Markets resume uptrend on ‘Dhanteras’

Major headlines

JSW Steel Oct crude steel output up 23% yoy; the stock closes 0.05% lower

GAIL Q2 net profit jumps 29.5% yoy; the stock ends 0.13% higher

Fortis Healthcare surges on strong Q2 results; the stock closes higher by 1.43%



Indian indices

The Indian markets resumed its uptrend on the auspicious occasion of 'Dhanteras', after taking a pause in the previous session. The markets rose to a three-week high, as improved corporate earnings boosted the outlook for economic growth amid surging inflows from overseas funds. Today’s rally was well supported by strong global cues.

Fortis Healthcare climbed by 1.7% after the company’s net profit rose nearly six-fold. ACC, a unit of the world’s second-largest cement maker Holcim, gained by 2.1% on optimism that infrastructure spending by the government will boost demand for the building material. Fertiliser stocks were buzzing today ahead of the Cabinet meeting on urea pricing.

The Sensex began the session 128 points higher at 20473 tracking strong global cues. The index remained in the green zone throughout the morning session. The index continued its upmove in the afternoon trades, hitting the day’s high of 20539 boosted by positive European markets. In last hour of trades, the Sensex trimmed some of its gains and hit the day’s low of 20346. The index again picked up pace from low level to end the session on a healthy note.

At finishing line, the Sensex shut shop at 20466, up by 120 points. The Nifty closed at 6161, higher by 42 points.

Bonds and Rupee update: India’s 12-year bonds gained for a sixth day, pushing the yield to the lowest level in more than a month, before a planned central bank purchase of securities tomorrow. India’s rupee appreciated to a two- week high on speculation that overseas inflows will rise after the nation’s central bank yesterday increased borrowing costs for a sixth time this year.

Market sentiment

The market breadth was constructive as advancing stocks outdid the falling ones. On the BSE, out of the 3,113 stocks, 1,648 rose while 1,322 slipped. Hundred and forty-three stocks traded unchanged.

Sectoral and stock screening

BSE Metal and BSE Auto up by 1.55% and 1.21% respectively, played a crucial role in lifting the markets higher, followed by BSE Consumer Durables (CD) that rose by 0.89% and BSE Bankex surged by 0.88%. The only loser was BSE Oil & Gas, down by 0.49%, was dragged lower by Reliance Industries towards the end of the session.

In ‘A’ group stocks, fertiliser companies’ scrips occupied the top two slots - Rashtriya Chemicals up by 17.51% and National Fertilizers gained by 13.19%. Dish TV India rose by 6.76%. Among laggards, Great Eastern Shipping fell by 3.26%, followed by Asian Paints that slid by 3.11% and Jain Irrigation declined by 2.99%.

Viewing volumes

Government fertiliser firm - Rashtriya Chemicals saw highest trading, with over 0.71 crore shares changing hands on the BSE, followed by Indian shipbuilder - Pipavav Shipyard (0.44 crore shares), PSU fertiliser firm - National Fertilizers (0.33 crore shares), DTH service provider - Dish TV India (0.26 crore shares) and Mahindra Group financial arm - Mahindra & Mahindra Financial Services (0.24 crore shares).

Global signals

European equities edged higher to post gains for a fifth straight session, with banking shares featuring among the top gainers ahead of a US Federal Reserve meeting on monetary easing.

All the major Asian indices closed in the positive zone except Shanghai Composite and Jakarta Composite.

The US stock index futures point to a marginally higher opening on the Wall Street ahead of the crucial Federal Reserves meeting on monetary easing.

Market Outlook: Markets are counting down to the end of the Federal Reserve's policy meeting later today, and closely watching the results of the US mid-term elections.