 "Sensex opens 100 points higher aided by global cues; Nifty hits 7,900")
Benchmark indices continue to hold on to their gains tracking strong performance among Asian peers on rise on oil prices. Further, buying demand index heavyweight shares like ITC, HDFC and Infosys has also cheered investors’ sentiments.
By 10:50 am, the S&P BSE Sensex gained 143 points to trade at 25,796 and the Nifty50 climbed 46 points at 7,907. Among broader markets, BSE Midcap and Smallcap indices are up 0.4%-0.6%.
Top gainers from the Sensex pack are ONGC, Axis Bank, GAIL, Hero Moto, HDFC and L&T, all surging between 1%-3%.
ITC announced that the scheme of amalgamation of BFIL Finance with Russell Credit became effective from May 16. BFIL Finance is a wholly owned subsidiary of Russell Credit, which in turn is a wholly owned subsidiary of ITC. Shares of ITC are up 1%.
On the losing side, NTPC, HUL, SBI, Tata Motors and Adani Ports are down 0.4%-1.3%.
Among other shares, Sun TV Network has surged 10% to Rs 434 on the BSE in early trade as exit polls indicate that the Dravida Munnetra Kazhagam (DMK) alliance is likely to win in Tamil Nadu (TN) state assembly election.
Advani Hotels & Resorts (India) is locked at 20% upper circuit at Rs 57.65 after net profit rose 79% to Rs 4.23 crore on 18% rise in operational income to Rs 17.14 crore in Q4 March 2016 over Q4 March 2015.
Piramal Enterprises has gained 4% to Rs 1,324, also its record high on the BSE, after the company reported a robust 89% year on year jump in its consolidated net profit at Rs 180 crore for the fourth quarter ended March 31, 2016 (Q4FY16).
HCL Technologies has moved higher by 3% to Rs 739 on the BSE after a huge block deal was executed in the counter.
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Updated at 10:03 am
Markets have commenced the session on a higher note supporter by firm trends among global markets. On Monday, markets recouped intra-day losses amid a rally in late trades led by defensive shares.
Next set of Q4 FY16 earnings, progress of monsoon along with election poll outcome will dictate the trend of markets this week.
By 10:03 am, the S&P BSE Sensex gained 130 points to trade at 25,783 and the Nifty50 climbed 40 points at 7,900. Broader markets are trading firm in line with the benchmark indices- BSE Midcap and Smallcap indices are up over 0.5% each.
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“Despite yesterday’s vertical rise in the closing hour, the 7,790-7,870 trading range spotted yesterday remained intact suggesting that a break out or a directional move is yet to unfold, as present pattern is enveloped in a much more challenging band of 8017-8540. Early attempts to clear 7,939 may be challenged, but dips to 7,870-7,830 could attract buying interest. Favoured view expects choppiness to be higher than that seen yesterday”, adds Geojit BNP Paribas in a technical note.
Meanwhile, foreign portfolio investors (FPIs) sold shares worth a net Rs 79.84 crore yesterday as per provisional data released by the stock exchanges.
Among macro-economic front, the Reserve Bank of India (RBI) on Monday allowed foreign portfolio investors (FPIs) to invest in unlisted bonds of a public company and securitised debt instruments. Investment by Indian firms in their foreign ventures fell by almost 84 per cent to $4.11 billion in April 2016, according to RBI data.
The rupee appreciated by 13 paise to 66.67 against the dollar in early trade today at the Interbank Foreign Exchange on increased selling of the US currency by exporters and banks.
Asian shares recovered from two-month lows on Tuesday after a rebound in technology giant Apple Corp and oil price gains boosted Wall Street. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.4%, extending the recovery from its two month low set on Friday. Japan's Nikkei gained about 0.8%.
Wall Street rallied sharply on Monday, fueled by a jump in Apple shares and gains from energy stocks that were backed by stronger oil prices, with the S&P 500 gaining 1%.
Back home, Bharat Forge, GlaxoSmithkline Consumer Healthcare, Motherson Sumi, Syndicate Bank, United Bank of India and Voltas will unveil their fourth quarter earnings today.
Financial shares have rebounded in trades today after witnessing steep fall yesterday. Axis Bank, HDFC, ICICI Bank, SBI and HDFC Bank are up 0.4%-2%.
Coal India and NTPC are in focus on plans to form a joint venture company to take up the revival of fertiliser plants of Fertiliser Corporation of India at select locations. NTPC is up over 15 while Coal India is marginally up.
L&T Finance Holdings, the NBFC arm of engineering giant Larsen & Toubro is considering selling stake to a foreign partner, reports a business daily. Shares of L&T are up 1%.
BHEL has bagged a Rs 1,600 crore order from a joint-venture company of NTPC and SAIL to set up a coal-based thermal power project in Odisha. Shares of BHEL are up almost 1%.
Shares of public sector oil marketing companies (PSU OMCs) are trading firm after increasing prices of petrol by 83 paise per liter and dieael rates by Rs 1.26 per liter in order to align the domestic rates of the automobile fuels with global prices. Post the change, effective today, petrol will be priced at Rs 63.02 per liter while a liter of diesel will cost Rs 51.67 per liter in Delhi, including state taxes. IOC, HPCL and BPCL are up 1%-3%.
With Reuters input
