Trades Remain Firmly In Gains

The Indian markets continue to trade higher this afternoon, with the Sensex and Nifty up almost 0.70% on the back of the positive global cues. There is hope that Chinese officials may announce a stimulus package in the coming days, lifting the market sentiments.

Among the sectoral indices, Healthcare, Consumer Goods and Capital Goods are leading with gains of 1.47%, 1.46% and 1.35% respectively. Others like Metals, Bankex, FMCG, Realty and Auto are also trading positive in the range of 0.71%-1.07%.

The other Asian markets are trading with mixed results. The Hang Seng and Shanghai are up by 0.98% and 1.81% respectively, while the Japanese Nikkei is down by 1.07%. As per media reports China's central bank pumped 265 billion yuan (US$ 42.15 billion) into the markets via reverse bond repurchase agreements, the second-largest gross injection on record, raising hopes that it could do even more to boost growth.

The European indices have opened their initial trades in gains, with the FTSE, CAC and DAX trading higher by 0.22%, 0.16% and 0.45% respectively. The shares edged higher, bouncing back following sharp losses in the previous session after China's moves to inject cash into the money market encouraged speculations of more stimulus measures.

Back home, L&T is the leading index gainer, trading 2% up at Rs 1630.70 per share. Pharma stocks like Dr Reddy’s Labs, Sun Pharma, Biocon and Glenmark Pharma are also trading higher in the range of 2%-4%. Others stocks such as Cadila, Cipla, Divi's Labs, Lupin and Opto Circuits are trading higher nearly by 1.5% each.

Cement shares are up today on hopes that construction activity will pick up as the monsoon has already started withdrawing from most parts of the country. Steel stocks rose after iron ore giant NMDC announced a cut in iron ore prices for Oct 2012.

Among individual stocks, Ranbaxy Laboratories is up by 2% to Rs 535.90 after the company said that its wholly-owned subsidiary has launched authorised generic Cevimeline Hydrochloride capsules in the US under an agreement with Daiichi Sankyo.

The market breadth, which indicates the overall health of the market, is positive as of now. On the BSE, 1508 shares have advanced, 1138 shares have declined and 127 shares are unchanged..