Sensex, Nifty continue to rally; Sun Pharma, Coal India dip

Moneycontrol Bureau11:50 am FII view: Schemes investing in midcap stocks have been witnessing significant inflows, Anand Radhakrishnan, CIO-Equity, Franklin Templeton Investments says.

Radhakrishnan says there are enough stocks in the IT sector available at reasonable valuations. He is looking to increase allocation to the auto sector.

In the banking sector, Radhakrishnan says he is taking a measured exposure to state-owned banks. He is bullish on private sector banks, which according to him have managed risks well and increased market share.11:30 am Small stock, big buzzing: Shares of Mukta Arts were locked at 20 percent upper circuit intraday on hopes of a new investor. According to media reports, Foxconn Technology, the world's largest contract manufacturer of electronic gadgets, may pick up a stake either in listed Mukta Arts or one of its arms, as the Taiwanese firm seeks to branch out beyond its established forte of hardware products.

Foxconn has already ytied up with Mukta Arts subsidiary WhistlingWoods International (WWI) for co-creation of content which can be used across media platforms.

Mukta Arts promoter and filmmaker Subhash Ghai said there are many possibilities for the tie-up and that Foxconn may look at taking stake in either Mukta Arts or WWI, which is engaged in teaching film making.Don't miss: Is it good to buy Tata Motors despite JLR woes in China? 

The market keeps uptrend intact as IT and banks shares lead. The Sensex is up 144.04 points or 0.5 percent at 28380.43, and the Nifty is up 45.05 points or 0.5 percent at 8609.65. About 1545 shares have advanced, 851 shares declined, and 143 shares are unchanged.

HDFC twins, Hindalco, Lupin and TCS are top gainers while Sun Pharma, Coal India, ONGC, Tata Motors and Tata Steel are losers in the Sensex.

Oil prices fell in Asian trade, extending weeks of losses after a US report stoked expectations of a global glut of suppliers.

A glut in crude oil supply is seen as the main driver for a sharp decline in oil prices that has seen crude slump to almost a third of its mid-2014 peaks.

News of rising US production comes as top producing cartel OPEC has refused to cut output, and as investors wait for Iran to ramp up exports after a major deal over its nuclear programme last month.  In exchange for curbing its nuclear activities, Tehran will see the lifting of sanctions, which have slashed its oil exports.