Sensex climbs 100 points as global equities gain ground

Business standard has Posted By Sensex climbs 100 points as global equities gain ground

Markets have opened the session on a strong note mirroring strength in the global equities after the near term impact of Brexit eased.

Meanwhile, the revision in US Gross domestic product (GDP) further lifted the mood at D-Street as it indicated an improvement in the health of the global economy. GDP increased at a 1.1% annual rate, rather than the 0.8% pace reported last month, the Commerce Department said on Tuesday in its third GDP estimate.

At 9:15 am, the S&P BSE Sensex gained 129 points to trade at 26,654 and the Nifty50 climbed 37 points to quote at 8,165

Angel Broking in a technical note said “Our markets are clearly showing their out performance over the global peers since last three sessions. However, if we meticulously observe the hourly chart, we can clear see a cluster of resistances around it. Technical evidences such as, the '89 EMA' and the 61.8% Fibonacci retracement level of the recent fall converges at 8,150. Thus, at least for a day or two, it would be a daunting task for the bulls to overcome it. Although, we maintain our positive stance on the market directionally, we expect a minor a pull back towards 8,070 – 8,050 levels. On the flipside, 8,150 – 8,180 would be seen as immediate resistances for the index.”

Participants are keenly watching the rollovers to the next series ahead of the expiry of June F&O series due on Thursday, auto sales volume data for June and India Manufacturing PMI for June due on Friday, respectively.

GLOBAL MARKETS

Asian markets rallied on Wednesday tracking robust gains in overnight trades on Wall Street as investors turned to equities after the near term impact of Brexit began to subside. Shares in Japan gained the most with the benchmark Nikkei up 1.4% and Singapore's Straits Times was up nearly 0.9%. China's Shanghai Composite was trading with marginal gains up 0.5% while Hang Seng was up 0.6%.

US stocks surged in overnight trades to end higher on bargain hunting at lower levels after sharp losses in the previous two sessions post the shocking outcome of the referendum in which Britain voted to exit the European Union. The Dow Jones industrial average ended up 1.6% at 17,410 and the S&P 500 ended up 1.8% at 2,036 while the Nasdaq surged 2.1% to settle at 4,692.

STOCKS

US-based fund house Janus Capital has sold its entire stake in DLF. The stock is up 6%.

India’s third largest private sector bank Axis Bank has forayed into urban microfinance programme by providing TAB based solution to low-income women groups in urban cities. The stock has gained 0.5%.

Drug major Dr Reddy's Laboratories said it has bought back nearly 51 lakh shares for Rs 1,569.41 crore as part of a 'share buyback' offer launched earlier this year. The stock climbed over 1%.

Bosch's Board of Directors will meet on July 01, 2016, to consider a proposal for Buyback of the Company's equity shares. The stock is trading 3% higher.

Banking major SBI plans to divest its sell non-core investments of around Rs 3,000 crore to shore up its capital, according to media reports. The stock is up 0.5%. 

Shareholders of Strides Shasun have approved divestment of Shasun Pharma Solutions Ltd, UK via postal ballot. The stock has gained over 1%.

Realty company Sobha is set to launch Sobha City - its First Luxury Apartment Project in Delhi-NCR. Sobha has surged 4%.

GE Shipping said that it has bought back and extinguished 100 Secured and 550 Unsecured Debentures of Rs. 10,00,000 each, aggregating to Rs. 65 crore. The stock has surged 1%.

The board of directors of Kesar Terminals & Infrastructure will meet on July 01, 2016, inter alia, to consider Sub-Division of Equity Shares of the Company. The stock is up 2.5%.

Thomas Cook will be in focus after its subsidiary Quess Corp IPO opens for subscription today.