Sensex up more than 250 pts, OMCs gain on US-Iran deal

After three weeks of weakness, Indian equity markets are off to a good start today with the Sensex up more than 200 points and Nifty reclaiming the psychological 6000 mark. All global markets are in green this morning. US stocks rose on Friday, with the S&P 500 closing above 1,800 for the first time, while Dow ended at another record high above 16,000. Both the Dow and the S&P 500 recorded their seventh straight week of gains in what has been a very strong year for stocks.

At 9:30 am, the BSE Sensex was up273 points at 20491 and the Nifty was up 83 points at 6079.

“Global cues, political and economic news within the country shall be deciding market trend in near-term. This week 5,970 shall be crucial deciding level for Nifty in near-term and the index is likely to witness further selling below this level,” said Nidhi Saraswat, senior research analyst, Bonanza Portfolio Ltd.

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The overall GDP growth in India is expected to have risen by around 4.5 per cent during the second quarter of this financial year. This is marginally higher higher than the 4.4 percent economic growth registered in April-June quarter.

Renewed uncertainty about the US Federal Reserve tapering its stimulus programme and the absence of buying by foreign institutional investors had weighed on the market last week.

Shares in OMCs gained as supply fears ease following a breakthrough nuclear deal between world powers and Iran over the weekend.

Foreign ministers representing six world powers said they had reached an interim agreement with Iran over its nuclear programme. US Secretary of State John Kerry said the easing of controls on Iran’s restricted oil revenues during the six-month nuclear agreement announced yesterday does not roll back the vast majority of the sanctions that are currently in place. President Barack Obama said that the six-month deal includes substantial limitations that will help prevent Iran from creating a nuclear weapon.

Bank Nifty gained 2 percentwith HDFC and ICICI Bank up more than 2 percent each.

RIL, Wipro, Infosys, TCS, ONGC, Coal India, Gail India, Tata Motors, ICICI Bank, HDFC, Hero MotoCorp, Maruti, Bharti Airtel, Bajaj Auto, HDFC Bank, Tata Power, Cipla, Jindal Steel, Tata Steel, Mahindra & Mahindra, are among gainers in Sensex and Nifty.

Teck, FMCG, Metal, PSU, Capital Goods and Consumer Durables, Realty, Oil and gas, Power, IT, Teck, Bankex, PSU, Capital Goods and Consumer Durables indices are the gainers

The rupee too opened higher by 21 paise at 62.65 per dollar on Monday as against Friday’s closing of 62.86 per dollar.

Agam Gupta of Standard Chartered told CNBC-TV18 that globally, equities were positive and the Iran nuclear accord will add to positive sentiment. According to him, the range for the day is seen between 62.40-62.80/USD.

Meanwhile, the assembly elections also get underway in Madhya Pradesh and Mizoram. Nearly 7,00,000 voters are set to exercise their franchise in the Mizoram state assembly polls today.