A rangebound movement was witnessed as key benchmark indices hovered in positive zone in mid-morning trade. At 11:17 IST, the barometer index, the S&P BSE Sensex, was up 208.74 points or 0.78% at 26,949.13. The Nifty 50 index was currently up 60.45 points or 0.74% at 8,264.45. A likely boost to consumption demand from increase in salaries and payment of arrears to government employees due to the implementation of the 7th Pay Commission recommendations aided the upmove on the bourses. Gains in global stocks also aided the upmove on the domestic bourses. World stocks rose as worries over the impact of the Britain's decision to leave the European Union known as Brexit receded.
The Sensex jumped 253.95 points or 0.94% at the day's high of 26,994.34 in morning trade, its highest level since 23 June 2016. The barometer index rose 162.40 points or 0.6% at the day's low of 26,902.79 in early trade. The Nifty rose 73.20 points or 0.89% at the day's high of 8,277.20 in morning trade, its highest level since 23 June 2016. The index rose 47.70 points or 0.58% at the day's low of 8,251.70 in mid-morning trade.
The broad market depicted strength. There were more than two gainers against every loser on BSE. 1,545 shares rose and 646 shares declined. A total of 155 shares were unchanged. The BSE Mid-Cap index was currently up 0.85%. The BSE Small-Cap index was currently up 0.94%. Both these indices outperformed the Sensex.
The Union Cabinet yesterday, 29 June 2016, approved the implementation of the recommendations of 7th Central Pay Commission (CPC) on pay and pensionary benefits. The recommendations will benefit over 1 crore employees. This includes over 47 lakh central government employees and 53 lakh pensioners. The implementation of the 7th Pay Commission recommendations will take effect from 1 January 2016. The arrears of pay and pensionary benefits will be paid during the current financial year (2016-17) itself, unlike in the past when parts of arrears were paid in the subsequent financial year.
In overseas stock markets, Asian stocks edged higher after overnight rally on Wall Street. US stocks surged for the second day in a row yesterday, 29 June 2016, on speculation that the US Federal Reserve will delay interest rate increases in the wake of the Brexit.
IT stocks edged higher on renewed buying. Wipro (up 1.01%), HCL Technologies (up 0.73%), TCS (up 0.57%) and Oracle Financial Services Software (up 0.91%) rose. Tech Mahindra (down 0.06%) edged lower.
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Index heavyweight and software major Infosys was up 0.19% at Rs 1,178.75. The stock hit a high of Rs 1,192.70 and a low of Rs 1,171.65 so far during the day.
Telecom stocks also moved higher. Reliance Communications (up 2.57%), Idea Cellular (up 1.43%) and Bharti Airtel (up 0.41%) edged higher.
Bharti Infratel was off 0.19% at Rs 343.75. Bharti Infratel is a telecom tower arm of Bharti Airtel.
Index heavyweight and cigarette major ITC rose 0.11% at Rs 366.60. The stock hit a high of Rs 369.10 and a low of Rs 366.30 so far during the day.
Index heavyweight Reliance Industries was up 0.53% at Rs 971.95. The stock hit a high of Rs 974 and a low of Rs 970 so far during the day.
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