Sensex up over 100 pts, Nifty reclaims 7950; IT & pharma lead

Moneycontrol Bureau11:55 am Market view: India is been singled out by investors because of the outflows seen in recent time, believes Rajat Rajgarhia, MD – Institutional Equities at Motilal Oswal Securities.

There is an imminent fear in the market on the back of a slowdown in corporate earnings and economic growth. Market could revisit the 7700 levels, he said.

However, Rajgarhia believes that demonetisation will bring informal industries into the formal system and financial system, too, is expected to become stronger.

Market with a cash component will suffer. Some companies - like HDFC, Infosys and L&T – always come through issues, he said adding that they could be used to hide in the current situation.

11:30 am Outlook: The demonetisation pain is likely to last till the end of current financial year, believes Leo Puri, MD of UTI Asset Management. The pain has already started easing with improvement in note printing. Speaking to CNBC-TV18’s Latha Venkatesh, Puri said demonetisation will be very good for the market in medium term. Benefits in relation to expansion of tax base will start coming in next fiscal. While 2016 has been a year of uncertainties, 2017 will bring realignment to the world. Even with foreign investors withdrawing from India, domestic investors have not dried up yet. Puri expects analysts to once again turn overweight on India by middle of next year.Don't miss: Buy, sell, hold: 4 stocks that analysts are watching out

The market continues to make gains with the Nifty reclaiming 7950. The 50-share index is up 35.15 points or 0.4 percent at 7943.40. The Sensex is up 105.53 points or 0.4 percent at 25912.63. About 1284 shares have advanced, 759 shares declined, and 144 shares are unchanged.

Both IT and Pharma indices are up over 1 percent. Cipla, Lupin, M&M, TCS and Adani Ports are top gainers while Bharti, HDFC, Hero and GAIL are losers in the Sensex.

Gold prices rose Rs 100 to Rs 27,001 per 10 grams in futures trade today as speculators created fresh positions, taking positive cues from global markets.

Market analysts said rise in the precious metal at theglobal market mainly influenced gold prices at futures trade here.Meanwhile, gold climbed as much as 0.74 percent to USD 1,136.70 an ounce in Singapore today.