Indices remain firm

Key indices crept further ahead in the positive terrain in afternoon trade as gains in most global stocks supported gains on the domestic bourses. At 13:20 IST, the barometer index, the S&P BSE Sensex, was up 198.24 points or 0.63% at 31,695.62. The Nifty 50 index was up 61.05 points or 0.62% at 9,920.55. The key event due today, 4 October 2017 is Reserve Bank of India's (RBI) monetary policy meeting later in the day.

Domestic stocks reversed initial gains and traded with small losses in early trade. After an initial hiccup in early trade, stocks nudged higher and hit fresh intraday high in morning trade. Stocks gradually marched ahead later during the session.

The S&P BSE Mid-Cap index was up 0.55%. The S&P BSE Small-Cap index was up 0.91%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 1,495 shares rose and 950 shares fell. A total of 104 shares were unchanged.

Cement stocks extended recent gains. ACC (up 0.53%), Shree Cement (up 0.73%), Ambuja Cements (up 0.24%), and UltraTech Cement (up 0.04%) gained.

Grasim Industries declined 0.8%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.

Metal and mining stocks were mixed. Bhushan Steel (up 0.32%), Jindal Steel & Power (up 0.49%), Vedanta (up 0.31%), NMDC (up 0.34%), Steel Authority of India (up 0.56%), and Hindustan Zinc (up 0.65%) gained. Tata Steel (down 0.08%), Hindalco Industries (down 0.06%), JSW Steel (down 0.9%), and National Aluminium Company (down 0.75%) edged lower.

On the macro front, the Reserve Bank of India's (RBI) bimonthly monetary policy decision is slated at 14:30 IST today, 4 October 2017. RBI is expected to hold rates steady. The central bank had cut policy repo rate by 25 basis points to 6% after its last monetary policy meeting in August, reducing the key policy rates for the first time in this fiscal year.

India's annual infrastructure output grew 4.9% in August compared with a revised 2.6% year-on-year growth in July, government data released after market hours yesterday, 3 October 2017 showed. Eight infrastructure sectors include coal, crude oil, natural gas, refinery products, electricity, steel, cement, and fertiliser, comprising 40.27% weight in index of industrial production.

Overseas, most European stocks gained. Japanese and Hong Kong share markets led Asian stocks higher in holiday-thinned trading as investors took their lead from Wall Street's latest advance into record territory. Stock markets were closed in mainland China, South Korea and Taiwan for holidays.

In US, the three major stock indices on Wall Street closed at record highs yesterday, 3 October 2017, driven by expectations of strong global growth.

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