Sensex up over 150 points on firm European cues

Index heavyweights were the top gainers even as bank shares eased despite a rate cut

Benchmark share indices were trading near their day's high, amid firm European cues, led by renewed buying interest in index heavyweights and pharma shares even as bank shares eased despite a higher-than-expected rate cut by the RBI on Tuesday.

At 1:35PM, the 30-share Sensex was up 202 points at 25,980 and the 50-share Nifty was up 48 points at 7,891.

In the broader market, the BSE MidCap index was up 1.2% and the SmallCap index was up 1%. Market breadth was positive with 1551 gainers and 851 losers on the BSE.

"There was some level of exuberance post the RBI annoucement yesterday. The speed and anount of rise in bank shares was beyond what was due. So there would be some consolidation before individual banks starting picking up pace," said Jayant Manglik, President-Retail Distribution, Religare Securities.

The Indian rupee firmed up against the US dollar and was trading at 65.73 compared to the previous close of 65.96 amid gains in domestic equities.

Meanwhile, foreign institutional investors were net sellers in equities worth Rs 1,112 crore on Tuesday, as per provisional stock exchange data.

GLOBAL MARKETS

Asian markets edged higher on Tuesday with shares in Japan gaining the most. Nikkei was up over 2.6% while Shanghai Composite gained 0.5% and Hang Seng was up 1.4%.

European share were trading higher in early trades tracking gains in Asia while rebound in Volksvagen and Glencore extending gains also aided sentiment. CAC-40, DAX and FTSE-100 were up over 1.6% each.

SECTORS & STOCKS


BSE Metal index was the top gainer up 2.8% followed by Realty, Healthcare, FMCG and IT indices among others. However, BSE Bankex was the sole loser down 0.5%.

Metal shares rebounded after the sharp fall in the previous session tracking overnight gains in commodity prices. Further, steel producers like Tata Steel  and JSW Steel  likely to hike prices by up to Rs 1,500/ton as government recently imposed a prov safeguard duty of 20%. Safeguard duty imposed only on import of certain hot-rolled flat steel pdts. Tata Steel and JSW steel have gained over 4% each. Hindalco was up 3%. However, Vedanta edged 1% lower.

L&T was up 0.6%. The engineering major has emerged as the finalist for a $750-million (about Rs 5,000 crore) contract to supply 100 self-propelled artillery guns to the Indian Army.

Hero MotoCorp is trading flat. The company has unveiled two scooters developed in-house on new platforms, as the company expands its presence in a segment where former partner Honda Motor is the market leader in India.

Sun Pharma Advanced Research was up over 2% while Aditya Birla Nuvo is up 1% after FIPB on Tuesday cleared 18 foreign investment proposals, including that of Aegon Religare Life Insurance, Sun Pharma Advanced Research  and Aditya Birla Nuvo, worth about Rs.5,000 crore.

RIL has gained 1.8% after Reliance Jio Infocomm raised Rs 3,500 crore by issuing non-convertible debentures through private placement.

Sun Pharma has climbed 1.6% after it has made a tender offer to acquire US-based eyecare firm InSite Vision for $0.35 per share in cash.

Bank shares have eased after gains in the previous session post the surprise rate-cut by the RBI on Tuesday. Axis Bank, ICICI Bank and SBI were down 0.4-2.1% each.

Idea Cellular was up over 5% after the company announced that its shareholders have approved all the items of business contained in the notice of the AGM which includes issue of non-convertible securities on private placement basis.