Markets trade near day’s high points in late afternoon session

Domestic equity markets were trading near day’s high points in late afternoon session. The broader indices were also trading higher. The benchmark BSE Sensex jumped above 650 points in late deals and the NSE Nifty moved above 200 points. Indusind Bank, Bharti Airtel, HCL Tech were the top gainers on the bourses, pushing the markets higher. Traders remained energized, as Indian manufacturing activity improved further in the month of October, as companies scaled up production in line with a substantial upturn in new work intakes. Firms stepped up input purchasing amid stock-building efforts and in anticipation of further improvements in demand, while business optimism hit a six-month high. In scrip specific development, Indian Railway Catering and Tourism Corporation (IRCTC) traded higher after it has reported around 5-fold jump in its net profit after tax from continuous operations at Rs 158.57 crore for the second quarter ended September 30, 2021 as compared to Rs 32.63 crore for the same quarter in the previous year.

On the global front, Asian markets were trading mixed, as Chinese data proved to be a mixed bag and investors avoided big bets ahead of the Federal Reserve's monetary policy meeting this week. European markets were trading higher after economic growth in the euro area improved in the third quarter, underpinned by the strong performance of France, while Germany lagged behind amid supply bottlenecks.

The BSE Sensex is currently trading at 59996.18, up by 689.25 points or 1.16% after trading in a range of 59355.12 and 60083.49. There were 24 stocks advancing against 6 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 1.35%, while Small cap index was up by 0.76%.

The top gaining sectoral indices on the BSE were Telecom up by 3.23%, Realty up by 2.93%, Metal up by 2.81%, TECK up by 2.04% and IT was up by 1.80%, while Energy down by 0.10% were the only losing indices on BSE.

The top gainers on the Sensex were Indusind Bank up by 7.61%, Bharti Airtel up by 3.73%, HCL Tech up by 3.27%, Tata Steel up by 3.17% and Dr. Reddy's Lab up by 3.04%. On the flip side, Bajaj Finserv down by 1.28%, Mahindra & Mahindra down by 0.66%, Reliance Industries down by 0.54%, ICICI Bank down by 0.27% and Nestle down by 0.09% were the top losers.

Meanwhile, Indian manufacturing activity improved further in the month of October, as companies scaled up production in line with a substantial upturn in new work intakes. Firms stepped up input purchasing amid stock-building efforts and in anticipation of further improvements in demand, while business optimism hit a six-month high.

As per the survey report, the Nikkei India Manufacturing Purchasing Managers’ Index (PMI) - a composite single-figure indicator of manufacturing performance - surged to 55.9 in October as against 53.7 in September. Amid reports of improved market confidence, rising requirements among clients and successful marketing, new orders continued to expand in October.

On the inflation front, the overall rate of input cost inflation surged to a 92-month high. Some firms opted to pass part of the additional cost burden on to their clients by lifting output charges. However, with the vast majority of manufacturers leaving their fees unchanged, the overall rate of inflation was moderate.

The CNX Nifty is currently trading at 17895.35, up by 223.70 points or 1.27% after trading in a range of 17697.10 and 17920.75. There were 43 stocks advancing against 7 stocks declining on the index.

The top gainers on Nifty were Indusind Bank up by 7.56%, Grasim Industries up by 3.95%, Bharti Airtel up by 3.88%, Hindalco up by 3.78% and HCL Tech up by 3.31%. On the flip side, UPL down by 2.79%, Bajaj Finserv down by 1.19%, Mahindra & Mahindra down by 0.76%, Reliance Industries down by 0.50% and ICICI Bank down by 0.27% were the top losers.

Asian markets were trading mixed, Nikkei 225 surged 754.39 points or 2.61% to 29,647.08, Taiwan Weighted strengthened 80.83 points or 0.48% to 17,068.24, Straits Times advanced 23.47 points or 0.73% to 3,221.64 and KOSPI was up by 8.26 points or 0.28% to 2,978.94. On the flip side, Shanghai Composite declined 2.86 points or 0.08% to 3,544.48, Jakarta Composite lost 38.46 points or 0.58% to 6,552.89 and Hang Seng was down by 222.92 points or 0.88% to 25,154.32.

European markets were trading higher, UK’s FTSE 100 increased 32.37 points or 0.45% to 7,269.94, France’s CAC increased 61.74 points or 0.9% to 6,892.08 and Germany’s DAX was up by 126.03 points or 0.8% to 15,814.80.