Nifty hovers around 8,100; broader markets outperform

Broader markets are outperforming their larger counterparts by 1.1% each.

Markets continue to remain firm on the back of strong buying in financials and capital goods stocks. Also, positive cues from Asian markets have lifted the sentiment on Dalal Street.

At 11:30AM, the 30-share BSE Sensex was higher by 245 points at 26,723 and the CNX Nifty gained 73 points at 8,097.

In the broader markets, BSE Midcap and Smallcap indices have outperformed their larger counterparts and are trading higher by 1.1% each. The market breadth is also strong with 1,547 advances against 593 declines.

Meanwhile, US index provider MSCI Inc has told China it must further liberalise its capital markets before it will include Chinese domestic shares in one of its global benchmarks, in a setback for Beijing's efforts to promote its currency and attract foreign capital.

On the currency front, the Indian rupee has appreciated marginally by 7.25 paise against the US dollar, quoting at Rs 63.85

SECTORS & STOCKS

On the sectoral front, all indices are trading in the positive zone.  BSE Capital Goods index has surged over 2%. The rate sensitive sectors are trading between 1.2-1.8% on the Sensex.  

BSE Bankex shares have firmed up after the RBI allowed banks to take control of debt-laden companies by converting loans into equity. ICICI Bank gained nearly 2% while Axis Bank, SBI and HDFC Bank have gained between 0.9-1.2% each on the BSE.

BSE Capital Goods index is trading higher ahead of April IIP numbers, which is scheduled to be announced on Friday.  Also, in a boost to Mumbai infrastructure, the government gave the environment clearance for a 35-km coastal road project to connect north and south Mumbai.

Among the capital goods shares, BHEL has soared over 3% on the Sensex and is the top gainer while L&T has advanced over 2.5% on the BSE.

Shares of L&T Finance Holdings has increased by 2% to Rs 62 on the BSE on reports stating that the financial services unit of engineering major L&T is in talks to sell a minority stake to Bain Capital, one of the world's leading private, alternative asset management firms

Car and heavy commercial vehicle sales improved in the month of May. Domestic passenger car sales rose by 7.7% in the month of May. However, motorcycle sales dropped by 1.25%, according to data released by the Society of Indian Automobile Manufacturers (SIAM).

From the auto space, Bajaj Auto has gained 1.8% on the Sensex while Hero Motocorp has gained 0.6% on the BSE.

Index heavyweight Reliance Industries has soared over 2.3% on the BSE ahead of the annual general meeting on June 12.

Other notable gainers are Bharti Airtel, Sun Pharma, Tata Power, and Coal India, all trading between 1-1.5%

Among other shares, Sun Pharma Advanced Reseasrch Company ( SPARC) is trading higher by 4% on the BSE after the company  licensed out Xelpros (Latanoprost BAK-free eye drops) to a subsidiary of Sun Pharma for the US market.