Firm trend continues; Defensive stocks rally

Markets gain for the fourth straight session led by sustained buying in defensive stocks amid firm global cues. Meanwhile, progress in monsoons and narrowing of trade deficit data amid a strong rupee has boosted the sentiments of the market participants.

At 10:40 AM, the Sensex is up 104 points at 26,790 levels and the Nifty has climbed 19 points at 8,067 mark. The broader markets are outperforming the larger peers . BSE Midcap and Smallcap indices are up 0.7% each.

The Rupee is trading at 64.12 up by 12 paise after touching a 21-month low of 64.26 yesterday on fresh selling of dollars by banks and exporters following a positive opening in the equity market.

However, investors will remain wary ahead of the outcome of the US Fed meet which ends later today.

On the sectoral front, all sectoral indices barring BSE Oil & Gas and Power indices are trading firm with BSE Consumer Duarbles, Metal, Teck, IT indices are trading higher up to 1.5%.

Top 5 gainers on the Sensex include Cipla, HUL, Tata Steel, Dr Reddy’s Lab and Infosys up between 1-3.5%.

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(updated at 9:35 AM

Markets have opened the session higher tracking overnight gains on Wall Street and mixed cues among the Asian peers discounting the Greek worries amid a strong rupee.
At 9:35 AM, the Sensex is at 26,792 levels up by 106 points and the Nifty has gained 21 points at 8,068 levels. In the broader market, BSE Midcap and Smallcap indices are trading higher by 0.5%. The market breadth is firm on the BSE with 927 advances versus 522 declines on the BSE.

Although delayed, monsoons have picked up in the recent past taking the countrywide rain tally to 13% above normal so far this month which further lifted the sentiments.
 

However, investors will remain wary ahead of the outcome of the US Fed meet which ends later today.The Rupee opened at 64.18 up by 6 paise after touching a 21-month low of 64.26 yesterday on fresh selling of dollars by banks and exporters following a positive opening in the equity market.

"Many macroeconomic factors like FDI inflows, indirect tax collections, railway freight earning, aviation traffic, current account deficit, moderation in bad assets of the PSU banks, government’s capex plans, expectation of India’s GDP growing fastest among the major economies, inflation levels, etc., provide us a strong conviction that the domestic equity market has bottomed out. The risk to our view is any possible major failure of monsoon during the remaining period," said G.Chokkalingam, founder & managing director, Equinomics Research & Advisory.

GLOBAL MARKETS

Asia shares inched higher while the dollar held firm on Wednesday as investors awaited the Federal Reserve's latest take on the U.S. economy and interest rates as almost a welcome diversion to the endless wrangling over Greece.

A rally on Wall Street helped Japan's Nikkei .N225 gain 0.2 percent, while Australia's market .AXJO rose 0.4 percent.

MSCI's index of Asia-Pacific shares outside Japan .MIAPJ0000PUS edged up 0.1 percent from a three-month low.

The index has been dragged by Chinese shares .SSEC which fell sharply on Tuesday ahead of a torrent of IPO's that could tie up about 6 trillion yuan ($966.7 billion) of capital.

On Wall Street, the Dow .DJI ended Tuesday up 0.64 percent, while the S&P 500 .SPX added 0.57 percent and the Nasdaq .IXIC 0.51 percent.

With Reuters input

STOCKS ON THE RADAR

On the sectoral front, all sectoral indices barring BSE Oil & Gas and Power indices are trading firm with BSE Consumer Duarbles, Metal, Teck, IT indices are trading higher up to 1%.

Tata Steel workers in the UK will not go on strike on 22nd June and hold discussions for any positive outcome according to media reports. The stock is up 2.6%.

Cairn India and Vedanta shares are trading lower by 2.5% and 1% each on reports that LIC which holds 9.06% stake in Cairn India, is seeking a better offer, including higher dividend on the redeemable preference shares that the metal producer plans to offer Cairn shareholders as part of its planned merger.

HDFC Bank has slashed its base rate by 15 basis points (bps) to 9.70%. The new rates came into effect on Monday. Base rate is the benchmark rate to which all loan rates are linked. The stock is trading with marginal gains.

TCS and International Business Machines have emerged as frontrunners in the race to win Swedish truckmaker AB Volvo's IT outsourcing contract, worth about $500 million, according to people familiar with the matter. The stock is up 0.5%.

Wipro plans to set up facility in Odisha that would house 28,000 staff in Bhubaneswar. The stock is up nearly 1%.

Jubilant Life has announced hike in price of Vitamin B3 by 10% with immediate effect. The stock has surged over 5%.

Kirloskar Oil Engines is up 3% after the Bombay High Court approved the Composite Scheme of Arrangement and Amalgamation (the Composite Scheme) between Kirloskar Brothers Investments Limited, Pneumatic Holdings Limited and Kirloskar Oil Engines Limited and their respective shareholders and creditors.

Opto Circuit has gained 3.5% after the GDR Committee of the Company on June 16 approved the opening of issue of GDRs of the Company.

Lakshmi Vilas Bank has raised interest rates on savings accounts to 5% per annum for deposits up to Rs. 5 lakhs from earlier 4% per annum up to Rs. 1 lakh. For balance of above Rs. 5 lakhs, the new interest rates would be 6% per annum from earlier interest rates of 5% on incremental balances above Rs. 1 lakh. The stock is up 1%.

Gayatri Projects is up 4% after the board approved allotment of 16,24,006 equity shares by way of conversion of unsecured loan of Rs 33 crore extended by them. The board also approved allotment of 36,54,000 equity shares to FIIs.

Indian Hotels Company, which operates the Taj Group of Hotels has slipped by after the New Delhi Municipal Council (NDMC) appointed SBI Cap to be its transaction advisor for the auction of the iconic Taj Mansingh Hotel. The stock is marginally down.

PTC India Financial Services has raised Rs 150 crore through issuance of non-convertible debentures. PFS, a non-banking finance company, provides fee-based services viz loan syndication and underwriting etc. The stock is up 2%.

Tata Motors has gained 0.3% after Jaguar Land Rover has inaugurated a new Parts Distribution Centre (PDC) in India. The PDC has been opened in Bhiwandi and is spread over 70,000 square feet of land. 

World's largest two-wheeler manufacturer Hero MotoCorp  on Tuesday launched a new model of 100cc bike Passion Pro, priced at Rs 47,850 (ex-showroom Delhi). The new Passion Pro is more stylish and powerful and has features such as flush type fuel tank cap, 240 mm front disc brakes, power start, front side cowl, new tail light and digital-analogue combo meter, Hero MotoCorp said in a statement. The stock is up 0.6%.

FMCG major ITC has decided to remove no added MSG (monosodium glutamate) tag with their instant noodles brand Yippee. ITC sells Yippee under the Sunfeast brand. The stock is trading with marginal losses.