 "Auto shares zoom in a firm market; Services PMI at 8-month high")
After a gap-up opening, markets have trimmed its gains but continue to trade firm with auto shares displaying a stellar rally led by Tata Motors on the back of better-than-expected JLR sales in US. Meanwhile, India’s services industry expanded at its fastest pace in eight months in October which further cheered the sentiments.
However, energy shares have capped the upside with GAIL being the biggest laggard on the back of dismal quarterly numbers.
By 11:25 AM the Sensex was higher by 109 points at 26,670 and the Nifty has gained 22 points at 8,083. The broader markets are trading positive in line with the benchmark indices- BSE Midcap and Smallcap indices are up 0.5% each. Market breadth is positive with 1,357 gainers and 853 losers on the BSE.
The rupee has gained 6 paise to 65.58 against the US dollar on selling of the American currency by exporters and banks amid strength in the local equities.
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India’s services industry expanded at its fastest pace in eight months in October as new business rose with discounting probably stoking demand, a survey showed on Wednesday. The Nikkei/Markit Services Purchasing Managers’ Index rose to 53.2 in October from September’s 51.3, marking a fourth month above the 50-level that separates growth from contraction.
STOCK TRENDS
11 out of 12 sectoral indices are trading in green with BSE Auto and Consumer Durables trading over 1.5% each. Meanwhile, BSE IT index is losing sheen and is trading flat with a negative bias.
In the auto pack, Tata Motors has soared over 5% on better-than-expected JLR sales in the US. Meanwhile, Hero MotoCorp has reported 11.25 per cent rise in sales at 6,39,802 units in October, its highest ever in a single month and the stock is up 1%. M&M and Bajaj Auto have gained 1.4% each.
The HDFC Group has set up a new fund management company, HDFC Capital Advisors, to launch an offshore real estate fund, according to sources in the know. Shares of HDFC Bank and HDFC are up 0.5% each.
Tech Mahindra reported revenue and net profit above Street expectations. The good show was supported by operational efficiency and dollar-rupee conversion gains, along with better business from the US. After moving up by 1% , the shares have come down on account of profit booking. Among other IT peers, TCS and Wipro have lost between 0.2-0.8% amid an appreciating rupee.
DLF has gained over 4% after the company recorded a 21% increase in consolidated profit at Rs 131.5 crore during the second quarter of the financial year 2015-16.
GAIL has fallen 0.6% after it posted a 66% decline in net profit for the quarter ended September on the back of lower price realisation in transmission of Liquefied Petroleum Gas (LPG) and other petroleum products.
Tribhovandas Bhimji Zaveri has slipped nearly 4% after the company reported a net loss of Rs.12.10 crore in the September quarter compared with net profit of Rs.55.06 lakh.
Metal stocks continue to trade higher on rebound in the commodity prices amid surge in the China markets. Hindalco, Vedanta and Tata Steel have gained 0.6% each.
