Indices remain range bound; Oil and Gas shares surge

The markets continue to remain in a tight range with a positive bias led by gains in RIL, Tata Power and Bharti Airtel. 

 At 10.20 AM, the 30-shrae Sensex is up 50 points at 25,873 and  the 50-share Nifty is up 11 points at 7,725 mark.

Global Markets

 

Asian shares and the dollar firmed on Friday, catching a lift from US stocks' surge to record highs after US jobs data showed the lowest unemployment rate in six years and underscored the strength of the economic recovery.

 

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.1% in early trade, close to this week's three-year highs, while Japan's Nikkei stock average rose 0.9%.

 

US markets will closed on Friday for the July 4 Independence Day holiday, so the key monthly jobless report was released on Thursday.

 

The Dow Jones industrial average passed the 17,000 milestone and the benchmark S&P 500 rose to within 1% of the 2,000 level.

Local Currency

 

The rupee is trading at 59.67/68 versus its close of 59.73/74 as gains in the domestic sharemarket raise hopes for continuation of foreign fund inflows.

 

Expert Speak

Mudit Goyal, technical analyst, SMC Global added that Nifty was consolidating in the range of 7500-7700 for two weeks and gave the breakout of same during this week. Currently, it is trading higher with huge amount of buying interest. From current level, Nifty term resistance is seen around 7800-7850 levels and key support is around 7620-7600.

 

Sectors & Stocks
 

BSE healthcare index remains at the top of the sectoral pack, followed by Oil and Gas and Power indices. In contrast, BSE Capital goods and Metal indices lost sheen on the BSE during the morning trades.  

 

Among the gainers, Bharti Airtel shares gain nearly 1 percent after the RBI gave permission to increase foreign institutional investment limit in the company to 74%

 

The technology shares gain on the back of encouraging U.S. jobs data which showed the lowest unemployment rate in six years and underscored the strength of the economic recovery. Infosys, HCL tech and Tech Mahindra have gained between 0.12-0.7% on the NSE.

 

Among other notable gainers are RIL, Axis Bank, Dr Reddy’s Lab, HDFC Bank and Tata Power gaining up between 0.7-2% on the BSE

 

On the losing end, M&M, L&T, HDFC and Wipro lost between 0.3-1%

 

Hindalco lost 0.5% after Morgan Stanley under-rated the stock

 

The broader markets continue to outperform the benchmark indices. BSE Midcap and BSE Smallcap are up 0.7% and 0.8%, respectively.

 

Among other shares, Videocon Industries has rallied 7% to Rs 200 on back of heavy volumes, on reports that the company’ satellite TV arm and direct to home service provider Videocon d2h is likely to go ahead with its proposed public float (IPO) plan this financial year.

 

Shares in Fertilizers and Chemicals Travancore (FACT) has surged over 7% to Rs 43.10 on reports that  the government will provide about Rs 990 crore revival package for the ailing PSU company.

 

The market breadth is positive on the BSE with 1,438 advances and 811 declines.