Nifty ends above 7600, Sensex strong; Bajaj Auto up 5%

03:55 pm Big bull
The market could rise another 3-4 percent in the run up to the Union Budget, feels Samir Arora of Helios Capital. In an interview to CNBC-TV18, Arora said the pace of the rally was unnerving, but India was clearly in a bull market.

He sees the Budget as the next big trigger for the market, though it is likely to be an incremental one instead of 'big bang.' It could disappoint the market, but will be a positive for the economy as a whole, he said.

He expects a big sell-off in some stocks after the Budget, but said it would be a good opportunity to enter the market as there will be plenty of opportunities.

His fund is 98 percent invested right now, against its historical average of 60-70 percent.

03:45 pm EMs slowdown
The economic slowdown in emerging markets following the tightening of monetary policies by them last year has impacted the global export growth and the recovery in advanced economies, a report has said.

According to the QNB Group report, the growth in emerging markets (EMs) - from Brazil to Indonesia, Russia and South Africa - is slowing down, partly reflecting the tightening of domestic policies by these countries last year to stabilise foreign exchange rates.

This slowdown is impacting global export demand and affecting recovery in advanced economies as well, it added.

Overall, the slowdown in EMs could jeopardise the global recovery, unless advanced economies pick up the pace, the report added.

03:35 pm Market closing
It was a powerful rally for the market as the Nifty remained above 7600 throughout the day. The Nifty was up 71.20 points or 0.94 percent at 7654.60 while the Sensex ended up 83.75 points or 0.72 percent at 25580.21.

Bajaj Auto and Coal India ended 5 percent up each. L&T, Tata Power and Tata Steel were top gainers in the Sensex. Among the losers were ONGC, HUL, SBI, Axis Bank and Infosys.

03:20 pm World Markets
World shares were within touching distance of an all-time high on Monday, spurred on by the combination of record low global interest rates and the improving health of major economies.

European markets opened on the front foot again, looking for their 10th straight week of gains after last week's bumper set of easing measures from the European Central Bank.

Asian stocks earlier touched their highest levels in nearly three years while Wall Street notched another record close on Friday following bright U.S. jobs data.

MSCI's All-World share index, which encompasses 45 countries and is generally seen as benchmark of global stocks, was up 0.15 percent at 427.11 points, just below its 2007 pre-financial crisis peak of 428.63 points.

03:10 pm President's speech draws flak
President Pranab Mukherjee's speech in the joint session of Parliament is facing an attack from the Congress. "The President's speech is high on rhetoric but how will they achieve what they promise," Congress leader Veerappa Moily questioned.

Moily also added that such speeches look good only in election rallies. "These grand words are good in manifesto, in election rallies but not in the President's speech. There is a mention of communal violence but no word has been said on Pune or Gurgaon riots," he said.

The President on Monday laid out the roadmap for the new government headed by Prime Minister Narendra Modi. He congratulated the newly elected government saying that India had made a wise choice by voting for a united and strong government.

02:55pm Divis Labs up 2.4%
Divis Laboratories says it has had an inspection by the USFDA, with no major observations, for its Unit-II at village Chippada, Bheemunipatnam Mandal, near Visakhapatnam during June, 2014.

"The audit concluded with one observation primarily about further improvement of existing procedure. The purpose of this inspection was for Custom manufactured product," it adds.

02:50pm Shares rally post President Pranab Mukherjee's speech
Titagarh Wagons, Kernex Microsystem, Kalindee Rail and Texmaco Rail rallied 5-10 percent after President Pranab Mukherjee said investment in railways would be increased and modernisation & revamp of railways would be top agenda for government.
 
Coal India surged 5.5 percent as the government will pursue coal sector reforms to attract investment.
 
Bharat Electronics and BEML rose 3-5 percent as the government will liberalise FDI in defence production and carry out reforms in defence procurement.
 
Prestige Estates Projects and Sobha Developers jumped 12 percent each as the government will build 100 new cities.

Sterlite Technologies and Aksh Optifibre shot up 5-10 percent as the government will roll out broadband highway to reach each village.
 
VA Tech Wabag rose 3 percent as the government will accord high priority to water security and will launch mission on Himalayas conservation.

Jain Irrigation climbed 8 percent as the government will launch farm irrigation scheme.

02:40pm Economic agenda of new government
Economic agenda of new government pushed stocks higher. While addressing joint session of parliament, President Pranab Mukherjee says containing food inflation is a top priority for the government and it plans to tackle it by improving supply-side bottlenecks. The government will take steps to check hoarding and black marketing. It will also reform the public distribution system.

President Mukherjee also says the government is committed to reviving the agricultural sector and substantial investment will be made for rural asset creation. The government will encourage private investment in defence production. It envisages to have diamond quadrilateral plan for high-speed trains.

02:35pm Nectar Life up 13%
There have rumours that the promoters of Nectar Lifesciences are looking to offload 44 percent stake in the company. But CEO Dinesh Dua says there is no truth in this. "I have categorically cleared up with Sanjiv Goyal and there is nothing of this nature, I can clearly state that," he adds.

He says the company has been successfully inspected by the USFDA and is awaiting written approval. According to him, this is the time to get returns on the investments spread over the last 5 years.

''Now Nectar Lifesciences will get to the next level of performance and increased EBITDA from current 18 percent to 25-30 percent in the next 4-5 years. Now, we are all set to reap the dividends of hard work and deep routed investments,'' he explains and hence there is no question of the promoters (Sanjiv Goyal) selling stake. 

02:30pm Urea price hike
The hike in fertiliser prices is unlikely to impact individual companies as subsidies will go down and MRP will rise, which will not benefit private companies, says Satish Chander, Director General, Fertiliser Association of India (FAI).

The Prime Minister Narendra Modi-led government is planning to raise urea prices by at least 10 percent in order to contain subsidy costs that are straining the Budget.

The hike, if it comes through, will be first major price hike in four years. It would mark an important step by new government to cut wasteful use of urea and ease fiscal pressures resulting from a weak economy, government and industry officials told Reuters.

According to Chander, just a 10 percent urea price hike will not have much impact on the subsidy burden and fertilizer companies. However, if the prices are raised substantially to USD 300-USD 400 from current USD 90 then it will be in the interest of farmers with production productivity and better use of fertilizer efficiency.

02:20pm Grasim surges
Brokerage house CLSA says the company is its top conviction buy in India. Its target price on the stock is Rs 4900.

The rationale is that the stock currently builds in a 43 percent discount to fair value and its implied assets are attractively priced at USD 110 per tonne.

02:10pm FII View
Mohammed Apabhai of Citi Group believes there is room for caution in India and most global markets and does not look at putting more money into India now.

Apabhai sees much better value in China, Hong Kong and Japan over India as Indian market is overbought in short-term, he says in an interview with CNBC-TV18.

According to him, current market phase could be a classic distribution case with volumes driven by retail investors.

However, he sees more scope in small to mid cap sectors. He advises investors to buy infrastructure stocks on a dip.

02:00pm Equity benchmarks remained strong in afternoon trade supported by metals, auto, cement, capital goods and banking & financials. The Sensex rose 201.36 points to 25597.82 and the Nifty advanced 79.95 points to 7663.35. About 2205 shares have advanced, 781 shares declined, and 82 shares are unchanged.

Top gainers are Grasim Industries (up 12.71 percent), Power Grid Corporation (8.31 percent), Bajaj Auto (5.69 percent), Coal India (5.44 percent), ACC (5.40 percent), Larsen & Toubro (3.24 percent), Tata Power (3.11 percent) and Tata Motors (2.74 percent).

However, ONGC and BPCL fell 2-3 percent 2-3 percent. M&M, SBI, Axis Bank, Infosys and Reliance Industries too are under pressure.

1:50 pm FDI kicks in: Meeting for the  first time after formation of the new government, the FIPB proposes to take up 32 foreign direct investment proposals from the likes of Pfizer, BNP Paribas and Bulgari International Corporation on June 11, reports PTI.

Of the 32 investment proposals before the 206th meeting of the Foreign Investment Promotion Board (FIPB), eight relate to the pharmaceutical sector.

The pharmaceutical sector proposals include those from Pfizer, Willmar Schwabe India and Reckitt Benckiser.

Proposals from AT&T Global Network Services, Walt Disney Company (Southeast Asia) Pte, Morgan Stanley Global Services Mauritius and Indian Rotocraft are also on the agenda, said sources.

1:40 pm Exclusive: The government is likely to raise the foreign investment limit in government debt soon, as almost all of the current allocation has been taken up, said four officials with direct knowledge of the government's thinking, reports Reuters.

One of the sources said the government could raise the amount foreign investors are allowed to buy by another USD 5 billion.

The finance ministry will decide on the matter after consultations with the Reserve Bank of India and capital markets regulator Securities And Exchange Board of India, the sources said.

"I expect the government to take a call on this soon," said one of the officials involved in the process.

1:30 pm Asian market: Japanese shares climbed to a three-month high on Monday following a solid US May jobs report, with investors rotating into growth-sensitive stocks from defensive ones.

The benchmark Nikkei gained 0.3 percent to 15,124.00, its highest closing level since March 11. The index has risen nearly 500 points, or 3.4 percent, over the past six trading days, raising concerns that the market may be overbought in the very near term.

But investors seem relatively bullish on the market, rotating into high beta shares - those with high volatility - from defensive shares. Real estate companies and warehouse and port operators were the top performing sectors on the day.

1:20 pm Market outlook: The market direction is positive but the pace of rally is unsustainable indicating that all ingredients are in place for a multi-year bull run, says Alchemy Capital Management's Director and CIO Hiren Ved in an interview with CNBC-TV18.

Ved believes markets are running ahead of fundamentals. There might be a correction post Budget but dips will be opportunity to buy.

A broad-based bull market will be seen after a long time, he therefore suggests that one must invest in companies that are highly leveraged to domestic growth recovery. With a 12 -18 month view, he is positive on mid cap IT and pharma. He also places positive bets on sectors like banks, auto and cement.

It is a strong day of trade today with most of the sectoral indices trading in the green.
 
The Sensex is up 189.30 points at 25585.76 and the Nifty is up 72.85 points at 7656.25.
 
About 2155 shares have advanced, 804 shares declined, and 88 shares are unchanged.

Most stocks are piping hot as President Pranab Mukherejee laid out roadmap for the new government while addressing joint session of the parliament today. Mukherjee said containing food inflation and putting economy back on track will be the top priority. The government will look to modernise and revamp railways, liberalise FDI in defence, rationalise and simplify tax regime and will make all efforts to introduce GST.

Coal India, Bajaj Auto, L&T, Tata Power and Tata Steel are top gainers in the Sensex. Among the losers are ONGC, M&M, SBI, Infosys and Axis Bank.

Asian markets trade higher as strong export data from China and upwardly revised growth figures from Japan support sentiment. European markets open higher with Dax nearly topping the 10,000 level.

12:59pm Stock impact post President Pranab Mukherjee's speech
Kernex Microsystem, Kalindee Rail and Texmaco Rail rallied 5-10 percent after Mukherjee says investment in railways would be increased and modernisation & revamp of railways would be top agenda for government.
 
Coal India surged 5 percent as the government will pursue coal sector reforms to attract investment.
 
Bharat Electronics and BEML rose over 3 percent as the government will liberalise FDI in defence production and carry out reforms in defence procurement.
 
Prestige Estates Projects and Sobha Developers jumped 4-8 percent as the government is aimed for proper housing to all citizens by 2022 and will build 100 new cities.

Sterlite Technologies and Aksh Optifibre shot up 5-9 percent as the government will roll out broadband highway to reach each village.
 
VA Tech Wabag rose 3 percent as the government will accord high priority to water security and will launch mission on Himalayas conservation.

Jain Irrigation climbed 6 percent as the government will launch farm irrigation scheme.

12:50pm Hindustan Zinc up 5.5%
Media report suggests that the government has invited bids to appoint valuer for its stake in Hindustan Zinc. The last date to submit bids is June 27, the report says.

The Government of India held 29.54 percent stake as of March 2014.

12:40pm Grasim hits 55-month high
Grasim Industries rallied 8.5 percent as brokerage house CLSA says the company is its top conviction buy in India and it has a target price of Rs 4900.

Its rationale is that the stock currently builds in a 43 percent discount to fair value and its implied assets are attractively priced at USD 110 per tonne.

12:30pm Govt to roll out broadband highway
President Mukherjee said digital India will be the backbone of the new government's working. It plans to set up Wi-fi zones in critical areas in five years and will roll out broadband highway to reach each village.

12:20pm Pranab Mukherjee unveils economic agenda of new govt
While addressing joint session of the parliament, Indian President Pranab Mukherjee said the government is committed to reviving the agricultural sector and substantial investment will be made for rural asset creation.

The government will hike investment in farm infrastructure and will address issues in farm pricing and procurement. The government will also launch prime minister's farm irrigation scheme and will accord high priority to water security. He said the government is seriously mulling options, including river-linking.

12:10pm FII View
Neelkanth Mishra, Credit Suisse says half of the current FY16 Nifty EPS growth comes from financials, industrials and materials. ''We remain convinced of an eventual recovery, and still expect the rally in cyclical stocks to continue for a while. But the pace of the recovery in investments is likely to disappoint the market,'' he adds.

According to him, improved risk appetite globally and the cyclical turn in the economy are also boosting the market, not just elections and future possibilities.

12:00pm Though the market saw some profit booking, it continued to hold strong momentum in noon trade supported by banking & financials, FMCG, auto and capital goods stocks.

The Sensex rose 151.73 points to 25548.19 and the Nifty gained 56.80 points to 7640.20. About 2069 shares have advanced, 775 shares declined, and 81 shares are unchanged.
 
Larsen and Toubro gained 3.5 percent after hitting a record high of Rs 1,774.70. Brokerage house Barclays reiterated its overweight rating on the stock.

While addressing joint session of parliament, President Pranab Mukherjee says the government will chalk out ambitious infrastructure development plan that will be implemented in 10 years, which also helped the stock rally.

However, ONGC fell 3 percent on profit booking. It had rallied 11 percent on Friday on hopes of natural gas price hike.

11:50 am Market outlook: The market direction is positive but the pace of rally is unsustainable indicating that all ingredients are in place for a multi-year bull run, says Alchemy Capital Management's Director and CIO Hiren Ved in an interview with CNBC-TV18.

Ved believes markets are running ahead of fundamentals. There might be a correction post budget but dips will be opportunity to buy.

A broad-based bull market will be seen after a long time, he therefore suggests that one must invest in companies that are highly leveraged to domestic growth recovery. With a 12 -18 month view, he is positive on mid cap IT and pharma. He also places positive bets on sectors like banks, auto and cement.

With high-quality technology companies trading at reasonable multiples, he feels technology sector will do very well in the long run.

11:40 am Buzzing: Shares of Future Retail gained as much as 2.6 percent intraday ahead of the board meeting on June 11 to discuss fund raising options.

"The board of directors of the company will meet to consider and approve various options of raising funds including, issue of equity shares or debt or hybrid instruments (viz. convertible securities) or warrants convertible into equity shares of the company (securities) to the qualified institutional buyers / promoters / investors on preferential basis and issue of equity shares of any class to its existing shareholders on a rights basis and in such other manner," says the company in its filing.

The board, on June 11, will also fix up the date, time and venue of the extra ordinary general meeting of the members of the company and / or to approve postal ballot of members for obtaining consent of members for this purpose.

11:30 am President's speech: President Pranab Mukherjee is addressing a joint sitting of Parliament, laying the roadmap of the new government headed by Prime Minister Narendra Modi. The President's speech highlights the government's economic agenda.

In his address in the Central Hall of Parliament, the President is listing the priorities of the NDA government which include focusing on rural development, attracting foreign investments and taking India back to the path of economic growth.

He said poverty has no religion, hunger has no creed. "The government will work towards the elimination of poverty. The government will focus on the people who need help in basic needs most urgently. Food inflation is the top most priority of the government. The government will work towards pricing and procurement of agriculture products. The government is committed to giving high priority to water security India is a country with the largest population of the youth. We must nurture the youth with the best kind of education, will open massive open online courses."

11:20 am Fertiliser price hike? The government plans to raise the price of urea, the fertiliser most used by its farmers, by at least 10 percent in order to contain subsidy costs that are straining the Budget, government and industry officials told Reuters.

The first major price hike in four years would mark an important step by Prime Minister Narendra Modi's new government to cut wasteful use of urea and ease fiscal pressures resulting from a weak economy.

The market is holding gains comfortably as the Nifty is fast approaching 7700. The Nifty is up 75.65 points or 1 percent at 7659.05 and the Sensex is up 195.76 points at 25592.22. About 1960 shares have advanced, 598 shares declined and 69 shares are unchanged.

Infra, metals and realty stocks are lending support the indices.

Coal India, Tata Power, L&T, Tata Steel and Hero MotoCorp are top gainers in the Sensex. Among the laggards are ONGC, M&M, HUL, Infosys and NTPC.

Gold held its ground above USD 1,250 an ounce after US jobs data matched expectations, while a rally in stocks curbed the metal's appeal as an investment hedge. With no major economic data scheduled, markets were eyeing investment and consumer demand for further cues.

Asian stocks touched their highest levels in nearly three years, basking in the glow of a record close on Wall Street.

10:58am IDBI Bank gains 2%
"The board of directors of the bank has granted in principle approval for the proposal to raise equity capital to the extent of Rs 4000 crore through qualified institutions placement (QIP)/follow-on public offer subject to statutory / regulatory approvals, if any," says the bank in its filing.

10:50am Barclays overweight on L&T
Barclays says L&T's management remained optimistic about the company's prospects in infrastructure, Middle East orders and new drivers, such as defence in India.

"Given the company's limited capex and investment needs (value unlocking at IDPL) and peaking working capital, management expects free cash flow to improve. Its focus on improving ROE, increasing utilization of its manufacturing subsidiaries and limited investments in asset subsidiaries should help, in our view. We reiterate our overweight rating," says the brokerage house in its note.

10:40am Market Update
The market remained strong with the Sensex rising 211.76 points to 25608.22 and the Nifty gaining 72.80 points to 7656.20. About 1919 shares have advanced, 543 shares declined, and 66 shares are unchanged.
 
Among midcaps, Unitech, Rashtriya Chemical, SpiceJet, Jaypee Infra and India Cements shot up 6-9 percent while Pipavav Defence, Repco Home, Max India and CMC lost 2-5 percent.

10:30am Brokerages overweight on Maruti
Shares of Maruti Suzuki India gained 0.4 percent. The car manufacturer which agreed to let parent Suzuki Motor Corporation own an upcoming plant in Gujarat, expects to save about Rs 10,500 crore in the first 15 years by not investing in the facility.

In a presentation filed to the BSE related to the contentious Gujarat plant, the company said it proposes to enter into a contract manufacturing agreement (CMA) with Suzuki Motor Gujarat (SMG), a fully owned subsidiary of Suzuki Motor Corporation (SMC).

Barclays is overweight on the stock. According to Barclays, the announcement provides necessary safeguards and transparency to shareholders. ''The deal is accretive for Maruti cash flows. There is also a possibility of higher dividend payout at Maruti as a way for Suzuki to recover investment at Gujarat plant,'' it said.

10:20am Nectar Life on buyers' radar
Shares of Nectar Lifesciences surged 14 percent as investors are excited about it on a media report that the company's promoters are planning to sell their 44.35 percent share.

According to the media report, ''Sanjiv Goyal and family, are planning to sell their 44.35 percent stake in the company alongwith global private equity fund New Silk Route's 11.59 percent.''

However, the management has strongly refuted the stake sale report. In an interview to CNBC-TV18, Dinesh Dua, CEO of the company called the report a 'rumour' and 'false'. He also said that it is 'shocking to read such reports without management verification.''

10:10am FII View
The market could rise another 3-4 percent in the run up to the Union Budget, feels Samir Arora of Helios Capital. In an interview to CNBC-TV18, Arora said the pace of the rally was unnerving, but India was clearly in a bull market.

He sees the Budget as the next big trigger for the market, though it is likely to be an incremental one instead of 'big bang.' It could disappoint the market, but will be a positive for the economy as a whole, he said.

He expects a big sell-off in some stocks after the Budget, but said it would be a good opportunity to enter the market as there will be plenty of opportunities.

As for retail investors, the best way to enter the market would be to gradually buy mutual funds .

10:00am Equity benchmarks extended rally with the Nifty inching towards the 7650 level supported by capital goods, banking & financials and metals stocks. The index rose 59.15 points or 0.78 percent to 7642.55 and the Sensex gained 172.95 points or 0.68 percent to 25569.41.

The broader markets continued outperformance with the BSE Midcap and Smallcap indices rising over 1.2 percent. About 1692 shares have advanced, 443 shares declined, and 54 shares are unchanged.

Grasim, Ambuja Cements, ACC, Tech Mahindra, Power Grid Corporation, Larsen & Toubro, Tata Power, Tata Steel and Tata Motors topped the buying list, rising 2-6 percent.

However, ONGC, M&M, Sun Pharma, Infosys, NTPC, BPCL and Dr Reddy's Labs fell 0.5-2 percent profit-taking.

10:00 am International market:  Adrian Mowat, JP Morgan says the brokerage house forecasts US 10-Year yields to end 2014 at 3.2 percent.

''With high cost of shorting duration, low supply, increased regulatory collateral and ECB QE it is possible that yields will remain anchored. We do not fear higher US bond yields. The albeit weak correlation between US bond yields and Asian equities is positive over three, five and ten years. Equities appreciate with rising bond yields,'' he adds.

9:50 am Big bull: The market could rise another 3-4 percent in the run up to the Union Budget, feels Samir Arora of Helios Capital. In an interview to CNBC-TV18, Arora said the pace of the rally was unnerving, but India was clearly in a bull market.

He sees the Budget as the next big trigger for the market, though it is likely to be an incremental one instead of 'big bang.' It could disappoint the market, but will be a positive for the economy as a whole, he said.

He expects a big sell-off in some stocks after the Budget, but said it would be a good opportunity to enter the market as there will be plenty of opportunities.

9:40 am Buzzing: Shares of Nectar Lifesciences surged 20 percent hitting 46-month high at Rs 35 per share intraday. Investors were excited about it on media report that the company's promoters to sell their 44.35 percent share.

However, the management has strongly refuted the stake sale report. In an interview to CNBC-TV18, Dinesh Dua, CEO of the company called the report a 'rumour' and 'false'. He also said that it is 'shocking to read such reports without management verification.''

Dua clearly stated that promoter is not looking to exit and have not spoken to New Silk Route in that matter.

9:30 am FII view: Neelkanth Mishra, Credit Suisse says half of the current FY16 Nifty EPS growth comes from financials, industrials and materials. ''We remain convinced of an eventual recovery, and still expect the rally in cyclical stocks to continue for a while. But the pace of the recovery in investments is likely to disappoint the market,'' he adds.

According to him, improved risk appetite globally and the cyclical turn in the economy are also boosting the market, not just elections and future possibilities. ''We continue to overweight early-cycle plays like Maruti, Titan, M&M and Shriram Transport,'' he adds. 

It is another day for the market to break records. The Nifty hit 7600, at 7621.65 up 38.25 points. The Sensex is up 147.14 points at 25543.60. About 789 shares have advanced, 72 shares declined, and 25 shares are unchanged.

GAIL, Tata Power, ONGC, Maruti Suzuki and SBI are top gainers in the Sensex.

The rupee has opened higher by 10 paise at 59.08 per dollar as against Friday's closing value of 59.18 a dollar.The dollar edged up against the yen in early trade on upbeat US employment data while the euro crept up from multi-month lows, continuing to shake off the impact from the European Central Bank's monetary easing last week.

Asian stocks kicked off the week with gains following positive data releases from the region's two biggest economies and a strong US lead.Sentiment in Asia got a further boost from upbeat Chinese data on Sunday. The world's second largest economy posted a big jump in its May trade surplus, with exports gaining 7 percent on year.

US stocks closed at all-time highs for a third week of gains after the May jobs report showed slow but steady improvement in the labour market. The monthly data had non-farm payrolls rising 217,000 and the jobless rate an unchanged 6.3 percent as equities rose to records, the CBOE volatility index, a measure of investor uncertainty, fell to multi-year lows.

In commodities, crude prices are higher led by optimism that monetary stimulus in the euro zone, and demand in the US, will lift economic growth and demand for fuel.

From precious metals space, gold prices fell as the dollar index swung back into positive territory, after a closely watched US Employment report came in almost exactly in line with expectations, showing a solid pace of hiring in May.