Nifty holds 7,550 mark; ITC and financial shares lead

Markets continue to trade near day’s high supported by index heavyweight ITC and financials.

As crude prices dropped, concerns arising from the impact of high crude oil prices on India's macroeconomic situation eased and supported the sentiments.

By 10:20, the Sensex was higher by 277 points at 25,310 mark and the Nifty surged by 70 points at 7,564.

Adds Ravi Nathani, Technical analyst at Nsetoday.com, “Nifty is expected to trade in a range (7663 - 7487) close above/below would add trigger in the direction. As trend is up on charts, therefore best trading strategy for traders would be hunt for opportunities to buy the heavy weights on dips.”

Markets will remain volatile in the near future as traders roll over positions in the futures & options (F&O) segment from the near month June series to July series. The near-month June 2014 F&O contract expire on Thursday.

ASIAN MARKETS

Asian shares clinched slender gains on Tuesday as improved manufacturing data from China, Japan and the United States augured well for global growth, despite a disappointing result from the euro zone.

Though moves were modest as markets slipped into something of a summer lull, MSCI's broadest index of Asia-Pacific shares outside Japan managed to gain 0.3%.

Japan's Nikkei lagged by losing 0.36%, but South Korea outperformed with a rise of almost 1%, led by Samsung Electronics Co Ltd and Hyundai Motor Co.

CRUDE

Brent crude slipped below $114 a barrel on Tuesday, as data showing near-record high oil exports from Iraq indicated supplies remained unaffected by the escalating violence at the OPEC's No. 2 producer.

Exports from Iraq's southern terminals averaged 2.53 million barrels per day (bpd) up to June 21, according to shipping data and Reuters sources, even as Sunni Islamist insurgents have captured swathes of territory in northwest and central Iraq.

INDIAN MARKET

Foreign portfolio investors (FPIs) sold shares worth a net Rs 214.49 crore on Monday, 23 June 2014, as per provisional data from the stock exchanges.

After two days of losses, the rupee today recovered by 9 paise to 60.11 against the US dollar in early trade at the Interbank Foreign Exchange market on increased selling of the American currency by exporters amidst fall in global crude oil prices.

On the sectoral front, BSE Realty and Power indices have gained by nearly 2% followed by counters like Banks, Capital Goods, Oil & Gas, Metal, FMCG, Consumer Durables and Auto, all rising by 1% each.

The main gainers on the Sensex are GAIL, HDFC, Sesa Sterlite, Axis Bank, Hindalco, SBI, Tata Power and ICICI Bank, all surging between 2 -4%.

Shares of oil and gas companies are trading higher by up to 2% in opening deals after Brent crude recorded its largest one-day decline in seven weeks on Monday.

Bharat Petroleum Corporation (BPCL), Hindustan Petroleum Corporation (HPCL), Indian Oil Corporation (IOC) and Gail India are trading firm between 1-2% on the Bombay Stock Exchange (BSE).

Shares of sugar companies continued their upward march for the second day in a row, after the Union government announced a slew of positive measures to help the sector on Monday.

Bajaj Hindustan, Shree Renuka Sugars, Balrampur Chini Mills, Oudh Sugars, Ugar Sugar Works, Ponni Sugar Erode, Simbhaoli Sugars and EID Parry are trading higher between 2-10% on the Bombay Stock Exchange (BSE).

IRB Infrastructure Developers is trading higher by 4% to Rs 214 after the company said it has entered into a pact with National Highways Authority of India (NHAI) for an Rs 2,300 crore project for widening of a highway stretch in Haryana under National Highways Development Project (NHDP).

The broader markets are performing in line with the benchmark indices- BSE Midcap and Smallcap indices have gained by over 1% each.

The market breadth in BSE remains firm with 1,485 shares advancing and 470 shares declining.