Sensex & Nifty at 10-month high, Midcap up 1%; Maruti, TCS fall

Moneycontrol Bureau12:59 pm Market Update: The Sensex gained 209.77 points or 0.78 percent at 27209.49 and the Nifty rose 62.40 points or 0.75 percent to 8350.15.About 1533 shares advanced against 930 declining shares on Bombay Stock Exchange.12:50 pm Auto sales: Eicher Motors continued to register strong growth in sales. It sold 4,935 vehicles in June, a growth of 18.5 percent compared with 4,163 units sold in same period last year.

In April-June quarter, company's sales volume increased 32.5 percent to 16,070 units from 12,128 units in year-ago period.12:40 pm Europe opens: European stocks opened higher on the first trading day of July, as the rally in global stocks continued despite uncertainties over the Brexit vote.

The pan-European STOXX 600 popped 0.5 to 0.6 percent, around Europe's open, while sectors posted modest gains overall.

London's FTSE index saw gains of 0.5 percent around the open, while the domestically-focused FTSE 250 was up 0.5 percent. Meanwhile, the French CAC jumped 0.7 percent at the open, while Germany's DAX ticked up 0.8 percent.

12:35 pm FII view: Baring Private Equity Partners is bullish on Indian markets and says that India's value accretion potential remains good. After two years, the monsoon is looking good which can spur demand and consumption, said Rahul Bhasin, Managing Partner at Baring Private Equity Partners.Indian pharma companies contribute 6 percent to global pharma sales and Indian pharma companies will gain significant market share in the next 20 years. He said that global debt has gone up since 2008 and that ensures that money stays easy and opportunities for business to grow will be very good, he told CNBC-TV18.12:25 pm Interview: Adani Transmission and GMR Energy have entered into an agreement, where the former will acquire 74 percent stake of Maru Transmission Service and 49 percent shares of Aravali Transmission Service of GMR Energy.  Both the assets are in Rajasthan and are operating with an average capacity utilisation of over 99.90 percent. The deal value for both the projects is Rs 100 crore.Parag Parikh, CFO at GMR Energy, said that both assets were generating revenues of Rs 72 crore. He also added that both the projects were adding about Rs 3 crore to the total profit of the company.

Both the assets put together have a debt of Rs 324 crore, said Patil, adding that with the current divestment the debt will be brought down.Also read - India factory growth at 3-month high in June on strong demand12:00 pm Market Check

Equity benchmarks hit fresh 2016 as well as 10-month high, tracking global rally. The broader markets outperformed benchmarks with the BSE Midcap index rising 1.3 percent.

Benchmarks continued upmove for the fifth straight day. The Sensex gained 199.75 points or 0.74 percent at 27199.47 and the Nifty was up 58.95 points or 0.71 percent at 8346.70.

The market breadth remained strong today as well. About two shares advanced for every share declining on the Bombay Stock Exchange.

ITC was the leading contributor to Sensex's gains, up 3 percent as it goes ex-bonus today.

Maruti fell half a percent in an otherwise strong market after it reported a fall of 14 percent in June sales on account of big export weakness.

Mahanagar Gas has a blockbuster listing with gains of over 25 percent at Rs 527.50. The company is confident of maintaining growth of 7-8 percent.

Dr Reddy's Labs gained nearly 3 percent as CNBC-TV18 learns from sources that the remediation of its 3 plants with warning letters is close to completion and will request for a meeting with the USFDA in July itself. Strides Shasun rose 5 percent as the USFDA inspected the company's new oral dosage facility without any observations in Bangalore.