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Markets rebounded after Monday’s sharp sell-off to open higher, amid firm global cues, with index heavyweights and financial shares leading the gains.
At 9:33AM, the Sensex was up 154 points at 19,478 and the Nifty was up 53 points at 5,864.
In overnight trades, US stocks rallied on Monday after encouraging jobs data that pushed S&P to end at this all-time high set in May.
U.S. employers added 195,000 new jobs to their payrolls last month, beating expectations of 165,000
The Dow Jones industrial average gained 88.85 points, or 0.59 percent, to end at 15,224.69. The Standard & Poor's 500 Index rose 8.57 points, or 0.53 percent, to 1,640.46. The Nasdaq Composite Index added 5.45 points, or 0.16 percent, to close at 3,484.83.
Asian shares rose in early trades today after U.S. job creation accelerated in June raising hopes of growth recovery in world’s biggest economy.
Among the key Asian indices, Japan’s Nikkei was up 0.8% to 14,229, Singapore’s Straits Times gained 0.3% to 3,166 while China’s Shanghai Composite was tad down to 1,958 in the opening deals.
According to technical experts, going ahead, the NSE index may face near resistance around 5,850, and far-off hurdle at 5,900. On the downside, fresh weakness can be expected on break of 5,750. Today, the Nifty may seek support around 5,790-5,775, while face resistance around 5,835-5,850.
All sectoral indices on the BSE were in the green in early trades led by BSE Realty index which was up 1.1% followed by Consumer Durables, Power, Bankex, IT, Oil and Gas, Capital Goods indices.
Index heavyweight Reliance Industries was up 1.2% while Infosys was up 1% ahead of its first quarter earnings on Friday. TCS was up 0.7%.
Financial shares rebounded on short covering after recent losses. ICICI Bank, HDFC Bank, HDFC and SBI were up 0.7-1.2% each.
Sensex losers include Maruti Suzuki after it slashed production by around 25 per cent in June. The company, which has seen demand taper for even diesel vehicles after the recent fuel price increases, is understood to have asked 200 contract workers at Suzuki Powertrain India Ltd (SPIL) to go on indefinite leave, to align production of diesel engines in line with market demand.
Hindustan Unilever also witnessed profit taking after recent gains post its open offer by its parent company to acquire additional stake in the company. HUL was down 0.4%.
In the broader market, the BSE Mid-cap index was up 0.6% and the Small-cap index was up 0.5%.
Market breadth was strong with 658 gainers and 215 losers on the BSE.
