Market trims gains

A bout of volatility was witnessed as key benchmark indices trimmed gains after extending gains in mid-morning trade. At 11:20 IST, the barometer index, the S&P BSE Sensex, was up 244.40 points or 0.91% at 27,090.21. The gains for the Sensex were higher in percentage terms than those for the 50-unit CNX Nifty index. The 50-unit CNX Nifty was up 64.40 points or 0.79% at 0.79%. The Sensex retained the psychological 27,000 mark after regaining that mark at the onset of the session.

The upmove on the domestic bourses was a part of the upmove in global stocks. Earlier, the Sensex jumped 354.63 points or 1.32% at the day's high of 27,200.44 in morning trade, a seven-week high. The Nifty also hit seven-week high when it jumped 102.85 points or 1.25% at the day's high of 8,232.20 in morning trade.

In overseas markets, Asian shares surged, taking their cue from overnight gains in US stocks after the minutes of the Federal Reserve's latest meeting damped down expectations of an imminent Fed rate hike. Though the Fed said overseas turmoil had not materially altered economic prospects for the United States, the US central bank opted to hold interest rates steady after a monetary policy review last month. Riskier asset markets, which had risen when the Fed held off raising rates in September, got a further boost on confirmation policy makers won't rush to tighten rates at a time of slackening global growth.

Closer home, the broad market depicted strength. There were nearly two gainers against every loser on BSE. 1,515 shares rose and 787 shares declined. A total of 97 shares were unchanged. The BSE Mid-Cap index was up 0.35%. The BSE Small-Cap index was up 0.53%. Both these indices underperformed the Sensex.

Shares of upstream oil companies gained along with rise in crude oil prices. ONGC (up 2.27%), Oil India (up 0.01%), Reliance Industries (RIL) (up 1.66%) and Cairn India (up 0.62%) gained. Higher crude oil prices would result in higher realizations from crude sales for oil exploration firms.

In the global commodities markets, Brent crude oil futures edged higher, driven by a weakening dollar and risks that Russia's escalating involvement in Syria could hurt oil supply from the region. Brent for November settlement was currently up 27 cents at $53.32 a barrel. The contract had risen $1.72 a barrel or 3.35% to settle at $53.05 a barrel during the previous trading session.

Metal & mining stocks gained on firm metal prices in the global commodity markets. JSW Steel (up 0.59%), Bhushan Steel (up 1.85%), Hindustan Copper (up 1.81%), Vedanta (up 9.48%), Hindustan Zinc (up 4.82%), Jindal Steel & Power (up 1.99%), Tata Steel (up 2.56%), Steel Authority of India (Sail) (up 1.83%), National Aluminum Company (up 5.1%) and NMDC (up 0.94%) gained.

High Grade Copper for December 2015 delivery was currently up 1.9% at $2.3875 per pound on the COMEX.

Hindalco Industries gained 3.11%. The company said that CARE has revised long term rating of the company's non convertible debentures from CARE AA+ to CARE AA. Hindalco Industries made the clarification after market hours yesterday, 8 October 2015 with respect to reports titled "CARE cuts rating for Hindalco debentures."

8K Miles Software Services rose 3.42% after consolidated net profit rose 21.05% to Rs 8.74 crore on 20.65% rise in total income to Rs 61.09 crore in Q2 September 2015 over Q1 June 2015. The result was announced after market hours yesterday, 8 October 2015.

Meanwhile, 8K Miles Software Services said that the board of directors of the company at its meeting held yesterday, 8 October 2015, has allotted 1.50 lakh shares of the company to R. S. Ramani (promoter group) out of conversion of warrants. With this allotment, the stake of the promoter and promoter group has increased from 61.96% to 62.48%. The announcement was made after market hours yesterday, 8 October 2015.

Elgi Equipments surged 7.01% as Nalanda India Equity Fund bought a total of 34.55 lakh equity shares of the company in bulk deals on the BSE and NSE at an average price of Rs 121.50 per share yesterday, 8 October 2015.

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