Sensex, Bank at 2016 high; BHEL, GAIL, ITC gainers

Moneycontrol Bureau11:45 am Voice on Brexit: Despite global events like Brexit, Indian markets will not see any big headwinds as monsoons have picked up and GST Bill stands a big chance of getting passed and liquidity in the system is much higher, said Mahesh Patil, Co-CIO at Birla Sun Life AMC. Even with the oil and gas space having lesser stock value, he maintained these companies have delivered and have shown improvement in refining margins and volume growth has spiked, too. "The valuations in oil and gas sector remain attractive in high single-digits," he said.11:30 am Market outlook: Porinju Veliyath, MD & Portfolio Manager at Equity Intelligence India said equity is the best reward in the asset class. Stocks like Biocon and Anant Raj are long-term bets, he said.

"Our investors have never had the confidence to invest in equities," he said, adding that such an attitude should change. 

On value picks, he says the consumer business of Tata Group is actually doing well. The change of philosophy in Tata is evident, he says, adding there is pressure in many Tata Group companies to create shareholder wealth.

"The new leadership has taken a position. There is a focus on consolidation, creating an attractive bottom line." 

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Bulls seems to be charging ahead taking the market higher. Both Sensex and Bank Nifty are at 2016 high. The Sensex is at 27,231.03, up 0.8 percent or 231.31 points while Nifty is at 8352, up 64.60 points or 0.7 percent.

BHEL, Dr Reddy's Labs, ITC and L&T are top gainers while Coal India, Asian Paints, Maruti, Cipla and TCS are losers in the Sensex.

Oil prices rose as traders welcomed assurances from central bank around the world that they were ready to step in to prevent a global rout following Britain's vote to leave the European Union.

Oil market watchers said last week's decline in US commercial inventories is also helping boost prices, but a sustained price rise will only come if producers make meaningful cuts in output.