Markets near day highs led by banks

Broader markets outperform

The markets continue to trade near their day's high on renewed buying interest in banks and Reliance Industries. The BSE benchmark index, Sensex, was up 101 points at 16,089 and the Nifty gained 35 points at 4,884. Earlier in the day, the Sensex had touched an intra-day low of 16,023 and a high of 16,125.

Adding cheer to the markets was India's services sector growth numbers. According to HSBC's services purchasing managers' index, compiled by Markit, India’s services sector grew at its fastest pace in three months during May, from 54.7 in May from 52.8 in the previous month and firms were more optimistic about the year ahead, the survey showed.

 

In the broader markets, both the midcap and the smallcap indices were up nearly 1% each outperforming the Sensex which added 0.6%.

In the Asian markets, Japan's Nikkei rose 1% and looked set to end a four-session losing run, with investors cutting bearish bets ahead of emergency talks by the G7 industrialized powers on the euro zone crisis. Hang Seng, Jakarta Composite, Kospi and Taiwan Weighted too added 1% each.

Among the sectoral indices, Capital Goods, Power, Bankex and Metal indices which gained 1% each were the top gainers in the late morning trades. However, Realty was flat with a negative bias.

Banking stocks gained on the back of rate cut hopes. Axis Bank, SBI, Yes Bank and HDFC Bank up 1-2% were leading the gains.
In a separate development, State Bank of India has signed an agreement with brokerage firm Geojit BNP Paribas Financial Services to offer portfolio investment services (PIS) to Non-Resident Indians (NRIs).

The top gainers among the Sensex stocks were Hindalco, NTPC, Gail India, Sterlite, BHEL and L&T which gained 1.5-2%.Index heavyweight, Reliance Industries gained 1% while Mahindra & Mahindra was also up over 1% after the company today said it has entered into business transfer agreement to transfer the company's Naval Systems Business forming part of the Company's Mahindra Defence Systems Division

Meanwhile, Tata Motors, DLF, Bharti Airtel and Tata Power declined 1% each.

Among other Sensex stocks, NTPC moved higher by 2% at Rs 147 on commissioning of the Unit # 3 of 660 MW of Sipat Super Thermal Power Station Stage-I.

The market breadth was positive. 1363 stocks advanced while 705 stocks declined.