Bourses continue to trade in high spirit

Mirroring other Asian markets, domestic bourses continued to trade in fine contour on continued buying by funds and retail investors. Sentiments were upbeat as Moody's Investors Service said it will upgrade India rating if there is an increase in growth potential and sustained decline in government debt. The US-based rating agency had raised India's sovereign rating outlook to stable, from negative, while affirming the Baa3 rating - which is the lowest investment grade, just a notch above junk status. In another positive development, RBI data showed that bank credit rose by 6.67 per cent to Rs 109.57 lakh crore and deposits by 9.34 per cent to Rs 155.95 lakh crore in the fortnight ended September 24, 2021. All sectoral indices were trading firm and Realty was the top gainer on BSE, up by over 5% followed by Consumer Durables and Auto. Apart from blue chips, broader indices too equally participated in the rally with both mid and small cap indices trading up by over 1.50% each.

On the global front, Asian markets were trading mostly higher after signs of progress on resolving the standoff in Congress over the debt ceiling. Back home, NSE has announced the inclusion of eight new securities that will be made available for trading in the Futures & Options (F&O) segment from October 29, subject to fulfilment of eligibility criteria of Quarter sigma computation cycle of October 2021. The futures and options (F&O) contracts on 8 additional securities are the following - Atul, Birlasoft, Chambal Fertilizers & Chemicals, Firstsource Solutions, Gujarat State Petronet (GSPL), Laurus Labs, SBI Cards and Payment Services, Whirlpool of India.

The BSE Sensex is currently trading at 59859.99, up by 670.26 points or 1.13% after trading in a range of 59597.06 and 59898.91. There were 25 stocks advancing against 5 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 1.70%, while Small cap index was up by 1.50%.

The top gaining sectoral indices on the BSE were Realty up by 5.05%, Consumer Durables up by 5.00%, Auto up by 4.08%, Consumer Discretionary up by 3.22% and Industrials was up by 1.73%, while there was no loser.

The top gainers on the Sensex were Titan Company up by 9.95%, Mahindra & Mahindra up by 4.77%, Maruti Suzuki up by 4.77%, Asian Paints up by 3.08% and Indusind Bank was up by 2.94%. On the flip side, Dr. Reddy's Lab down by 0.46%, Ultratech Cement down by 0.24%, Axis Bank down by 0.18%, Hindustan Unilever down by 0.13% and HDFC was down by 0.12% were the top losers.

Meanwhile, Union Cabinet has approved setting up of seven Mega Integrated Textile Region and Apparel (PM MITRA) parks with a total outlay of Rs 4,445 crore for five years to position India strongly on the global textiles map. The parks will be set up at greenfield/brownfield sites located in different willing states.

The parks will create direct employment for 7 lakh people and indirect employment for 14 lakh people. The parks will offer an opportunity to create an integrated textiles value chain right from spinning, weaving, processing/dyeing and printing to garment manufacturing at one location. An integrated textile value chain at one location will also reduce the logistics cost of the industry. The parks will be developed by a Special Purpose Vehicle (SPV), which will be owned by the state government and the central government through a Public Private Partnership (PPP) mode.

Under PM-MITRA, 50 per cent area will be developed for pure manufacturing activity, 20 per cent area for utilities, and 10 per cent of the area for commercial development. The master developer will not only develop the industrial park but also maintain it during the concession period. Selection of this master developer will happen based on objective criteria developed jointly by state and central governments.

The CNX Nifty is currently trading at 17835.25, up by 189.25 points or 1.07% after trading in a range of 17763.80 and 17850.25. There were 39 stocks advancing against 11 stocks declining on the index.

The top gainers on Nifty were Titan Company up by 9.75%, Tata Motors up by 9.00%, Mahindra & Mahindra up by 4.83%, Maruti Suzuki up by 4.72% and Asian Paints was up by 2.97%. On the flip side, ONGC down by 2.74%, Cipla down by 1.53%, Divi's Lab down by 1.12%, Coal India down by 0.57% and Dr. Reddy's Lab was down by 0.48% were the top losers.

Asian markets were trading mostly higher; KOSPI rose 51.15 points or 1.76% to 2,959.46, Nikkei 225 surged 149.34 points or 0.54% to 27,678.21, Hang Seng increased 647.12 points or 2.7% to 24,613.61, Taiwan Weighted strengthened 320.70 points or 1.96% to 16,713.86 and Straits Times was up by  28.30 points or 0.92% to 3,112.18

On the flip side; Jakarta Composite was down by 9.52 points or 0.15% to 6,407.80.