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Markets ended the session on a higher note after they gained ground in the last half an hour led by a rally in defensive sectors such as FMCG and Healthcare. Positive cues from Asian peers also uplifted the sentiment on Dalal Street.
Meanwhile, investors remained cautious as Greece is likely to default on the deadline for debt payment to International Monetary Fund, which is due today.
Benchmark indices remained choppy throughout the trading session.
However, the 30-share Sensex ended at 27,780 levels, up by 135 points or 0.5% while the 50-share Nifty maintained its crucial 8,350-mark to end 50 points up or 0.6% at 8,368 levels.
The broader markets outperformed their larger peers with BSE Mid-cap and Small-cap indices finishing up by 1.34% and 1.00%, respectively.
The health of the market was strong with 1,720 gainers and 976 losers on the BSE.
On the currency front, the Indian rupee is quoting at 63.68, appreciating by 16 paise on dollar sales by exporters.
EXPERT SPEAK
According to Mudit Goyal, Technical Analyst at SMC Global Securities Limited, “After finding the support around 7940 levels, Nifty started moving higher and breached all its important moving averages on daily charts, it has tested 8400 levels in short span of time.
"Now days, Nifty is trading around 8400 levels and is trying to breach the hurdle of 8400-8440 levels but couldn’t get success to end above the same due to heavy selling on higher levels.”
He further said, “For near term, 8440 can act as good resistance level, if any breakout can witness massive rally upto 8600.
"Apart from this, Index is likely to form an “Inverted Head and Shoulder” pattern on daily chart, which is bullish in nature.
"So, every dip should be considered as buying opportunity for the near term.”
GREECE CRISIS
Greek Government introduced a referendum on creditors’ proposal over the weekend and voting over the referendum is on Sunday. Following the referendum, Standard & Poor's downgraded Greece’s debt ratings to CCC minus from CCC.
Meanwhile as one of the last attempts, the European Union put forth a proposal for Greece to accept the proposal by the creditors to avert a crisis.
Back home, the Indian government has expressed concerns that the on-going Greek crisis could lead to capital outflows from India and also impact the Indian exports that are already on a decline.
SECTORS & STOCKS
Sectorally, BSE FMCG and Healthcare indices surged over 2%, followed by BSE Consumer Durables index, finished nearly 2% up. However, BSE Information Technology index dipped 0.83%.
Coal India soared over 3% on the Sensex after Morgan-Stanley maintained ‘outperform’ rating on the stock with a target price of Rs 530 per share.
Sun Pharma gained around 2.9% after foreign brokerage houses said the Ranbaxy has hiked the drug prices of its unit.
Lupin surged nearly 3% on reports that it is eyeing to enter new product segments, therapies and geographies via acquisitions.
Hindustan Unilever hints at expanding its product categories in a bid to reach wider audience and “serve many Indias”. The stock ended with 1.6% gains. Other FMCG major, ITC gained 1.5% on the Sensex.
Financial shares finished with a mix bag over Greek debt crisis. ICICI Bank and Axis Bank dipped 1% and 0.5% on the Sensex while SBI , HDFC twins gained between 0.7-1.2% on the Sensex
Bharti Airtel has moved up a position in global rankings to become the third largest mobile operator in the world, in terms of subscribers. The stock rallied over 1.5% on the Sensex.
The appreciation in the Indian currency has impacted the IT shares, which lost sheen on the Sensex.
TCS, Wipro and Infosys have dropped between 0.5-1.5% each on the Sensex.
Index heavyweight Reliance Industries finished with 1% gains on BSE. Other notable gainers on the Sensex are Tata Steel, Tata Motors and Vedanta, finished higher between 0.7- 3% each.
