Sensex closes 272 pts up betting on rate cut, Greece polls

The 30-share BSE Sensex spiked as much as 290 points intraday on Friday as traders seemed to have added long positions ahead of Greek election over the weekend and RBI policy on Monday.

The BSE benchmark recouped all yesterday's losses that rose 272 points or 1.63% higher, to close at 16,949.83. Meanwhile, the NSE benchmark gained 84.30 points at 5,139.05.

Strong rally in second half of trade indicated that traders may have added long positions ahead of mid-quarter policy review by the Reserve Bank of India on June 18. Majority of experts feel that more or less the market already priced in 25 basis points cut in repo rate (at which banks borrow money from RBI) and 25 bps in cash reserve ratio (banks are required to keep certain portion of their deposits with RBI). If the RBI delivers the same then the policy event would be a non-event, say experts.

From the markets perspective, Ajay Bodke of Prabhudas Lilladher feels a 25 bps cut in repo and a 25 bps cut in CRR is almost given.

With a more optimistic view, he says, the market would get a strong bounce if a 50 bps cut comes in, but that looks unlikely because of the stubbornly high inflation number, he quickly said. Yesterday inflation for May increased to 7.55% from 7.23% in previous month.

At 14:55 hours IST: Sensex rises over 250 pts; Auto, Bankex gain 2.5%

The 30-share BSE Sensex gained nearly 300 points as rally extended in banks, FMCG, auto and capital goods stocks. Index heavyweight Reliance Industries rose nearly 2%.
 
The BSE benchmark surged 281.13 points or 1.69% to 16,959.01 and the NSE benchmark moved up 89.65 points or 1.77% to 5,144.40.

France's CAC and Britain's FTSE rallied over 1% ahead of Greek election over the weekend. Germany's DAX gained 0.9%.

Back home, shares of commercial vehicle major Tata Motors advanced 5.55% amid heavy volumes after its global sales increased 10% month-on-month and 12% year-on-year to 96,089 units for May. Subsidiary Jaguar & Land Rover reported better than expected sales in same month that grew 19.7% MoM and 35% YoY to 30,094 units.

Among other auto stocks, Hero Motocorp, Mahindra & Mahindra and Maruti Suzuki climbed 2.5-3%.

Traders were adding long positions in auto and banks stocks ahead of RBI's mid-quarter policy review on Monday. Auto and Bankex gained 2.5%.

Country's largest lenders State Bank of India, ICICI  Bank and HDFC Bank were up 1.5%, 2.4% and 3.77%, respectively.

Engineering and construction major by sales Larsen & Toubro rose over 2% while state-owned capital goods company BHEL was up 1%.

FMCG majors ITC and HUL advanced 1.4% and 1.8%, respectively. top software services exporters TCS and Infosys were up 0.8-1%.

At 13:53 hours IST: Sensex up 200 pts prior to RBI meet; ICICI Bank gains 3%

Indian equity benchmarks extended gains, rising more than 1% in afternoon trade due to further buying in banks, auto, FMCG and technology stocks. Asian markets too turned strong in late trade and European markets gained 0.6-0.8% ahead of Greek election over the weekend.

The BSE benchmark Sensex climbed 200 points to 16,877.59 as traders may be adding long positions in anticipation of surprise by the Reserve Bank of India in its mid-quarter policy review on June 18 (Monday). Meanwhile, the NSE benchmark Nifty moved up 62.5 points to 5,117.25.

Top commercial vehicle maker Tata Motors gained as much as 5% to intraday high of Rs 238.40 after better than expected sales numbers reported by Jaguar & Land Rover (JLR). JLR sales shot up 19.7% to 30,094 units for May as against 25,143 units in previous month. Total sales of the group increased 10% MoM to 96,089 units. At 13:39 hours IST, shares gained 4%.

Shares of Hero Motocorp, India's largest two-wheeler manufacturer rallied 2.9% whereas rival Bajaj Auto declined 1.4%. Utility vehicle maker M&M and top car maker Maruti Suzuki gained 1-1.6%.

Country's largest private sector lender ICICI Bank surged 3% while its rivals HDFC Bank was up 1.5% and public sector lender State Bank of India was up 0.7%.

Oil & gas producer Reliance Industries, top telecom operator Bharti Airtel and engineering & construction major by sales Larsen & Toubro rose 1-1.5%.

Country's largest software services exporters TCS and Infosys were up 0.6%. FMCG majors ITC and HUL climbed 0.8% each.

Among metals and mining stocks, Coal India, Tata Steel and Hindalco gained 1.5-2% whereas Sterlite Industries tanked 2.7%..

Advancing shares outnumbered declining by 776 to 571 on the National Stock Exchange.

On the global front, Hang Seng went up 2.26% at close and Shanghai gained 0.5%. Straits Times and Taiwan Weighted were up over 1%. Nikkei was flat while Kospi declined 0.7%.

At 12:35 hours IST: Sensex gains 1%; auto, banks, realty surge

Indian equity benchmarks rose 1% each in afternoon trade led by auto, banks and Reliance Industries. Shares of top commercial vehicle maker Tata Motors shot up 4.5% Jaguar & Land Rover's sales numbers for May were stable. Brokerages were expecting good sales numbers in May as compared to previous month.

The BSE benchmark moved up 162.92 points to 16,840.80 and the NSE benchmark was up 53 points at 5,107.50. European markets opened 0.5% higher on Friday.

Index heavyweight Reliance Industries climbed 1.4% and engineering and construction major by sales Larsen & Toubro went up 0.9%.

The BSE Bankex surged 1.5% as country's largest lenders State Bank of India, ICICI Bank and HDFC Bank were up 0.9%, 2% and 1.6%, respectively.

Top two-wheeler major Hero Motocorp and largest coal mining company Coal India rallied 2% each.

Software services exporters Infosys and TCS, and cigarette major ITC and top telecom operator Bharti Airtel rose 0.6% each.

In the second line shares, HMT, Shree Global, Allcargo Global, India Cements and Gujarat Mineral shot up 5% while Corporation Bank, VST, KSK Energy Ventures, Himadri Chemical and DB Realty lost 3-5%.

At 11:38 hours IST: Nifty hits 5100; Coal India, Hero Motocorp up 2%

The NSE Nifty touched the 5100 level due to consistent buying in index heavyweight Reliance Industries, ICICI Bank and Infosys. The Indian rupee too appreciated by 7 paise to 55.73 as against the US dollar.

The BSE benchmark rose 145 points to 16,823 and the NSE benchmark was up 46 points at 5,100.75 while the broader markets were marginally higher.

Reliance Industries, India's most valued stock gained 1.46% and second largest software services exporter Infosys went up 0.9%.

Private sector lender ICICI Bank surged 2% while its rivals State Bank of India and HDFC Bank were up 1% each.

Shares of top commercial vehicle maker Tata Motors climbed 2% ahead of Jaguar & Land Rover's sales numbers for May. Brokerage houses expect sales around 28000-30000 units as against 25143 units in previous month.

Country's largest two-wheeler manufacturer Hero Motocorp and state-owned coal mining company Coal India too rallied 2% each.

Engineering and construction major by sales Larsen & Toubro rose 1.2%.  FMCG majors HUL and ITC were up 0.7% each.

State-owned MMTC was among the top five most active stocks, with 2,87,880 shares that gained 2%. HMT and ITI rose 5%.

At 10:20 hours IST: Sensex, Nifty stay up; Reliance, ICICI Bank, Infosys lead

The 30-share BSE Sensex stayed higher with more than 100 points gains since early trade led by banks, oil & gas, FMCG and technology stocks. Today's bounce back indicates that traders may be adding long positions ahead of two big events - Greek election over the weekend and RBI mid-quarter policy review on Monday.

As per consensus estimates, the central bank would announce a 25bps repo rate cut at least .

However, given the inflationary pressure and widening fiscal deficit R Sukumar of Franklin Templeton Investments believes that the market should not expect a very sharp sustained fall in interest rates from the current level in the next two quarters.

The BSE benchmark climbed 120.82 points to 16,798.70 and the NSE benchmark was up 37.5 points to 5,092.25.

Country's largest private sector lender ICICI Bank jumped 1.6% while its rivals State Bank of India and HDFC Bank were up 1% and 0.8%, respectively.

Index heavyweight Reliance Industries rose 0.7% and state-owned oil & gas producer ONGC moved up 1%.

Infosys, India's No. 2 software services exporter gained nearly 1%. FMCG majors ITC and HUL advanced 0.6-1%.

Top commercial vehicle maker Tata Motors rallied 1.76% ahead of Jaguar and Land Rover's sales numbers for May today.

However, shares of Bajaj Auto topped the selling list, falling more than 2%.

HDFC fell 0.2% after Macquarie downgraded the stock to underperform from outperform and cut the target to Rs 550.

Top telecom operator Bharti Airtel and state-owned capital goods company BHEL were down 0.3% each.

About two shares gained for every share declining on the National Stock Exchange.

At 9:20 hours IST: Sensex gains over 100 pts higher; banks, oil & gas lead

The BSE Sensex and NSE Nifty bounced back in opening trade with 0.73% gains on Friday after taking a beating yesterday on diminishing hopes of aggressive rate-cut by RBI in its mid-quarter policy review on June 18.

Traders may be keeping long positions open ahead of Greek election over the weekend and RBI policy on Monday.

The BSE benchmark was up 121.32 points to 16799.20  and the NSE benchmark advanced 37 points to 5,091.60. The Indian rupee appreciated by 9 paise to 55.71 as against the US dollar.

JP Associates shot up 2.5% after The Economic Times reported that Birla and Lafarge are eyeing its cement business that could fetch JP group Rs 9000 crore.

Top commercial vehicle maker Tata Motors was up over 1% ahead of JLR monthly sales numbers today afternoon post 1 pm.

ACC, Ambuja Cements, ONGC, IDFC, SBI, Kotak Mahindra Bank, ICICI Bank, Bank of Baroda, Coal India, L&T and HUL gained 1-2%.

However, Bajaj Auto, Cipla, BPCL, Bharti Airtel, TCS and HDFC were under pressure in early trade.

The CNX Midcap Index rose 38 points to 7,015. About two shares advanced for every share falling on the National Stock Exchange.

In the second line shares, state-owned HMT and ITI climbed 6% each.

Liquor baron Vijay Mallya-led UB group stocks gained further. UB Holdings was up 3.6%. Kingfisher Airlines moved up 2% and United Spirits up 1.6%.

WWIL went up 3%. Reliance Capital and Pantaloon Retail rallied 2% each.

IRB Infrastructure, Lanco Infratech, IVRCL, GMR Infra and GVK Power moved up 1-2%.

However, HPCL fell 0.5% after The Times of India reported that petrol prices would be cut by Rs 2/litre soon.