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Markets are trading near day’s high supported by strong buying among pharma, financials, capital goods and auto shares.
At 11:06, the Sensex was trading higher by 302 points at 27,808 mark and the Nifty gained 94 points at 8,414.
The top gainers on the Sensex are Bharti Airtel, Coal India, Cipla L&T and Maruti Suzuki.
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Updated at 10:30
The benchmark indices have rallied further, building on their early-morning gains, thanks to strength on the oil, banking and pharma counters.
At 10.30am, the Sensex was at 27,728, higher by 221 points or 0.8% and the Nifty was trading above its crucial psychological level of 8,350 at 8,389, up 70 points ahead of the GDP (gross doemstic product) data for the first quarter of the current financial year due later in the day today.
The midcap and smallcap indices have added about 1% each at 10,661 and 11,225 respectively.
The June series is expected to be volatile. The government is scheduled to announce the gross domestic product (GDP) data for Q4 March 2015 during the day. And the upcoming Reserve Bank of India (RBI) monetary policy review meet due on Tuesday is also likely to add to the volatile movements on Dalal Street.
RUPEE
The rupee was flat in early trade on Friday. It opened at 63.81 a dollar against the previous day's closing value of 63.80 a dollar.
TREND WATCH
Nifty index rolled around 1.3 crore shares (68.1%) into next two contracts; lowest over past 23 months. Nifty rolls were below six-month average of 74% and 2.25 crore shares. Tumultuous undertone could possibly have led to lower rolls. Bank Nifty rolls were lower at 64% versus an average of 68% over past six months. Marketwide rolls were around 83% on back of weak rolls in frontline stocks.
Analysts at Anand Rathi suggest that the Nifty now it has to cross and hold above 8,350 levels to witness an up move towards 8380 then 8,420 levels. On the downside, if it fails to sustain 8,300 zone then may witness profit booking towards 8,280 and 8,250 levels.
“Traders are required to maintain cautious approach as the index has been making lower lows price formation from last couple of trading sessions and now it needs to negate the trend to witness follow up buying action ahead of fourth quarterly results and GDP data expected later on Friday,” they said in a morning note.
CORPORATE RESULTS
On the earnings front, Cipla, Berger Paints, Blue Star, IOC, IRB Infra, M&M, NTPC, SAIL, RCom and Oil India are likely to announce their Q4 numbers during the day.
SECTORS AND STOCKS
Oil, banking and pharma stocks are going strong this morning. In the oil space, HPCL, BPCL and IOC have added 2-5% each, while RIL has gained 0.6%. ONGC, however, is trading weak post its Q4 numbers. In the banking space, SBI, ICICI Bank, Axis Bank and HDFC Bank have gained 0.5%-1% each. Bank of India, Yes Bank and Canara Bank are the other major gainers. In the pharma space, Cipla and Sun Pharma have added 1-2% each.
Among other individual names, Bharti Airtel, Asian Paints and Coal India have added 2-3% each.
On the other hand, ONGC has weakened by 1.5% at Rs 320 after reporting a 19.5% drop in net profit to Rs 3,935 crore for the quarter ended March 31, 2015, mainly due to higher operating cost and write-off on dry wells drilled. BHEL, Vedanta and Hindalco are the other major losers on the BSE, shedding 0.5%-1% each.
The market breadth is strong. Out of 1,923 stocks traded on the BSE, there are 1161 advancing stocks as against 688 declines.
