Sensex crosses 28000: 4 reasons why investors are buying despite Greek default

Even as the Greece debt crisis continue to create havoc in European markets, Indian equities are continuing their uptick today. The key benchmark Sensex opened on a firm note and raced past the crucial 28,000 mark. At 10.50 am, the 30-share BSE S&P CNX Sensex was at 27,966.92, up 186.09 points, or 0.7 percent, after hitting a high of 28,007.42. Similarly, the broader 50-share CNX Nifty was quoted at 8,421.75, up 53.25 points, or 0.6 percent. Top gainers in the Sensex were Cipla (up 2.6 percent at Rs 632.45), Bharti Airtel (up 1.9 percent at Rs 428), L&T (up 1.7 percent at Rs 1,813), BHEL (up 1.7 percent at Rs 252) and Coal India (up 1.6 percent at Rs 428). [caption id=“attachment_2321004” align=“alignleft” width=“380”] Reuters[/caption] Here are four reasons why the investors are buying up shares today: 1) Upbeat core sector data: On Tuesday post the market hours, data released by the commerce and industry ministry showed the core sector, which comprises of electricity, coal, steel, cement, refinery production, natural gas, crude oil and fertilizers, rose an annual 4.4 percent in May compared with a contraction of 0.4 percent in April. Since the core sector data has 38 percent weight in index of industrial production, expectations are this data point also will witness an upmove during the month. Investors are seeing this a sign of revival in economic activity. If the government also takes steps to revive scores of stalled projects, analysts see recovery gathering pace. 2) Greece crisis may be taken care of: Is the Greek debt crisis, which roiled the global markets over the last two days, a thing of past? It may not be, but worries that this is likely to spillover has certainly ebbed. An economist with Bank Julius Baer & Co, A Switzerland-based financial services company, told CNBC-TV18 that the European Central Bank (ECB) is now very well equipped to respond to the Greece crisis, and that he expected the country to vote for their stay in European Union in the referendum on 5 July. The referendum is aimed at finding out whether the people of the country indeed was in favour of accepting stiff terms from the lenders for a bailout. In a significant climb down, Greece on Tuesday said it is ready to call off the poll as it was a political decision. 3) Primary market is buzzing: Also, the pick-up in the primary market activity in the last few days has certainly kept investors mood in good stead, indicating things seem to be improving on ground. Two companies – no-frills carrier IndiGo and e-retailer Infibeam – on Tuesday filed papers with Sebi to raise nearly Rs 3,000 crore, while staffing firm TeamLease also initiated the process of filing papers for raising around Rs 450 crore. That apart, Biocon arm Syngene, Prabhat Dairy, Navkar Corp and Catholic Syrian Bank, which have already got the go ahead from regulator Sebi, plan to hit the capital market in the next two-three months with IPO offers totalling nearly Rs 2,000 crore. Bullish Asian cues: Besides all these, the Indian markets are taking cues from the Asian indices, which are also on a positive trend. The indices such as the Nikkei and Hang Seng were up 0.3-1.1 percent in their early trades, much in sync with overnight gains in the US market.