Sensex up over 150 pts, Nifty strong: Tata Motors, ICICI drag

Moneycontrol Bureau11:45 am Outlook: Earnings trajectory is now moving into a positive territory and the pace of downgrades has receded, says Anish Damania, CEO & Head- Institutional Equities at IDFC Securities. Speaking from the sidelines of IDFC’s London Conference, Damania says global interest continues to be on Indian companies, he says. Earnings, except from banks, have improved by 13 percent in the fourth quarter, above analyst estimates. “Fund flows are likely to follow the upmove in earnings,” he says. While large caps have performed decently in last few days, midcaps have been subdued. Damania expects midcaps to rally if market remains steady. Volumes are now visible in midcaps, he adds.11:30 am PMI: Manufacturing output in India grew at its slowest pace in five months in May, suggesting that the sector is "barely improving" and adding to the clamour for further interest rate cuts by the Reserve Bank. The Nikkei/Markit India Manufacturing Purchasing Managers' Index (PMI) - a composite indicator of manufacturing sector performance, stood at 50.7 in May as against 50.5 in April - one of its lowest readings since the end of 2013. A reading above 50 represents expansion while one below this level means contraction.Don't miss: Jet Airways, InterGlobe slips as ATF price hiked by 9.2%

The market is gaining strength as the Nigty reclaims 8200. The 50-share index is up 48.65 points or 0.6 percent at 8208.75. The Sensex is up 163.30 points or 0.6 percent at 26831.26.

Asian Paints, Adani Ports, Bharti Airtel, TCS and ITC are gainers while Tata Motors, ICICI Bank, HDFC Bank, Coal India and Sun Pharma are losers in the Sensex.

Gold futures today fell by Rs 119 to Rs 28508 per 10 grams as participants indulged in cutting their bets amid a weak trend at the domestic spot markets. However, a firm trend in the precious metal in global market capped the losses. Analysts attributed decline in gold prices at futures trade to weak trend at the domestic spot markets due to muted demand from jewellers as well as retailers but metal's gain in overseas market limited the losses.