Sensex, Nifty maintain uptrend; metal, IT, FMCG stocks soar

Moneycontrol Bureau11:50 am Market outlook: From a three-five year horizon, all aspect of India story looks exciting, says Pramod Gubbi, Director-Institutional Sales at Ambit Capital. However, domestic economy is decelerating in short term with barely any growth in rural consumption. Gubbi also sees negative impact of weak earnings and suggests Pharma and IT sectors as short term investment ideas.

Talking about no-action monetary policy, Gubbi said a pick up in inflationary expectation have been bothering the Reserve Bank of India. Additionally, the RBI has taken cognizance of non-transmission of monetary policy by banks. Gubbi says recapitalisation of banks should prompt base rate cuts  which will then allow the RBI to ease rates.11:30 am Interview: Department of Industrial Policy and Promotion Secretary Amitabh Kant says Taiwan's Foxconn may set up about 10-12 manufacturing units across India, apart from the units it already has.

In an exclusive interview to CNBC-TV18, Kant says manufacturing units will be for varied sectors like solar, mobile hand-held sets. Kant adds Foxconn has visited 6-7 states to finalise locations for manufacturing units.

Indian conglomerate Adani Enterprises on Tuesday said it was in discussions with Foxconn, the trade name for Hon Hai Precision Industry Co Ltd, for a joint venture. The company is the world's largest contract maker of electronic products and provides products to Apple, Blackberry, Xiaomi and Amazon.Don't miss: Will Maggi return? Nestle up 10%, govt lab says it's safe

The market is holding its strong gains supported by metals, IT, auto, pharma and FMCG stocks. The Sensex is up 189.62 points or 0.7 percent at 28261.55 and the Nifty is up 53.65 points or 0.6 percent at 8570.55. About 1762 shares have advanced, 652 shares declined, and 117 shares are unchanged. 

Tata Steel, Bajaj Auto, Vedanta, Infosys and Wipro are top gainers while GAIL, M&M, SBI and ICICI Bank are among losers in the Sensex.

Amid a weak trend overseas, gold prices fell 0.28 percent to Rs 24,605 per 10 grams in futures trade on Wednesday as participants reduced their exposure.

Analysts said a weak trend in the overseas markets following a possible rate hike by the US Federal Reserve, lifting dollar to a four-month high, eroding demand for the precious metals as an alternative, weighed on gold prices at futures trade here.

Globally, gold traded 0.3 percent down at USD 1,084.70 an ounce in Singapore on Wednesday.