Sensex, Nifty continue to rise; Sun TV jumps 10%, HUL down

Moneycontrol Bureau11:50 pm FII view: HSBC has changed its rating on India from underweight to neutral as hype around the reforms process has subsided; and premium to the region has declined and India is only 10 percent above its historic premium, said Devendra Joshi of HSBC, one of the largest banking and financial services organisations. He expects the BSE Sensex to touch 26,000 levels in December 2016, which is only about half-a-percent over the current levels. He believes that higher salary for public sector employees and expectation of a good monsoon have played a major role in changing India's rating.  Joshi is overweight on IT stocks, consumer sector and industrial space. 11:30 am Market outlook: Vibhav Kapoor, Director, IL&FS, believes the market currently is over-bought and fairly valued. It needs to consolidate for some time, he said, adding that if the monsoons are as good as promised then reaching Nifty levels of 8700-9000 by March, 2017 is possible. The markets will consolidate in the near-term till the British referendum decision which is slated for June 23. After that, the markets would show a path forward. Kapoor agrees with most experts that the market is expensive and so one should not chase it at these levels. Buying on dips would be a right strategy for those bullish on the medium-term, he said.Don't miss: Modi magic! Sensex, Nifty up 6-9% in 2 yrs but midcaps soar 44%

The market is still holding its gains with the Nifty above 7900. The Sensex Sensex is up 158.50 points or 0.6 percent at 25811.73, and the Nifty is up 47.95 points or 0.6 percent at 7908.70. About 1230 shares have advanced, 784 shares declined, and 118 shares are unchanged.

ONGC, Axis Bank, GAIL, HDFC and L&T were top gainers in the Sensex while NTPC, HUL, Bharti, Adani Ports and SBI are major losers in the Sensex.

Shares of Sun TV Network surged 10 percent as most exit polls have predicted that the DMK-Congress alliance may win the state elections in Tamil Nadu. Chennai-based Sun TV owned by Kalanithi Maran (grandnephew of DMK President M Karunanidhi) is seen gaining high revenue growth when DMK is in power.

A rally in US crude oil prices recently has put the market on its firmest footing since the rout started in 2014, with the spread between prices for near-term delivery and future delivery narrowing, suggesting the worst of the supply glut may be over.

Oil prices in global markets have been lifted in the past week by news of falling US production and output disruptions in Canada and Nigeria.