Sensex gains 240 points to end above 28,000

Capital goods, IT and financials were the top gainers

Markets ended higher on Wednesday led by capital goods shares after May core sector growth signalled a recovery in industrial activity. Further, above normal monsoon and softening global crude oil prices also boosted sentiment.

The 30-share Sensex gained 240 points to end at 28,021 and the 50-share Nifty ended up 85 points at 8,453
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(Updated at 2:15PM)
The benchmark indices are going strong in noon trades after May core sector growth signalled a recovery in industrial activity. The positive cues from the global market front further added to the positive sentiment on Dalal Street.

At 2:15PM, the S&P BSE Sensex was trading at almost six-week highs at 28,029, stronger by 247 points or 0.9% and the Nifty was at 8453, up 84 points.

In the broader markets, the BSE Mid-cap and Small-cap indices were up 1.5% each at 10833 and 11243 respectively.

DOMESTIC ECONOMY

Growth in production in the eight key infrastructure sectors hit a six-month high of 4.4% in May, after two consecutive months of decline, indicating a recovery in industrial activity. The index of these eight core sectors grew 3.8% in the corresponding month last year.

GLOBAL MARKETS

Global markets have stabilized, after being rattled in the previous session, even as Greece ended up defaulting on its euro 1.55 billion loan ($1.73 billion) to the International Monetary Fund (IMF) on June 30, with creditors rejecting a last-ditch effort to buy more time.

Meanwhile, rating agency Fitch has cut its long-term rating on Greece to 'CC' from 'CCC' amid turmoil over the country's debt negotiations which resulted in fears that the nation could make an exit from the euro zone.

In overseas markets, Asian stocks edged higher as investors appear to take in stride Greece's missed loan payment to the IMF. US stocks ended a choppy trading session higher yesterday, 30 June 2015. Key equity benchmark indices Japan, Indonesia, South Korea, Singapore and Taiwan were up 0.15% to 1.18%. China's Shanghai Composite was down 1.99%. The stock market in Hong Kong was closed for holiday.

The European mindices, including the FTSE, CAC and DAX have gained 1-2% each in early trades.

SECTORS & STOCKS

All sectoral indices were trading in the green, with banking, auto and capital goods ranking among the major gainers.

Shares of public sector undertaking (PSU) banks are back into action, gaining 2%-6% each. Union Bank of India has rallied 6% to Rs 156, while Bank of India (BOI) and Bank of Baroda were up 5% each at Rs 180 and Rs 151 respectively. State Bank of India (SBI), Oriental Bank of Commerce, Canara Bank, IDBI Bank, Punjab National Bank, Indian Overseas Bank, Allahabad Bank, Andhra Bank and Syndicate Bank were up 2%-4%.

Auto stocks have gained strength post auto major Maruti Suzuki's June sales numbers. Maruti Suzuki is up 1% after the company sold 114,756 vehicles in June, 2015, registering a growth of 1.8% over the previous year. Tata Motors, M&M and Ashok Leyland are also trading higher by 1% and 2% each.

In the capital goods space, L&T, BHEL and BEML have added 1%-2% each on the back of the core sector growth numbers.

The market breadth is strong with 1,838 gainers and 814 losers on the BSE.