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Benchmark indices have gained nearly 1.5% each, amid firm global cues, and heading for the second straight session of closing higher led by strong buying in metal, auto and financials among others.
A rate cut by China and uplifting US jobs data has kept the momentum going for the markets. Government's decision to ease down its combative stance on MAT demand along with a decline in global crude oil prices and hopes of a rate cut by Reserve Bank of India have also helped in reviving the risk-appetite.
At 12:54PM, the 30-share Sensex was up 393 points at 27,498 and the 50-share Nifty was up 125 points at 8,316.
In the broader market, the BSE Midcap index, up nearly 2% has outperformed while BSE Smallcap index, up 1.3% is moving largely in-line with the front-liners. Market breadth in BSE is positive with 1,652 advances against 766 declines.
Buzzing Stocks
Except BSE FMCG index, down 0.1%, all the 12 sectoral indices of BSE are trading higher. BSE Metal index up nearly 3% is the gainer followed by BSE Bankex and Auto indices up nearly 2.2% each.
Financials are leading the gains in today’s session on hopes of a rate cut by Reserve Bank of India as retail inflation is expected to remain below 6% that is within the comfort zone of the central bank.
Mortgage lender Housing Development Finance Corporation (HDFC) has emerged as the only Indian company among the world's 10 biggest consumer financial services firms, after giants like American Express, Visa and Mastercard. The stock is up 3.5%. Public sector lender SBI is up 4.5%, ICICI Bank has gained nearly 2% and HDFC Bank is up 0.5%.
Pharmaceuticals too are trading higher. Dr Reddys Lab, Sun Pharma and Cipla have gained between 1% and 2.6% each. Having secured regulator Sebi's go-ahead, home-grown pharma giant Cipla's promoters will decide on their proposed family pact in "due course", wherein the entire Hamied family will vote as a single unit.
Positive US jobs data that may further add to the strength of US Dollar is likely to be beneficial for information technology stocks. TCS and Infosys have gained nearly 0.8% each while Wipro is trading lower by 0.2%.
Auto stocks are trading firm. Hero Motocorp has gained nearly 4%, Tata Motors is up 1.6%, Maruti Suzuki is up 1.5%, Bajaj Auto has gained 2.3%.
Rate –cut by China has lifted metal stocks. Vedanta and Tata Steel are up nearly 4% and Hindalco has gained over 4%.
Among FMCG stocks, HUL is down nearly 3% and ITC is up 0.5%.
