Banks soar in a broad based rally; Core sector growth up 3.2%

Markets continue to trade firm led by a spectacular rally in the metal shares amid growth in the core sector for the month of September. Strength in the global peers have lend support to the broad based rally on the bourses.

However, investors remain edgy and await for further cues from the outcome of the Bihar elections.

At 11:55 AM the Sensex was at 26,699 levels, up by 140 points while CNX Nifty is at 8,089 levels, up by 38 points

The broader markets are in line with their larger peers with BSE Midcap and Smallcap indices up between 0.4-0.6%. The market breadth is extremely strong with 1,1480 advances against 821 declines on the BSE.

On earnings front, Adani Power, DLF, IndianOil, GAIL, Tech Mahindra,  Reliance Power and PVR would be posting their quarterly results today.

Meanwhile, Foreign Institutional Investors (FIIs) were the net sellers to the tune of Rs 272.67 crore as per the provisional stock exchange data.

KEY EVENT

Growth in eight core sectors rose to 4-month high of 3.2 percent in September because of sharp pick-up in fertiliser production and electricity generation. The eight core industries -- coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity -- comprising nearly 38 percent of India's total industrial production had grown at 2.6 percent in the same month of last year. 

STOCK TRENDS

All sectoral indices are trading in green with BSE Metal and Power indices are up 1% each. Meanwhile, BSE Healthcare, IT, Bankex, Realty indices are up between 0.5-1%.

Banking shares are rallying after Global rating agency Moody’s on Monday said it expected a gradual improvement in the working environment as it upgraded its outlook for India’s banking system from negative to stable. ICICI Bank, Axis Bank, HDFC Bank and SBI have gained between 0.5-1%.

Soccer great Lionel Messi will become the face of Tata Motors' passenger vehicles portfolio. The Argentinian becomes the first brand ambassador of the company in its 70-year history.  The stock is up by 0.5%

Maruti Suzuki India (MSI) said its domestic sales surged by 24.7 per cent during the month to 121,063 units, against 97,069 units in October last year. The stock is trading with marginal gains.

Metal shares are trading higher on rebound in the commodity prices. Hindalco, Vedanta, Tata Steel are up between 1-2%.

TVS Motor Company reported a 14% growth in sales for the month of October 2015 with total sales increasing from 241,044 units recorded in the month of October 2014 to 274,622 units in the month of October 2015. The stock is up 4.5%.

Reliance Communications on Monday announced the merger of Sistema Shyam TeleServices' India operations with itself in an all-stock deal. The stock is up 1%.

Oberoi Realty has dropped 5% after the company posted 55.2% drop in its September quarter stand-alone net profit to Rs.49.98 crore compared with Rs.111.57 crore a year ago.

United Spirits jumps 6% after the company turned to a net profit of Rs.929.3 crore in the September quarter from a loss of Rs.26 crore in the year-ago period on gains from the sale of its stake in United Breweries Sales grew 5.7% to Rs.2,145 crore.