After opening gains in intra-day trade today, markets took a downside but again towards the closing hour are trading higher by 400 points fuelled by rally in FMCG, banks and IT stocks.
Nifty FMCG has peaked to a one-month high due to low palm oil prices. There has been seen immense buying in these stocks by mutual fund houses . Also, in the current volatile times, FMCG stocks offer a rather safe bet and the market price is likely to trend only higher as any decline in palm oil price which happens to be the chief raw material will not push these companies to lower down their product prices.
While losses in IT stocks have held steady due to appreciation in the rupee. Rupee is now seen to breach 70 level against the US dollar.
Some of the heavyweights such as HDFC Bank is responsible for the gains. While counters such as Yes Bank have lost heavily by as much as 6%. Airtel on the other hand gained after it appointed a banker to manage the IPO of its Africa arm.
At 3:16 pm, the Sensex was trading at 35,364.60 with gains of 383.58 (+1.1%).