After a nervous start, the markets gained ground with the benchmark index moving up over 250 points to 13,340 levels. In broader markets, the Nifty gained 50 points to 3,975 levels.
“Technically, Nifty future has signaled strong support around 3,810 levels that held on the last day too. Fresh downswing will be signaled only when this is broken decisively. Its immediate support is now in the 3,790 – 3,810 region, below which it may slide to 3,700,” said a technical analyst with Religare Securities.
Inflation surged to 11.63% for the week ended 21 June, up from 11.42% in the previous week, on the back of costlier food items. The rise was fuelled by an increase in prices of fruits, vegetables, imported edible oils, cement and spices.
Leading the pack of gainers among the BSE-30 scrips are DLF Limited and Jaiprakash Associates. They moved up over 7% in noon deals. Reliance Infra, Mahindra and Mahindra, ONGC, BHEL, Reliance Communications and Ranbaxy Laboratories also logged smart gains.
Realty scrips staged a smart recovery with the BSE realty index gaining 5.5%. Ansal Infrastructure, Unitech Limited, Sobha Developers, Akruti City, DLF Limited, Phoenix Mills, Omaxe Limited and Parsvnath Developers are some of the notable gainers in this space.
Strength is also visible in capital goods counters with Punj Lloyd and Siemens India trading up over 8%. Areva T&D, Suzlon Energy, Crompton Greaves, BHEL, Havells India and Larsen and Toubro are also trading in positive turf.