The 30-share BSE Sensex stayed higher with more than 100 points gains since early trade led by banks, oil & gas, FMCG and technology stocks. Today's bounce back indicates that traders may be adding long positions ahead of two big events.
As per consensus estimates, the central bank would announce a 25bps repo rate cut at least .
However, given the inflationary pressure and widening fiscal deficit R Sukumar of Franklin Templeton Investments believes that the market should not expect a very sharp sustained fall in interest rates from the current level in the next two quarters.
The BSE benchmark climbed 120.82 points to 16,798.70 and the NSE benchmark was up 37.5 points to 5,092.25.
Country's largest private sector lender ICICI Bank jumped 1.6% while its rivals State Bank of India and HDFC Bank were up 1% and 0.8%, respectively.
Index heavyweight Reliance Industries rose 0.7% and state-owned oil & gas producer ONGC moved up 1%.
Infosys, India's No. 2 software services exporter gained nearly 1%. FMCG majors ITC and HUL advanced 0.6-1%.
Top commercial vehicle maker Tata Motors rallied 1.76% ahead of Jaguar and Land Rover's sales numbers for May today.
However, shares of Bajaj Auto topped the selling list, falling more than 2%.
HDFC fell 0.2% after Macquarie downgraded the stock to underperform from outperform and cut the target to Rs 550.
Top telecom operator Bharti Airtel and state-owned capital goods company BHEL were down 0.3% each.
About two shares gained for every share declining on the National Stock Exchange.
At 9:20 hours IST: Sensex gains over 100 pts higher; banks, oil & gas lead
The BSE Sensex and NSE Nifty bounced back in opening trade with 0.73% gains on Friday after taking a beating yesterday on diminishing hopes of aggressive rate-cut by RBI in its mid-quarter policy review on June 18.
Traders may be keeping long positions open ahead of Greek election over the weekend and RBI policy on Monday.
The BSE benchmark was up 121.32 points to 16799.20 and the NSE benchmark advanced 37 points to 5,091.60. The Indian rupee appreciated by 9 paise to 55.71 as against the US dollar.
JP Associates shot up 2.5% after The Economic Times reported that Birla and Lafarge are eyeing its cement business that could fetch JP group Rs 9000 crore.
Top commercial vehicle maker Tata Motors was up over 1% ahead of JLR monthly sales numbers today afternoon post 1 pm.
ACC, Ambuja Cements, ONGC, IDFC, SBI, Kotak Mahindra Bank, ICICI Bank, Bank of Baroda, Coal India, L&T and HUL gained 1-2%.
However, Bajaj Auto, Cipla, BPCL, Bharti Airtel, TCS and HDFC were under pressure in early trade.
The CNX Midcap Index rose 38 points to 7,015. About two shares advanced for every share falling on the National Stock Exchange.
In the second line shares, state-owned HMT and ITI climbed 6% each.
Liquor baron Vijay Mallya-led UB group stocks gained further. UB Holdings was up 3.6%. Kingfisher Airlines moved up 2% and United Spirits up 1.6%.
WWIL went up 3%. Reliance Capital and Pantaloon Retail rallied 2% each.
IRB Infrastructure, Lanco Infratech, IVRCL, GMR Infra and GVK Power moved up 1-2%.
However, HPCL fell 0.5% after The Times of India reported that petrol prices would be cut by Rs 2/litre soon.
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