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Benchmark indices continue to remain volatile in a narrow range with positive bias.
At 13:20 PM, the 30-share Sensex was up 52 points at 22,470 and the 50-share Nifty was up 17 points at 6,713.
Adds Devangshu Datta, Technical Analyst and market expert, “Nifty futures are likely to swing between 6725-6785, with about 35pts premium over spot index values. The advances-declines ratio is positive and Nifty should hold above support at 6700. Breakdowns/ breakouts could go till 6850/6665.”
The main gainers on the Sensex at this hour include Tata Power, Infosys, ONGC, HDFC, Wipro, Dr Reddy’s Labs and TCS.
The broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices have gained by nearly 1% each.
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Updated at 11:42
Markets trimmed some of their early gains but continued to remain volatile within a narrow range as gains in banking and IT major helped offset losses in auto and capital goods shares.
At 11:45AM, the 30-share Sensex was up 45 points at 22,463 and the 50-share Nifty was up 13 points at 6,710.
The rupee was trading higher at 60.22 compared with the previous close of 60.31 on Wednesday, after earlier rising as high as 60.09. The pressure on the rupee eased after month-end dollar buying by oil companies in recent sessions faded while firm equity markets also helped sentiment.
Asian markets were trading mixed as investors remained cautious ahead of the US jobs data to be released later today. Hang Seng was up 0.7% while Nikkei and Straits Times were down 0.2-0.5% each.
Manufacturing activities remained stagnant in the first month of the current financial year, as per the widely tracked HSBC purchasing managers' index (PMI). PMI stood intact at 51.3 points in April, same as March. A reading above 50 denotes expansion and the one below implies contraction. Both manufacturing output and new order growth eased further in the month, even as factories across the country continued to report improving operating conditions, said Markit Economics, a financial information firm which compiles the data.
BSE Realty, Healthcare, IT, Bankex, Consumer Durables indices were up 0.6-1.1 pct each.
Defensive shares from the IT and Healthcare sector were among the top gainers as investors continued to book profits in rate sensitives at higher levels.
Infosys was up 1.3% and TCS gained nearly 1% contributing the most to the gains on the Sensex.
Financial stocks such as ICICI Bank, HDFC, HDFC Bank and Axis Bank were also among the top gainers.
Pharma shares firmed up on defensive buying. Sun Pharma, Dr Reddy's Labs, Cipla were up 1% each.
Reliance Ind which had firmed up in early trades witnessed profit taking and was down 0.1%.
In the capital goods space, both L&T and BHEL were down 1% after dismal factory growth in April.
Four-wheeler majors Maruti and M&M were down 1.1-1.4% each on weak April sales. The company reported 11.4% year-on-year (yoy) decline in volumes at 86,196 units during the month of April, against 97,302 units, led by weakness in domestic sales. The domestic sales declined 12.6% yoy as the company witnessed slowdown across all the segments post the seasonally strong month of March.
M&M reported 11% decline in total tractor sales at 20,731 units in April. The company had sold 23,202 units in the same month last year, Mahindra & Mahindra said in a statement.
Among other shares, Fulford India is locked in upper circuit for fourth day in a row, up 10% at Rs 1,195 on the BSE, after its promoter Dashtag has made voluntary delisting offer at an indicative price of Rs 1,150. The pharmaceutical stock has rallied 74% in past four trading sessions from Rs 686 on April 25, after the company made announcement after market hours.
In the broader market, the BSE Mid-cap and Small-cap indices were up 0.6-0.9% each.
Market breadth was strong with 1,291 gainers and 921 losers on the BSE.
