Nifty hovers around 8550; Jet, Spicejet rally on weak crude

Moneycontrol Bureau

1:50 pm Loan decline: Declining borrowing costs, improving employment outlook and availability of affordable housing projects are encouraging prospective home buyers to purchase new properties in 2015, a survey has said.

According to a report by ZyFin Research titled 'New Home Purchase Sentiment Index', the regulatory changes including the recent Cabinet approval to the Real Estate Bill (Regulation and Development) are also expected to boost home buyers' sentiment further.

The macro-analytics firm said the sentiment is gradually becoming conducive for home buyers this year compared to 2014.

There has been a significant rise in sentiment as the index stands at 43.9 in June this year compared with 30.7 in the same period in 2014.

1:30 pm  Market outlook: Private sector banks are likely to report a steady set of earnings for the June quarter, while infrastructure and capital goods companies may log tepid growth, Nirmal Jain, Chairman and Managing Director of IIFL told CNBC-TV18. He said the market appeared good from a medium to long term perspective and that reforms and the investment cycle recovery would be the important triggers. The Indian market had already discounted Greece and fears of a 'risk off' in emerging markets due to the events in Greece were exaggerated, he said.

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The market is holding its gains well. The Sensex is up 64.27 points or 0.2 percent at 28273.03, and the Nifty is up 20.80 points or 0.2 percent at 8542.95. About 1654 shares have advanced, 909 shares declined, and 149 shares are unchanged.

Coal India, HDFC, Wipro, Sun Pharma and Axis Bank are top gainers while NTPC, Vedanta, Hero Motocorp, Hindalco and HUL are among laggards in the Sensex. Jet Airways and Spice Jet are up 6-9 percent on the back of falling crude prices.

Falling crude prices is positive not only for specific sectors, but also for the overall economy, Sachin Shah, fund manager at Emkay Investment Managers said. However, Shah said the bigger challenge is subdued demand in last two quarters and low expectations of a pick up.

Meanwhile, Greece faces a last chance to stay in the euro zone when Prime Minister Alexis Tsipras puts proposals to an emergency euro zone summit after Greek voters resoundingly rejected the austerity terms of a defunct bailout. With Greek banks rapidly running out of cash and the European Central Bank slowly tightening the noose on their funding, Tsipras must persuade the bloc's other 18 leaders, many of whom are exasperated after five years of Greek crisis, to open rapid negotiations for a major new loan to rescue his country.