A recovery in global stocks from losses triggered by last week's unexpected UK referendum for the country to leave the European Union (EU) aided gains on the domestic bourses. At 10:16 IST, the barometer index, the S&P BSE Sensex, was up 159.82 points or 0.6% at 26,684.37. The Nifty 50 index was currently up 51.40 points or 0.63% at 8,179.25. The Sensex and the Nifty, both, hit their highest level in almost a week. World stocks rose on speculation of monetary stimulus from the Bank of England, the European Central Bank and the Bank of Japan to counter a potential drag on the global economy from the UK's vote to leave the European Union known as Brexit.
The Sensex rose 171.98 points or 0.64% at the day's high of 26,696.53 in morning trade, its highest level since 23 June 2016. The barometer index rose 96.09 points or 0.36% at the day's low of 26,620.64 in early trade. The Nifty rose 55.40 points or 0.68% at the day's high of 8,183.25 in morning trade, its highest level since 23 June 2016. The index rose 34.40 points or 0.42% at the day's low of 8,162.25 in early trade.
In overseas stock markets, Japanese stocks led gains in Asian markets following overnight rally on Wall Street as jitters eased after the UK's vote to leave the European Union (EU) spurred global sell-off. The Nikkei 225 Average was currently up 1.94%. Latest data showed that Japan's retail sales fell more than expected in May in a third straight month of annual declines. Retail sales fell 1.9% in May from a year earlier, data released by the Ministry of Economy, Trade and Industry showed. US stocks registered strong gains yesterday, 28 June 2016, as investors looked for bargains after the Brexit fueled sell-off.
Closer home, the broad market depicted strength. There were nearly four gainers against every loser on BSE. 1,496 shares rose and 383 shares declined. A total of 86 shares were unchanged. The BSE Mid-Cap index was currently up 0.77%. The BSE Small-Cap index was currently up 1.16%. Both these indices outperformed the Sensex.
IT stocks recovered from recent losses triggered by concerns that losses for the British pound and euro in the wake of the UK's vote last week to leave the European Union (EU) will adversely impact Indian IT companies' revenue in dollar terms. Tech Mahindra (up 0.6%), Wipro (up 0.85%), Oracle Financial Services Software (up 0.62%), TCS (up 0.74%) and HCL Technologies (up 0.02%) gained. Indian IT companies derive about 25% of their revenue from Europe.
Index heavyweight and software major Infosys was up 0.59% at Rs 1,167.90. The stock hit a high of Rs 1,170 and a low of Rs 1,164 so far during the day.
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Cement stocks edged higher. Shree Cement (up 1.28%), UltraTech Cement (up 0.29%) and Ambuja Cements (up 1.05%) rose. ACC (down 0.01%) edged lower.
Grasim Industries was up 0.46%. Grasim has exposure to cement sector through its holding in UltraTech Cement.
L&T was up 1.15% at Rs 1,490.05 after the company announced before market hours today, 29 June 2016, that the Red Herring Prospectus filed by the company's subsidiary L&T Infotech with the Registrar of Companies, Maharashtra has been approved on 28 June 2016. L&T is selling up to 1.75 crore shares of L&T Infotech via the initial public offer of the latter. The offer will open for subscription on 11 July 2016 and close on 13 July 2016.
Bosch rose 4.9% at Rs 22,580 after the company said that a meeting of its board of directors will be held on 1 July 2016 to consider a proposal for buyback of the company's equity shares. The announcement was made after market hours yesterday, 28 June 2016.
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