Markets See Gains, All Indices Up

As expected in our morning update, the Indian markets opened on a positive in line with the global cues. At present, the Sensex and Nifty are trading up with gains of 0.46% and 0.45% respectively. There are key events lined up ahead like German’s court ruling which will decide the fate of the ECB's bond buying plans, as well as the two-day Fed meeting that will begin today.

All the BSE indices are trading in the green zone. Bankex and Realty are in leading gains of 0.94% and 0.87% respectively. Auto, Metals, Consumer Durables, Capital Goods and PSU are trading higher in the range of 0.5%-0.80%. All the other indices are also trading with marginal gains.

After seeing a strong positive opening, the other Asian markets are now trading on a mixed note. Hang Seng and Nikkei are higher by 0.84% and 1.27% respectively, while Shanghai is down by 0.37%. The Asian markets are looking cautious ahead of the key event risks from the US and Europe.

Back home, banking stocks are among the highest gainers in today’s trades. Major banking companies ICICI Bank, IDBI Bank, Canara Bank, Bank Of Baroda and Axis Bank are all trading up by over 1%. Others in the banking space are also in positives, with stocks like SBI, Union Bank and Yes Bank up by nearly 0.70% each.

As updated in our morning update 'Stock In Action' Dr. Reddy's Labs is up 0.52% to Rs 1734.75 after launching Metroprolol Succinate ER tablets in the US market on Sept 11.

In individual stocks, Himadri Chemicals is up by 7.69% to Rs 32.90 on the back of news that the company will partly or fully divest its non-core carbon black business.

Deccan Chronicle has fallen by 8.16% on news that the company board has passed a resolution to restructure its debt via the CDR route.

The market breadth, which indicates the overall health of the market, is positive at the moment. On the BSE, 1479 shares have advanced, 614 shares have declined and 88 shares are unchanged.

We expect the markets to remain positive today. The IIP data will be announced later in the day, which will also provide vital cues to the market direction.