US housing starts rose to a 590,000 unit annual rate in September

Domestic News:

Yahoo Inc. raised its outlook for the rest of the year as it reported third-quarter earnings that blew past analysts' forecasts. US housing starts rose to a 590,000 unit annual rate in September, versus a revised 587,000 in the previous month. Economists expected starts at a 610,000 unit annual rate. US building permits, a measure of builder confidence, rose to a 573,000 unit annualized rate in September from a revised 580,000 unit annualized rate in August. The US Producer Price Index (PPI), a measure of wholesale inflation. PPI slipped 0.6% in September versus forecasts for a flat reading. PPI rose 1.7% in the previous month. The government is planning to give small investors a 5% discount when it sells shares in the three state-owned companies, REC, NTPC and Satluj Jal Vidyut Nigam. The government is considering a two-phase follow-on public offer FPO) of Steel Authority of India(SAIL). This move is expected to fetch the government a sum of Rs.8000 crore.
Tata Motors has bought the remaining stake of 79 per cent in Hispano Carocera SA, Spain’s largest bus and coach bodies manufacturer, for an undisclosed sum. Ess Dee Aluminium, which recently acquired India Foils, is close to making its first global acquisition in Europe. The deal is likely to be sealed within the next one or two months. Century Textiles and Industries plans to start commercial real estate development at its Worli mill land and will float a separate division to control it.
Pipavav Shipyard has signed a contract with ONGC for construction and supply of 12 offshore supply vessels at an aggregate value of about Rs.513.83 crore.

Derivative View:

Nifty Oct contract ends the Day down by 21.20 points at a discount of 10.00 points in Oct contracts paring OI by 2.0% across all active Nifty contracts. Nifty Open Int PCR at 1.381 compared to 1.500 previous day on back of paring of 14.77 Lakh in Nifty puts and addition of 26.38 Lakh call options. Nifty VIX at 26.69 from 26.28 the previous Day. Highest OI in Nifty put at 4900 Oct strike and calls is at 5300 Oct strike. Nifty puts pared position significantly in 5100, 5000 and 4900 Oct strike. No significant addition was seen in Nifty puts during the day. Nifty calls added the most in 5100, 5200 & 5300 Oct strike. Paring of positions was seen in 4900 & 5000 Oct strike. FII side saw long liquidation in Nifty futures and marginal long build up seen in stock futures and some marginal addition in Nifty options was seen. Long build up was seen in TRIVENI, BAJAJHIND, GVKPIL, RENUKA, BALRAMCHIN, YESBANK, SAIL, FEDERALBNK, HINDALCO, LICHSGFIN & APIL etc. Short build up was seen in PTC, SESAGOA, INDIAINFO, MRPL & M&M.