 "Sensex opens above 25,000 tracking global cues")
Markets continue to trade with strength with Nifty hovering around the crucial 7,650 mark as with banking shares displaying a spectacular rally after the government announced a steep cut in interest rates on small savings schemes.
By 11:35 am, the S&P BSE Sensex has risen 138 points at 25,091 and Nifty50 gained 41 points at 7,645.
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The government will begin the payment of salaries and pensions to its 48 lakh employees and 52 lakh pensioners based on the seventh pay commission recommendations from July along with six months’ arrears. This will in turn boost the consumption and led to a powerful rally in the FMCG stocks. In this pack, Ruchi Soya, ITC, HUL, Gilette, Britannia, Venkey’s Dabur among other have gained 1%-4.5%.
Banking shares mainly public sector banks (PSB) were trading higher on the bourses in early morning trade after the government announced a steep cut in interest rates on small savings schemes.
State Bank of India (SBI), Punjab National Bank (PNB), IDBI Bank, Oriental Bank of Commerce, Allahabad Bank, Bank of India and Bank of Baroda were up more than 1% each on the National Stock Exchange (NSE).
Jewellery stocks are surging across the board after the 18-day long strike by jewellers ended on Saturday night. PC Jeweller, Gitanjali Gems, Titan, Tribhovandas Bhimji Zaveri soared 3.5%-6%.
BUZZING STOCKS
Persistent Systems gained 15% on acquiring Australia-based PRM Cloud Solutions, a certified Salesforce consulting partner.
Aurobindo Pharma climbed 1% on receiving a final nod from the US health regulator to manufacture and market its generic Naproxen Sodium tablets used for the treatment of osteoporosis in postmenopausal women.
VA Tech Wabag is trading higher by 5% after the company announced that it has won record orders worth of Rs 5,000 crore in the financial year 2015-16 (FY16), the highest ever order intake clocked by the Group in a single financial year.
Ricoh India has dipped nearly 9% after it said that it will shift the stock from ‘B’ group to ‘Z’ group with effect from March 28, 2016.
Ashok Leyland has moved higher to its lifetime high of Rs 101, up 4% on the National Stock Exchange (NSE) in an intra-day trade.
The company on March 17, said Hinduja Automotive released part or 65.2 million shares representing 2.29% of total shares capital on March 16, lying with HSBC towards collateral for loans taken by the company.
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(updated at Benchmark indices continue to trade firm led by financial shares and index heavyweight ITC.
By 10:15 am, the S&P BSE Sensex has risen 162 points at 25,115 and Nifty50 gained 46 points at 7,650. Among broader markets, BSE Midcap and Smallcap indices are up 0.7%-1%.
The top gainers from the Sensex pack are ITC, SBI, ICICI Bank, HDFC and Axis Bank, all surging between 1%-3%.
Among other shares, Ricoh India has dipped nearly 9% to Rs 520 on the BSE in early morning trade after the exchange announced that it will shift the stock from ‘B’ group to ‘Z’ group with effect from March 28, 2016.
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Updated at 9:35 am
Markets are trading higher in opening trades on the back of positive global cues along with buying demand among financials leading the gains.
By 9:35 am, the S&P BSE Sensex has risen 112 points at 25,065 and Nifty50 gained 33 points at 7,637. Among broader markets, BSE Midcap and Smallcap indices are up 0.4%-1%.
ALSO READ: Stock tips from Devang Shah of Sharekhan
"Traders are advised to be with the flow and not preempt any reversal until we see definite signals. However, having said that, it would be a prudent strategy to either keep booking profits wherever it’s possible or to keep trailing stop losses to safeguard your profits. The important technical reason behind this cautious approach is the non-appearance of a ‘Higher Bottom’ on the daily chart, which would have provided credence to the current rally. On the downside, immediate support is placed at 7,517 and 7,479 levels," adds Angel Broking report.
Among overseas markets, Asian stocks took a step back on Monday after three consecutive weeks of gains as a retreat in oil prices left investors in a ponderous mood about the health of the global economy.
Oil prices slipped for a second day, extending Friday's slide of over 1% after the U.S rig count rose for the first time since December, renewing worries of a supply glut after an output freeze proposal had helped boost the market to 2016 highs.
With Japan closed for a holiday, Antipodean markets were broadly mixed in morning trade with New Zealand up slightly and Australia easing 0.1%.
Back home, foreign portfolio investors (FPIs) bought shares worth a net Rs 1712.62 crore during the previous trading session on Friday, as per provisional data released by the stock exchanges.
Bank stocks are in focus after the government cut the interest rates on various small savings schemes and public provident fund (PPF).
Financial shares like Axis Bank, HDFC, SBI, ICICI Bank and HDFC Bank are up 1%-2%.
FMCG major ITC said that sales of its instant noodles brand Yippee are recovering and its market share has risen to anywhere between 30 and 40%. Shares of ITC are up 1.5%.
Other notable gainers are Sun Pharma, HUL, Bharti Airtel, Wipro and NTPC.
On the losing side, Lupin, Adani Ports, Asian Paints, BHEL and Dr Reddy’s Labs are down 1%-3%.
With Reuters input
