IT shares help maintain momentum; Nifty tops 8,500

IT shares firmed up on hopes of order from Europe while lower crude oil prices also aided sentiment

Benchmark share indices continued to trade near their day's highs with IT shares leading the gains on hopes of order inflows from Europe post the Greek bailout deal. Further, softening global crude oil prices would help reduce the current account deificit and also lower inflation giving the central bank the much needed comfort to ease key policy rates.

By 1:10 pm, the Sensex was up 248 points at 28,181 while the Nifty was up 66 points at 8,520.

In the broader markets, BSE Midcap index is trading with marginal gains while the Smallcap index is trading nearly 1% higher. The market breadth is strong with 1,584 advances against 1,025 declines on the BSE.

The Indian rupee was trading marginally higher at 63.37 to the US dollar compared to the previous close of 63.39 tracking gains in domestic equities.

NUCLEAR DEAL

In another significant development, Iran and six major world powers reached a nuclear deal on Tuesday, capping more than a decade of negotiations with an agreement that could transform West Asia. Under the deal, sanctions imposed by the US, the European Union and the United Nations will be lifted in return for Iran agreeing to long-term curbs on a nuclear programme that the West suspects is aimed at creating a nuclear bomb.

SECTORS & STOCKS

Consumer Durables index was the sole loser among the sectoral indices while BSE IT and Auto were the top gainers.

Among the IT majors, Infosys, TCS and Wipro were up 1.5-2.4% each.

In the financials space, HDFC, HDFC Bank, ICICI Bank, SBI and Axis Bank were up 0.5-1.5% each.

Maruti Suzuki was up over 3% on reports that foreign brokerage Credit Suisse has increased its target price on Maruti Suzuki to Rs 5100, maintaining its outperforming rating on the stock.

Among others, M&M, Tata Motors, Bajaj Auto and Hero MotoCorp were up 0.8-1.5% each.

Oil and Gas stocks firmed up on expectations that lower crude oil prices would help boost margins. ONGC and RIL are up over 1% each.

DLF shares are up 2.5% on reports that the company is in talks with Singapore government's investment arm GIC to raise Rs 3,000 crore by selling its 49 per cent stake in new residential project in Delhi.

Brokerage Credit Suisse has increased its target price on Maruti Suzuki to Rs 5100, maintaining its outperforming rating on the stock. The stock is up 2.6%.

Among other shares, Ahluwalia Contracts gained over 6% at Rs 240 after Franklin Templeton Mutual Fund acquired 417,868 equity shares through a bulk deal on the National Stock Exchange.