Nifty trades above 17,850 mark; breadth remains strong

The equity benchmarks held firm near the day's high in afternoon trade. The Nifty crossed the 17,850 mark. Traders lapped up shares ahead of RBI's monetary policy outcome and Q2 earnings season that is set to kick off on Friday, 8 October 2021.

At 13:20 IST, the barometer index, the S&P BSE Sensex, was up 704.31 points or 1.19% to 59,894.04. The Nifty 50 index added 206.50 points or 1.17% to 17,852.50.

In the broader market, the S&P BSE Mid-Cap index rose 1.79% while the S&P BSE Small-Cap index gained 1.51%. Both the indices outpaced the benchmarks.

The market breadth favoured the bulls. On the BSE, 2326 shares rose and 883 shares fell. A total of 153 shares were unchanged.

The Reserve Bank of India's (RBI) monetary policy committee (MPC) began its two-day policy meet on 6th October 2021. The MPC will announce its interest rate decision on Friday, 8 October 2021.

IT major TCS (up 1.71%) will announce its Q2 results on Friday, 8 October 2021.

Infosys (up 1.24%) will announce Q2 results on Wednesday, 13 October 2021.

Among telecom shares, Bharti Airtel (up 0.81%) and Vodafone Idea (up 0.70%) advanced.

The government on Tuesday notified its decision to permit 100% foreign direct investment (FDI) under automatic route in the telecom services sector.

Till now, only 49% of FDI was allowed through the automatic route and anything beyond it had to mandatorily go through the government route.

In a press note, the Department for Promotion of Industry and Internal Trade (DPIIT) said foreign investment in telecom services will be subject to the condition of Press Note 3 of 2020.

Index heavyweight Reliance Industries (RIL) rose 1.12% to Rs 2588.90. RIL controls Reliance Jio Infocomm.

Titan Company jumped 10.20%. The company said its jewellery segment revenue jumped 78% year on year (YoY) in Q2 FY22. CaratLane's business revenue jumped 95% year on year in Q2 FY22. The watch segment revenue grew by 73% YoY in Q2 FY22. Eye wear segment revenue surged by 74% YoY in Q2 FY22.

Mahindra & Mahindra (M&M) spurted 5.68%. M&M started bookings of its XUV700 model today. The company said it clocked 25,000 bookings in 57 minutes of its booking commencement. Bookings will now reopen starting 10 am on 8th October.

Global markets:

US Dow Jones futures were up 121 points, indicating a positive opening in the US stocks.

Shares in Europe and Asia were in the green on Thursday. Sentiment turned positive after US stocks staged a comeback from their lows as investors bought the dip in technology names.

Wall Street ended higher on Wednesday as investors grew more optimistic that congressional Democrats and Republicans could reach a deal to avert a government debt default.

US private payrolls increased more than expected in September as COVID-19 infections started subsiding, boosting hiring at restaurants and other high-contact businesses. Private payrolls increased by 568,000 jobs last month, the ADP National Employment Report showed. Data for August was revised lower to show 340,000 jobs added instead of the initially reported 374,000.

Investors are awaiting payrolls data due Friday, with investors anticipating that a reasonable figure will mean the US Federal Reserve will begin tapering its massive stimulus programme at its November meeting.

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