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Markets have rebounded in today’s trade after posting loss for eight straight sessions on renewed buying interest at lower levels. A smart rally in blue chips coupled with strength in mortgage lender, HDFC on plans to sell 10 per cent stake via IPO in insurance joint venture HDFC Standard Life has lifted the markets higher.
Further, Hong Kong and Shanghai stocks both popped higher Monday morning after China unveiled more details and projections for its "New Silk Road" plan to boost trade and economic relations with the rest of Eurasia and Africa which boosted the trading sentiments.
By 11.35AM, the 30-share Sensex is higher by 237 points at 27,696 and the Nifty has gained 60 points at 8,402.
Meanwhile, foreign portfolio investors (FPIs) sold shares worth a net Rs 320.52 crore on Friday, as per provisional data. Domestic institutional investors (DIIs) bought shares worth a net Rs 674.76 crore on Friday, as per provisional data.
The government’s latest plan to revive the stranded gas-based power generation capacity through imports will help save $16 billion worth of investments and banks including IDBI, State Bank of India (SBI) and ICICI are set to be the biggest beneficiaries of the plan, credit rating agency Moody’s said in its latest Credit Outlook report released on Monday.
Power plants using Regasified liquefied natural gas (RLNG) as fuel have been facing significant availability and pricing challenges because the domestic production of LNG has been significantly lower than the assumptions made when the plants were set up. At the same time, importing LNG at prevailing prices has proved difficult because it increased generation costs raising prices beyond the reach of buyers.
RUPEE
In the currency front, the rupee fell by 17 paise to 62.58 against the US dollar in early trade today at the Interbank Foreign Exchange due to rise in the American currency's value against other global currencies amid month-end demand for the dollar from importers.
CRUDE OIL
U.S. crude futures fell below $48.50 a barrel in early trading on Monday, adding to steep losses in the previous session, as Iran and six world powers tried to reach a deal that could add oil to the market if sanctions against Tehran are lifted.
KEY STOCKS
On the sectoral front, BSE Capital Goods, FMCG, Healthcare, Power indices are trading higher up to 1%. However, BSE Oil & Gas is losing sheen on the BSE.
According to media reports, Bharti Airtel is likely to provide 4G services across the country as it bagged requisite spectrum in the concluded spectrum auction. The stock is the top Sensex gainer, up over 4%.
Housing Development Finance Corporation (HDFC) plans to sell 10 per cent stake via IPO in insurance joint venture HDFC Standard Life. The stock is up over 2.5%.
Country's largest lender State Bank of India has received all necessary approvals to buy residential properties of cash-starved national carrier, Air India, in south Mumbai for Rs 90 crore. The stock has risen 0.7%.
Defensive stocks are trading higher on the back of depreciating rupee. TCS, Infosys, Cipla, ITC, HUL, Sun Pharma, Dr Reddy’s Lab are trading higher up to 2%.
Wipro has gained over 1% after the latest organizational restructuring. Chief financial officer Suresh Senapaty will retire on Tuesday. According to news reports, Wipro is going to elevate chairman Azim Premji’s elder son, Rishad, chief strategy officer at present, into the board.
On the losing side, Hindalco, Tata Power and Sesa Sterlite have slipped between 0.3-1.2%.
Oil and Gas majors RIL, GAIL are trading lower up to 1% on decline in crude oil prices.
The broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices are up 1.4-2.5%.
Magma Fincorp, Liberty Shoes, Bodal Chemicals, Ricoh India from the small cap space are trading higher up to 17%.
Markets breadth is positive on the BSE with 1,715 advances and 541 declines.
