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Domestic equity benchmark indices extended their gains from the previous session and rose substantially in the morning session on Tuesday, primarily due to value buying after a persistent sharp fall earlier this month.
Snapping six consecutive sessions of losing run, the indices closed Monday's trade on a positive note, helped by good buying support in banking and IT stocks. Notably, domestic indices had declined during the majority of the sessions in June. During the past month, Sensex slipped over 4 per cent. "Indian markets halted a six-day-long losing streak on Monday, though fears of aggressive rate hikes and their impact on economic growth kept investors on the back foot. Today, the markets are likely to make a positive start taking gains in Asian peers," said Mohit Nigam, Head - PMS at Hem Securities. At 9.56 a.m, Sensex was at 52,166.10 points, up 568.26 points or 1.10 per cent, whereas nifty was at 15,545.50 points, up 195.35 points 1.27 per cent. Among the individual stocks, Titan, JSW Steel, Tata Motors, Hindalco, and Adani Ports were the top five gainers among the Nifty 50 companies, whereas there was no loser among them in the opening session, National Stock Exchange data showed. "Some support will come with the southwest monsoon entering Madhya Pradesh, Chhattisgarh, coastal Andhra Pradesh, Odisha, West Bengal, Jharkhand and Bihar on Monday," said Nigam. There may be some cautiousness going ahead as the finance ministry cautioned the re-emergence of the twin deficit problem in the economy, with higher commodity prices and rising subsidy burden, leading to an increase in both fiscal deficit and current account deficit. "Increase in the fiscal deficit may cause the current account deficit to widen, compounding the effect of costlier imports, and weaken the value of the rupee thereby further aggravating external imbalances, creating the risk (admittedly low, at this time) of a cycle of wider deficits and a weaker currency," Department of Economic Affairs said in its Monthly Economic Review. (ANI)
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