Markets gain after a flat start; Tata Motors up 4%

Gains in Tata Motors, TCS, HDFC Bank and Bajaj Auto help the index edge higher

After a flat start, the markets edged higher with the benchmark indices gaining over 0.4% each in the opening deals. Tata Motors, TCS and HDFC Bank were the major contributors for the uptick in the opening trades.

At 0940 hrs, the Sensex was up 82 points at 19,984 and the Nifty gained 23 points to trade at 5,933.

In the broader markets, the midcap index was up 0.2% and the smallcap index added on 0.1%.

Global Markets
 

Asian stocks were pegged back, with Japanese shares hitting a near four-week low and the dollar languishing around an eight-month trough as the U.S. budget standoff dragged on, heightening fears it could have more serious repercussions for the world's largest economy.

Tokyo's Nikkei fell 0.4% in the morning session 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.

MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.1% and Seoul shares slipped 0.3%,

Overnight, U.S. stocks dropped as investors worried that a budget stalemate in Congress would become entangled with much more critical legislation to raise the federal borrowing limit.

The Dow Jones industrial average was down 0.90%, at 14,996. The Standard & Poor's 500 Index was down 15.21 points, or 0.90%, at 1,679. The Nasdaq Composite Index was down 1.07%, at 3,774.

Sectors and Stocks

Among the sectoral indices, FMCG, Metal and Power indices started in the negative, losing 0.1-0.3%.

Auto and Consumer Durables indices up 1-2% were the top index gainers.

IT, Realty, Teck, Capital Goods and Health Care indices, too added on 0.2-0.7%.

The losers among the Sensex-30 were Sesa Goa, Hindustan Unilever and NTPC down 1% each followed by BHEL, Bharti Airtel, Tata Power, Wipro, Dr Reddys Lab, Gail India and Reliance Industries losing 0.3-0.6%.

On the gaining side were Tata Motors up 4% along with TCS, Mahindra & Mahindra, Hero MotoCorp, HDFC Bank, Sun Pharma, Bajaj Auto, ONGC and Maruti Suzuki gaining 1-2%.

Jet Airways (India) surged 5% at Rs 408 in early morning deals on NSE after the Union Cabinet late Thursday cleared Jet Airways' proposed sale of 24% equity to Abu Dhabi-based Etihad.

The market breadth was positive. 563 stocks advanced while 313 stocks declined on the BSE.