 "Market rally")
Markets snapped 3-day losing streak and closed higher on broad based buying across the bourses amid firm global cues. Meanwhile, a rise in the Service PMI data lifted the trading sentiments.
Provisionally, the Sensex closed 320 points higher at 25,774 and the Nifty closed 113 points higher at 7,830 levels.
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(updated at 2:40 PM)Benchmark indices have continued their upward march in the late afternoon trades taking strong cues from global markets. Apart from the global leads, the growth in services sector for the month of August has lifted the sentiment on D-Street.
At 2:40 PM, the 30-share Sensex was up 367 points at 25,821 and the 50-share Nifty was up 121 points at 7,838. The broader markets also firmed up on bargain hunting in fundamentally sound mid-cap and small-cap indices. The BSE Mid-cap and Small-cap indices were up over 1.3% each. Market breadth improved further with 1,726 gainers and 852 losers on the BSE.
On the macro-economic front, the Nikkei/Markit Services Purchasing Managers' Index rose to 51.8 in August from July's 50.8, marking a second month above the 50-level that separates growth from contraction.
Meanwhile, weak GDP data, the strength in service PMI, drop in inflation along with other economic data call for a rate-cut by the RBI.
On the currency front, the rupee is trading flat at 66.20 against the US dollar amid appreciation of the greenback in the overseas.
SECTORS & STOCKS
Sectorally, BSE Realty index has zoomed 5.2% followed by a rally in the metal and banking stocks.
Shares of real estate companies have rallied nearly 10% on the bourses after falling sharply in past couple of months.
DLF, Housing Development and Infrastructure (HDIL), Indiabulls Real Estate, DB Realty and Oberoi Realty are up between 3%-10% while Unitech, Godrej Properties, Sobha, Delta Corp, Ashiana and NBCC have gained between 1%-4%.
Metal stocks are up since the volatile Chinese markets are closed. SAIL, Vedanta, Tata Steel, Hindalco JSW Steel are all up between 3-6% each on the Sensex.
After a downfall in the previous trading session, the banking and financial shares are up on the back of valuebuying. Axis Bank, SBI, ICICI Bank, HDFC twins are all up between 1-4.2% each.
Hindustan Unilever has cut its shampoo prices in response to rival Procter and Gamble’s recent moves. However, the stock is up 0.5%
Tata Motors' Sanand plant will roll out first non-Nano model in December. The stock is trading higher by 3.2%.
Airtel has entered into four-year contract with network equipment supplier Ericsson to roll out 4G services and to expand 3G networks across selected circles. Ericsson also said it will invest up to $20 million (Rs 132 crore) in setting up its second manufacturing unit near Pune. The stock is up 1.2%
Among other shares, Adani Mining received a setback when one of its key customers Korean major LG said that it will not purchase coal from its controversial 16 billion dollar project while reports emerged that a leading bank may not fund the venture. However, Adani Enterprises is up by 2.7%
