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Markets have extended its yesterday’s rally and continue to trade higher with capital goods contributing the most to the rise on the benchmarks after the growth in production in the eight key infrastructure sectors touched a six-month high of 4.4% in May.
At 12 PM, the Sensex was at 27,947, up by 167 points while the Nifty was trading at 8,425, up by 56 points. The broader markets, BSE MIdcap and Smallcap indices are outperforming the larger peers and are up over 1% each.
Meanwhile, above expectation monsoons in the June with a rainfall of 189.5 millimetres as against a normal of around 163.6 millimetres and a further decline in the crude oil prices has buoyed the trading sentiments.
INTERNATIONAL DEVELOMENTS
The International Monetary Fund (IMF) in a press release stated that Greece has failed to make a payment of €1.5bn to the IMF that had been set for midnight on Tuesday. It further added that the cash-strapped nation is now in arrears and can only receive IMF financing once the arrears are cleared.
Meanwhile, rating agency Fitch has cut its long-term rating on Greece to 'CC' from 'CCC' amid turmoil over the country's debt negotiations which resulted in fears that the nation could make an exit from the euro zone.
LOCAL CURRENCY
The rupee has appreciated by 3 paise to 63.61 against the US dollar at the Interbank Foreign Exchange on increased selling of the American currency by exporters amid a firm opening in the Indian equities.
BUZZING STOCKS
All 12 sectoral indices are trading firm with BSE Healthcare, IT, Capital Goods, Consumer Durables, Metal, Oil & Gas, Realty and Power indices trading higher over 1% each.
Auto stocks are gaining focus in today’s trade as the June sales data unveils. Maruti Suzuki is up 1% after it sold 114,756 vehicles in June, 2015, registering a growth of 1.8% over the previous year. Meanwhile, Tata Motors is up 0.6% and M&M is trading with marginal gains.
Meanwhile, two-wheeler stocks are trading with losses. Hero Motocorp and Bajaj Auto are down 0.5% and 0.2% each.
Coal India has gained over 1.7% with the stock extending yesterday's gains triggered by a foreign brokerage reportedly maintaining its 'overweight' outlook on the stock.
Bharti Airtel has become the world's third largest mobile operator with 303 million subscribe with operations in 20 countries. The stock has climbed 1.6%.
IT and healthcare shares are surging in today’s trade as an uptick in the earning’s growth is expected as April-June is a seasonally strong quarter for these companies. Cipla, Lupin, Dr Reddy’s Lab, Sun Pharma form the pharma pack and TCS, Infosys and Wipro from the IT pack are trading higher between 0.5-2.5%.
Oil & Gas majors are trading upwards in today’s session after data indicated that in May the production of refinery products jumped 7.9%, against contraction of one per cent, 1.3% and 2.9% in February, March and April, respectively. RIL, ONGC, GAIL are up between 0.5-1%.
The market breadth is strong on the BSE with 1,674 advances versus 668 declines on the BSE.
