The markets have scaled higher this morning, led by gains in IT shares, on the back of firm cues from the global markets. The Nifty was up 42 points at 5,115, after advancing to high of 5,132 in the opening trades. The Sensex was up 150 points, at 16,985.
Across Asia markets added gains helped by rally in the US markets overnight on news that Google would buy Motorola Mobility Holdings for $12.5 billion in cash. In Asia Japan's Nikkei Stock Average moved up 0.3%, Hang Seng added 0.4% and China's Shanghai Composite was flat, at 2,743. On Monday, the World Bank urged the national government to aim for curbing debt in the long term in-order to solve the debt crisis which has grappled United States and Europe.
Back in India, markets may take cues from the July inflation data which will be released around noon today. Analysts expect Inflation to rise to 9.2% versus 9.4% seen in the month of June according to the Reuters poll. Economists said that the Reserve Bank of India may continue with its tightening process in September and hike rates by another 25 bps as inflation continued to remain higher than RBI’s comfort zone of 6%.
Analysts said that markets may rally in the near term owing to positive global cues but in the long-term term headwinds remained. On Monday, Citigroup cut year-end target for the Sensex by almost 10% to 19,700 from 21,500 on back of high valuations, monetary tightening, GDP downgrades and policy paralysis according to news reports.
Market Analysts said that markets may rally in the near term owing to positive global cues but in the long-term term headwinds such as high inflation and policy deadlock remained. On Monday, Citigroup cut year-end target for the Sensex by almost 10% to 19,700 from 21,500 due to high valuations, monetary tightening, GDP downgrades and policy paralysis.
Among the Sectoral indices, BSE IT index added 1.6% followed by BSE Metal index, which was up 0.8%.
Top gainers from the IT pack were Infosys, up 1.5%, HCL Technologies added 1.2% and TCS was up 1%.
From the metal pack Coal India added sheen, up 2%, JSW Steel was up 1.5% and Hindalco Industries was up 1.3%.
From the broader markets, the midcap and the smallcap indices were up 0.6% and 0.7% each.
Also among individual stocks State Bank of India gained 0.6% after the net profit dipped 46%, at Rs 1,583 crore from a year ago and Reliance Communication added 0.3%, to Rs 85 after June quarter net profit fell 37%.
Top gainers on the Sensex were Coal India and ICICI Bank, up 1.7% each, Sterlite Industries gained 2%. Among the top losers were Maruti Suzuki, down 1%, followed by JP Associates and HUL, down 0.3%.
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