The Nifty50 was testing its crucial psychological level of 8,200 supported by gains in consumer durable, banks, power, oil & gas, and auto related stocks.
“Though Indian stocks have extended last week’s surge, the general mood remained subdued after Fed chair Janet Yellen’s statement supported the rate hike rhetoric. A holiday in the US also added to the indecisiveness. Further, being at the fag-end of results season, and with a slew of economic data scheduled for release this week, the market is slowly shifting focus to the RBI decision scheduled for the second week of June,” said Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services.
The broader market traded in line with the benchmark indices with the BSE midcap and smallcap indices rising 0.30 and 0.23 per cent, respectively.
Market @ 9:20
The 30-share index was trading at 26809, up 83 points or 0.31 per cent. It touched a high of 26837.20 and a low of 26786.35 in morning trade.
The Nifty50 was trading at 8198 up 20 points or 0.25 per cent. It touched a high of 8213.60 and a low of 8194.45 in the first 30 minutes of trade.
The S&P BSE Midcap Index was up 0.12 per cent and BSE S&P Smallcap Index was trading 0.07 per cent higher.
Tata Motors (up 7.9 per cent), NTPC (up 0.9 per cent), BHEL (up 0.9 per cent) and ICICI Bank (up 0.5 per cent) were the major Sensex gainers.
Sun Pharma (down 3.5 per cent), Bharti Airtel (down 1.6 per cent), GAIL (down 1.09 per cent), L&T (down 0.84 per cent) were major Sensex loser.
Five things you must know about today’s market:
Q4 GDP likely at 7.4%: Rating agency India Ratings expects gross domestic product (GDP) in Q4FY16 to have grown 7.4 per cent, which translates into the FY16 GDP growth of 7.5 per cent.
“The FY16 GDP growth is likely to have been marginally lower than the FY16 advance estimate of 7.6 per cent. Ind-Ra notes that any change in growth estimates by the CSO in Q4 of FY15 or in FY15 will have an impact on the quarterly and annual growth estimates,” it said.
Technical charts positive: Some technical analysts believe Nifty may breach the 8,350 level in the short term.
“Technically, the market still remains on a medium-term uptrend with most cues pointing northward. The candlestick charts still indicate a breakout from last month’s range and a move towards the 8,350 mark in the short term. The forthcoming Fed policy and how the monsoon rains play out will be interesting factors to keep track of. We are bullish on the market at this point and would recommend increasing allocation to equities.”
Asian markets stay higher: Most Asian markets traded higher this morning. Japan’s benchmark Nikkei traded 0.50 per cent higher at 17,153.
Preliminary data suggested that Japanese factory output grew 0.3 per cent in May against an expectation of de-growth.
Other Asian indices, including South Korea’s Kospi (up 0.43 per cent), China’s Shanghai Composite (up 1.86 per cent) and Taiwan’s TWSE (down 0.17 per cent) traded mixed.
Monsoon may reach Kerala coast by June 8: Mainland India is expected to get the first monsoon showers on June 6 or 7, about a week after the usual June 1 date when the rains usually keep date with the Kerala coasts, ET reported quoting US agency, Weather Risk Management Services.
Citing data, the agency also said most parts of India would get normal to excess rainfall between July and September, which is an encouraging prediction for a country that suffered two consecutive years of drought.
Monsoon updates are likely to influence market sentiment in the coming weeks.
US markets remained shut on Monday: US market was shut on Monday on account of Memorial Day.
The Dow Jones Industrial Average advanced 44.93 points, or 0.25 per cent, to settle at 17,873.22 on Friday. The S&P500 rose 8.96 points, or 0.43 per cent, to close at 2,099.06. For the week, the S&P500 rose 2.3 per cent and the Dow added 2.1 per cent, the best weekly performance for both since March, Reuters reported.