Sensex, Nifty hit highest level in more than 5 weeks

Key benchmark indices extended initial gains and hit fresh intraday high in morning trade. The barometer index, the S&P BSE Sensex, retained the psychological 27,000 mark which it had reclaimed in early trade. The Sensex and the 50-unit CNX Nifty, both, hit their highest level in more than five weeks. Gains in world stocks boosted sentiment. The Sensex was currently up 172.40 points or 0.64% at 27,053.22. The BSE Small-Cap index was up almost 1%, outperforming the Sensex. The market breadth indicating the overall health of the market was strong, with more than two gainers for every loser on BSE. Shares of public sector oil marketing companies rose.

In overseas markets, Asian stocks rose after US stocks surged overnight on optimism about earnings and economic data in the US. US stocks surged yesterday, 28 October 2014, with Standard & Poor's 500 Index settling near a record on speculation the US central bank will retain the language on the policy statement broadly dovish to signal a prolonged period of low rates, if the economy proves dicey. A two-day meeting of the Federal Open Market Committee (FOMC) on US monetary policy concludes later in the global day today, 29 October 2014.

In the foreign exchange market, the rupee edged higher against the dollar on global risk-on sentiment.

Brent crude oil prices edged higher as investors awaited guidance from the Federal Reserve on US monetary policy later in the day and after industry data on US inventories came in more or less as expected.

Indian stocks may remain volatile in near future as traders roll over positions in the futures & options (F&O) segment from the near month October 2014 series to November 2014 series. The near month October 2014 derivatives contract expire tomorrow, 30 October 2014.

At 10:17 IST, the S&P BSE Sensex was up 172.40 points or 0.64% at 27,053.22. The index jumped 181.30 points at the day's high of 27,062.12 in morning trade, its highest level since 23 September 2014. The index rose 110.21 points at the day's low of 26991.03 in early trade.

The CNX Nifty was up 49.65 points or 0.62% at 8,077.25. The index hit a high of 8,081.05 in intraday trade, its highest level since 23 September 2014. The index hit a low of 8,059.25 in intraday trade.

The BSE Mid-Cap index was up 68.07 points or 0.71% at 9,668.47. The BSE Small-Cap index was up 106.65 points or 0.99% at 10,830.71. Both these indices outperformed the Sensex.

The market breadth indicating the overall health of the market was strong, with more than two gainers for every loser on BSE. On BSE, 1,398 shares rose while 550 shares declined. A total of 73 shares were unchanged.

Shares of public sector oil marketing companies rose across the board. BPCL (up 2%), HPCL (up 1.58%) and Indian Oil Corporation (up 1.22%) gained.

The government on 18 October 2014 announced deregulation of diesel prices. Soon after the announcement, Indian Oil Corporation (IOCL) on that day announced a reduction in diesel price by Rs 3.37/litre (including VAT) in Delhi with corresponding decrease in other price in other states from the midnight of 18/19 October 2014. The movement of prices in international oil market and rupee dollar exchange rate shall continue to be closely monitored and developing trends of the market will be reflected in future price changes in diesel prices, IOCL said at that time.

PSU OMCs review fuel prices on 1st and 16th of every month based on the average imported oil price in the previous fortnight.

SRF jumped 9.8% after net profit surged 60.9% to Rs 76.85 crore on 9.2% rise in net sales to Rs 916.87 crore in Q2 September 2014 over Q2 September 2013. SRF said that the surge in the company's profitability was driven by all the three businesses.

In the foreign exchange market, the rupee edged higher against the dollar on global risk-on sentiment. The partially convertible rupee was hovering at 61.2825, compared with its close of 61.33 during the previous trading session.

Brent crude oil prices edged higher as investors awaited guidance from the Federal Reserve on US monetary policy later in the day and after industry data on US inventories came in more or less as expected. Brent crude for December delivery was up 27 cents at $86.30 a barrel. The contract had gained 20 cents to settle at $86.03 a barrel during the previous trading session.

Asian stocks rose today, 29 October 2014, after US stocks surged overnight on optimism about earnings and economic data in the US. Key benchmark indices in Indonesia, South Korea, Singapore, Japan, China, Hong Kong and Taiwan were up 0.33% to 1.57%.

Trading in US index futures indicated that the Dow could fall 16 points at the opening bell today, 29 October 2014. US stocks surged yesterday, 28 October 2014, with Standard & Poor's 500 Index settling near a record on speculation the US central bank will retain the language on the policy statement broadly dovish to signal a prolonged period of low rates, if the economy proves dicey. A two-day meeting of the Federal Open Market Committee (FOMC) on US monetary policy concludes later in the global day today, 29 October 2014.

Among economic data, US consumer confidence hit its highest since 2007 in October. The report overshadowed a separate read that showed new orders for capital goods fell the most in eight months in September.

A two-day meeting of the Federal Open Market Committee (FOMC) on US monetary policy review concludes today, 29 October 2014. The Fed is expected to announce the end of quantitative easing after the meeting. Investors will be looking to see if the Fed drops the "considerable period" for keeping rates low at the latest policy meeting. As several Fed officials have come out with dovish comments recently, investors largely expect that guidance to be reiterated.

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