Market edges higher in early trade

Key benchmark indices edged in early trade tracking gains in Asian markets. At 9:30 IST, the barometer index, the S&P BSE Sensex, was up 113.64 points or 0.42% at 26,899.19. The 50-unit CNX Nifty was up 26.15 points or 0.32% at 8,145.45. FMCG, realty and metal stocks led gains on the bourses.

In overseas stock markets, Asian stocks rose on the prospect of a delay in the US Federal Reserve's plan to raise interest rates and signs of some stability in oil and commodity markets. US stocks jumped yesterday, 5 October 2015, with the S&P 500 rising for the fifth day in a row, as rising oil prices boosted energy stocks and investors bet the Federal Reserve would not raise interest rates this year.

Closer home, broad market depicted strength. On BSE, 1,026 shares rose and 334 shares declined. A total of 45 shares were unchanged. The BSE Mid-Cap index was up 0.27%. The index underperformed the Sensex. The BSE Small-Cap index was up 0.57%. The index outperformed the Sensex.

Tata Motors (up 2.25%), Dr Reddy's Laboratories (up 2.02%) and Wipro (up 1.57%) were the major gainers from the Sensex pack.

Tech Mahindra rose 1.08% after the company announced bagging a contract to provide digital solutions to Bombardier. The company announced after market hours yesterday, 5 October 2015. As per the agreement with Bombardier Commercial Aircraft, Tech Mahindra will develop the Aircraft Ground Support System (AGSS) for Bombardier's Aircraft Health Management System (AHMS) for the C Series family of aircraft. The AGSS will facilitate real-time and post-flight recorded data management, fault notification and diagnostic reporting, Tech Mahindra and Bombardier said in a joint press release.

Maruti Suzuki India dropped 1.53% after the company said that its total production rose 1.53% to 1.18 lakh units in September 2015 over September 2014. The announcement was made after market hours yesterday, 5 October 2015.

Housing finance major HDFC shed 0.28% after the company announced a reduction in its retail prime lending rate (RPLR) by 25 basis points, with effect from today, 6 October 2015. The company announced after market hours yesterday, 5 October 2015. This reduction would benefit all customers. The effective home loan rates for new customers would be 9.65% per annum (p.a.) and for women will be 5 basis points lower at 9.6% p.a. The reduction in the RPLR will also be applicable on loans to Non-Resident Indians (NRIs)/ PIO's Card holders. HDFC has recently made similar reduction in its deposit rates across all maturities.

Tata Steel gained 0.5%. Canadian iron ore miner New Millennium Iron Corp. after market hours yesterday, 5 October 2015, announced that it is reviewing its agreement with Tata Steel Global Minerals Holdings, a subsidiary of Tata Steel, for an iron ore project in Canada.

A review process for the heads of agreement was signed between New Millennium and Tata Steel Global Minerals Holdings, which governs the feasibility study of the Taconite project the two companies are currently engaged in. As part of the review, Tata Steel will consider current or potentially future participation in the development of the iron mines. The parties intend to conclude a definitive agreement during the first quarter of 2016 subject to the respective board approvals of the parties, the statement said.

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