Benchmark indices are trading higher by nearly 0.5% each on gains in financials, information technology and select auto stocks while the losses in metal and select pharmaceuticals have kept the hopes of a strong rally diminished by limiting gains at higher levels.
At 12:45PM, the 30-share Sensex was up 136 points at 27,342 and the 50-share Nifty was up 39 points at 8,262.
In the broader market, both the BSE Midcap and Smallcap indices, up nearly 0.5% and 1% each have performed better than the front-liners. Market breadth in BSE is positive with 1,434 advances against 926 declines.
Only two out of the 12 sectoral indices of BSE are trading lower. BSE Metal index down over 1% is the top loser while BSE FMCG and Healthcare indices, up 0.7% each are the top gainers.
Financials are gaining in today’s session as sustained fall in consumer inflation prices has given boost to hopes of a rate-cut by Reserve Bank of India. Mortgage lender, HDFC and Axis Bank have gained 1.4% each, SBI has gained over 2% while ICICI Bank has shed 0.6%.
From the rate-sensitive pack, auto shares are too trading higher. M&M has gained nearly 2%, Tata Motors has gained 0.8% and Maruti Suzuki is up 0.4%.
Capital Goods stocks like L&T and BHEL have gained 1.1% and 0.3% each.
Bharti Airtel has gained nearly 2%. According to media reports, Bharti Airtel has started commercial 4G services in Chennai, India on a trial basis.
Metal stocks are under pressure with Tata Steel losing over 1%. According to the statement released to BSE, Tata Steel expects to take a non-cash writedown of $785.3 million in the quarter ended March 31, 2015 relating to its loss making business in UK.
Vedanta has shed 1.3%. According to media reports, due to a hefty drop in crude oil prices Vedanta had to incur an impairment charge worth $4.5 billion related to its Indian oil and gas business.