Market remains positive; Cap goods upbeat

Market opened higher following firm Asian stocks. The 50-component NSE Nifty index opened at 6160, up 60 points while the 30-share BSE Sensex opened 40 points higher with 25 components in green, tracking CNX Nifty futures on the Singapore stock exchange.

At 10:26am, the Sensex was trading at 20732 levels up 48 points while Nifty was trading at 6,156 levels up 11 points from its previous close.

The rupee is trading at 61.45 per dollar as ; the unit closed at 61.46/47 on Friday. US dollar has been under broad pressure in the past few weeks on growing expectations the Federal Reserve will maintain its massive stimulus programme into next year.

The market is expected to remain volatile in the week ahead as traders mull rolling over positions in November series from the near month October series in the futures & options segment amid important market moving events lined-up in the week ahead. Key events to watch out will be RBI monetary policy review tomorrow and US Federal policy meet ending Wednesday.  The Fed's policy-setting arm meets on Oct 29-30 and is expected to hold off any move to scale down its $85 billion monthly bond-buying programme.

The Reserve Bank of India will likely raise its lending rate further on Tuesday, cementing its inflation-fighting credentials despite the country's sputtering economic growth, a Reuters poll showed.

Twenty-nine of 41 economists polled this week expected the central bank will increase the policy repo rate by 25 basis points (bps) to 7.75 percent when it meets on Oct 29.

Australian stocks scaled a five-year peak on Monday, leading a rebound in Asia after strong results from the likes of Microsoft pushed Wall Street to another record closing high, while investors gave the safe-haven yen a wide berth.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 0.7 percent, recovering a chunk of last week's 1.1 percent loss -- the biggest in two months -- that was driven by concerns that China may tighten policy to keep prices under control.

Australian shares .AXJO put on 1.2 percent to reach their highest since June 2008, Hong Kong's Hang Seng .HSI added 0.4 percent, and South Korea's KOSPI .KS11 rose 0.3 percent.

Japan's Nikkei .N225 climbed 1.0 percent, clawing back some of Friday's 2.7 percent drop.

BSE capital goods index jumped 1.4% and is the top sectoral gainer followed by consumer durables which is up 1.2%, banks and oil & gas are up 0.7%, auto and PSus added 0.4-0.5% while realty, power and metals were the other gainers on the. FMCG index sits at the bottom of the sectoral pack with losses of 1.1%.

Other shares

Suzlon Energy rises nearly 5 percent; the stock has surged nearly 74 percent in October

HUL shares rise 2.5 percent after Sept quarter sales volume met forecasts.

Jefferies has cut ITC target price to 409 rupees from 413 rupees, keeps buy rating; stock trading down 3 percent

The Foreign brokerage has also cuts GAIL India target price to 386 rupees from 420 rupees; rating buy; stock up 1.7 percent to 349 rupees

Maruti Suzuki reports its September quarter numbers today; the stock is currently up nearly 1 percent

BSE realty index rises 1.1 percent - top sectoral gainer; FMCG index sits at the bottom of the sectoral pack with losses of 0.6 percent