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The benchmark share indices have maintained their uptrend in mid-morning trades, thanks to gains on the metal and information technology counters.
At 11.40am, the Sensex was at 28292, higher by 220 points or 0.7% and the Nifty was at 8579, up 69 points.
The broader markets were outperforming their largecap peers, with themidcap and smallcap indices gaining 0.3% each at 11,603 and 12,187 respectively. The market breadth is strong, with 1831 advancing stocks as against 719 declines.
"The trend deciding level for the day is 28,068 / 8,510 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 28,269 – 28,466 / 8,572 – 8,627 levels. However, if NIFTY trades below 28,068 / 8,510 levels for the first half-an-hour of trade then it may correct towards 27,870 – 27,669 / 8,455 – 8,393 levels," Angel Broking said in a note.
SECTORS & STOCKS
All sectoral indices on the BSE are trading in the green, led by the metal and IT sectors.
Metal stocks have gained on reports that the government might impose import duty on long products and flat steel products to counter huge imports from China. Tata Steel and Vedanta have jumped 4% and 2% respectively.
IT stocks have gained momentum on the back of a weakening rupee. Infosys, Wipro and TCS are up by nearly 2% each.
Among the index heavyweights, ITC and Reliance Industries have added 0.6% each. Bharti Airtel has strengthened by 1.4%, albeit off its highs, after the company reported a 40.2% jump in net profit for the quarter ended June at Rs 1,554 crore. Strong data growth —both in India and Africa —is a key highlight of the quarter. During the quarter, mobile data revenues (consolidated) grew 57 per cent year-on-year to Rs 3,459 crore, as data traffic rose by 86.5 per cent.
Bank shares staged a recovery after the correction in the previous session post the neutral stance on key rates by the RBI. ICICI Bank, SBI and Axis Bank are among the key gainers in this space. In fact, the CNX PSU Bank index has gained over 16% in five days, significantly outperforming the broader Nifty, which is up nearly 2.5% during the same period.
Sugar companies have gained as government has made it compulsory for sugar mills to export millions of tonnes of surplus supplies to support local prices. Dalmia Bharat Sugar, Dwarikesh Sugar, Sakthi Sugar, KM Sugar Mills, Bajaj Hindustan and Simbhaoli Sugar Mills have jumped by 9-18% each.
