Markets end firm despite weak opening; Sept F&O expiry eyed

After a dismal opening, markets staged recovery in the noon trades and closed firm led by broad based rally across the bourses on renewed buying interest in the beaten down bluechips including HDFC Bank and ITC contributing the most to the rise on the Sensex.

Meanwhile, a strong rebound in the European equities on the back of recovery in the crude prices bolstered the trading sentiments.

Provisionally, the Sensex closed 227.76 points higher at 25,879.60 while Nifty gained 44.45 points at close at 7,856.45.
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After a dismal opening, markets staged recovery in the noon trades and continue to trade firm led by broad based rally across the bourses on renewed buying interest in the beaten down bluechips including HDFC Bank and ITC contributing the most to the rise on the Sensex.

Meanwhile, a strong rebound in the European equities on the back of recovery in the crude prices bolstered the trading sentiments. 

At 1:35PM, the Sensex is up 227 points at 25,878 while Nifty has gained 53 points at 7,865. In the broader markets, BSE MidCap and SmallCap index are up between 0.6-1%. The market breadth is firm with 1,506 gainers and 1,023 losers on the BSE.

RUPEE

The rupee trimmed some of its early losses and was down 7 paise at 65.94 to the US dollar tracking recovery in the domestic equities.

GLOBAL MARKETS

Asian stocks ended lower on Wednesday after recent data from China raised concerns of growth slowdown. A private survey showed that China's factory sector unexpectedly shrank to a 6-1/2 year low in September. China's Shanghai Composite ended down 2.2% while Hang Seng also ended 2,2% lower tracking weakness in the mainland. Japan's financial markets remained closed today.

European markets were trading firm with CAC-40, DAX and FTSE-100 up 0.3-0.7% each.

STOCK TRENDS

All sectoral indices are trading in green with Bankex, Healthcare, IT, FMCG, Consumer Durables, Oil & Gas and Realty indices are trading higher up to 1.5%.

FMCG maker HUL and cigarette maker ITC are surging over 2% and 0.5% each as advancement of monsoons aided the sentiments.

IT giants, TCS and Infosys are trading higher by 1.5% and 1.2% each on the back of depreciating rupee. 

Financials, realty and select auto stocks are gaining across the exchanges on hopes of a rate cut as the easing consumer price inflation data along with favourable macroeconimc numbers and advancement in monsoons has created enough room for a rate cut by the RBI in the forthcoming monetary policy. HDFCtwins, Axis Bank, ICICI Bank and SBI from the financial space have gained between 1-2.5%. Meanwhile, M&M, Maruti Suzuki and Hero Motocorp are trading higher between 0.5-2.7%. 

Metal shares which slumped in the morning trades after weak factory data from China, the world's largest consumer, raised worries about export demand have gained ground in the late trades on buying interest at attractive valuations. Tata Steel, Hindalco and Venata are up between 1.7-3%.

Tata Motors eased nearly 1.2% on fears that the economic slowdown in China could hurt sales of JLR, the luxury arm of Tata Motors.

Major telecom operators, including Bharti Airtel, and Idea Cellular have opposed the compensation to mobile users for call drops as proposed by the Telecom Regulatory Authority of India (Trai). Bharti Airtel and Idea Ceullar are down 0.4-0.7% each.