Market firms up led by financials; Nifty above 8,100

Business standard has posted by Market firms up led by financials; Nifty above 8,100 Financial shares witnessed buying interest while IT majors remained subdued in early trades Markets firmed up with financial shares leading the gains even as losses in IT exporters amid demand concerns post the Brexit capped further upsides.

Meanwhile, volatility is seen ahead of the June derviative contracts due for expiry on Thursday.

At 9:30am, the S&P BSE Sensex was up 31 points at 26,433 and the Nifty50 was up 13 points at 8,108. In the broader markets, the BSE Midcap index was up 0.4% while the Smallcap index was up 0.6%.

"Asian markets are in red with Nikkei and Shanghai both down as investors continue to weigh on Brexit. US markets fell and ended lower. Two-day European council meeting to commence today. Indian markets are braced for expiry if June contract on June 30," Geojit BNP Paribas said in a note.

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Financial shares witnessed short covering with HDFC Bank and HDFC leading the gains along with SBI and Axis Bank.

FMCG majors ITC and Hindustan Unilever continued to trade firm on expectation that rural volume growth would pick up pace after the MET department said that monsoon rains are likely to retreat later than normal.

Reliance Industries was up 0.5%. The owner of the world's biggest refining complex, imported 13.2% less oil in May compared with a year earlier.

Larsen & Toubro extended gains and was trading higher after the company said its construction division has won orders worth Rs 2,416 crore.

IT exporters extended losses on concerns over demand uncertainty from Europe and volatility in the British pound post the Brexit. Wipro eased 1% while Infosys was down 0.7% and TCS which has a substantial exposure to UK was down 0.3%.

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GLOBAL MARKETS

Asia markets are trading mixed with Japan’s Nikkei down 0.3% and Hong Kong’s Hang Seng slipping 1% after Britain shocked the world in a historic referendum vote where it decided to exit the European Union.

Meanwhile, China’s Shanghai Composite has lost 0.5%. China's official June manufacturing purchasing managers' index will be announced on Friday, 1 July 2016. On the same day, Markit Economics will announce Caixin China General Manufacturing PMI for June 2016.

Overnight, US stocks closed about 1.5% lower extending Friday’s fall after Britain shocked the world by voting to exit the European Union in a historic referendum last week. The Dow Jones and S&P 500 ended at their lowest since mid-March.