Nifty holds 7,600; PSU Banks in focus

Markets maintained its momentum supported by heavy buying in financials, infra and power shares amid strong global cues.

 

At, 2.40 PM, The 30-share Sensex surged 289 points and  the 50-share Nifty climbed 93  points at 25,389 and 7,602 levels, respectively.

 

Global Markets:

 

Global stocks rose on track for their fourth straight quarter of gains, as investors bet that a raft of U.S. and European economic data due this week will soothe recent worries over the pace of growth.The Asian are trading mixed.

 

Japan’s Nikkie rose 0.4%  and Shanghai Composite Index climbed  0.5% whereas Hong Kong'Hang Seng Index dipped 0.1%, Straits Times Index dropped  0.4%.

 

Local Currency:

 

At 2.40 PM, The rupee is trading at 60.05 against the US dollar as exporters and banks were seen selling dollars.

 

Sectors& Stocks:

 

All major indices were trading in green with BSE Power index leading the rally, up 2.6% followed by, Capital goods and Bankex indices, up 2.3% and 2%, respectively. In contrast, Auto shares lost sheen on the BSE with BSe Auto index  up marginally by 0.2%

 

Among financials, ICICI Bank, Axis Bank ans HDFC twins gained 0.9%-2.7%, each on renewed buying. 

 

Moreover, shares of state-owned banks rallied by up to 8% on the National Stock Exchange (NSE) including Andhra Bank, Indian Overseas Bank, Bank of Baroda, Punjab National Bank, IDBI Bank and State Bank of India  up 2-4% on NSE after the government decided to create a holding company structure for public sector banks before the Budget.

 

 Larsen, BHEL, NTPC and Tata Power surged 1.4-3.5%, each on the hopes that the forthcoming budget session will set a road map for the economy as a whole giving priority to the infrastructure sector. The budget is also expected to address issues and remove hurdles that can fast track capacity creation in power sector.

 

Among Oil & Gas shares, GAIL and ONGC rose 0.6% and 2.5% on the back of falling crude oil prices. Brent crude futures is currently quoting at $113 per barrel. In addition, ONGC rose after the company said it will invest over Rs 5700 crore in redevelopment of its giant Mumbai High (North) oil and gas field.

 

 BSE Healthcare index climbed 1.3%.  Cipla surged 0.8% after signing a definitive agreement to acquire a 51% stake in a pharmaceuticals manufacturing and distribution business in Yemen (owned by a UAE-based parent company) for $21 million.

 

Furthermore, Ranbaxy rose 3% to Rs 513 extending its Friday’s 5% rally, after US Food and Drug Administration's (USFDA) nod for generic version of Novartis’ blood pressure drug Diovan. SunPahrma and Dr Reddy’s Lab were other distinguished gainers, up 1.9-2.6%, each

 

The technology shares continued its upward surge, extending its Friday rally, after Accenture Plc reported better-than-expected results for the quarter ended May 2014. TCS, Wipro and Infosys advanced 0.3%-0.8%, each.

 

Index heavyweight and Cigarette maker ITC surged 1.5% on the back of heavy volumes.

 

However, select Auto shares including Hero Motocorp, M&M and Maruti Suzuki witnessed losses, down 0.2%-0.4%, each on oncerns of weaker monsoon that may impact sales. The monthly auto sales number is due this week.

 

Index heavyweight RIL dipped 0.4%. The company is witnessing an alleged insider trading case and Securities Appellate Tribunal (SAT) is expected to announce its verdict today.

 

The broader markets outperformed the benchmark indices with BSE Midcap and Smallcap indices up 1.6% and 1.5%, each

 

Housing Development & Infrastructure Ltd (HDIL) moved higher by 4% to Rs 100 after Citigroup bought 4 million shares of the Mumbai-based real estate developer for about Rs 38 crore through open market.

 

Shares in Wabco India Ltd surged as much as 17.8% to their record high of Rs 3,667 after the government decided to make anti-lock braking systems compulsory for all new models of commercial vehicles.

 

The market breadth remained strong with 1996 advances and 931 declines.