Markets at day high; heavyweights gain

Reliance Industries, HDFC Bank, Tata Steel and L&T up 1.5-2% among the top gainers

Markets are at day highs on news that India's trade deficit narrowed to $6.7 billion last month, compared with $10.9 billion in August.

At 1315 hrs, the Sensex was up 133 points at 20,116 and the Nifty gained 40 points at 5,968.

In the broader markets, the mid and smallcap indices gained 0.5% each, outperforming the Sensex which was up 0.4%.

Global Markets

Asian shares sagged and the dollar languished close to an 8-month low on Wednesday as the U.S. budget deadlock dragged on, further chipping away at investors' confidence that a deal will be reached before a mid-October deadline to avoid an historic debt default.

The MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.3%.

Japanese shares bucked the trend, stepping back from five-week lows, though the rebound came only after a steep fall of nearly 3% so far this month, a bigger drop than the S&P 500.

The European markets started on a weak note with all the major indices starting in the red. CAC, DAX and FTSE was down 0.1-0.4%

Rupee

The rupee, shares, and benchmark bonds gained after data showed the September trade deficit narrowed sharply from August, reducing concerns about the country's current account balance.

The rupee strengthened to 61.85 per dollar at 1300 hrs, while the benchmark 10-year bond yield initially fell around 4 basis points but then recovered to trade at 8.44%, still down from its 8.50% close on Tuesday.

Sectors & Stocks

Except Consumer Durables index which was down 0.2%, all the other indices were in the green.

Realty index up 2% was the top gainer followed by Health Care, Capital Goods and Oil & Gas  gaining 1% each.

FMCG, Power, Bankex and PSU indices added 0.1-0.6%.

Sun Pharma up 4% was the top gainer among the Sensex-30. Reliance Industries, HDFC Bank, Tata Steel, Jindal Steel and L&T up 1.5-2% were the major gainers.

BHEL, Dr Reddys Lab, Tata Power, ONGC and ITC added 0.6-1.4%.

The market breadth was positive. 1152 stocks advanced while 936+ stocks declined on the BSE.