Market may surge at start tracking firm Asian stocks

Key indices may surge in early trade tracking firmness in Asian stocks. Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could surge 80 points at the opening bell.

In overseas stock markets, Asian stocks rose after prospects of a near-term interest rate hike by the Federal Reserve ebbed in the wake of last week's weaker-than-expected US employment data. Data released Friday, 2 October 2015, showed US non-farm payrolls rose by 142,000 in September, considerably lower than the market expectations. The possibility of the Fed delaying the lift-off date for rates also meant its loose policy, which has helped shore up risk assets globally by providing cheap cash, would continue a little longer. US stocks closed on a positive note on Friday, 2 October 2015 thanks to a late-afternoon rally, but a weak US jobs report added to worries that the economy is slowing.

Back home, foreign portfolio investors (FPIs) bought shares worth a net Rs 48.60 crore on 1 October 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 152.18 crore on 1 October 2015, as per provisional data.

Among corporate news, ICICI Bank on Saturday, 3 October 2015, announced a reduction of 35 basis points in its base rate to 9.35% per annum from 9.7% with effect from 5 October 2015. The base rate is the minimum lending rate charged by a bank.

Tata Motors announced after market hours on Thursday, 1 October 2015, that sales of passenger and commercial vehicles (including exports) fell by 2% to 45,215 units in September 2015 over September 2014. The domestic sale of Tata commercial and passenger vehicles fell 0.23% to 40,813 units in September 2015 over September 2014.

Tata Motors passenger vehicles sales fell 1.32% to 11,774 units in September 2015 over September 2014.

The sale of the passenger cars in September 2015 were higher by 5% at 10,226 units, compared to 9,766 units in September 2014. Utility vehicles (UV) sales declined by 28% at 1,548 units in September 2015 over September 2014.

In commercial vehicles, medium and heavy commercial vehicles (M&HCV) sales grew by 52% to 15,915 units in September 2015 over September 2014. The light & small commercial vehicle sales however continued to reflect industry decline and were down by 29% to 13,124 units in September 2015 over September 2014. These impacted the overall commercial vehicles sales for Tata Motors in the domestic market, that were flat at 29,039 units in September 2015.

The company's sales from exports declined 16% to 4,402 units in September 2015 over September 2014.

Amid a divergent trend among various index constituents, key indices clocked small gains on Thursday, 1 October 2015. The Sensex rose 66.12 points or 0.25% to settle at 26,220.95, its highest closing level since 31 August 2015.

The stock market had remained closed on Friday, 2 October 2015 on account of Gandhi Jayanti.

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