After a positive start and a slightly retreat, equities are moving higher on the Indian bourses this morning with investors tracking fairly strong global cues.
Easing concerns about the economic situtation in Europe and some encouraging U.S. economic data lifted the U.S. and European markets overnight and set up a fairly strong start for the markets in the Asian region this morning.
Besides positive global cues, expectations that the government will soon start work on fiscal consolidation and initiate reforms appear to be prompting investors to indulge in some buying at the ring.
The Sensex, which retreated a bit after a firm start, has moved higher again and is currently up 71 points or 0.41% at 17,483.96. The Nifty index of the National Stock Exchange is up 26.35 points or 0.5% at 5308.90.
Information technology stocks are in demand thanks to a good show by Cognizant Technology Solutions in the April - June quarter. Automobile, healthcare, realty and capital goods stocks too are mostly trading higher.
Select metal, bank and power stocks have edged up. FMCG, consumer durables and oil stocks are mostly subdued. Midcap and smallcap stocks are finding some support.
Tata Motors is up nearly 2.5%. Bajaj Auto is trading more than a percent up and Mahindra & Mahindra is gaining about half a percent. Maruti Suzuki is up marginally, while Hero Motocorp is trading weak.
BHEL, Sun Pharmaceutical Industries, Dr Reddy's Laboratories, ICICI Bank, Sterlite Industries, ONGC, Jindal Steel, Hindalco and State Bank of India are up 0.5% - 1.5%. Tata Steel, Larsen & Toubro and Bharti Airtel are up with modest gains.
IDFC is up by a little over 2.5%. DLF is up 1.3% despite a significant drop in the company's net profit for the quarter ended June 2012. Axis Bank is up 1.8%. Bank of Baroda, Reliance Infrastructure, SAIL, Kotak Bank and Sesa Goa are also trading notably higher.
BPCL is down 1.7% due to higher crude oil prices. Reliance Industries is down 0.7% on profit taking after Monday's sharp upmove. HDFC, NTPC, Coal Inida, Power Grid Corporation and ITC are also trading weak.