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Benchmark indices are trading higher led by buying among metal and healthcare segment. Gains in Asian stocks have also aided upmove on the domestic bourses today.
By 12:05 PM, the Sensex was higher by 92 points at 20,751 mark and the Nifty gained by 28 points at 6,183 levels.
Adds Ranak Merchant, Sushil Financial Services, Technical Analyst – Strategies, “Last week’s correction led Nifty to close just above a crucial support zone of 6130-6140 which was held in yesterday’s sell off. As long as this support zone is held on a closing basis, a short term bounce thereof is likely. Traders would be advised to maintain a stop loss of 6130 (2 day closing stop loss) for long positions and book part profits in rallies ahead of the aforesaid events, if any.”
The rupee edged lower against the dollar as investors bet improving US economic data may usher in a reduction in monetary stimulus for the US economy from the US Federal Reserve.
Foreign institutional investors (FIIs) bought shares worth a net Rs 159.55 crore on Monday, 16 December 2013, as per provisional data from the stock exchanges.
Asian shares pushed higher on Tuesday on the back of rising U.S. manufacturing output and a jump in euro zone business activity, ahead of a key U.S. Federal Reserve policy decision later this week.
Investors are on tenterhooks over when the Fed will start to reduce its $85 billion-a-month bond-buying programme, a major driver of global risk assets in recent years.
Hong Kong shares edged higher on Tuesday, with gains capped by weak China stocks, as many investors awaited a decision on bond-buying at a U.S. Federal Reserve policy meeting starting later in the day.
China shares, which have fallen the past five days, slipped again as investors remained concerned about tight liquidity before the resumption of new share offerings next month.
Back home, the Reserve Bank of India (RBI) is widely expected to increase in main lending rate viz. the repo rate by 25 basis points to 8% from current 7.75% after a mid-quarter monetary policy review tomorrow, 18 December 2013, to rein in inflation after recent data showed that both consumer prices and wholesale prices accelerated last month.
On the sectoral front, BSE Healthcare, Capital Goods, Realty, Oil and Gas, Metal, Consumer Durables, Auto and IT indices have gained between 1-2%. However, BSE Bankex has declined marginally.
The main gainers on the Sensex at this hour include Bharti Airtel, Cipla, Tata Power, TCS, Sun Pharma, JSPL, Sesa Sterlite, Hindalco, Maruti Suzuki and ICICI Bank.
Bharti Airtel has risen 2.02% to Rs 320.35 on reports the company is close to selling its operations in Sri Lanka to UAE-based telecom company Etisalat
On the losing side, Coal India, HDFC Bank, NTPC, HDFC and Bajaj Auto have declined between 1-2%.
HDFC Bank is trading over 2% lower on the Bombay Stock Exchange (BSE) at Rs 667 levels after the Reserve Bank of India (RBI) barred foreign institutional investors (FIIs) from purchasing shares in the bank after their shareholding reached the maximum prescribed limit.
Among other shares, Alstom T&D has moved up nearly 2% on the National Stock Exchange (NSE) at Rs 181.3, after the company announced that it has entered into an agreement for sale for its land in Bengaluru for Rs 120 crore.
Apollo Tyres stock surged after Cooper Tire & Rubber Co on Monday lost its court bid to force Apollo Tyres Ltd to complete their proposed $2.3 billion merger.
IRB Infrastructure Developers rose 3.62% to Rs 91.60 after the company said it has emerged as a preferred bidder for a road project in Maharashtra.
The broader markets are out-performing the benchmark indices- BSE Midcap and Smallcap indices have gained by 0.6%.
The market breadth in BSE remains firm with 1,121 shares advancing and 75 shares declining.
