Sensex ends at 14-month high; CRR cut lifts rate sensitives

Indian shares closed higher for the ninth consecutive session Monday, rising more than 1200 points in nine sessions. The rally was helped by consistent inflow of foreign money that lifted the rupee to 54 against the US dollar, a third quantitative easing by the Federal Reserve, favourable German's Constitutional court ruling, diesel price hike and FDIs approval in retail, aviation & broadcast carriage services sectors.

Now the unexpected cut in cash reserve ratio by 25 basis points to 4.5% by the Reserve Bank of India, which released Rs 17000 crore in liquidity, also supported the market.

The 50-share NSE Nifty closed above the 5600 level for the first time since July 25, 2011, though it was off day's high due to profit booking and weakness in global equities. The index rose 32.35 points to close at 5,610 after hitting a 2012 high of 5,652.20.

Meanwhile, the 30-share BSE Sensex gained 250 points intraday to touch a 52-week high of 18,715.03, before ending the session at 18,542.31, up 78.04 points.

Rate sensitives like banking, realty, capital goods and auto stocks led the major support while the weakness in technology, FMCG and healthcare stocks erased more than half of gains in second half of trade today.

Global research firms raised the Sensex target after aggressive actions by the government last week. Deutsche Equities feels the Sensex will increase to 20,000 by December-end while the CLSA said they raised the target to 19,900. Deutsche Equities expects newsflow stay positive over next few weeks.

But some experts did not impress much by the government's move. Sanjeev Prasad of Kotak Institutional Equities feels that modest diesel price hike will not alter fiscal situation much and neither stake sale in PSUs will meet deficit target as it is not a reform. "Selling in 5-10% stake in companies periodically just to meet some budget targets do not classify as reforms," he said.

The BSE Realty Index outperformed every other sector, rising over 6%. Capital Goods and Bankex were up 3-3.7%. Power, Oil & Gas, Auto and Metal indices gained 1.5-2%.

Index heavyweight Reliance Industries and top telecom operator Bharti Airtel rallied nearly 4%.

Country's largest lenders State Bank of India and ICICI Bank shot up 5.4% each. Engineering conglomerate Larsen & Toubro and state-run power equipment maker BHEL were up 4.4% each.

Jindal Steel topped the buying list with 6% gains and Sterlite Industries gained 4%.

Top commercial vehicle maker Tata Motors trimmed gains to 2.7% from over 6% in late trade, especially after less-than-expected global sales data in August.

Tata Motors's total global sales fell by over 4% month-on-month to 97,225 units in August but that increased 13% year-on-year. Its UK subsidiary Jaguar and Land Rover sold 24,060 units in previous month, down more than 10% as compared to July but year-on-year it was up by 13%.

FMCG majors ITC and Hindustan Unilever were down 5.5% and 2.76%, respectively.

Country's largest software services exporter TCS fell 5% due to sharp recovery in rupee. The Indian rupee, which hit an intraday high of 53.69, was trading at around 54 against the US dollar. Infosys was down 2.67% and Wipro declined 1.5%.

Drug producer Dr Reddy's Labs plunged 4.3% while Sun Pharma was down 0.8%.

Realty stocks like DLF, Unitech and Indiabulls Real Estate jumped 6.5-9%; HDIL shot up 13.5%.

The broader markets gained over 1% as advancing shares outnumbered declining by 1581 to 1270 on the BSE.

In the second line shares, aviation stocks like Spice Jet and Kingfisher Airlines surged 12% and 20%, respectively. However, Jet Airways fell 2%.

Among retail stocks, Pantaloon Retail, V2 Retail and Provogue shot up 10-20% while Trent and Koutons gained 4-5%.

Broadcast carriage services provider Dish TV, Hathway Cable, Den Networks and WWIL were up 1-5%.

State-run oil retailers BPCL and HPCL dropped 3-4% on high under-recoveries despite the government hiked diesel price by Rs 5 on Thursday.

Indian equity benchmarks extended gains led by support from ICICI Bank, Reliance Industries and Larsen & Toubro. Tata Motors, SBI and Bharti Airtel too aided the rally.

The 30-share BSE Sensex rallied 143.15 points to 18,607.42 and the 50-share NSE Nifty rose 49.25 points to 5,626.90.

Cigarette major ITC, which has more than 9% weightage on the Sensex, plunged 9%. Shares of Hindustan Unilever slipped 2.7%.

Country's largest software services exporters TCS and Infosys were down 4.6% and 2.8%, respectively.

State-run oil & gas producer ONGC declined 0.7% and India's largest coal mining company Coal India lost 2%.Drug producers Sun Pharma and Dr Reddy's Labs went down 1-3%.

Index heavyweight Reliance Industries extended gains to 4.2%. Top lenders State Bank of India and ICICI Bank shot up over 5%.

Engineering conglomerate Larsen & Toubro and state-run power equipment manufacturer BHEL were up over 5% too.

Commercial vehicle maker Tata Motors surged over 6%. Among steel stocks, Jindal Steel, Sterlite and Tata Steel jumped 6.6%, 4.3% and 2.3%, respectively.

Indian shares gained strength again, supported majorly by banking, auto, power, capital goods and realty stocks. However, the weakness in fast moving consumer goods, technology and healthcare has limited the upside. The profit booking was also on account of reports that the government may raise the cap on use of LPG cylinder per family in a year to 10 from 6 earlier.

The 30-share BSE Sensex went up 98 points to 18,563 and the 50-share NSE Nifty rose 36 points to 5,613. The Indian rupee was playing an important role today; it rose as much as 69 paise in morning trade, but it trimmed gains to 27 paise to trade 54.03 against the US dollar in afternoon trade.

Among sectoral indices, the BSE Realty Index surged nearly 6%. Capital Goods and Bankex were up 4% and 3%, respectively. Power, Auto and Oil & Gas indices moved up 2% each while FMCG, IT and Healthcare fell 2-4%.

The unexpected cut in cash reserve ratio by 25 basis points has taken very positively by the rate sensitives, but the recovery in rupee weighed on technology stocks.

India's largest private sector lender ICICI Bank shot up 5.6% while its rival State Bank of India was up 4.6%. Housing finance company HDFC was up over 1%.

Capital goods majors Larsen & Toubro and BHEL surged 5% each. Index heavyweight Reliance Industries jumped nearly 4%.

Shares of Jindal Steel and commercial vehicle maker Tata Motors were up 5% and 4.7%, respectively. Sterlite Industries moved up 3%.

Telecom operator Bharti Airtel, utility vehicle maker M&M and two-wheeler major Hero Motocorp advanced 2% each.

Cigarette major ITC extended losses to 6%. Software services exporter TCS and drug producer Dr Reddy's Labs were down 3.7% each.

IT services exporter Infosys and FMCG major Hindustan Unilever fell 2.5% each. India's largest coal mining company Coal India declined 2%.

The 30-share BSE Sensex shed more than 200 points gains from day's high of 18,715.03 and the 50-share NSE Nifty fell below the 5600 level, weighed down by technology and FMCG stocks. Auto, metals, infrastructure and banking (barring HDFC Bank) stocks maintained gains.

Even the Indian rupee went down below the 54 level; it appreciated by 19 paise to 54.11 against the US dollar after hitting a high of 53.69 in early trade.

The BSE Sensex gained 45 points at 18,508.88 and the NSE Nifty rose 15.35 points to 5,593. Even the weak opening of European markets has an impact on Indian equities; France's CAC, Germany's DAX and Britain's FTSE were down 0.4% each.

Cigarette major ITC, which has highest weightage to the index, plunged 4% while Hindustan Unilever declined 1.5%. Drug producer Dr Reddy's Labs too fell 4%.

Country's largest software services exporters TCS and Infosys were down 3.65% and 2.5%, respectively while their rival Wipro lost 2%.

Rate sensitives like banking, auto, realty and infrastructure stocks remained strong as the Reserve Bank of India cut cash reserve ratio by 25 basis points to 4.5%.

Private sector lender ICICI Bank surged over 4% and public sector lender State Bank of India was up 3% while their rival HDFC Bank lost nearly 1%.

Commercial vehicle maker Tata Motors and engineering conglomerate Larsen & Toubro were up 3% each. Index heavyweight Reliance Industries moved up 2.5%.

Shares of Jindal Steel topped the buying list with 4.6% gains. Shares of BHEL, Tata Power, Maruti, Bharti Airtel, Sterlite and M&M gained 1.5-2%.

The NSE Nifty trimmed gains quite drastically despite the RBI cut cash reserve ratio by 25 basis points to 4.5% . The market seemed to have priced in the RBI's move and it may be expecting more than what the RBI delivered today. Even the bond yields, which rallied quite sharply just before the announcement on high expectations, saw major correction.

The 30-share BSE benchmark was up 69.55 points to 18,533.82 and the 50-share NSE benchmark moved up 21.5 points to 5,599.10.

The Sensex shed about 200 points from day's high, which seemed to be an indication that the market may be expecting the cut of 50 basis points in CRR and some in policy rates. The Reserve Bank of India has left repo and reverse repo rates unchanged while the CRR cut will release Rs 17,000 crore in liquidity. The central bank has persistently been saying the inflation remains a challenge. Inflation increased to 7.55% in August as against 6.87% in July. Now the experts feel it would go to 8% after the diesel price hike.

Cigarette major ITC extended losses to 3%. Even country's largest software services exporter TCS lost over 3% while its rivals Infosys and Wipro were down over 2%.

Private sector lender HDFC Bank retreated with loss of 0.8% whereas top lenders State Bank of India and ICICI Bank moved up 2.5% and 4%, respectively.

Index heavyweight Reliance Industries trimmed its gains to 2.6% from 4% earlier. Commercial vehicle major Tata Motors and top car maker Maruti Suzuki were up 3% each.

Housing finance company HDFC rose 1% and telecom operator Bharti Airtel moved up 1.9%.

Engineering conglomerate Larsen & Toubro and state-run power equipment manufacturer BHEL were up 3.6% and 2.6%, respectively.

The Indian rupee, which appreciated by 56 paise in early trade, also retreated. It rose just 33 paise to 53.96 against the US dollar.

Advancers outnumbered decliners by 905 to 473 on the National Stock Exchange.

Indian shares erased nearly half of gains due to weakness in technology, healthcare and fast moving consumer goods stocks. The rate sensitives like banking, realty, auto and infrastructure stocks continued to support the market.

The 30-share BSE Sensex gained 128 points at 18,592.34 and the 50-share NSE Nifty moved up 41 points to 5,618.60. But the Indian rupee appreciated by 47 paise to 53.82 against the US dollar, which indicated that the foreign money has been chasing Indian equities quite rapidly.

Foreign institutional investors have been bought nearly Rs 6,000 crore worth of equity shares in September and half of which came in on Friday itself, especially after the government initiated reform process by raising diesel price by Rs 5 per litre on Friday and a third quantitative easing by Federal Reserve on Thursday.

Today the market added more gains after the government approved FDIs in retail, aviation and broadcast carriage services sectors post-market hours Friday.

Now the market awaited last event of the month - RBI monetary policy review that scheduled today at around 11 hours IST. Majority of experts don't expect cut in policy rates today.

Country's largest lenders State Bank of India and ICICI Bank were up more than 3%. Index heavyweight Reliance Industries surged 3.5% and telecom operator Bharti Airtel was up 1.5%.

Engineering conglomerate Larsen & Toubro and state-run power equipment manufacturer BHEL rallied 2.5-3%.

Commercial vehicle major Tata Motors and top car maker Maruti Suzuki jumped 3.5-4%.

Among metals stocks, Jindal Steel, Tata Steel, Sterlite Industries and Hindalco Industries gained 1-4%.

FMCG majors ITC and HUL were down 2.7% and 1.1%, respectively. Country's largest software services exporter TCS and Infosys dropped over 2% on the back of rebound in rupee. Wipro lost 1.7%.

Healthcare stocks like Cipla and Dr Reddy's Labs went down 2% each while their rival Sun Pharma was down 0.7%.

The broader markets were up 1% as about two shares advanced for every share declining on the National Stock Exchange.

The BSE Sensex and Nifty rose on Monday after the government announced additional reform measures, including the opening up of the aviation sector to foreign direct investment.

Both the indexes gained over 1%. Airline stocks surged, with Spicejet Ltd up over 13%.

After a stunning 4% rally last week on the back of fuel price hike and global cues, the BSE Sensex added over 250 points in early trade on Monday and hit a 52-week high of 18,715.03 following the FDI approvals in retail, aviation and broadcast carriage services sectors announced post-market hours Friday.

But the market trimmed somewhat gains immediately due to profit booking in defensives like technology, FMCG and healthcare stocks.

The 30-share BSE benchmark rose 178 points to 18,642.05 and the 30-share NSE benchmark gained 54.70 points to 5,632.35.

JP Associates, JSPL, ICICI Bank, L&T, SBI, Bank of Baroda, Sterlite Industries, PNB, BHEL, DLF and Bharti Airtel were on buyers' radar.

Infosys, TCS, Cipla, Dr Reddy's Labs, Sun Pharma, ITC and HUL were under pressure.

The CNX Midcap Index spiked 83 points to 7,423 as about four shares advanced for every share declining on the National Stock Exchange.

In the second line shares, Pantaloon Retail shot up 20% after the government has approved 51% FDI in multi-brand sector. Shoppers Stop, Trent and CESC rallied 7-15%.

Aviation stocks too shot up after the government has allowed 49% FDI in the sector. Kingfisher Airlines jumped 20%. Jet Airways was up 3% and SpiceJet up 13%.

Dish TV, WWIL, Den Networks and Hathway Cable climbed 2.5-5% after the government has approved 74% FDI in broadcast carriage services.

Hindustan Copper, Oil India, NALCO and MMTC were up 1-2% after the divestment approval. Neyveli Lignite fell 3% as the government rejected divestment in the company.

GMR Infra, Indiabulls Real, NCC and Lanco Infratech were up 3.5-6%.

Deccan Chronicle (DCHL) tanked nearly 4% after reports that Deccan Chargers (a part of DCHL) have been terminated. The Board of Control for Cricket in India (BCCI) will float new a team.

Canara Bank shot up 6.5% and Yes Bank was up 4%.