New closing high again: Sensex above 27000, Nifty at 8089

03:30 pm Market closing
It is another day to break records as celebrations continue at Dalal Street. The Sensex closed above 27,000 for first time ever, registering record closing high for 6th day in a row. The 30-share index was up 158.53 points at 27026.08.

The Nifty ended at record closing high for 4th day in a row, after hitting intra-day record high of 8102 in trade today. The Nifty closed up 61.15 points at 8088.85.

Cipla was the biggest gainer on the Sensex, up 5 percent. Other major gainers were Bharti Airtel, Sun Pharma, HDFC Bank and GAIL. Among the losers were Sesa Sterlite, HUL, Hindalco, Tata Power and Tata Steel.

03:10 pm Gold'en time
Indian gold imports and premiums are likely to surge during the rest of the year as buying picks up for the wedding and festival season, the head of the country's biggest gold refiner said on Tuesday.

Premiums could jump to USD 10-USD 12 an ounce over the global benchmark from the current levels of USD 4- USD 5, said MMTC-PAMP Managing Director Rajesh Khosla.

Imports could climb to 60-70 tonnes per month for the rest of the year from about 40 tonnes in July, Khosla said, adding that August imports were probably around 63 tonnes.

India has not yet released its trade figures for August. "Demand is expected to increase in the coming months as people start buying from September because of the festive season," Khosla said.

03:00pm Interview
Elecon Engineering's CMD Prayasvin Patel said the company has received orders worth Rs 61 crore this year and there have been live enquiries worth Rs 4,230 crore. Out of which the company expects to get about Rs 200-250 crore worth of orders shortly.

''Things are looking up this quarter. If the situation continues this way, the whole year is going to be fairly good,'' he said.

The stock surged 11 percent.

02:50pm FII View
Ridham Desai of Morgan Stanley feels the market was led by global rally in equities. According to him, investors continue to be bullish on India and the market is underestimating the power of strong global cues.

"Investors are convinced about the potency of this market. New government seems to be sending right signal to investors," he added.

02:40pm Movers and Shakers
Index heavyweights: Cigarette major ITC, private sector lender HDFC Bank, housing finance company HDFC and petrochemical major Reliance Industries are leading contributors to the market, rising 1-1.6 percent.

Top telecom operator Bharti Airtel and drug maker Cipla topped the buying list, up nearly 5 percent. Sun Pharma and Hero Motocorp gained more than 2 percent. Top lender State Bank of India climbed a percent.

However, shares of Tata Motors, Sesa Sterlite, HUL, ICICI Bank, Tata Steel, M&M, Hindalco and Wipro fell 0.2-1.6 percent.

02:30pm GMR Infra shares in demand
Shares of GMR Infrastructure climbed over 2 percent on signing memorandum of understanding (MoU) with Japanese bank for financial assistance.
 
The Bangalore-based global infrastructure major said during the course of the State visit of the Prime Minister Narendra Modi's to Japan, the company signed a memorandum of understanding with Japan Bank for International Cooperation (JBIC) for providing financial assistance to Japanese companies investing in Infrastructure projects of GMR Group.

The objective of this MOU is to provide low cost long duration financing for infrastructure development projects that involve Japanese companies in development of industrial parks, power, energy, ports, airports, highways and railway projects.

Over the next 12 months, GMR and JBIC will work on identifying projects to attract Japanese investments.

02:20pm Lanco Infra to sell more power plants
Debt-ridden Lanco Infra is in talks to its Babandh power plant in Odisha as the company looks to ease its balance sheets, say sources.

The company is eyeing a valuation of Rs 3500 crore for the power plant that has a total capacity of 1320 MW. The plant that sources its fuel from Mahanadi Coalfields Ltd & Captive Coal Mine at Rampia has all major clearances in place.

Sources claim Adani and Jindal Steel and Power Limited (JSPL) are among the companies eyeing this sale. Adani Group refained from commenting on this development.

Lanco Infra has a debt of Rs 34,297 crore and has been trying to offload its assets. Less than a month ago the company sold its 1200 MW Udupi Power plant in Karnataka to Adani Power for over Rs 6,000 crore.

02:10pm Kingfisher in News
The Supreme Court today refused to entertain a petition filed by Kingfisher Airlines against being declared as wilful defaulter, saying it has become infructuous as the Grievance Redressal Committee of Union Bank of India has already passed an order.

"Your grievance has been, that Grievance Redressal Committee (GRC) should not decide the matter but they had already decided it, therefore your plea is infructuous" a bench comprising justices A R Dave and U U Lalit said.

The Kingfisher Airlines had alleged that the order by GRC was passed yesterday, ignoring the plea that the director should be allowed to be represented through lawyers.

However, after the bench said that the plea has become infructuous, the airline counsel submitted that they would challenge the GRC order before the concerned High Court.

State-run United Bank of India yesterday became the first lender to declare debt-ridden Kingfisher Airlines and its promoter Vijay Mallya as wilful defaulters, reports PTI.

02:00pm Bulls are not ready to give a single chance to bears for the second consecutive session today. The 50-share NSE Nifty hit another milestone of 8100-mark in afternoon trade supported by HDFC, HDFC Bank, ITC and Bharti Airtel.

The index surged 71.50 points to 8099.20 and the 30-share BSE Sensex rose 208.46 points to 27076.01 while the BSE Midcap and Smallcap indices gained 1 percent each.

About 1777 shares have advanced, 1079 shares declined, and 119 shares are unchanged.

UR Bhat of Dalton Capital expects the Nifty to be rangebound between 7700 and 8200 over the next 6-12 months, even as the market is in the midst of a multi-year bull run.

In an interview with CNBC-TV18, he said there was a new-found confidence among Indian corporates.

1:50 pm Interview: Despite a positive sentiment on ground, Vellayan Subbiah, MD, Cholamandalam Investment and Finance Company sees a minor pick up in heavy commercial vehicles (HCVs) in terms of fleet buyers and almost no pick up in light commercial vehicles (LCVs).

The larger issue persists to be real cash flow not improving to translate further into sustained sales due to lack of spending ability, says Subbiah in an interview with CNBC-TV18. The tractor-financing segment too has been slightly hit by monsoon deficit.

However, a flat to marginally positive growth could be seen in the sector this year, he adds.

1:40 pm Fund raising: Fund raising through QIP is seeing a mild pause at this point, though it stands at USD 3 billion so far in FY15. V Jayasankar, senior executive director & head of equity capital markets at Kotak Investment Banking says there is no need to worry about the pause.

Going ahead, he sees strong pipeline of fresh paper coming in - Rs 80,000-1,00,000 crore - and a bulk of it will come from the PSU side, that is government disinvestment in PSU banks and PSU banks that need to raise capital, while the balance will come from the private sector. He expects it to be in the ratio of 60:40.

He expects fund raising to the tune of Rs 58,000 crore, both PSU disinvestment and sale of SUUTI holdings combine, followed by the private sector raising Rs 25,000-35,000 crore and lastly PSU banks raising funds, which is expected to be around Rs 15,000-25000 crore.

1:30 pm Power tripping: Large parts of Mumbai were hit by power cuts, due to technical issues at a Tata Power Company electricity generation unit.

Due to the problems, Tata Power has switched off certain feeders supplying power to some areas in Mumbai, said officials for Brihanmumbai Electric Supply & Transport Undertaking (BEST), which buys electricity from Tata Power.

Tata Power was not immediately available for comment.

The power cuts in Mumbai come amid concerns about wider blackouts in India due to a shortage of coal and underlines the challenge Prime Minister Narendra Modi faces in improving the country's creaking infrastructure.

1:20 pm Buzzing: Shares of SPML Infra and Hindustan Construction Company (HCC) saw buying interest, up 5 percent and 6.5 percent intraday, respectively on getting new orders. Infrastructure development company SPML has won new orders worth Rs 1232.3 crore from Uttar Pradesh Jal Nigam, Agra and Sardar Sarovar Narmada Nigam, Gandhinagar.

"The two orders received from UP Jal Nigam worth Rs 1,002.17 crore are for augmenting drinking water supply for Agra city with laying of 128 kilometers of water pipeline. The Rs 230.13 crore order from Sardar Sarovar Narmada Nigam is for infrastructure development for hydro generating units at Kutchh, Gujarat," the company elaborated in its filing.

The party is not over yet on Dalal Street as the market hits record high for second consecutive day. The Sensex has now hit the magical 27000-mark. The Sensex is up 111.25 points at 26978.80 and the Nifty is up 43.15 points at 8070.85. About 1739 shares have advanced, 1033 shares declined, and 104 shares are unchanged.

Pharma and realty stocks are leading the market rally today with Cipla and Bharti Airtel as top Nifty gainers.

Sun Pharma, Hero, HDFC Bank are other top gainers in the Sensex. Among the losers are Sesa Sterlite, HUL, Tata Motors, Tata Steel and Infosys.

12:40pm Telecom stocks on buyers' radar
Investors continued to buy shares of telecom stocks on Tuesday on reports that the Narendra Modi government is planning a new super regulator for the communications sector.

New regulator will be called as Communications Commission, which may replace Telecom Regulatory Authority of India (TRAI), sources told CNBC-TV18.

The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) may also get replaced by Communications Appellate Tribunal, sources add.

The scrip of Bharti Airtel rose 3.55 percent to Rs 389.30 and Idea Cellular climbed 4.06 percent to Rs 174.20 while Reliance Communications was up 2.08 percent at Rs 120.45 and Tata Teleservices (Maharashtra) advanced 1.15 percent to Rs 11.39 on the Bombay Stock Exchange.

12:20pm Auto sales to see strong growth?
The festive season that started with Ganesh Chaturthi will augur well for the slacking automotive sector, believe industry experts Ajay Shethiya, Auto Analyst at Centrum Broking and Sundeep Kumar Bafna, MD of Fortpoint.

Speaking to CNBC-TV18 on their expectations for the upcoming days, Bafna says most dealers have stocked themselves to the brim to cater to the festive demand. He expects the demand pick up seen in August to continue in September too.

Auto sales have seen a significant pick up in August. Auto majors Maruti Suzuki, Honda Cars, Hyundai and Nissan reported healthy growth in domestic sales and two-wheeler maker Hero Motocorp sold 5,58,609 units of two-wheelers in August, registering growth of 21 percent over the corresponding month of previous year.

Shethiya expects this pick up to continue resulting in a better H2FY15. He believes the trend in auto sector is reversing as every cycle last for four years and we are already in the third year of the slowdown.

12:00pm Equity benchmarks remained in positive terrain in noon trade with the Sensex inching towards 27000 level supported by HDFC twins, healthcare, telecom and auto stocks.

The Sensex climbed 110.67 points to 26978.22 and the Nifty jumped 40.05 points to 8067.75. Advancing shares outnumbered declining ones by a ratio of 1648 to 969 on the BSE.

Prabhat Awasthi, Head of Equities & MD, India Nomura Financial Advisory sees Sensex at 30,000 in 12-months time on the back of earnings growth momentum. According to him, there is no reason to become structurally negative on India right now.

Awasthi expects market to re-rate on inflation and growth based tailwinds. In fact, he believes the recent election-led euphoria discounts the expectations of pick up in growth.

Cipla topped the buying list, up nearly 7 percent on its launch of inhaler Seroflo in Germany, Sweden. This is a significant development for the company as it monetised its respiratory portfolio in the developed market. Bank of America Merrill Lynch and Morgan Stanley expect this to be a USD 150 million opportunity for Cipla while Nomura increased target price to Rs 569 from Rs 439.

Sun Pharma and Ranbaxy Labs gained 3-3.5 percent after sources said Drug Controller General Of India (DCGI) reinstated European Union export licence to Ranbaxy's Toansa unit. DCGI had suspended supply from that unit to EU in May.

Housing finance company HDFC and private sector lender HDFC Bank gained 1 percent and 1.8 percent, respectively.

11:40 am Buzzing: Investors lapped up more shares of Maruti Suzuki as Barclays raised target price on the stock by 9 percent to Rs 3,222 post strong August sales data. The stock gained as much as 1.7 percent to touch a record high of Rs 2,963.70.

The brokerage reiterates Maruti as its top pick with an overweight rating. "India's largest car maker continues to focus on its core strength of small cars, but it is also incrementally filling its product and segment gaps, highlighted by the launch of the Ciaz (A3 luxury) and its entry into SUVs and light commercial vehicle (LCV) segments. New products coupled with the marketing muscle of the company makes for a very strong competitive positioning," Barclays elaborates.

Maruti sold 1,10,776 lakh units in August, registering a growth of 27 percent over corresponding month of previous year and up 9 percent compared to 1.01 lakh units in previous month.

The market is still holding on its gains with both hands. The Sensex is up 75.96 points at 26943.51 and the Nifty is up 31.05 points at 8058.75. About 1579 shares have advanced, 827 shares declined, and 93 shares are unchanged.

Cipla is up over 6 percent while Bharti, Sun Pharma, Hero and HDFC Bank are top gainers in the Sensex. Metals and IT stocks are seeing some bit of profit booking. Among the losers are Sesa Sterlite, Tata Motors, HUL, Infosys and Wipro.

Rakesh Arora, Macquarie says the market has continued its march above 8,000 and we see further upside.

''GDP growth in Q1 was higher than consensus at 5.7 percent and the Finance Minister Arun Jaitley believes it will be on the rise. A positive resolution of the coal scam case could act as a catalyst. It's time to buy,'' he adds.

On the macro front, current account deficit for the first quarter came in at 1.7 percent of GDP versus 4.8 percent a year ago. The number is largely in line with expectations but core sector growth slowed down to just 2.7 percent in July.

11:00 am Market Check
The market touched a new all-time high with the Sensex rising 105.06 points to 26972.61 and the Nifty gaining 37.25 points to 8064.95.

About 1558 shares have advanced, 801 shares declined, and 94 shares are unchanged.

10:40am Bajaj Auto in News
Pune-based Bajaj Auto's total sales increased by 8 percent year-on-year (up 5.6 percent month-on-month) to 3.37 lakh units. S Ravikumar, president - business development & assurance, expects to see total sales of 4 lakh units in next few months.

"New Discover sales will grow to 25,000-30,000 units per month. We expect 3-wheeler sales of 55,000 units per month going forward," he said.

10:20am FII View
Rakesh Arora, Macquarie says the market has continued its march above 8,000 and we see further upside.

''GDP growth in Q1 was higher than consensus at 5.7 percent and the Finance Minister Arun Jaitley believes it will be on the rise. A positive resolution of the coal scam case could act as a catalyst. It's time to buy,'' he adds.

10:00am Equity benchmarks maintained northward journey amid consolidation with the Nifty hitting 8050 level supported by telecom, healthcare, banks and heavyweights.

The Sensex rose 61.40 points to 26928.95 and the Nifty advanced 24.20 points to 8051.90. The broader markets outperformed benchmarks with the BSE Midcap and Smallcap indices rising 0.6 percent and 0.8 percent, respectively.

About 1388 shares have advanced, 645 shares declined, and 74 shares are unchanged.

Cipla extended gains to 7 percent on launch of inhaler Seroflo in Germany, Sweden. It expects to launch Seroflo in other European countries in 12-18 months.

Shares of Sun Pharma, Axis Bank and Bajaj Auto gained 1-1.9 percent followed by HDFC, ITC, ICICI Bank, Reliance Industries, SBI, M&M, Maruti Suzuki and Tata Steel with 0.3-0.8 percent.

However, Infosys, L&T, ONGC, Tata Motors, HUL, Wipro, Sesa Sterlite, NTPC, Coal India and GAIL fell 0.4-1 percent.

Telecom operators Bharti Airtel and Idea Cellular rallied more than 3.5 percent after sources told CNBC-TV18 that the government is considering super regulator for communication sector.

It is learnt that the government proposed new regulator in Communications Bill, which will be known as Communications Commission. Communications Appellate Tribunal will also replace TDSAT, say sources. According to sources, new regulator will regulate anti-competitive issues, environment issues, issues related to interception, and even regulate issue of morality, privacy and public order. Tata Teleservices and Reliance Communications gained over 1.5 percent.

9:45 am Buzzing: Shares of Cipla touched record high at Rs 575.20 per share, up 8.5 percent intraday as it launched generic drug used for treatment of asthma and chronic obstructive pulmonary disease in Germany and Sweden. The drug major's portfolio includes 2,000 products in 65 therapeutic categories.

Though analysts are impressed by its earlier- than-expected launch, most of them have not yet upgraded Cipla yet. Credit Suisse maintains a neutral rating on it stating base case is already priced in. According to the brokerage, Germany and Sweden are small markets but the launch signifies approval in the UK could be expected by FY15-end.

Credit Suisse estimates that the drug (Advair MDI generic) may generate USD 70 mn sales for Cipla (25 percent market share and 50 percent price erosion). "Competition in the MDI space includes Sandoz, Orion, Chiesi and Mylan. We expect GSK to retain 30 percent of the market share," it says in a report. The drug is a copy of generic version of GlaxoSmithKline's Advair in these countries.

Bank of America Merill Lynch also is expecting launches in more lucrative markets such as UK, France and Spain to follow over the next 12 months. "We believe Advair pMDI will remain a limited-competition opportunity for a prolonged period as Mylan is the only other generic company working on pMDI. Assuming 30 percent price erosion and 30 percent share for Cipla, we believe the firm will generate USD150mn sales at peak level (NPV of Rs 70/share)," it elaborates.

Morgan Stanley is hopeful that the UK would be key to the commercial upside and it being GSK's home market may invite aggressive response from it.

After hitting record high, the market has once again opened on a strong note Tuesday. The Sensex is up 63.58 points at 26931.13 and the Nifty up 17.30 points at 8045. About 694 shares have advanced, 172 shares declined, and 21 shares are unchanged.

Cipla is up 3 percent followed by Hero, HDFC, Maruti and Tata Power. On the losing side are Dr Reddy's Labs, Infosys, Tata Motors, Wipro and HUL.

The Indian rupee opened marginally lower at 60.58 per dollar as against previous day's closing value of 60.52 a dollar.

Ashutosh Raina of HDFC Bank said, "The better than expected GDP number of 5.7 percent came as a pleasant surprise to the markets and was cheered across asset classes. This is coupled with good trade deficit numbers announced yesterday. The USD/INR pair continues to trade in 60-61/dollar range.  The appreciating bias should continue,'' he said.

Meanwhile, the euro languishes at one-year lows, following an aimless session overnight with market activity severely hampered by a holiday in the US.

On the macro front, current account deficit for the first quarter came in at 1.7 percent of GDP versus 4.8 percent a year ago. The number is largely in line with expectations but core sector growth slowed down to just 2.7 percent in July.

In commodities, Brent crude prices slipped to 102 dollars a barrel as manufacturing growth faltered in Europe and China at a time of ample supply, although the risk of production setbacks remained high in Libya.

From precious metals space, gold was steady around 1,280 dollars an ounce, after posting a small gain last week. The dollar index was trading near a 13-month high, hurting the metal.