witnesses an uptick in vehicle consumption in the second quarter of the current financial year (Q2FY21).

Automobile component makers' body further said major car makers reported a near 20 percent jump in August domestic passenger vehicle sales compared to last year which is expected to further rise during the festive season. It also said the shifting trends have brought with it a surge in omni-channel aftermarket models as well as 'new normal' aftermarket solutions.

It said with shifts in supply chains, mobility and consumer sentiment and focus on 'Aatmanirbhar' and local manufacturing, the aftermarket sector represents a growth avenue. It noted that this is the perfect time for auto component players to come together to plan the route ahead.

The CNX Nifty is currently trading at 12009.10, up by 112.30 points or 0.94% after trading in a range of 11951.80 and 12018.65. There were 39 stocks advancing against 11 stocks declining on the index.

The top gainers on Nifty were Power Grid up by 4.52%, Tata Steel up by 3.66%, Hindalco up by 3.48%, NTPC up by 3.41% and BPCL was up by 3.13%. On the flip side, Britannia Industries down by 2.09%, Hero MotoCorp down by 2.01%, TCS down by 0.68%, Nestle down by 0.64% and Hindustan Unilever was down by 0.56% were the top losers.

Asian markets were trading mostly in green; Taiwan Weighted strengthened 14.88 points or 0.12% to 12,877.25, Nikkei 225 surged 72.42 points or 0.31% to 23,639.46, Straits Times advanced 12.16 points or 0.48% to 2,540.80, Hang Seng increased 249.67 points or 1.02% to 24,819.21 and KOSPI was up by 12.45 points or 0.53% to 2,370.86.

On the other hand, Jakarta Composite lost 3.87 points or 0.08% to 5,095.97 and Shanghai Composite was down by 12.16 points or 0.37% to 3,315.94.