)
Markets continue to march upwards after rating agency Moody said yesterday that the Reserve Bank of India may possibly cut interest rates in its next monetary policy review due next month despite retail inflation surging to an eight-month high in June.
Meanwhile, the historic deal between Iran and global powers has improved sentiment owing to a further drop in the oil prices.
By 12:40 pm, the Sensex was at 28,173, up by 240 points while the Nifty was at 8,517, up 64 points. Among the broader markets, BSE Midcap and Smallcap indices are trading higher by 0.2% and 0.3% each. The market breadth is strong with 1,626 advances against 795 declines on the BSE.
NUCLEAR DEAL
In another significant development, Iran and six major world powers reached a nuclear deal on Tuesday, capping more than a decade of negotiations with an agreement that could transform West Asia. Under the deal, sanctions imposed by the US, the European Union and the United Nations will be lifted in return for Iran agreeing to long-term curbs on a nuclear programme that the West suspects is aimed at creating a nuclear bomb.
STOCK TRENDS
All sectoral indices barring BSE Consumer Durables index are trading in the positive territory with BSE Auto, Metal, IT, Capital goods indices are up 1% each.
The rate sensitive shares are gaining across the board on hopes of further rate cut. Maruti Suzuki, M&M, Bajaj Auto, Tata Motors, HDFC twins, Axis Bank, ICICI Bank and SBI are trading higher between 0.5-3%.
Oil and Gas stocks are gaining as Iran is likely to pump more crude oil into an already surplus market, pushing prices even lower. ONGC and RIL are up 1.4% each.
DLF shares are up 2.5% on reports that the company is in talks with Singapore government's investment arm GIC to raise Rs 3,000 crore by selling its 49 per cent stake in new residential project in Delhi.
Brokerage Credit Suisse has increased its target price on Maruti Suzuki to Rs 5100, maintaining its outperforming rating on the stock. The stock is up 2.6%.
The IT pack is trading higher in today’s session with Infosys, Wipro and TCS up between 1-2%.
