Sensex moves up 116 points in early trade

July 1, 2015 : The Sensex and the Nifty were trading up by nearly 0.5 per cent in early trade on Wednesday.

The indices extended Tuesday's gains, on the back of increased buying by participants as the country’s infrastructure growth hit a 6-month high in May. Besides, a firming trend overseas kept the momentum going. The 30-share index had gained over 135 points in the previous session.

At 9.38 am, the Sensex was quoting at 27,896.32, up 115.49 points or 0.42 per cent. Similarly, the Nifty rose 28.55 points or 0.34 per cent to 8,397.05.

Brokers said sentiment got a lift after the output of eight infrastructure sectors expanded 4.4 per cent in May, the highest growth rate in the past six months and a hardening trend in the global market despite Greece’s default.

Investors will continue focusing on developments around Greece’s debt crisis and its existence in the Euro zone. Greece missed its Tuesday deadline for repayment of 1.5 billion euros to the International Monetary Fund.

However, losses are unlikely to be sharp, as traders will remain on the sidelines till July 5, when Greece holds a referendum to decide on whether to accept the deal proposed by international creditors or to exit the Eurozone.

Aviation shares may rise after owner of India's biggest airline filed for IPO and on jet fuel price cut. Jet Airways (India) and SpiceJet on radar. InterGlobe Aviation Ltd, which owns the country's biggest airline IndiGo, on Tuesday filed a draft prospectus for IPO. Relative valuations of listed airlines look attractive, said dealers.

Shares of automobile companies will be in focus today as they report their sales numbers for June.

Shares of IT companies may fall on Gartner's report. Gartner has said worldwide IT spending will decline 5.5 per cent in 2015.

Among other Asian markets, Japan’s Nikkei rose 0.22 per cent in early trade today, shrugging off the Greek default.

Financial markets in Hong Kong are closed today.

The US Dow Jones Industrial Average closed 0.13 per cent higher in yesterday’s trade.

Source : thehindubusinessline.com