Key indices retain positive zone

Amid a largely range bound movement, key benchmark indices extended gains in afternoon trade. At 13:17 IST, Sensex was up 145.36 points or 0.56% at 26,300.19. The gains for the Sensex were higher in percentage terms than those for the 50-unit CNX Nifty. The Nifty was up 22.50 points or 0.28% at 7,971.40. The Nifty could not retain the psychological 8,000 level which it crossed in early trade. Earlier, Nifty hit its highest level in more than a week when it rose 59.35 points or 0.74% at the day's high of 8,008.25 in early trade. The Sensex hit its highest level in almost two weeks when in jumped 276.97 points or 1.05% at day's high of 26,431.80 in early trade.

In overseas stock markets, Asian and European stocks edged higher as better-than-expected Chinese manufacturing data for September 2015 helped calm fears about the economic slowdown in the world's second largest economy. Trading in US index futures indicated further gains for US stocks after a rally overnight triggered by solid US private sector payroll data for September 2015. Trading in US index futures indicated that the Dow Jones Industrial Average may surge 155.50 points at the opening bell today, 1 October 2015.

Closer home, the market breadth indicating the overall health of the market was positive. On BSE, 1,290 shares rose and 1,065 shares declined. A total of 125 shares were unchanged. The BSE Mid-Cap index was up 0.55%. The BSE Small-Cap index was up 0.44%. Both these indices underperformed the Sensex.

Metal shares were mixed after two separate measures of the health of China's struggling manufacturing industry pointed to persisting headwinds for the world's second-largest economy. Jindal Steel & Power (up 0.91%), Hindustan Copper (up 0.84%), Hindalco Industries (up 0.71%), NMDC (up 0.54%), National Aluminium Company (up 0.43%) and Bhushan Steel (up 0.35%), edged higher. Tata Steel (down 0.02%), Vedanta (down 0.24%), Steel Authority of India (down 0.49%), Hindustan Zinc (down 1.22%) and JSW Steel (down 1.27%), edged lower. China is the world's largest consumer of steel, copper and aluminum.

China's official manufacturing purchasing managers index ticked up to 49.8 in September from 49.7 in August. A competing private gauge of nationwide manufacturing activity, the Caixin China manufacturing PMI, was down slightly at 47.2 in September compared with 47.3 in August. Meanwhile, the official nonmanufacturing PMI remained unchanged at 53.4 in September, while the Caixin services index hit a 14-month low of 50.5 in September, compared with 51.5 in August.

Capital goods shares were mixed. Praj Industries (up 2.89%), Suzlon Energy (up 2.64%), SKF India (up 2.33%), Siemens (up 1.87%), Lakshmi Machine Works (up 1.06%), Larsen & Toubro (up 0.91%), ABB India (up 0.38%), Bharat Electronics (up 0.35%), Punj Lloyd (up 0.21%) and BEML (up 0.12%), edged higher. Pipavav Defence and Offshore Engineering Company (down 0.08%), Thermax (down 0.26%), Crompton Greaves (down 0.29%), Havells India (down 0.3%), Jindal Saw (down 0.39%), Alstom T&D India (down 0.44%), AIA Engineering (down 0.54%), ALSTOM India (down 0.62%) and Bhel (down 1.87%), edged lower.

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