Nifty 50 and BSE Sensex extended morning gains, with the NSE index hitting new all-time highs on June 12, ahead of the US CPI data and the US Fed policy outcome due later today. Nifty gained past 23,400 to clock a fresh high of 23,442 intraday. Sensex gained as much as 600 points or 0.8 percent intraday.

Barring FMCG and the Realty index, all sectors were in the green, with the Nifty PSU Bank index leading gains, up about 1.4 percent. The broader market -- midcap and smallcap indices -- outperformed the benchmark indices, rising by one percent each.

Market Overview

India VIX, which had surged to 30 in early June amid election jitters, dropped 2 percent today to 14.5. At about 11:40 am, the Sensex was up 384 points or 0.50 percent at 76,841, and the Nifty was up 125 points at 23,390. As many as 2,349 shares advanced, 971 shares declined, and 82 shares remained unchanged.

Sectoral trend

The Nifty Infra index, Nifty Energy, and Nifty PSU Banks, each rising by more than a percent, were the top gainers among the 13 major sectoral indices. On the other hand, the Nifty FMCG pack fell by 0.4 percent, followed by the Realty index. Marico and Hindustan Unilever were the stocks pulling the FMCG sector down.

Fundamental View

"The 32 percent decline in India VIX during the last 5 days indicates that the days of heightened volatility are over and the market has entered a consolidation phase," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. He added that tonight’s US inflation numbers and the US Fed policy outcome will influence the direction of the global equity market.

Technical View

"Nifty can find support at 23,200 followed by 23,100 and 23,000. On the higher side, 23,400 can be an immediate resistance," Deven Mehata, Research Analyst and Choice Broking said. It is worth mentioning that the index has breached the 23,400 mark. The new resistance could now be 23,500 and 23,600, he added.

Key Nifty gainers

Coal India, Power Grid, LTIMindtree, Eicher Motors, Bajaj Finance

Key Nifty losers

Britannia, HUL, Asian Paints, Titan Company, M&M

Key Sensex losers

HUL, Asian Paints, Titan Company, M&M, Infosys

Stock Moves

Shipping Corporation of India: Shares soared 7.5 percent in trade on June 12 as hopes of the company heading closer to divestment lifted investor sentiment. Moneycontrol reported citing a senior government official that the strategic sale of Shipping Corp is likely to finally take off with no further delays as it has received approval on stamp duty waiver from Maharashtra.

Heritage Foods: Shares hit a five percent lower circuit for the second straight session on June 12. In the previous session, the stock hit its lower circuit as well, after the price band was changed from 10 percent to five percent on June 10. On June 6, the stock's circuit was revised from 20 percent to 10 percent.