Share markets in India are presently trading on a strong note, tracking gains in global peers.
Benchmark indices extended gains as hopes of a massive US stimulus outweighed the worries over the economic impact of coronavirus.
Sentiment also got a boost as the government announced guidelines to open more activities outside containment zones from October 1. They include cinema halls, sports activities, entertainment parks and B2B exhibitions.
The BSE Sensex is trading up by 606 points, up 1.6%, at 38,600 levels.
Meanwhile, the NSE Nifty is trading up by 168 points.
Top gainers in NSE today include Bajaj Auto and IndusInd Bank.
The BSE Mid Cap index is trading up by 0.8%.
The BSE Small Cap index is trading up by 1%.
On the sectoral front, gains are largely seen in the finance sector and the banking sector.
US stock futures are trading higher today. Nasdaq Futures are trading up by 79 points (up 0.7%), while Dow Futures are trading up by 233 points (up 0.8%).
The rupee is trading at 73.40 against the US$.
Gold prices are trading down by 0.1% at Rs 50,400 per 10 grams.
Global gold rates declined on Wednesday and were on track for the biggest monthly fall in nearly four years, as the dollar benefited from caution that crept into the financial markets after the first US presidential debate.
Tracking gold, silver too slipped 1.7% to US$ 23.87 an ounce and was on track for its first monthly contraction since March, falling more than 16%.
After correcting from August 7 highs of Rs 56,200, gold prices have remained choppy in recent days. Silver prices have also fallen significantly from their highs of about Rs 80,000 hit in August.
Speaking of the precious yellow metal, how lucrative has gold been as a long-term investment in India?
The chart below shows the annual returns on gold over the last 15 years...
As you can see, barring just two years - 2013 and 2015, gold has delivered positive returns in 13 of the last 15 years.
The recent price volatility in the bullion market has rattled many traders. Even with the recent volatility in prices, gold remains among the best-performing commodities this year to combat the fallout from the coronavirus pandemic.
Moving on to stock-specific news...
PVR and Inox Leisure are among the top buzzing stocks today.
Shares of both multiplex operators rallied up to 17% today after the government allowed the reopening of cinemas, theatres and multiplexes from October 15.
The central government has permitted the reopening of cinemas from October 15 with up to 50% of seating capacity outside containment zones adhering to the Standard Operating Procedure (SOP), which will be issued by the I&B Ministry.
Entertainment parks and similar places have also been allowed.
Reports state that the reopening of cinema halls after six months is a big positive, though Maharashtra in a separate set of guidelines on Wednesday said theatres in the state would be shut till October 31.
On Saturday, West Bengal Chief Minister Mamata Banerjee had said cinema halls in the state could function with 50 participants or less from October 1.
Shares of Inox Leisure surged 17%, while PVR gained as much as 15% on the back of the above news.
Moving on to news from the economic space, India's factory activity expanded at its fastest pace in over eight years in September as a relaxation in coronavirus lockdown restrictions drove a surge in demand and output, a private survey showed on Thursday.
The Nikkei Manufacturing Purchasing Managers' Index, compiled by IHS Markit, jumped to 56.8 in September from 52.0 in August, above the 50-level separating growth from contraction for a second straight month. It was the highest reading since January 2012.
A sub-index tracking output hit its highest since December 2007 and new orders expanded at the sharpest pace since February 2012, helped by both domestic and foreign demand which grew for the first time in seven months.
Despite the significant rebound, firms cut staff for the sixth month in a row.
As per media reports, the sector is unlikely to get much support from the Reserve Bank of India (RBI) over the coming months as persistently high inflation is expected to force the RBI to remain on the sidelines.
Earlier this week, the RBI postponed a policy committee meeting that was slated for September 29 - October 1 and said it would be rescheduled.
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