Market may extend gains on firm Asian stocks

Key indices may extend yesterday's sharp gains tracking firm Asian stocks. Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could gain 50.50 points at the opening bell.

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.

Back home, foreign portfolio investors (FPIs) bought shares worth a net Rs 649.90 crore yesterday, 5 October 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 365.77 crore yesterday, 5 October 2015, as per provisional data.

Among corporate news, Maruti Suzuki India 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.

Canara Bank said that the board of the bank approved reduction in the base rate by 25 basis points from 9.90% to 9.65% for loans / advances effective from 7 October 2015. The announcement was made after market hours yesterday, 5 October 2015.

Tech Mahindra after market hours yesterday, 5 October 2015, announced bagging a contract to provide digital solutions to Bombardier. 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.

HDFC announced after market hours yesterday, 5 October 2015, a reduction in its retail prime lending rate (RPLR) by 25 basis points, with effect from 6 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.

Frontline stocks led rally on the domestic bourses yesterday, 5 October 2015 as a disappointing US jobs report triggered speculation that the US Federal Reserve won't lift interest rates until 2016. The barometer index, the S&P BSE Sensex, surged 564.60 points or 2.15% to settle at 26,785.55.

On data front, Nikkei India Services PMI for September 2015 is due today, 6 October 2015. The seasonally adjusted Nikkei Services Business Activity index rose to 51.8 in August 2015, from 50.8 in July 2015.

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