Benchmark indices edged higher on Tuesday on the back of improvement in China's manufacturing output.
The BSE benchmark, the Sensex was trading 91.34 points or 0.35% higher at 25,505.12 points, while the NSE's Nifty was trading 21.85 points or 0.29% higher at 7,633.20 points, at 11.30 am IST.
China's manufacturing purchasing manager's index (PMI) for June was at a six-month high of 51, from 50.8 in May.
Experts believe reforms by the Modi Government could further drive the markets. "We continue to expect markets to re-rate led by expectations of a surge in reforms and an economic recovery to follow in 12-18 months. Our year-end target values the market at 16.5x, a premium to long term averages of 14.5x. If we look at the 2009 elections too, the markets traded at 16-18x for the rest of the year,” BoFA ML analysts said in a recent report.
Among sectoral indices, BSE Metal (2.5%), BSE Auto (2.5%), BSE Realty (1.2%) and BSE Capital Goods (1.2%) were the major gainers on Tuesday. Among individual stocks, Hindalco (6.4%), Maruti (4.3%) and Mahindra & Mahidra (3.6%) were the major gainers on the 30-share Sensex.
Most Asian indices were trading in the red. The Hang Seng (-0.13%), Kospi (-0.31%), Straits Times (-0.52%), Jakarta Composite (-0.12%) and Shanghai Composite (-0.06%) were trading lower.
(Reuters) - Continuing its upward journey for the third straight session, the benchmark BSE Sensex spurted by nearly 104 points in early trade today on sustained fund inflows on hopes of strong economic measures in the upcoming Union Budget.
The 30-share Sensex zoomed by 103.87 points, or 0.41 per cent, to trade at 25,517.65 with metals, realty, PSU and oil and gas sector stocks leading the rise. The gauge had rallied by over 351.11 points in the past two sessions.
On the similar lines, the 50-share NSE Nifty also gained 28.15 points, or 0.37 per cent, to 7,639.50.
Buying activity picked up in oil marketing company stocks following a hike in petrol and diesel prices as the crisis in Iraq spooked international oil and currency markets.
HPCL rose 0.99 per cent to Rs 420.05, BPCL up 0.51 per cent to Rs 602.40 and Indian Oil Corp up by 1.64 per cent to Rs 350.80.
Brokers said sentiments remained bullish following sustained capital inflows by foreign funds and widespread buying by retail investors on optimism over the first