Markets gather pace; Sensex, Nifty up 1%

Markets have extended gains and are trading near day’s high led by buying among auto and FMCG shares.

At 14:40  pm, the S&P BSE Sensex is up 284 points to trade at 26,680 and the Nifty50 is up 82 points quote at 8,191. 

Top gainers from the Sensex pack are Bharti Airtel, NTPC, Hero MotoCorp, L&T and Cipla, all surging between 2%-3%.

All three listed associates’ banks of State Bank of India (SBI) – State Bank of Mysore, State Bank of Travancore and State Bank of Bikaner & Jaipur – were trading higher by more than 5% each on the BSE.

Bharti Airtel was trading higher by 3% at Rs 353 on the BSE after the company announced that it has entered into an alliance with Singapore Telecommunications Ltd (Singtel) to deliver high-speed, secure enterprise data network coverage in the Asia-Pacific, West Asia, Africa, Europe and the US.

Sintex Industries and NIIT Technologies have rallied by up to 9% on the National Stock Exchange (NSE) after the exchange announced inclusion of these two stocks in the futures and options (F&O) segment with effect from July 1.

Thiru Arooran Sugars is locked in upper circuit of 10% at Rs 108, also its 52-week high on the BSE, after the company reported net profit of Rs 27.37 crore for the quarter ended March 2016 (Q4FY16) as compared with net loss of Rs 18.61 crore in a year ago quarter.

Shares of all three listed airlines companies – Jet Airways (India), SpiceJet and InterGlobe Aviation (IndiGo) – have moved higher by up to 5% on the BSE after the Union Cabinet cleared Civil Aviation Policy.

InterGlobe Aviation was up 3% at Rs 1,019, after hitting high of Rs 1,032 in intra-day trade. Jet Airways (India) was up 2% at Rs 569 after touching intra-day high of Rs 576 on the BSE. The S&P BSE Sensex was up 0.51% at 26,530 points

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Updated at 11:30 am

Markets continue to hold on to its gains in the late morning trades owing to strength in Aian equities amid a rising rupee. Participants engage in buying beaten down bluechips at lower and attractive valuations.

At 10:45 am, the S&P BSE Sensex is up 89 points to trade at 26,485 and the Nifty50 is up 23 points quote at 8,132.

The rupee appreciated 8 paise to 67.19 against the US dollar in early trade today on fresh selling of the American unit by exporters. Besides, a higher opening in the domestic equity market supported the rupee. However, dollar's strength against some currencies overseas capped the gains, forex dealers said.

All three listed associates banks of State Bank of India (SBI) – State Bank of Mysore, State Bank of Travancore and State Bank of Bikaner & Jaipur – were trading higher by more than 5% each on the BSE in early morning trade.

The country’s largest lender, SBI said on May 17 that it was seeking the Centre’s nod to merge its five associate banks and the newly-created Bharatiya Mahila Bank with itself.

Meanwhile, Sintex Industries and NIIT Technologies have rallied by up to 9% on the National Stock Exchange (NSE) after the exchange announced inclusion of these two stocks in the futures and options (F&O) segment with effect from July 1.

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(updated at 9:15 am)
 

Markets have opened the session with higher mirroring strength in the Asian equities. However,  volatility is expected to be witnessed later during the session ahead of the two-day FOMC meet that ends today and the BOJ meet later today amid fears that the UK might leave the European Union

Meanwhile, rupee and oil movement along with FII stance is likely to dictate the trend later today.

At 9:15 am, the S&P BSE Sensex is up 106 points to trade at 26,502 and the Nifty50 is up 29 points quote at 8,138.

Geojit BNP Paribas in a technical note says,” Nifty’s approach to 8,065 attracted bargain buying yesterday on anticipated lines, yesterday’s feeble attempts to recover, long liquidation pressure kept a lid on gains, forcing a lower close. Such bias should dominate today as well, but, the slippages should slow down on approach to 8,065-8,000. This region has the potential to lay a platform for a vertical rise towards 8,400-8,500, but this play need to be revisited as the week progresses.”

GLOBAL MARKETS

Asian equities are trading mixed as participants continue to remain cautious ahead of the two-day FOMC meet that ends today and the BOJ meet later today amid fears that the UK might leave the European Union. Japan’s Nikkei, Hong Kong’s Hang Seng and China’s Shanghai Composite have gained between 0.2%-1.5%.

However, US stocks closed lower Tuesday, amid declines in oil prices on Brexit concerns. S&P 500 Index hit a three-week low to end at 2,075.32 on Tuesday, down 0.18%, in its fourth consecutive drop, led by a 1.45% fall in financial shares.

Back home, concerned over food inflation, Finance Minister Arun Jaitley will review the situation on Wednesday and discuss steps to keep prices of essential commodities, including pulses, in check.

STOCKS

Tata Power will purchase 25% of Resurgent Power for $300 million (around Rs 1,800 crore) as part of a consortium to primarily buy both coal-fired and hydro power assets in India, besides looking at power transmission companies, according to media reports.  The stock is up 0.3%.

M&M has gained 0.5% after its truck and buses division aims to double its market share in the heavy commercial vehicles (HCVs) space in the coming two years, beside strengthening its buses business.

Mobile tower firm Bharti Infratel will buy back shares worth Rs 2,000 crore from shareholders. The stock fell 1.5%.

Punjab National Bank declared a list of 913 wilful defaulters, including Kingfisher Airlines and NAFED, with total outstanding dues of Rs 11,486 crore. The stock climbed over 1%.

Bharti Airtel has opened up its entire mobile network information to its customers through an interactive online interface, called Open Network, under Project Leap, its national network transformation initiative, which is seeing an investment of Rs 60,000 Crores over the next three years. The stock is up 1.5%.

The Foreign Investment Promotion Board (FIPB) has approved two foreign direct investment (FDI) proposals, including that of Aurobindo Pharma. The stock is trading flat.

Coal India said its subsidiary South Eastern Coalfields Ltd will buy back shares worth Rs 1,200.19 crore. The stock has shed 0.3%.

Realty firm Housing Development and Infrastructureis in talks to sell 3-4 land parcels near Mumbai as it looks to bring down its net debt to about Rs 2,000 crore by the end of this fiscal. The stock jumped 1.5%.