Nifty hovers around 6,000 mark, auto shares gain

Tata Motors is the top Sensex gainer, up nearly 3%. M&M, Maruti Suzuki and Bajaj Auto have gained between 0.1-1%

Benchmark indices are trading in a tight range amid volatile trades, with Sensex and Nifty hovering around 20,300 and 6,000 mark, respectively.  Investors remain cautious before Infosys kicks off the second earnings results tomorrow.

At 14:00 PAM, the 30-share Sensex was up 10 points at 20,259 and the 50-share Nifty was up 11 points at 6,018.

According to Devangshu Datta, Technical Analyst, “Nifty index could swing between 6000-6075 with possible breakouts till 5950 or 6025 (all futures prices).”

On the global front, Japanese stocks rose to a one-week high and the dollar strengthened on Thursday as investors grew hopeful that U.S. politicians will resolve in coming days the fiscal impasse that has sapped market confidence.

Tokyo's Nikkei share average advanced 0.9% to its highest point since the middle of last week, although shares elsewhere in Asia lost ground.

Back home, India's outward direct investment in September slowed to around $1.3 billion from $1.9 billion in August, according to data released by the Reserve Bank of India on Thursday.

The rupee continued to trade weak in afternoon trade on dollar demand from importers ahead of the US debt payment deadline on October 17.

At 14:00 pm, the rupee was quoting Rs 62.02 a dollar compared to its previous close of Rs 61.94 per dollar.

On the sectoral front, BSE Auto index has gained by 1.5% followed by counters like Metal, Realty, Capital Goods, Consumer Durables, IT and PSU, all gaining between 0.5-1%. Apart from Oil & Gas, all the major BSE sectoral indices are trading in green zone.

With the country in festive mood, shares of India's auto companies are adding up to the festivities. They have zoomed in the past one month, with some of the auto counters galloping by almost 50%.

One of the best monsoons in over a decade period has started showing its positive impact as far as outlook for auto companies is concerned.

With recent actions on interest rates by banks and some lenders even waiving off the processing fees, passenger vehicles sales (which already have started showing some positive signs) are expected to remain reasonably better, if not robust.

Tata Motors is the top Sensex gainer, up nearly 3%. M&M, Maruti Suzuki and Bajaj Auto have gained between 0.1-1%.

Meanwhile, Deutsche Bank downgraded Bajaj Auto Ltd to "hold" from "buy" and cut the target price on its stock to Rs 2,000 from Rs 2,250, saying current valuations have already priced in a "robust" margin trend.

Mining and metal stocks are buzzing in trades today on renewed buying demand. Jindal Steel, Tata Steel and Sesa Sterlite have increased between 1-2%.

JSW Steel Ltd’s crude steel production rose to 2.98 million tonne in Jul-Sep, up 37% from same period last year, the company said in a release today.

Real estate stocks have been gaining ground ever since the RBI announced measures to ease short-term liquidity. BSE Realty index outperformed the past month, gaining over 3.05% as compared to 1.2% gains on the BSE Sensex. Real estate stocks such as Unitech, DLF, Oberoi Realty gained anywhere between 1-8% the past month.

TVS Motor Company has moved higher by 5% at Rs 48.10, extending its past one week rally on BSE, on hopes of  increase Its market share in the scooters segment with the launch of Jupiter.

Navin Fluorine International has surged 15% to Rs 226 after the speciality and fine chemicals producer said, its board will consider the interim dividend while announcing July-September (Q2) earnings on October 23.

The broader markets continue to outperform the benchmark indices- BSE Midcap and Smallcap indices have gained nearly 1% each.

The market breadth in BSE remains positive with 1,297 shares advancing and 932 shares declining.