Nifty Reclaims 16,000, Sensex Gains 600 Pts.; Metal Stocks Lead Gains

Buoyed by positive economic data and positive global cues, Indian indices have hit 16,000 level on the Nifty, while Sensex at the time of writing this story is up by 604 points at 53839. Nifty Bank has also strengthened by over 1 percent, while the broader markets are largely underperforming with Nifty Midcap 100 up by close to 0.8%.

Among Nifty sectoral indices, all sectors are in the green, the Nifty FMCG which was trading in the red has also pared losses to turn green. Sectorally the gains are led by the metal pack, followed by financial services, pharma, PSU Bank space, IT and private bank among others.

Service PMI for June has expanded at a massive pace and has come in at 59.2, the highest level since April 2011. As per S&P Global, the services sector has witnessed improved in demand, expansion in client base and also fruitful marketing.

Alongside, FADA which puts up by the retail vehicle sales number also provided for a robust growth in retail sales for June by 27% YoY.

Nevertheless, Indian markets are seen making a run-up despite crude again inching higher, with Brent crude last trading at $113.4 per bbl.

As per experts given the huge uncertainty, the market lacks clear direction and this trend may continue for a while. So, with higher inflation and elevated crude, there will be seen continued drag on the markets.

Last the rupee was seen trading at 79.08 per US dollar and amid a surprising trade deficit, it is seen to depreciate to 81.5-82 per US dollar.