Sensex advances...Auto, Metals rally

After two days of selling, the Indian markets started off the eventful week with smart gains. Positive cues from the Asian markets lifted the sentiment in the early trades. However, as the day progressed the key indices were unable to hold on to their early morning gains.



However, sustained buying seen in Auto, Metals and Oil & Gas stocks saw the NSE Nifty end higher for the day. The Small-Cap and Mid-Cap stocks outperformed the benchmark indices yet again.

"IIP data for August on Tuesday; inflation for September and Infosys results would be the trend setters for the Indian markets this week. Apart from local events, one cannot ignore global cues", says Amar Ambani, Head of Research (India Private Clients) - IIFL.

The BSE Sensex gained 89 points to close at 20,339. The NSE Nifty 32 points to close at 6,136.

Among the BSE sectoral indices, the BSE Auto index was the top gainer, adding by 2%, followed by the BSE Metals index (up 1.5%) and BSE Oil & Gas index (up 1.3%). On the other hand, the BSE FMCG index slipped 0.5% and BSE Teck index slipped 0.3%.

The broader indices ended higher, the BSE Mid-Cap index ended higher by 0.8% and BSE Small-Cap index gained 1.3%.