Sensex ends up 240 points, Nifty ends above 8450; BHEL gains 4%

01 Jul 2015

03:30 pm Market closing: It was a super rally supported by some firm macro data. The Sensex was up 240.04 points or 0.9 percent at 28020.87, and the Nifty added up 84.55 points or 1 percent at 8453.05. About 1878 shares have advanced, 907 shares declined, and 142 shares were unchanged.

BHEL, Axis Bank, Cipla, Tata Motors and Wipro were top gainers in the Sensex. Among the losers were GAIL, ITC, Hero Motocorp, Lupin and Sun Pharma.

03:15 pm Eicher Motors sales: VE Commercial Vehicles today reported 1.86 percent dip in total sales in June at 4,163 units, as against 4,242 units in the same month last year. Eicher branded trucks and buses have recorded total sales of 4,063 units in June compared with 4,187 units in the same month last year, down 2.96 percent, the company said in a statement. In the domestic market, Eicher trucks and buses recorded sales of 3,537 units as against 3,474 units in the year-ago period, an increase of 1.81 percent.

03:00 pm Greece woes: Greece was appealing to its euro zone partners and the European Central Bank on Wednesday to keep it afloat after defaulting on its debt to the International Monetary Fund and losing frozen international bailout money.

Athens was due to put new proposals for a two-year loan agreement and a debt rescheduling to Eurogroup finance ministers after hinting that leftist Prime Minister Alexis Tsipras might be willing to scrap a referendum on bailout terms.

Finance Minister Yanis Varoufakis told colleagues the ruling Syriza party might even urge Greeks to vote "yes" in Sunday's plebiscite if Athens is granted a loan, participants said.

02:45 pm Europe check: France's CAC rallied 2.5 percent, Britain's FTSE up 1.5 percent and Germany's DAX gained 2 percent after media report indicated that the Greece Prime Minister Alexis Tsipras is likely to accept most bailout conditions.

02:40 pm Market Update: The Sensex rallied 306.58 points or 1.10 percent to 28087.41, and the Nifty rose 101.45 points or 1.21 percent at 8469.95, led by PSU banks. About 1873 shares have advanced, 803 shares declined, and 148 shares are unchanged on the BSE.

02:30 pm Videocon Industries in news: The company has got shareholder's nod to raise Rs 5,000 crore from the market through issuance of shares to institutional buyers, global depository receipts (GDR) and foreign currency convertible bonds (FCCBs).

The board will raise the funds "at any appropriate time" by issuing "equity shares or any other convertible instruments for an amount not exceeding Rs 5,000 crore by way of follow-on issue, private placement basis...", Videocon Industries said in a BSE filing.

Videocon will explore the option through qualified institutional placement, American depository receipts, GDRs and FCCBs.

It has also approved re-appointment of Venugopal N Dhoot Managing Director of the company for next five years, till August 31, 2020. His term ends on September 1, 2015. Videocon is into consumer electronics and oil & gas extraction.

02:20 pm Ban of hoarding onion: To curb the rise in onion prices, government today extended by one year the ban on hoarding the kitchen staple beyond the prescribed limit.

The decision was taken at a meeting of the Cabinet Committee on Economic Affairs (CCEA), headed by Prime Minister Narendra Modi. The validity of the order that empowers states to impose stock limits on traders for holding onion and ban hoarding beyond the set limit, expires tomorrow - July 2.

"The CCEA today approved the stock holding limit order on onion by another year. This will enable state governments take effective de-hoarding measures under the Essential Commodities Act (ECA), 1955," according to sources.

The order has been extended as onion prices in both wholesale and retail markets have started increasing due to sluggish supply of good quality onion as the crop is getting damaged in storage in major growing states.

High storage losses are likely to reduce availability of onions in the market and put pressure on prices till the arrival of new kharif crop from mid-September. To prevent spike in onion prices in the coming days due to supply shortage, the government has already increased the minimum export price of the commodity to USD 425 per tonne and is also planning to import some quantities of onions to boost domestic availability.

02:00 pm Market Check
Equity benchmarks remained strong in afternoon trade, supported by banks, capital goods, technology, select auto and oil stocks. The Sensex climbed 228.25 points or 0.82 percent to 28009.08 and the Nifty rallied 77.70 points or 0.93 percent to 8446.20.

The BSE Midcap and Smallcap outperformed, rising 1.5 percent each. More than 2 shares advanced for every share declining on the Bombay Stock Exchange.

PSU banks gained strength as the government is drawing up a comprehensive package to help state-run banks, Minister of State for Finance Minister Jayant Sinha said today, as part of efforts to nurse them back to health and improve the flow of credit to industry. State lenders, which dominate India's banking system, were hit hard by a surge in bad loans after a slowdown in economic growth following the 2008 global financial crisis.

State Bank of India, Bank of Baroda, IDBI Bank, OBC, Canara Bank, Syndicate Bank, Andhra Bank, Union Bank and Bank of India rallied 2-6 percent.

Indraprastha Gas shot up 10 percent after the Supreme Court ruled in favour of the company in the 3-year old PNGRB case. The stock is amongst the top five active stocks.

1:40 pm Interview: Mphasis announced signing of agreement for sale of its domestic business process outsourcing (BPO) business to Hinduja Global Solutions (HGS) for Rs 17 crore.

Explaining the reason for it, CEO and ED Ganesh Ayyar of MPhasis told CNBC-TV18 that the domestic BPO business was not a part of the company's strategic growth plan. The company's current focus is on developing the digital, application, maintenance and support (AMS), governance, risk & compliance (GRC) and infrastructure services segments, he said.

The revenue for the BPO business was Rs 135 crore in the March quarter and the company still holds one third of the business, which it might dispose of in future, Ayyar said.

1:30 pm PMI: India's manufacturing sector eased in June due to weak growth in new business inflows as companies took a cautious line on hiring, an HSBC survey said on Wednesday. The HSBC India Purchasing Managers' Index (PMI) fell to 51.3 in June from 52.6 in May, amid slowest rise in new orders since September 2014. "Following the pick-up in growth rates for output and new orders seen in May, June PMI data pointed to a slowdown in India's economic upturn," said Pollyanna De Lima, Economist at Markit, which compiles the data.

The market is scaling strong levels as the Sensex is up 245.49 points or 0.9 percent at 28026.32, and the Nifty is up 82.15 points or 0.9 percent at 8450.65. About 1785 shares have advanced, 738 shares declined, and 140 shares are unchanged.

Cipla, BHEL, ONGC, SBI and Wipro are top gainers in the Sensex. Among the losers are Hero, ITC, Bajaj Auto and HDFC.

Large IT companies in India are likely to see a marginal 1-2 percent earnings impact from the economic crisis in Greece due to their exposure to Europe, while their direct revenue exposure to Greece is "practically zero", a research report said today.

According to the global financial services firm, Bank of America Merrill Lynch (BofA-ML), the indirect impact could come through the Indian IT sector's exposure to Europe and because of the movement in the euro-rupee exchange rates.

"While the direct revenue exposure of India IT to Greece is practically zero, there are linkages in the form of -- movement of euro versus Indian rupee and the spillover impact to growth outlook of other European countries to which India IT has business exposure," it said in a research note.

12:55 pm Market Update: The Sensex rose 212.38 points or 0.76 percent to 27993.21, and the Nifty advanced 72.45 points or 0.87 percent to 8440.95. About 1781 shares have advanced, 724 shares declined, and 147 shares are unchanged on the BSE.

12:40 pm IPOs lined up: Top no-frills carrier IndiGo on Tuesday approached capital markets regulator Sebi with initial public offer (IPO) plans to raise an estimated Rs 2,500 crore from the public investors.

InterGlobe Aviation Limited, which runs the country's biggest airline by market share under 'IndiGo' brand, has offered to issue fresh shares worth Rs 1,272 crore, an equivalent amount can be raised through sale of up to 3.01 crore shares by its existing shareholders.

Online shopping portal Infibeam also approached Sebi to mop-up an estimated Rs 450 crore through an initial public offer, becoming the first e-commerce firm to tap the IPO route.

Joining the IPO bandwagon, staffing firm TeamLease Services has, too, approached Sebi with plans to raise an estimated Rs 450-500 crore through an IPO.

"We are exploring multiple options to facilitate the aggressive growth that we plan for the future," TeamLease Services Managing Director & C0-Founder Ashok Reddy said, while adding that "nothing specific (was) pinned down yet."

12:20 pm Market Expert on Greece: The situation is emotional and chaotic in Greece, and by next week the world will have a clear idea if Greece stays in Eurozone or not. Speaking to CNBC-TV18, Mark Matthews of Bank Julius Baer & Co says there is a strong chance that Greece will say Yes to July 5 referendum, and if that happens then much of the losses faced in the equity market can be recouped.

On his stand on India, Matthews says lack of reforms and poor earnings are not "good news" but the market has taken that in stride and decided to be patient. He advises investors to stay put in india for the long term

12:00 pm Market Check
The market continued too see buying interest, ignoring fears of Greece exit post default on IMF payment. Frontline indices surged more than half a percent each while the broader markets outperformed yet again.

The 30-share BSE Sensex rose 154.20 points to 27935.03 and the Nifty gained 54.40 points at 8422.90. The BSE Midcap and Smallcap indices rallied 1.2 percent each. Nearly three shares advanced for every share declining on the Bombay Stock Exchange.

Asian markets, too, shrugged off Grexit fears to trade higher. Shanghai, however, remained volatile as investors digested twin PMI data. The index fell 1.7 percent while Hang Seng, Nikkei and Kospi rose 0.5-1 percent. European markets are expected to open higher today despite the Greek default.

Greece has defaulted on its 1.6 bn euro repayment to International Monetary Fund and can't get further aid till dues are cleared. The country has asked for extension which will be considered today. The Greece government has asked European Union creditors for a new package.

Indraprastha Gas shot up 11 percent after the Supreme Court ruled in favour of the company in the 3-year old PNGRB case.

Maruti Suzuki hit a new high, up over a percent post June auto sales data. Eicher Motors surged 3 percent after posting a 48 percent rise in motorcycle sales for the month of June.

11:50 am Banks woes: The finance ministry is working on a comprehensive package to help state-run banks, which are saddled with huge bad loans, Minister of State for Finance Jayant Sinha said on Wednesday.

Rising bad loans at Indian banks over the past three years amid an economic slowdown has prevented banks from lending more, despite three interest rate cuts by the central bank this year totalling three-quarters of a percentage point.

This has affected the government's plan to spur a revival in credit to key sectors such as infrastructure.

11:30 am Market view: The fear over Greece is real though the fact remains it has very little influence. However, the worry remains of contagion, primarily with respect to Italy and Spain, both of which have fairly significant levels of debt, says Vetri Subramaniam, CIO of Religare Invesco mutual funds.. The real test is for the EU and the ECB who are expcted to put in place a firewall if Grexit happens. Given the situation, all asset classes across the world are expected to be impacted with equity markets getting the maximum jolt, says Subramaniam.

To soothe frayed nerves, he adds there are enough evidence to show that people trading for short term are at risk, but those with long term view can brush these events as a side story. "Investors have no option but to live with volatility," Subramaniam said adding Indian market is neither cheap not very expensive at current levels.

Bad news from Greece has no impact on Indian market as it is surging ahead with major support from capital goods, oil, metals, IT and pharma stocks. The Sensex is up 216.47 points or 0.8 percent at 27997.30. The Nifty is up 71.50 points or 0.8 percent at 8440. About 1651 shares have advanced, 542 shares declined, and 116 shares are unchanged.

Cipla, Bharti Airtel, Coal India, L&T and BHEL are top gainers in the Sensex. Among the losers are Hero and ITC.

Crude oil prices declined Rs 22 to Rs 3,799 per barrel in futures trading as participants trimmed their positions amid a weak trend in Asian trade. Analysts said the trading sentiment weakened after crude prices eased in Asian trading after Greece missed a 1.5-billion euro (USD 1.7-billion) payment to the International Monetary Fund.

The situation is emotional and chaotic in Greece, and by next week the world will have a clear idea if Greece stays in Eurozone or note. Speaking to CNBC-TV18, Mark Matthews of Bank Julius Baer & Co says there is a strong chance that Greece will say Yes to July 5 referendum, and if that happens then much of the losses faced in the equity market can be recouped.

On  his stand on India, Matthews says lack of reforms and poor earnings are not "good news" but the market has taken that in stride and decided to be patient. He advises investors to stay put in india for the long term.

10:58 am Market Update: The Sensex rose 208.30 points or 0.75 percent to 27989.13, and the Nifty gained 67.95 points or 0.81 percent at 8436.45. About 1622 shares have advanced, 533 shares declined, and 109 shares are unchanged on the BSE.

10:50 am Indraprastha Gas rallies: Supreme Court has dismissed the plea of Petroleum and Natural Gas Regulatory Board (PNGRB) against Indraprastha Gas today, saying PNGRB cannot set tariff for IGL.

Supreme Court has upheld the verdict of Delhi High Court in gas pricing case.

The scrip of Indraprastha Gas was quoting at Rs 465.70, up Rs 47.90, or 11.46 percent.

10:35 am Maruti hits new high: Maruti Suzuki sold 1,14,756 vehicles in June, a growth of 1.8 percent compared to 1,12,773 units sold in the same period last year.

Domestic sales of the car maker increased 1.6 percent year-on-year to 1,02,626 units and exports grew by 2.7 percent to 12,130 units in the month gone by.

Maruti said it finished the first quarter (April-June) with 3,41,329 units, a growth of 13.8 percent over the same period in the previous year.

10:20 am Puravankara Projects in News: Puravankara has entered into an agreement to sell for its 18 acre property located off Kanakapura Road, Bengaluru, said the company in its filing to the exchange.

This is a strategic transaction and coincides with our business and capital strategy of the group, it added.

The Bangalore-based real estate company has 24.01 million square feet of projects under development with additional 80.83 million square feet in projected development over the next few years.

10:00 am Market Check
The market gained strength after flat opening, led by technology, capital goods, banks and pharma stocks. The Sensex rose 143.92 points to 27924.75 and the Nifty climbed 47.05 points 8415.55.

The broader markets continued to be strong again. The BSE Midcap and Smallcap indices rallied 1 percent each again. The market breadth remained strong as about 1422 shares have advanced against 406 shares declined on the Bombay Stock Exchange.

Stating that correction in Indian equities were likely over, analyst Sandip Sabharwal said he expects the Nifty to reach 9,300-9,500 in the current calendar year.

"Government finances are improving. Interest rates are on the downtrend," he said. "All these factors will help the market."

Shares of L&T, Tata Motors, Lupin, Sun Pharma, Dr Reddy's Labs, Cipla, Coal India and Hindalco Industries gained more than 1 percent. However, Hero Motocorp, GAIL, NTPC and Wipro declined marginally.

9:50 am Market view: James Glassman, senior economist at JP Morgan thinks the markets are paying too much attention to the Greek issue and should instead focus on other growth stories. For example India has been showing good performance and FY16 is expected to be a good year for it. In the developed economies too the Central Banks are trying to speed up things, says Glassman.

He does not expect major volatility in global markets because of Greece defaulting on IMF debt. According to him there was never a fear of Greece exiting Eurozone since the Greek voters had always indicated that they wanted to remain in the European Union.

Talking about his expectations from Fed, he says the Federal Reserve is most likely to hike in September since most of the data from the US has been encouraging except GDP data. He thinks Fed would like to go about the hikes in a very gradual way and so the sooner they start the better it is.

9:40 am Market leaps: The Sensex is up 109.29 points or 0.4 percent at 27890.12, and the Nifty is up 35.95 points or 0.43at 8404.45. About 1187 shares have advanced, 322 shares declined, and 80 shares are unchanged.

Hindalco, Lupin, Vedanta, L&T and Coal India are top gainers while ITC, NTPC, Hero MotoCorp, M&M and Wipro are laggards in the Sensex.

9:30 am Macro-data: Despite all negative global sentiment, Indian market has some good macro-data to get support from. Growth in eight core sectors rose to 4.4 percent in May versus a decline of 0.4 percent in April. The growth has come in at a six-month high. The eight core sector industries include coal, crude oil, natural gas, refinery products, fertilizer, steel, cement and electricity. For the April-May period, output rose 2.1 percent against 4.7 percent year-on-year (YoY). Meanwhile, fiscal situation during April-May, 2015-16 showed some improvement over the corresponding period of last year as the deficit then was 45.3 percent of the Budget estimates. Fiscal deficit in the first two months of current fiscal stood at Rs 2.08 lakh crore or 37.5 percent of Budget estimates for 2015-16.

Boosted by some improvement in macro data, the market has opened with gains. The Sensex is up 61.79 points at 27842.62, and the Nifty is up 7.75 points at 8376.25.About 382 shares have advanced, 109 shares declined, and 74 shares are unchanged.

Sun Pharma, Tata Motors, Hindalco, ONGC and Coal India are top gainers while HUL, Dr Reddy's Labs, NTPC and HDFC twins are major laggards.

The Indian rupee has opened flat at 63.65 per dollar against previous day's closing value of 63.64 a dollar.

NS Venkatesh of IDBI Bank said, "The USD-INR pair ended on a positive note yesterday. We saw some dollar sales by the custodial banks and the month-end import demand was at a low."

The euro traded around 1.1 to the dollar as Greece defaults on a repayment to the IMF, but short-covering and uncertainty ahead of a key referendum caps losses.

Greece has defaulted on its 1.6 bn euro repayment to IMF and can't get further aid till dues are cleared. The country has asked for extension which will be considered on Wednesday. The Greece government has asked EU creditors for a new package.

Asia is holding with very slim gains but is reacting to lots of economic data. Nikkei is reacting to the release of a better-than-expected central bank survey.

China June official PMI came in at 50.2 which was inline with expectations.

US stocks recovered to end with mild gains as all eyes remain on Greece. For the first half of the year, the S&P 500 posts its smallest gain on record, up just 0.20 percent. The Dow was down about 1.1 percent and the Nasdaq outperformed with 5.3 percent gains.

Brent crude prices gained 2 percent yesterday. It is currently above USD 63 per barrel. Meanwhile Iran and six world powers give themselves an extra week to reach a final nuclear accord.

US President Barack Obama says the country is prepared to walk away from a deal unless Iran accepts tight monitoring.