)
Markets are trading in a range, albeit with a positive bias, aided by defensive sectors such as FMCG and healthcare. The stronger cues from the global markets have also aided the sentiment of the traders.
By 10:30 AM, the Sensex has gained 52 points at 27,847 and the Nifty is hovering at the 8,400 mark at 8,395 levels, up 14 points.
The broader markets are in sync with the benchmark indices- BSE Midcap and Smallcap indices are up 0.04-0.3% each. The market breadth is positive, with 1,126 shares advancing and 793 shares declining on the BSE.
The benchmark indices may remain volatile throughout the session ahead of the expiry of the derivatives contract for the June Series tomorrow.
But investors are optimistic about a possible solution between Greece and its international creditors to avert a debt crisis after Athens presented a new set of proposals on Monday.
Also, the progress in monsoon so far, which could signal further easing of monetary policy by the central bank, has uplifted the sentiment on Dalal Street. According to the weather department, the country has received rainfall that is 23% above the Long Period Average.
Meanwhile, Securities and Exchange Board of India (Sebi) on Tuesday halved the time required between listing and closing of an initial public offering (IPO) to six days. The stock market regulator also eased the framework for start-ups to raise capital from the stock market.
On the currency front, the rupee opened at 63.67 levels, 9 paise down against its previous close of 63.58.
The foreign portfolio investors (FPI) were net sellers to the tune of Rs 375 crore on Tuesday, as per provisional stock exchange data.
SECTORS & STOCKS
Sectorally, all sectoral indices are trading in the positive territory led by a rally in BSE healthcare index.
The government has recommended an enhancement of the regulatory measures and fiscal and financial support to the pharmaceutical sector. Sun Pharma, and Dr. Reddy’s have gained 1.3% and 0.9% respectively on the Sensex, while Cipla has dipped marginally by 0.2%
Hindustan Unilever is in advanced discussions with Mosons Extractions Pvt. Ltd to buy the Indulekha brand of hair care products, including an ayurvedic hair grooming oil and shampoo, for around Rs.500 crore, media reports suggest. The stock has surged 2% on the Sensex.
The Board of Directors of Lupin has given an in-principle approval for raising funds of up to Rs. 7,500 crore. The stock is up 1.3% and is currently the highest gainer on the Sensex.
State-run equipment maker BHEL has commissioned a 250 MW unit of NTPC's thermal power plant in Assam. The stock has rallied more than 1.8% on the Sensex.
ITC has rallied nearly 1% on the back of good monsoon, which could boost the sales for the FMCG major.
Other notable gainers on the Sensex are Coal India, ONGC, Infosys, Sun Pharma, rallying 0.5- 1.1% each.
On the flip side, HDFC has slipped 0.6%. Other notables losers are Hindalco, Tata Steel, Bajaj Auto all shedding 0.5-1% each on the Sensex. Finance Minister Arun Jaitley told a private news channel on Monday that the government would infuse Rs 19,000 crore in public sector banks in this financial year. PNB, SBI, and Bank of Baroda have slipped by almost 1% each.
Among other shares, Persistent Systems has shed nearly 9% on the BSE in early morning trades after the information technology (IT) company said that the revenue growth in dollar terms is expected to be marginally lower in the current quarter (April-June 2015), due to weakness in the product engineering business coupled with the quarterly variability associated with the company’s IP business.
