 "IT shares lift Nifty above 8,550; July services PMI at 2-year high")
Markets closed higher led by a spectacular rally in the technology stocks on the back of a strong dollar amid rising prospects of a rate hike by the US Fed. Further, growth in the services activities for July 2015 aided sentiment with Services PMI quoting at 2-year high of 51.4.
The Sensex surged 151 points to close 28,223 at and the Nifty soared 51 points to end at 8,568.
In the broader markets, Midcap and Smallcap indices ended 0.8% and 1% higher, respectively. The market breadth ended strong, with 1,799 advancing stocks as against 1,155 declines.
In the broader markets, Midcap and Smallcap indices ended 0.8% and 1% higher, respectively. The market breadth ended strong, with 1,799 advancing stocks as against 1,155 declines.
Also, the mood was uplifted after RBI in its monetary policy review yesterday indicated that there is a possibility of further rate cuts in the coming months as it cut the consumer inflation forecast for January-March 2016 by 0.2% on the back of declining crude oil prices and a better than expected monsoon.
However, banks lost sheen after RBI warned banks against under-declaring NPAs and on ever-greening of accounts to prevent them from slipping into default.
MARKET VIEW
MARKET VIEW
"The markets are exhibiting a notable divergence, where the benchmark index, Nifty, has gradually gained, however, the midcap and smallcap index have outperformed. I think, this is some kind of Midcap Mania which is going on, and it is prudent to stick to stock specific ideas," said Kunal Bothra, Head - Advisory, LKP Securities.
"We believe for the Nifty to start a strong uptrend, it has to break 8655 on spot, above which it can confirm a fresh swing high. Supports on the index are placed at 8300 currently" he added.
RUPEE
The rupee depreciated 8 paise to 63.82 against the dollar due to rise in the dollar against other currencies overseas helped by a possible US Fed rate hike.
SECTORS IN FOCUS
SUGAR
Sugar stocks surged up to 15% on reports that the government was considering to bring mandatory export rules, which will pave the way for compulsory export of millions of tonnes of the sweetener.
Bannari Amman Sugars , Dwarikesh Sugar, Rajshree Sugars, Balrampur Chini, Bajaj Hindustan, Simbhaoli Sugars, Oudh Sugar Mills and Shree Renuka, Dhampur Sugar Mills, Sakthi Sugars and Triveni Engg gained between 5-15%.
STEEL
Shares of steel companies closed higher between 2-5% on the BSE on reports that the finance ministry may hike the import duty on long and flat steel products to curb imports and protect the ailing domestic industry.
Tata Steel, SAIL, JSW Steel, JSPL and Bhushan Steel gained between 1-4% on the BSE.
STOCK TRENDS
On the sectoral front, BSE FMCG, IT, Realty, Healthcare, Auto indices ended higher between 1-3.5%. However, BSE Bankex lost sheen and was down 0.3%.
Bharti Airtel gained 0.8% after the company reported a 40.2% jump in net profit for the quarter ended June at Rs 1,554 crore. Strong data growth —both in India and Africa —is a key highlight of the quarter.
IT stocks gained momentum on the back of a weakening rupee. Infosys, Wipro and TCS were up between 1-2.7%.
HDFC ended with marginal gains after the company decided to raise roughly Rs 5,000 crore through a structured quasi-debt offer to domestic institutions soon.
Tata Steel incorporated its Long Products Europe (LPE) division into a new standalone wholly-owned subsidiary within its European operations to create a sustainable future. The stock climbed 2.3%.
Maruti Suzuki launched the S-Cross, a premium crossover, priced in the range of Rs 8.34 lakh to Rs 13.74 lakh (Ex-showroom, Delhi). The stock gained 0.6%.
Nestle India climbed 7.5% after a PTI report suggested that a FSSAI-approved laboratory of Central Food Technological Research Institutue (CFTRI) has found Maggi noodles to be in compliance with the country's food safety standards.
DLF climbed 6% on reports that the company is seeking approval from its board to raise Rs 7,500 crore.