Markets gain momentum; Nifty reclaims 8,100

Markets have gained momentum in the late trades helped by a broad based rally led by healthcare and FMCG shares. Narrowing of trade deficit data, ease in the WPI inflation coupled with firm IIP data has raised hopes of a further rate cut by the RBI.  

At 1:55 PM, the Sensex is up 220 points at 26,907 levels and the Nifty has climbed 61 points at 8,108 mark. 

Tata Steel, Cipla, HUL, Hindalco, RIL are trading higher between 2-5%.

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(At 1:05 PM)

Steel shares surged amid media reports that the government has notified hikes in import duty on steel products.

At 1:05PM, the 30-share Sensex was up 128 points at 26,815 and the 50-share Nifty was up 30 points at 8,077.

According to reports, the government has notified hike in long steel products to 7.5% from 5.5% and flat steel products to 10%.

Among steel stocks, Tata Steel was up 4.5%, SAIL gained 3%, JSW Steel 3.2%, Jindal Steel was up 3.2%.

In the mid-cap space, Bhushan Steel and Uttam Galva Steels were up 6% each while Kalyani Steel gained 9% and Steelco Gujarat was up 10%.

The Indian rupee continued to trade firm against the US dollar and was up at 64.13 compared to the previous close of 64.24

FMCG shares ITC and HUL continue to remain among the top Sensex gainers along with L&T, Reliance Industries and HDFC among others.

In the broader market, the BSE Mid-cap index was up 1.1% and the Small-cap index was up 1.2%.

Market breadth was strong with 1,551 gainers and 824 losers on the BSE.

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(Updated at 11:40AM)
Markets maintained momentum in late morning trades on sustained buying in pharma and FMCG shares amid firm Asian cues. Also, the progress in monsoon and narrowing trade deficit for the month of May has lifted the sentiment on Dalal Street.

At 11:40 AM, the Sensex is up 137 points at 26,824 levels and the Nifty has advanced 32 points at 8,079 mark. The broader markets are outperforming their larger peers with BSE Midcap and Smallcap indices are up 1.1% each. The market breadth is strongly positive with 1,437 advances against 737 declines on BSE.

Meanwhile, investors would be closing tracking the outcome of the FOMC meet to get some clarity on US Fed rate hike.

Globally, Asian markets are trading firm on the back of gains in the US markets.

RUPEE

The Indian currency has strengthened against the greenback on the back of selling of the US dollars by banks and the exporters. Also, the strength in the local equities has also aided the rupee. At 11:40 AM, rupee was quoting at 64.11, appreciating by13 paise.

BUZZING STOCKS

Sectorally, all sectoral indices barring Power are trading in the positive zone with BSE FMCG and Healthcare trading over 1% each.

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 has gained nearly 2% on the Sensex.

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

TCS is one of the frontrunners in the race to win Swedish truckmaker AB Volvo's IT outsourcing contract, worth about $500 million. The stock is up 0.5%.

The monsoon so far is 13% above normal pan-India, which has impacted the FMCG sector positively. Shares of ITC and Hindustan Unilever have advanced between 0.7- 3% respectively on the Sensex.

Other notable gainers are Cipla, Bharti Airtel, Dr. Reddy, and L&T, all gaining between 1.1- 3.2% each on the Sensex.

On the flip side, Vedanta has slipped 1.6% on the Sensex after 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. Cairn India is down nearly 1%.

Tata Power, BHEL, and HDFC Bank are down between 0.8- 1.1% each on the Sensex.

SMART MOVERS

Shares of Opto Circuits (India) are up over 4% on BSE after the company in a release said that its GDR Committee approved opening of issue of GDRs of the company.

Shares of Glenmark Pharmaceuticals have surged 5.4%, extending its previous day’s 4% rally on the BSE, after the company said it has received final nod from the United States Food & Drug Administration (USFDA) for generic oral contraceptive Levonorgestrel/Ethinyl Estradiol tablets and plans to commence shipping of the product immediately.

Shares of BEML are trading higher by 1.5% at Rs 1,266, extending it’s a month long rally, after reporting a strong set of numbers for the quarter ended March 2015.