BSE Sensex closes 135.68 pts up at 27780.83 ; Bharti Airtel shares shoot up

The benchmark BSE Sensex and NSE Nifty continued their firm trade in the late afternoon session on account of buying in frontline blue chip counters and taking cues from Asian counterparts.

After a volatile session, BSE Sensex closed 135.68 points up at 27780.83 while NSE Nifty gained 50.10 pts at 8370.10.

The sentiments got some support after a top official at US embassy stated that India is one of the fastest growing FDI sources for the United States. Investors however maintained a cautious approach ahead of the Greece’s bailout expiry due today.

Bharti Airtel shares shot up after Sunil Mittal-led company declared itself as the world’s third largest mobile operator with 303 million subscriber, in a statement.

With operations in 20 countries, Bharti Airtel, which is present in India, Bangladesh, Sri Lanka and Africa, has “become the third largest mobile operator in the world in terms of subscribers”, the company said in a statement, while quoting latest data published by World Cellular Information Service (WCIS).

At 03:30 pm, BSE Sensex gained 144.47 points or 0.52 per cent at 27789.62. NSE Nifty gained 49.30 points or 0.59 per cent at 8367.70.

At 12:50 pm, BSE Sensex gained 10.36 points or 0.04 per cent at 27655.51. NSE Nifty gained 17.85 points or 0.21 per cent at 8336.25.

At 11:10 am, BSE Sensex gained 10.88 points or 0.04 per cent at 27656.03. NSE Nifty gained 17.15 points or 0.21 per cent at 8335.55.

At 10:35 am, BSE Sensex gained 47.60 points or 0.17 per cent at 27692.75. NSE Nifty gained 21.95 points or 0.26 per cent at 8340.35.

At 9:45 am, BSE Sensex gained 4.93 points or 0.02 per cent at 27650.08. NSE Nifty dropped 8.00 points or 0.10 per cent at 8310.40.

Higher Asian cues and country’s strong macro economic parameters are helping the mood, despite Greek default fears looming large, a broker said.

The broader markets, midcap and smallcap indices also traded positive while IT saw some selling pressure.

The 30-share Sensex resumed lower at 27,627.39 and hit a high of 27,762.95 before quoting 27,699.13 at 1140 hrs, up by 53.98 points, or 0.20 per cent.

The 50-share Nifty was also up 21 points, or 0.25 per cent, at 8,338.85 at 1140 hours.

The stars were Sun Pharma (up 2.43 per cent), Coal India (1.98 per cent), Bharti Airtel (1.91 per cent) and HUL (1.68 per cent).

Meanwhile, foreign investors sold shares worth Rs 711.88 crore yesterday, according to provisional data.

Barring China, all other Asian indices were ruling higher. Key benchmark indices in Hong Kong, Indonesia, Taiwan, Japan, Singapore and South Korea were all up by up to 1.07 per cent.

Reuters – Eurozone stocks, low-rated bonds and the euro weakened on Tuesday as Greece looked set to default on a repayment due to the International Monetary Fund and to plunge deeper into financial crisis.

There was little evidence of panic, however, with investors pointing to Europe’s improved ability to fight financial contagion since the height of the euro debt crisis in 2011.

The breakdown of talks between Athens and international creditors over the weekend has led to a shuttering of banks and capital controls in Greece and market jitters worldwide, with a referendum due on Sunday which EU partners say will be a choice of whether to stay in the euro.

Despite a sense of heading into uncharted territory as the risk of a Greek exit from the euro zone rise, the sell-off was more muted than on Monday as investors pointed to possible intervention from the European Central Bank to fight prolonged financial turmoil as well as hopes that a deal might be found.

And while Greek ripples were also a drag on investor sentiment in Asia, Chinese stocks broke a punishing three-day losing streak as regulators and the government stepped up efforts to prevent the past few weeks’ plunge from inflicting further damage on an already slowing economy.

Blue-chip euro-zone equities fell 1 percent, marking a 10-percent correction from 2015 highs hit in April, but they are still up about 10 percent since the start of 2015. Italian, Spanish and Portuguese sovereign bond yields rose and the euro fell as hedge funds stepped up sales.

“Even after these market swings, a Greek exit is still not fully discounted as a positive outcome is still possible,” BNP Paribas Investment Partners said in a note to clients.

“With a majority of Greeks in favour of staying in the eurozone, there is a decent probability of a referendum outcome in favour of the creditors’ proposals. But until the results are known, we are likely to see continued market volatility.”

The MSCI All-Country World equity index was flat. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1.1 percent but remained near a five-month low hit on Monday. Japan’s stock index rose 0.6 percent while Korea gained 0.7 percent.

In commodities, oil futures hovered below three-week lows and gold failed to garner strong safe-haven bids, even with ongoing Greek uncertainty. London nickel slid 8 percent to six-year lows and Shanghai nickel also tumbled after the Shanghai exchange broadened delivery options.

A risk gauge, the CBOE Volatility index, spiked overnight to its highest levels since February.

“There is still too much uncertainty in the markets and investors would be watching developments in Greece and China very carefully before jumping in,” said Karine Hirn, Hong Kong-based partner of Swedish group East Capital, a $3.5 billion fund management firm.