Market remain volatile; Realty and autos lead

Benchmark indices surged higher after slipping in early trades amid volatility in the market. The services PMI numbers for September contracted for the third time in a row and stood at 46.1 points from 47.6 points in August, according to the widely-tracked HSBC Purchasing Managers' Index (PMI) released today.

At 2:28 PM, the 30-share Sensex surged 124 points to trade at 19,998 and the 50-share Nifty gained 26 at 5,936 levels.
"Volatility is on the higher side since the month of August. Since then it has dropped but still remains higher than the average levels. High volatility primarily indicates directional uncertainty on account of impacting events," said Deputy Vice-President (Derivative Research), Kotak Securities.

"I do expect volatility to remain high and hence have a direct impact on the market returns," he added.

The Planning Commission today said it will revisit annual average GDP growth target of 8% for the 12th Plan (2012-17) in view of dismal performance in first two years of policy period, while saying the economy is likely to expand by over 5% this fiscal.

On the global front, Asian stocks were pegged back on Friday, with Japanese shares hitting a four-week low and the dollar languishing around an eight-month trough as the U.S. budget standoff dragged on, building fears of increasingly serious economic consequences.

 
Tokyo's Nikkei fell 0.7% after shedding as much as 1.5% to its lowest since Sept 6, taking its cue from the U.S. S&P 500, which suffered its ninth loss in 11 sessions overnight.
 
Back home, rupee rises to a seven-week high of 61.33. Stops got triggered when the pair hit 61.64, which marked the lowest level for dollar since the Federal Reserve's surprise decision to continue its bond stimulus last month.
 
On the sectoral front, BSE Realty, Consumer Durables, metals and auto indices traded higher between 1.5-2.4% followed by Oil & Gas, Healthcare, FMCG, IT, TECk, PSU and banks on the gaining front. Power and Capital Goods were the only laggards.

 
Among banking counters HDFC Bank is up 1.3%, Yes Bank up 1.3%, PNB added 0.7%, while ICICI Bank was up 0.2%.
 
Dr Reddy's is the biggest loser on both Sensex, Nifty loser; down around 1.5%
 
Shares of automobiles companies are in demand on expectations of higher demand during the upcoming festive season and upbeat September sales figure. In the auto segment gainers include, Tata Motors, M&M, Maruti Suzuki and Bajaj Auto have gained between 0.5-4%.
 
Tata Motors is the top Sensex gainer, up nearly 3.3%. The company's British luxury car unit Jaguar Land Rover (JLR) on Wednesday, 2 October 2013, said it has appointed John Edwards into the role of Managing Director of the newly created Individual Products Division with immediate effect.

 
Other notable gainers are Hindalco, Coal India, TCS, HDFC Bank, Sun Pharma and Cipla.
 
Shares of real estate companies are in focus, surging up to 10% after Sobha Developers have recorded good set of sales numbers for the month of September.
 
Sobha Developers, Peninsula Land, Presitge Estates, Housing Development and Infrastructure Limited (HDIL), Anant Raj Industries, Indiabulls Real Estate, Godrej Properties, D B Realty, Unitech and DLF are up 2-9% on the Bombay Stock Exchange (BSE).
 
On the losing side, JSPL, Dr Reddy’s, GAIL, Tata Power and ICICI Bank have declined between 1-2%.
 
Wockhardt is locked in lower circuit for fifth day in a row, down 5% at Rs 448 on BSE on reports that the US regulator had issued a Form 483 accompanied with some harsh observations about its Chikalthana plant in Maharashtra.

 
Lupin has moved higher by 3% at Rs 885, extending its previous day’s 1% gain, after the pharmaceutical company said it has launched the generic version of Allergan Inc's Zymaxid Ophthalmic Solution in the US market with 180 days of marketing exclusivity.