Benchmark indices have extended gains and are trading near day’s high post the announcement of March WPI which has fallen for the 17th straight month in March, dropping 0.85% compared to 0.91% in February.
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At 13:55 am, the S&P BSE Sensex was up 173 points to quote at 25,800 and the Nifty50 gained 53 points to trade at 7,904.
Top gainers from the Sensex pack are Infosys, Cipla, NTPC, ITC and Lupin, all surging between 1%-7%.
Updated at 11:50
Benchmark indices continue to maintain the upward trend after India’s second-largest information technology (IT) services firm forecast strong revenue growth of 11.5%-13.5% in consent currency (CC) in the current fiscal.
Further, recent rate cut by the Reserve Bank and hopes of a good monsoon have strengthened investors’ sentiments. However, weakness in the Asian shares amid sharp decline in the oil prices has capped the upside gains.
At 11:50 am, the S&P BSE Sensex was up 114 points to quote at 25,740 and the Nifty50 gained 35 points to trade at 7,885. Broader markets
are outperforming the benchmark indices- BSE Midcap and Smallcap indices are up almost 1%.
The rupee depreciated 6 paise to 66.70 against the US currency at the Inter-bank Foreign Exchange due to increased demand for the dollar from importers.
Oil prices tumbled on Monday after a meeting by major exporters in Qatar collapsed without an agreement to freeze output, leaving the credibility of the OPEC producer cartel in tatters and the world awash with unwanted fuel.
STOCKS IN ACTION
From the pharma space, Cipla, Lupin and Sun Pharma are up 1%-2%.
ITC has gained around 1% post the company’s decision to resume manufacturing of cigarettes at its factories soon following a favourable high court order has aided the sentiment.
Shares of information technology (IT) were trading higher on the bourses after Infosys, India’s second-largest information technology (IT) services firm forecast strong revenue growth of 11.5%-13.5% in constant currency (CC) in the current fiscal (FY17).
Infosys was trading higher by 6% to Rs 1,244, after hitting a record high of Rs 1,268.
Cyient has rallied 8% to Rs 490, followed by MindTree (up 7% at Rs 739), SQS India BFSI (5% at Rs 967), NIIT Technologies (4% at Rs 511) and KPIT Technologies (3% at Rs 153).
HCL Technologies, Tech Mahindra, Mastek, NIIT, Geometric, R S Software, Hexaware Technologies and Mphasis are up between 1% and 2% on the BSE.
Shares of aviation and state-owned oil marketing companies have firmed after global crude oil prices eased after talks between the Organisation of the Petroleum Exporting Countries (OPEC) and non-OPEC producers to freeze oil output remained inconclusive.
Jet Airways was down 2.7% at Rs 642, SpiceJet gained 3% to Rs 73 and Interglobe Aviation which operates the Indigo airline was up 2% at Rs 1,047.
Alkem Laboratories has dipped 7% to Rs 1,236 on the BSE in early morning trade amid media reports that the company has been accused by Germany’s health regulator of fudging data on clinical trials of an antibiotic and brain disorder drug.
Gulf Oil Lubricants India has rallied 9% to Rs 589, also its lifetime high on the National Stock Exchange (NSE), after the promoter Gulf Oil International Mauritius Inc acquired nearly two percentage points stake in the company through open market transaction.
Suprajit Engineering surged 17% to Rs 157, also its 52-week high on the BSE, after the company announced that its board approved the merger of Phoenix Lamps with the company in the ratio of 4:5.
Shares of DCB Bank were up over 6% at Rs 89 on the Bombay Stock Exchange after the private sector bank reported strong growth in net interest income and decline in gross and net non-performing assets for the quarter ended March 31, 2016.