Sensex Above 19K

 The Indian markets continued to show good strength, having opened in the green this morning. Front line Indices are continued to trade higher with the Sensex and the Nifty having gone up 1.35% and 1.27% respectively till the time of this report. After it took cues from the positive developments on the global front including Europe and the US, what really has spiked up the positive sentiment is the Goldman Sachs upgrade of India to overweight. This upgrade comes very close to another international rating agency's (Moody's) action of having held up its outlook on India as stable.

Among sectoral indices, the BSE Realty Index led the pack and was trading higher by 3.04%, followed by Auto, Metals and Bankex which are also trading in the positive territory. On the other hand Teck and IT are the only Indices trading in the red and are down 0.29% and 0.52% respectively. This is majorly due to the rupee having appreciated against the US dollar by 32 basis points to Rs 55.13/USD.

Other Asian markets are trading mixed, with the Shanghai Composite down 0.29 per cent while the Hang Seng and Nikkei trading higher by 0.92 and 0.98 per cent respectively. According to Bloomberg reports, Asian stocks rose as US lawmakers said they are optimistic about an agreement to avoid automatic spending cuts and tax increases and as the leader of Japan’s opposition party called for unlimited monetary policy easing.

Back home, Tata Motors is leading among the index gainers and is trading up 4.65% at Rs 278.80 per share. Auto stocks like Bajaj Auto, Hero MotoCorp, M&M etc are also trading higher, up in the range of 0.72%-4%. Banking firms including ICICI Bank, HDFC Bank and SBI are also trading higher. HUL, TCS, Bharti Airtel, and Jindal Steel, ITC too are trading in the positive territory.

On the flip side, there are only three Index stocks at the losing end. Infosys is the worst index performer trading down 1.5% at Rs 2432 per share. Maruti Suzuki and BHEL are the other two counters which are trading lower; down 0.70% and 0.56% respectively.

The market breadth remains strong with 1611 gainers against 1077 losers. 124 stocks are still unchanged.

We expect the markets to remain volatile with a positive bias, however one has to remain caution and keep a close track of the F&O expiry for the month of November.