Sensex recovers on monsoon forecast, ends above 16000

Investors awaiting divine intervention as they saw their wealth erode all through the month of May finally had something to cheer for.   

India's monsoon rains are likely to hit the southern Kerala coast in two days, a top weather official said on Monday, easing concerns about the onset delay threatening plantings of summer crops such as rice, soybean and cotton in the farm-dependent economy.

The positive news helped the benchmark indices get back on their feet to end the day flat, after being down nearly 1% for the better part of the day.

The Sensex closed at 15988.40 up 23.24 points or 0.15% and the Nifty at 4848.15 up 6.55 points or 0.14%.

The breadth of the market improved on late recovery. About 1231 shares advanced, 1425 shares declined, and 768 shares remain unchanged.

Rate sensitive stocks also led the recovery after Deputy Governor Subir Gokarn hints that the Reserve Bank of India has some room to reduce policy rates following moderate core inflation and soft global oil prices. Bank Nifty rebounds close to 3% from its intraday low.

In the largecap space, Jaiprakash Associates, Larsen, ONGC, Bank of Baroda and BPCL were top gainers. Tata Power, GAIL, Jindal Steel, Cairn India and Asian Paints ended with hefty losses.

Agri Stocks in Demand

Fertiliser manufacturing companies like RCF, National Fertilisers and Zuari Industries closed with handsome gains ahead of arrival of the monsoon season, which will boost demand for fertilizers.

Breather for Aviation Stocks

Aviation stocks took off today after the civil aviation ministry proposed to slash state taxes on jet fuel, which may significantly bring down costs for ailing local airlines that are reeling under a debt load of $20 billion and annual losses of $2 billion. Softening crude prices will also revive hopes of another cut in ATF prices.

Warburg Pincus-Future Capital Holding Deal Finally!

Warburg Pincus will buy 53.67% stake in Future Capital Holding (FCH) from the group in two tranches. According to the deal, Warburg Pincus will buy minimum 40% stake in FCH from the Future Group and will infuse Rs 100 crore.

Top News of the Day

India's second largest two-wheeler maker Bajaj Auto 's sales in May declined 2% year-on-year to 3,52,219 units as commercial vehicle sales tumbled and exports to Sri Lanka continued to be hit.

Ambuja and Ultratech Cement report improved performance. Ambuja Cement posted 11.9% growth in their dispatches to 19.35 lakh tonnes and Ultratech registered 10.6% growth in dispatched at 35.87 lakh tonnes. ACC registered 3% growth in its dispatches to 20.5 lakh tonnes.

DLF hits fresh 52-week low triggered by weak Q4 results the company announced on Friday.

Mahindra Satyam gains after the company launched its Oracle Campus Solution offering on Cloud for higher education institutions in Malaysia.

Man Industries India bagged new orders worth approximately Rs 800 crore for supply of large dia meter pipes for oil and gas sector.

Jubilant Foodworks lost 7% today. JP Morgan has an underweight rating on the stock with a target of Rs 995.

JK Paper surged 2% on reports of company to pick up equity stake in Myanmar pulp mill.