 "Markets in consolidation mode; Nifty hovers at 8,450")
At 10.30am, the Sensex was at 28,090, higher by 69 points or 0.2% and the Nifty was at 8,471, up 19 points.
The broader markets continued their outperformance, with the midcap and smallcap indices registering gains of 0.9% each at 10,917 and 11,340 respectively.
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The benchmark indices had rallied around 1% on Wednesday to settle at around 11-week highs due to a mix of positive cues from the domestic and global front. The Sensex had gained about 240 points to reclaim the 28,000 mark and the Nifty had ended around the 8,450 mark.
RUPEE
The rupee has slipped marginally to 63.63 a dollar in early trade compared to 63.61 a dollar in the previous session.
OIL
Oil prices recovered after the Iran nuclear talks were extended until July 7, giving oversupplied markets a breather despite uncertainty over the Greek financial crisis. The US benchmark West Texas Intermediate (WTI) for August delivery was up 10 cents at $57.06 in late morning Asian trade while Brent was 23 cents higher at $62.24.
MARKETS & ECONOMY
The growth in eight core sectors increased to 4.4% in May versus a decline of 0.4% in the month of April. The growth was recorded after two consecutive months of decline, thus indicating a recovery in the industrial output. Some support also came after India Meteorological Department (IMD) reported better than normal monsoon figure in the month of June.
"The outlook for inflation has improved in recent weeks, thanks to the strong start to monsoon season. Rains have been 16% above normal in June, resulting in an improvement in sowing patterns for major crops (pulses and oilseeds). While authorities still warn of weak rainfall in July, a crucial month in the season, the good start has improved reservoir levels which are likely to aid agricultural production," said Pranjul Bhandari, chief India economist at HSBC.
"The fall in both PMI input prices and prices charged is a positive indication and coupled with the strong start to monsoons, should provide the RBI more comfort around its 6% CPI target of January 2016," he adds.
Analysts say that the recent rebound in markets despite global uncertainty clearly depicts participants giving more weightage to domestic cues as expected.
"It’s too early to say that the scenario would prevail if global volatility increases in days to come. Hence, we reiterate our advice to maintain positive yet cautious approach as Nifty has almost reached near to crucial hurdle of 8,500 mark and sustainability above the same will trigger fresh upside momentum, otherwise profit taking will resume," said Jayant Manglik, President, Retail Distribution, Religare Securities in a note.
SECTORS AND STOCKS
Auto stocks are seeing buying interest post the June auto sales numbers; Bajaj Auto, M&M and Hero Motocorp have emerged as the leaders on the BSE with gains of 1-2% each. Among the other heavyweights, RIL, Bharti Airtel and ICICI Bank have added nearly 1% each.
The banking sector is continuing from where it left in the previous session; ICICI Bank, SBI and Yes Bank have added 0.5%-1% each; HDFC Bank has however lost about 1%.
The oil space is also doing well this morning, with IOC, HPCL, BPCL, Oil India and RIL gainin g 1%-4% each.
On the other hand, the IT space is witnessing selling pressure, with Infosys shedding nearly 1%, and TCS, Wipro amd Tech Mahindra losing about 0.5% each.
The market breath is strong. Out of 2,034 stocks traded on the BSE, there are 1390 advancing stocks as against 569 declines.