Metal stocks gain on bargain hunting

Key benchmark indices held firm in morning trade after an initial upmove. At 10:15 IST, the barometer index, the S&P BSE Sensex, was up 213.04 points or 0.83% at 25,991.70. The 50-unit CNX Nifty was up 54.50 points or 0.69% at 7,897.80. Gains were supported by positive Asian stocks and a steeper-than-expected 50 basis points cut in the repo rate announced by the Reserve Bank of India (RBI) yesterday, 29 September 2015.

Earlier, the Sensex moved above the psychological 26,000 mark, gaining 265.94 points at intraday high of 26,044.60 at onset of the day's trading session. The Nifty rose 80.95 points at the day's high of 7,924.25 in intraday trade.

The market breadth indicating the overall health of the market was strong with more than two gainers for every loser. On BSE, 1,325 shares gained and 459 shares declined. A total of 58 shares were unchanged. The BSE Mid-Cap index was up 0.85%. The BSE Small-Cap index was up 0.98%. Both these indices outperformed the Sensex.

In overseas markets, Asian stocks edged higher, led by gains in Japan where investors were buoyed by expectations for more monetary and fiscal economic stimulus. US stocks closed mostly higher yesterday, 29 September 2015 helped by a rebound in healthcare stocks. In economic data, the privately run Conference Board said its index of consumer confidence climbed to 103 in September from a revised 101.1 in August. Another data showed that US house prices rose 0.6% in July, according to the S&P/Case-Shiller housing index.

Metal and mining stocks rose on bargain hunting after recent slide. JSW Steel (up 2.33%), Tata Steel (up 3.37%), Steel Authority of India (Sail) (up 1.98%), National Aluminium Company (up 1.58%), Vedanta (up 0.58%), Hindustan Zinc (up 0.56%), Jindal Steel & Power (up 3.86%), Hindalco Industries (up 2.93%), NMDC (up 1.42%) and Hindustan Copper (up 1.32%) edged higher.

Shares of housing finance companies extended yesterday's gains triggered by the Reserve Bank of India (RBI) announcing a steeper-than-expected cut in the policy repo rate yesterday, 29 September 2015.

LIC Housing Finance (up 2.77%), Dewan Housing Finance Corporation (up 2.02%), HDFC (up 0.09%), Indiabulls Housing Finance (up %), GIC Housing Finance (up 0.58%), Gruh Finance (up 0.65%) and Can Fin Homes (up 1.03%) gained.

Eveready Industries India jumped 3.92% after the Reserve Bank of India (RBI) yesterday, 29 September 2015, notified that foreign institutional investors (FIIs)/registered foreign portfolios investors (RFPIs) can now invest up to 49% of the paid up capital of Eveready Industries India under the Portfolio Investment Scheme (PIS).

The Reserve Bank of India (RBI) had surprised the financial markets by announcing a steeper-than-expected cut in the policy repo rate under the liquidity adjustment facility by 50 basis points to 6.75% at its fourth bi-monthly monetary policy review for the year 2015-16 yesterday, 29 September 2015.

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