Markets gain momentum, IT exporters gain

The benchmark index Sensex edged higher in the morning session this Monday on back of rebound witnessed in software exporters after upbeat results by bellwether Infosys last week.

The key trigger for markets now will be September inflation data scheduled later today which will help determine the central bank’s monetary policy stance.

At 10AM, the 30-share Sensex rose 91 points to trade at 20,621 and the 50-share Nifty gained 21 points at 6,116 levels.  

Inflation data for September, as measured by the wholesale price index (WPI) and the consumer price index (CPI), are due to be released today.

The Reserve Bank of India, in its Mid-Quarter Monetary Policy Review on September 20, increased a key policy rate, saying inflation had to be brought down to more tolerable levels. The RBI's next policy review is on October 29.

Meanwhile, global risk appetite was frail as investors look for clarity on US lawmakers extending the US debt ceiling before the October 17 deadline.   

The broader markets traded higher with mid-caps and small-caps adding 0.5-0.6 per cent on the BSE.

The market breadth was positive. Out of 1,135 stocks traded, 716 stocks advanced while 369 stocks declined on the BSE.


RUPEE

Rupee lost some ground in today’s opening session ahead of the Thursday’s deadline for the US debt ceiling.

At 10AM, the partially convertible rupee was trading at 61.22 per dollar against the Friday’s close of 61.08 on the Interbank Foreign Exchange.

GLOBAL MARKETS
Asian stocks and US index futures fell, while the yen snapped a four-day slump as American lawmakers struggled to reach an accord on raising the nation’s debt limit and restoring government operations. Metals dropped after Chinese exports unexpectedly decreased.

China’s Shanghai Composite added 0.4% to 2,236 while Singapore’s Straits Times was down 0.6% to 3,159.  Markets in Japan and Hong Kong are closed for holidays.


STOCK MOVERS

Domestically, the key sectoral gainers were IT, auto, capital goods, oil & gas, PSU while realty, power and metal indices dropped on the BSE.

The laggards were BHEL declining 1.55, GAIL declined 1.3%, HDFC fell 1.1% while Tata Steel was down 1% on the BSE.  

The gainers were TCS and Wipro adding 1.5-2.5%, Dr Reddy’s gained 1.5%, Infosys added 1% on the BSE.