Sensex rises 100 points, Nifty aims 8,150; broader markets outperform

FMCG shares firmed up on hopes that retreat of monsoon later than normal would boost rural growth volumes

Markets have gained momentum and are trading near day’s high supported by buying demand among FMCG and bank shares.

At 12:47 pm, the S&P BSE Sensex was up 133 points at 26,536 and the Nifty50 gained 38 points at 8,132. Broader markets continue to outperform the benchmark indices- BSE Midcap and Smallcap indices are up 0.5%-1%.

SBI, L&T, ITC, ICICI Bank and Adani Ports are the top Sensex gainers, up between 1%-3%.  

Among other shares, Trent has surged nearly 7% at Rs 1,792 on the Bombay Stock Exchange after the company said that the board, at its meeting held today, approved stock-split of equity shares having face value of Rs 10 each into ten equity shares of Re 1/- each.

Multi Commodity Exchange of India (MCX) has rallied 9% to Rs 1,047, its highest level since August 2015 on the BSE, on the back of heavy volumes.

Shares of Hotel Leela were up nearly 5% at Rs 18.40 25 the Bombay Stock Exchange on talk that the hotel major is planning to monetise its land located at Hyderabad and utilise the proceeds to reduce debt.


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Updated at 10:40 am

Markets continued to trade firm in late morning trade with FMCG shares leading the gains on expectations of boost in rural growth volumes.

At 10:40am, the S&P BSE Sensex was up 65 points at 26,468 and the Nifty50 gained 22 points at 8,116.
In the broader market, BSE Midcap index was up 0.4% and Smallcap index was up 0.7%. Market breadth 1408 gainers and 569 losers on the BSE.

In the FMCG pack, Hindustan Unilever was up nearly 2% while ITC gained 0.6%.

L&T extended gains and was up over 1% after the company said its construction division has won orders worth Rs 2,416 crore.

Among other shares, Tata Communications has surged 8% to Rs 485 on the BSE after Liquid Telecom, a pan-African telecom group, majority owned by Econet Wireless Global, has entered into an agreement to acquire South African communications network operator Neotel. Neotel is a subsidiary of the Company.
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(Updated at 9:30am)
Markets firmed up with financial shares leading the gains even as losses in IT exporters amid demand concerns post the Brexit capped further upsides.

Meanwhile, volatility is seen ahead of the June derviative contracts due for expiry on Thursday.

At 9:30am, the S&P BSE Sensex was up 31 points at 26,433 and the Nifty50 was up 13 points at 8,108. In the broader markets, the BSE Midcap index was up 0.4% while the Smallcap index was up 0.6%.

"Asian markets are in red with Nikkei and Shanghai both down as investors continue to weigh on Brexit. US markets fell and ended lower. Two-day European council meeting to commence today. Indian markets are braced for expiry if June contract on June 30," Geojit BNP Paribas said in a note.

 
Financial shares witnessed short covering with HDFC Bank and HDFC leading the gains along with SBI and Axis Bank.

FMCG majors ITC and Hindustan Unilever continued to trade firm on expectation that rural volume growth would pick up pace after the MET department said that monsoon rains are likely to retreat later than normal.

Reliance Industries was up 0.5%. The owner of the world's biggest refining complex, imported 13.2% less oil in May compared with a year earlier.

Larsen & Toubro extended gains and was trading higher after the company said its construction division has won orders worth Rs 2,416 crore.

IT exporters extended losses on concerns over demand uncertainty from Europe and volatility in the British pound post the Brexit. Wipro eased 1% while Infosys was down 0.7% and TCS which has a substantial exposure to UK was down 0.3%.



GLOBAL MARKETS

Asia markets are trading mixed with Japan’s Nikkei down 0.3% and Hong Kong’s Hang Seng slipping 1% after Britain shocked the world in a historic referendum vote where it decided to exit the European Union.

Meanwhile, China’s Shanghai Composite has lost 0.5%. China's official June manufacturing purchasing managers' index will be announced on Friday, 1 July 2016. On the same day, Markit Economics will announce Caixin China General Manufacturing PMI for June 2016.

Overnight, US stocks closed about 1.5% lower extending Friday’s fall after Britain shocked the world by voting to exit the European Union in a historic referendum last week. The Dow Jones and S&P 500 ended at their lowest since mid-March.