Markets recover, Nifty reclaims 7,800; financials & metals gain

The top gainers from the Sensex pack are ICICI Bank, Coal India, ONGC, M&M, Lupin, Tata Steel and Hindalco

Markets have recovered and are trading near day’s high led by buying demand among financials and metal shares.

At 10:20 am, the S&P BSE Sensex has surged by 119 points at 25,638 and the Nifty50 is up 41 points at 7,801.

The top gainers from the Sensex pack are ICICI Bank, Coal India, ONGC, M&M, Lupin, Tata Steel and Hindalco, all up between 1-3%.

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Updated at 9:40 am

Markets have turned flat after starting the session marginally lower, amid subdued global cues, as traders turned cautious in a truncated week .

At 9:40 am, the S&P BSE Sensex has slipped by 3 points at 25,516 and the Nifty50 is up 2 points at 7,764.

The broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices have gained 0.3% each.

Markets will remain volatile this week with movement of crude oil prices, FIIs movement to be the key factor driving the equity markets in near term. The stock exchanges will be closed for trading on Friday on account of Christmas Day.

"If Nifty negates its immediate trend of higher lows and sustains below 7,750 then profit booking may continue towards 7,700-7,680 zones. On the upside it has to cross and hold above 7,800 zones to get a positive action towards 7,850-7,880 zones. Market has passed all the major event and now requires a follow up buying and shifting of base to higher levels to continue its upswing led by support based buying in next coming sessions," Anand Rathi adds in its morning technical report.

"Meanwhile, if Sensex slips below 25,000 zones then profit booking cannot be ruled out towards 25,316 and 25,250 zones. On the upside if it sustains above 25,600 then only strength would be back to take it towards 25,800 and 26,000 zones," the report further adds.

In the macro-economic front, the Finance Minister Arun Jaitley will table the Insolvency and Bankruptcy Bill in the parliament later today.

Further, uncertainty over the GST Bill continues following the stand off between the government and the Congress. The winter session of the parliament ends on Wednesday, December 23.

In overseas markets, Asian share markets got off to a lackluster start on Monday following a dive on Wall Street, though losses were limited by a general lack of investor interest in a holiday-heavy week.

MSCI's broadest index of Asia-Pacific shares outside Japan was flat, while Australia's main index eased 0.2%. Japan's Nikkei slipped 0.9%.

US stocks sold off sharply during the previous trading session on Friday on continued weakness in the oil market with the expiration of stock and index options contracts generating heavy trading volume.

Back home, Adani Ports and Special Economic Zone (APSEZ) and Asian Paints will replace Vedanta and Hindalco Industries from the 30-share S&P BSE Sensex with effect from today. Hindalco and Vedanta are up almost 1%.

Sun Pharma is the top Sensex loser, down around 7%. The company has received a warning letter from the United States Food and Drug Administration (USFDA) as a result of the September 2014 inspection, for its facility located at Halol in Gujarat.

IT stocks are under selling pressure after hike in visa fees between $8,000 and $10,000 per H-1B visa from April 1, 2016. Infosys, TCS and Wipro are down 0.2%-1%.

Tata Motors has entered the top-50 league of the world's biggest companies in terms of their R&D investments, topped by German automaker Volskwagen. Shares of Tata Motors are up almost 1%.

Financial shares like ICICI Bank, HDFC, SBI and Axis Bank are up 0.5%-1%.


With Reuters input