 "Markets have a quiet morning; Nifty hovers at 8,500")
At 9.40am, the Sensex was at 28,227, higher by 18 points and the Nifty was at 8,529, up 7 points.
The broader markets are outperforming their larger peers; the midcap index has gained 0.6% at 11,038 and the smallcap index has zoomed by 0.8% at 11,519.
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The Sensex had staged a dramatic recovery in the later part of Monday's session, shrugging off Grexit fears and bucking the weak global market trend to end with gains of more than 100 points.
On the global front, Greece will remain in focus. France and Germany have asked Greece to submit proposals to restart financial aid talks, a day after Greeks voted overwhelmingly to reject more austerity. German Chancellor Angela Merkel and French President Francois Hollande, the euro zone's most powerful leaders, said Athens must move quickly if it wants to secure a cash-for-reform deal with creditors and avoid crashing out of the single currency. And the Eurozone leaders will hold an emergency meeting in Brussels on Tuesday to work out their response to the Greek vote and the next steps in any negotiations.
Back home, the first quarter earnings season will kick off with Tata Consultancy Services announcing it numbers on Thursday.
The Nifty, according to technical chartists, is holding its position well above its 200 DMA. "Going forward, it has to hold above 8,520 to continue the upmove towards 8,550 and 8,635 zones. However, if it fails to hold 8480 levels, then bears may over power the bull and propel the index to drift towards 8,420 then 8,380 levels. Traders should remain cautious ahead of the upcoming quarterly result season," points out a morning note from Anand Rathi research.
RUPEE
The rupee has opened at 63.31 a dollar on Tuesday, up 9 paise compared to 63.40 per dollar in previous session. On Monday, the rupee had ended at the highest closing level since April 29.
CRUDE
Crude oil prices plunged 6% on Monday amid Chinese crisis and Greece debt crisis. The apparent movement in Iran's nuclear negotiations and new focus this weekend on China's stock market collapse also contributed to the fall.
GLOBAL MARKETS
Asian stocks are mixed this morning, but investors remained on edge amid uncertainty over Greece's position in the euro and volatility in mainland Chinese share markets. Japan’S Nikkei 225 index rose 1.36%, while Indonesia, Singapore and Taiwan rose upto 1% each. On the other hand, Shanghai Composite was trading lower by 2.8%.
Overnight, the US stocks had ended a choppy session slightly lower as global equities came under pressure after Greece rejected its international lenders' bailout terms and moved closer to a potential exit from the eurozone.
LEADERS AND LAGGARDS
All the sectoral indices are in the green this morning, with the exception of the pharma space. Among the index heavyweights, HDFC, Tata Steel and Wipro have gained more than 1% each.
Reliance Industries (RIL) has edged lower by 0.5% at Rs 1009. The index heavyweight had announced, post market hours on Monday, that it was proposing to sell 3.25 crore shares of Network18 Media & Investments (NW18), (representing 3.10% of the equity capital of NW18) to bring down the aggregate shareholding of the promoter and promoter group to 75% and increase the public shareholding to 25% as mandated by Clause 40A of the listing agreement pursuant to Securities. Contract (Regulation) Rules, 1957.
On the sectoral front, the banking sector is going strong this morning. SBI, ICICI Bank and Axis Bank have gained nearly 1% each, while the likes of Union Bank, PNB and Bank of Baroda have added 1-2% each.
Oil marketing companies, including HPCL, BPCL and IOC, have rallied further by another 1% each as the weak crude price are expected to aid their margins.
On the other hand, the pharma is seeing select profit-booking after recent gains; Cipla, Dr Reddy's and Lupin have shed round 0.5% each.
The market breadth is strong. Out of 1741 stocks traded on the BSE, there are 1238 advancing stcoks as against 441 declines.