Financials, IT shares pull markets higher; SBI, TCS up 2%

Markets have come off day’s highs as investors resort to profit booking at higher levels. However, a broad based rally is evident on the bourses led by financials on hopes of rate cut by the Reserve Bank of India on 2nd June, 2015.

Meanwhile, foreign portfolio investors have bought shares worth a net Rs 48.06 crore yesterday, 19 May 2015, snapping a five day selling streak.

In addition, the sentiments of the market participants boosted on UN report stating that Indian economic growth is projected to surpass that of China, with the GDP expected to surge by 7.7 per cent in 2016, while China is projected to grow by 7 per cent in 2015 and 6.8 per cent next year.

At 12.50 PM, the Sensex is up 176 points at 27,821 and the Nifty is quoting at 8,418, up 52 points.

Among broader markets, BSE Midcap and Smallcap indices are up 0.4%. The market breadth is positive with 1,279 shares advancing versus 1,143 shares declining on the BSE.

RUPEE

In the currency front, the rupee has depreciated and is trading at 63.80 against the US dollar in early trade today at the Interbank Foreign Exchange due to appreciation of the American currency overseas riding on strong economic data.

BUZZING STOCKS

Financials have gained across the bourses on hopes of rate-cut. HDFC twins, ICICI Bank, SBI and Axis Bank are trading higher up to 2%.

Technology pack is gaining on the back of depreciating rupee. TCS, Wipro and Infosys are up between 1-2%.

TCS has gained 1.6% on BSE after its client, Euroclear Finland launched platform, Infinity powered by TCS BaNCS for market infrastructure.

Infosys has surged over 1.5%. Infosys chief executive officer Vishal Sikka, during a recent investor conference, acknowledged that other than resuming the growth curve for the company, his focus is also to get discipline and operational excellence back.

Tata Power is trading higher by 2% to Rs 78 on the NSE after the company reported a better-than-expected consolidated net profit of Rs 159 crore in the fourth quarter ended March 31, 2015 (Q4) mainly due to lower depreciation and lower coal prices.

Reliance Inds has gained 1%. The company has raised $ 200 million on Tuesday through 20-year bonds. The notes have been issued at par and will bear a fixed interest rate of 5 per cent per annum with interest payable semi-annually in arrears.

Bharti Airtel is up almost 0.6%. Telecom major Airtel is all set to buy out Augere Wireless -- 4G spectrum holder company in Madhya Pradesh circle -- for about Rs 150 crore.

Tata Steel, DLF are trading lower by 2.5% and 0.7% on caution ahead of its results later during the day. In line , Bajaj Auto is down over 2% ahead of the results due tomorrow.

Shares of public sector oil marketing companies such as BPCL and HPCL are trading higher up to 2% on BSE after global crude oil prices witnessed sharp losses in previous session.

Tech Mahindra is up over 3.5% after company said Ontario Ministry of Energy and the company invested in innovative Smart Grid solution powered by analytics.