Sensex gains 200 points; Cipla up 1.7%

Markets have extended the gains in the morning trades on the back of favourable macroeconomic data and positive global cues. The rally is led by Capital Goods, Auto, Healthcare and Metal stocks.

At 10:30 AM, the 30-share Sensex was at 27,978, up by 197 points while 50-share Nifty was trading at 8,434, up by 64 points.

The top gainers on the Sensex are L&T, Cipla, Hindalco Coal India and Bharti Airtel, all up between 1.4-2% on the Sensex.
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(updated at 10 AM)

Benchmark indices are trading firm on the back of favourable macro-economic data amid Greece woes. The positive cues from the global peers are also aiding the rally.

At 10 AM, the 30-share Sensex was at 27,920, up by 140 points while 50-share Nifty reclaimed its level of 8,400 at was trading at 8,417, up by 50 points.

The broader markets are, however, outperforming their larger counterparts with BSE Midcap and Smallcap indices up by 0.57% and 0.81%, respectively. The market breadth is also strong, with 797 advances versus 195 declines on the BSE.

On the macro-economic front, the data released by Ministry of Commerce and Industry post market hours on Tuesday revealed that the growth in eight core sectors increased to 4.4% in May versus a decline of 0.4% in the month of April. The growth is recorded after two consecutive months of decline, thus indicating a recovery in the industrial output.

The eight core sector industries include coal, crude oil, natural gas, refinery products, fertilizer, steel, cement and electricity.

According to the India Meteorological Department (IMD), in June, the country received around 189.5 millimetres of rain as against a normal of around 163.6 millimetres.

The rupee opened flat at 63.65 against the US currency as compared to its close at 63.64 in previous session.

GREECE WOES

On Tuesday, the cash-strapped Greece defaulted on its deadline to pay a loan of €1.5bn to the International Monetary Fund (IMF). The IMF in its press release said that Greece will receive further financial aid only once the arrears are cleared.

The oil prices fell as a result of Greece’s default as it pushed up the dollar versus the euro.

GLOBAL MARKETS

Asian markets are trading on a cautious note after Greece became the first developed economy to default on a payment with IMF.

The Bank of Japan's latest survey of manufacturers shows an improvement in the three months to June. Japan's Nikkei firmed 0.2%.

The data was mixed from China where surveys showed sluggish factory activity but a pickup in service sector, a sign the transition to a more consumer-led economy remained on track. China's Shanghai Composite is up 0.2%.

On Wall Street, the Dow had edged up 0.1% on Tuesday, while the S&P 500 gained 0.3% and the Nasdaq 0.6%.

SECTORS AND STOCKS

Sectorally, all the indices on BSE are trading in the positive territory; the BSE Healthcare index is leading the rally with gains of nearly 1%.

Oil marketing companies (OMCs) on Tuesday announced a 31 paise per litre cut in petrol prices along with a 71 paise cut in diesel prices to align the domestic rates with the global pricing. BPCL, IOC, OIL are trading higher by 0.2-2% each on the BSE. RIL is up by 0.5% while ONGC has gained marginally.

The growth in eight core sectors increased to 4.4% in May versus a decline of 0.4% in the month of April.  Hindalco is up by 1.4% while Vedanta has gained 0.8% on the Sensex.  Tata Steel is marginally lower.

BHEL and L&T are up by 0.95% and 1.11% respectively on the Sensex.

Coal India has extended its gains from yesterday after Morgan Stanley maintained its ‘outperform’ rating on the stock with a target price of Rs 530 per share.  The stock is up by 1% on BSE.

From the pharma pack, Sun Pharma has also extended its gains after foreign brokerage houses said the Ranbaxy has hiked the drug prices of its unit. The stock is up by 1%. Lupin is higher by 1.2% on the Sensex.

The auto sector has also registered some gains on the back of advancement in monsoon.  Maruti Suzuki is up by 1% while Tata Motors is following with 0.7% gains on the Sensex.

The other notable gainers on the Sensex are ICICI Bank, SBI, Axis bank, all up 0.2-0.7% each.  Infosys and TCS are higher by 0.8% each on the Sensex.