BSE Sensex ends over 350 ahead of RBI credit policy review

3:45 pm Fitch ups rating outlook of 10 India financial institutions to stable. The rating agency improves rating outlook of SBI , Bank of Baroda , PNB , ICICI, Canara Bank , Axis Bank , IDBI Bank among others.

3:40 pm Midcap gainers: Jet Airways and United Bank are lead midcap gainers on Friday.

3:30 pm Market closing data: The Sensex ends up 352.62 points at 19179.78, and the Nifty is up 109.30 points at 5808.40 (provisional).

3:20 pm: First quarter advance tax numbers start trickling in. According to CNBC-TV18's sources ICICI Bank is likely to pay Rs 600 crore versus Rs 500 crore year-on-year, while HDFC Bank could pay Rs 625 crore. Kotak Mahindra Bank may pay Rs 110 crore versus Rs 75 crore.

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The market manages to hold up its gains just before wrapping up trade for the week. The Sensex is up 367.12 points at 19194.28 while the Nifty is up 114.95 points at 5814.05.

Hindalco , Tata Motors , Maruti Suzuki, Tata Power , Larsen are the top gainers in the Sensex. Smart gains has come from the midcap index too. Titan, Future Retail and Yes Bank are some of the key gainers from the space.

Tata Motors is strong in trade today after JLR's May retail sales came in better than estimated. Total sales grew 14 percent month-on-month with a strong performance by Jaguar. However, for the third month in a row China growth has been sub-par at 11 percent. The more closely tracked wholesale sales will be released today.

02:55pm State-owned State Trading Corporation of India ( STC India ) tanked another 12 percent after a 20 percent fall in previous session.

BSE Sensex gained 360 points and the Nifty climbed above 5800 on short covering. Even Indian rupee appreciated 46 paise to 57.52 per dollar.

Auto, Realty, Oil & Gas, Metal, Power, Capital Goods and Bankex rallied between 2 percent and 3 percent.

02:45pm Equity benchmarks surged further to 2 percent on broadbased buying, but the gains in broader markets look capped.

BSE Sensex rallied 361 points to 19188.16 and NSE Nifty rose by 116 points to 5,815.20 while BSE Midcap gained 1.2 percent and Smallcap soared 0.9 percent.

Advancing shares outpaced declining ones by 1361 to 847 on the Bombay Stock Exchange.

United Spirits rose 1.2 percent amid large volumes; 26 lakh shares changed hands on the Bombay Stock Exchange.

02:35pm Apollo Tyres shares plunged another 7 percent on top of a 26 percent fall seen in previous session, after the company decided to acquire US-based Cooper Tire for Rs 14,500 crore.

Aluminium major Hindalco Industries and commercial vehicle maker topped the buying list among largecaps, rising 5-6 percent on short covering.

Shares of Reliance Infrastructure , Jaiprakash Associates , Tata Power and Maruti Suzuki rallied 4-4.5 percent. However, Wipro trimmed losses to 0.8 percent from 2 percent.

02:25pm Indian stocks are quite strong today as NSE Nifty surpassed the 5800 level quite nicely on short covering across sectors.

The Sensex is up 323.68 points or 1.72 percent at 19150.84, and the Nifty is up 102.90 points or 1.81 percent at 5802.

Bank Nifty jumped 246 points ahead of RBI policy that will be scheduled on Monday. Country's largest private sector lender ICICI Bank surged 3 percent while its rivals State Bank of India and HDFC Bank gained 1.9 percent and 1.4 percent, respectively.

Indian rupee appreciated further to 57.52 per dollar, up 46 paise over previous closing value of 57.98 per dollar.

European markets too gained further, rising 0.4-0.8 percent.

02:15pm The buying spree continues in Indian equities on the back of short covering in Reliance Industries and ICICI Bank. Especially rate sensitives are on buyers' radar ahead of RBI's monetary policy meeting that will scheduled on Monday.

The Sensex is up 303.18 points or 1.61 percent at 19130.34, and the Nifty is up 95.30 points or 1.67 percent at 5794.40.

After the fall in inflation to 4.7 percent in May as against 5.65 percent in previous month, some experts expect some rate cut on June 17 while some say no due to depreciation in rupee.

Jyotinder Kaur, Economist at HDFC Bank feels the RBI will have to think twice about the timing of the policy cuts going ahead.

"It is the currency strain that the RBI will be focusing on. The macro conditions are for gradual policy easing, but this review comes at a time when the rupee has depreciated quite sharply and is at a very precarious stage. So, the RBI will have to think twice about the timing of the policy cuts going ahead," Kaur says.

1:40 pm Rupee view: Goldman Sachs cut its three- and six-month forecasts for the rupee to 58 per dollar each, citing the sell-off in emerging market currencies and the country's relatively high current account deficit levels. Goldman had previously forecast the rupee would hit 55 in three months and 53 in six months against the dollar. The investment bank has also revised its 12-month forecast to 56 per dollar from 52 earlier.

The rupee has declined sharply since the start of May, hitting a record low of 58.98 on Tuesday.

1:30 pm Brokerage take: Ambit has a sell rating on Reliance Industries (SELL) as  Niko Resources has increased KG D6 gas reserves estimate by 100 percent based on independent consultant reserve evaluation report. ''Hence, with this revision, Niko's reserve estimate is likely to be aligned to RIL 's estimate. We are already factoring in the reserves disclosed by RIL. Nikos' upgrade is only sentimentally positive for RIL and does not impact RIL's earnings and valuations,'' it says in a report.

1:20 pm Expert talk:

The Reserve Bank of India (RBI) should pull up banks for not passing on the rate cut benefits to consumers, says Ajay Srivastava, CEO of Dimensions Consulting. Despite repeated complaints from the industry banks have been reluctant to pass on the benefit of rate cut to corporates and retail borrowers.

They (banks) had a huge CRR cut. But there is no pass back of the CRR benefit. There is no pass back of the rate cut benefit. That's what I want to see in the RBI statement. Is there a cartelization by the banks to say that they will not reduce the rates?" Srivastava told CNBC-TV18 in an interview.

Srivastava does not buy banks' argument for not cutting rates on high fixed deposit rates. "They (banks) have the highest NI in the world today at 4 percent plus. They cannot argue that the margins are low. The margins are very high," he says.

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The market has stayed firm in afternoon trade. The Sensex is up 294.21 points at 19096.44, and the Nifty adds 93 points to be at 5792.

Inflation eases to 43-month low, comes in 4.7 percent for May compared to 4.89 percent in April. Core inflation too decelerates further to 2.4 percent vs 2.8 percent in April whilst WPI for March was revised higher to 5.65 percent vs 5.96 percent.

The rupee recovers on lower than estimate inflation and is currently at 57.65 per dollar.

12:59pm Dabur India dropped 3 percent after the USFDA issued import alert on two plants of the company.

Indian rupee appreciated further to 57.59, up by 39 paise as compared to 57.98 seen on closing basis in previous session.

Indian equities extended rally to around 1.5 percent, led by further upmove in Reliance Industries that gained 2.5 percent.

BSE Sensex is up 278.47 points at 19105.63, and the Nifty is up 90.70 points at 5789.80.

The Department of Telecommuniation (DoT) will not allow licence renewal for 900 mhz spectrum, reports cogencis, quoting DoT sources.

12:55pm Oberoi Realty rose by 3.3 percent following a rally in realty index that more than 2 percent. 3.5 lakh equity shares changed hands at Rs 211 a piece on National Stock Exchange.

Siti Cable gained 1.5 percent amid large volumes as more than 9.9 lakh equity shares changed hands at Rs 24 a piece on Bombay Stock Exchange.

India Infoline soared 3.5 percent amid high volumes on block deal worth Rs 8.4 crore. More than 14 lakh shares changed hands at Rs 60 a piece on the NSE.

12:45pm Oil Minister M Veerappa Moily says the government may go for another round of tender for ethanol buys. He further says oil retailers are worst hit by rupee fall and current revenue loss on diesel is at Rs 5.5 per litre.

ILandFS Transportation slipped more than 2 percent on profit booking; Five lakh shares changed hands at Rs 175 a piece on National Stock Exchange.

12:35pm European markets opened marginall higher Friday, tracking positive US cues, but investors remain cautious ahead of Federal Reserve policy meeting next week.

BSE Sensex is up 242.96 points or 1.29 percent at 19070.12, and the Nifty is up 79.70 points or 1.40 percent at 5778.80.

Advancing shares outpaced declining ones by 1302 to 746 on the Bombay Stock Exchange.

12:25pm Maruti Suzuki rose by 3.7 percent and Tata Motors surged more than 4 percent on hopes of rate cut after easing inflation.

Aluminium major Hindalco Industries rallied another 4 percent on top of a 5 percent rally seen in previous session.

The broader markets too are following the benchmarks. BSE Midcap Index is up 1.1 percent and Smallcap gained 0.85 percent.

Among midcaps, Jet Airways , Jindal Saw, Tata Coffee, Jaypee Infra and Educomp Solutions jumped 5-6 percent.

12:15pm Equity benchmarks stayed strong in afternoon trade after sharp fall in inflation. BSE Sensex is up 241.17 points or 1.28 percent at 19068.33, and the Nifty is up 82.40 points or 1.45 percent at 5781.50.

WPI inflation dropped to 4.7 percent in May as against 5.65 percent reported in previous month, raising hopes for rate cut on Monday.

The Reserve Bank of India will announce its monetary policy on June 17.

BSE Bankex rallied 1.7 percent while Auto and Realty indices gained 2.5 percent.

11:50 am Management talk: State Bank of India Managing Director Diwakar Gupta Friday rejected the growing perception that banks were profiting from deliberately not passing on the cuts in repo and cash reserve ratio (CRR) rates to customers.

Finance Minister P Chidambaram on Thursday said that banks were "cautious" in passing on the rate cuts by the RBI, and that he would personally speak to the bank chiefs on this issue.

"It is not cartelisation or a wilful action on the part of banks not to pass cuts," Gupta said in an interview to CNBC-TV18.

11:40 am: Walmart says approved Ranbaxy products are safe and effective, reports agencies. The stock is flat.

11: 35 am: Citi has has a sell rating on IndusInd Bank with a target price of Rs 455. The bank merits a valuation premium, in our view, given its growth prospects, franchise, and management qualit, says Citi in a note. The brokerage feels  stronger execution, gains from falling rates and sustained business momentum.

11:30 am: Auto and realty stocks are holding up the indices.

11:20 am Expert views:

The rally in global emerging markets in general is in its final stages, and while there could be some brief pullbacks, the broad trend is downward, warns Shankar Sharma of First Global.

"The US was the market that was making global equity markets by and large look good but when a single market becomes the cheer leader for what is otherwise a very dismal global macro scenario then that almost always ends badly," said Sharma in an interview to CNBC-TV18.

Sharma said equity investors in India had a good opportunity to exit their positions in April. That is because while benchmark indices were rallying, market internals were bad and the rupee had already begun to weaken.

He said that mid-caps were already beaten down to the point from wheer they were unlikely to fall further. Given that many of them had been reduced to penny stocks, even small gains would look large in percentage terms. However, that meant nothing, he said.

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It is good Friday for the market. Rate sensitives, commodities and capital goods lead the upmove. The Sensex is up 226.79 points at 19053.95 and the Nifty adds 69.65 points at 5768.75. About 1165 shares have advanced, 500 shares declined, and 164 shares are unchanged.

Nikkei rebounds 3 percent after Thursday's 6.4 percent cut as dollar-yen was recently at 94.90, after falling below 94 yesterday. Other Asian markets like Hang Seng is also up 1 percent. China however is subdued.

In commodities, brent is at three-week high of USD 105 and gold down 1 percent at USD 1377 per ounce on lowering appeal of asset as inflation hedge

In currencies, dollar index little changed at 80.66 and euro rises further to 1.3356.

Indian government bonds are marginally higher following the recovery in the rupee but markets are cautious ahead of the inflation data due a little before noon.

10:55am National Fertilisers gained 1.6 percent after the government sources say the divestment plan will be sent to the Cabinet next week.

MMTC is locked at 10 percent lower circuit again today, the government garnered over Rs 567 crore at Rs 60 a share via offer for sale that oversubscribed 1.33 times in previous session. The issue saw 65 percent participation from insurance companies and the rest from banks and retail.

Apollo Hospitals rose by 3 percent, after the group said that they will spend Rs 2,200 crore on expanding its facilities and will add 2,700 beds in the next three years. Apollo will be spending part of this on expanding the facility in Mumbai and opening Apollo Clinics there. Of the planned outlay, Apollo will spend about Rs 800-Rs 1,000 crore in the next 12 months.

Ambuja Cements soared 1.3 percent, after CLSA upgraded the stock to buy with a target price of Rs 205.

Meanwhile, BSE Sensex is up 220.52 points at 19047.68, and the Nifty is up 69.50 points at 5768.60. Nearly 3 shares advanced for every share declining on the National Stock Exchange.

10:50am Apollo Tyres slipped another 0.7 percent Friday on top of 26 percent fall in previous session, after it decided to acquire US-based Cooper Tire for Rs 14,500 crore on Wednesday. Brokerage house UBS has downgraded the stock to sell from buy and has halved its target price to Rs 60 as against Rs 120 earlier based on EV/EBITDA of 4.1Xfy14e EBITDA of USD 823 million.

"While there are long term benefits of large scale presence in US/China markets and USD 100-120 million cost synergies, scenario analysis suggests significant earnings volatility on margins due to debt. Hence, the stock discount to peer group could widen over medium term given these uncertainties," UBS report said.

Kotak also downgraded the stock to reduce from buy with a revised target price of Rs 64 (Rs 110 earlier). "Given high the leverage, EPS estimates for the consolidated entity would be highly volatile. Hence, we value the existing operations at 0.8X one-year forward book value and attach zero equity value to the Cooper acquisition," Kotak in its report said.

10:40am BSE Sensex is up 235.93 points or 1.25 percent at 19063.09, and the Nifty is up 75.10 points or 1.32 percent at 5774.20.

Country's largest private air carrier Jet Airways gained nearly 6 percent ahead of FIPB meet today that will consider Jet-Etihad deal. The company appointed Gary Kenneth Toomey as its new CEO on Thursday.

At a time when there are repeated news flow of foreign instituitional investors (FIIs) pulling out capital from the Indian equity market, Tushar Pradhan, chief investment officer, HSBC says the market continues to be fairly attractive on a comparative basis. He says the outflows are on expected lines and are in a bottoming out phase .

10:25am Tata Coffee surged 6.55 percent after a slide of 29.5 percent in previous five consecutive sessions. Sharad Shah sold 1.08 lakh shares (a part of 3.76 percent stake) at Rs 892 a share and Kotak Mahindra prime (which was holding 2.73 percent stake as of March 2013) offloaded 3 lakh shares at Rs 880 on Thursday.

Meanwhile, Reliance MF purchased 1 lakh shares at Rs 880.

Tata Motors rallied 3.5 percent, after its subsidiary Jaguar Land Rover said its retail sales rose by 12 percent Y-o-Y to 32,477 units in May units mainly driven by Jaguar sales.

Jaguar sales were up 36 percent due to launch of new Jaguar f-Type and strong growth in XF model. However, Land Rover growth at 8 percent lagged expectations. Also, the important point to note is that for the third month in a row China growth has been sub-par at 11 percent Y-o-Y . Year-to-date growth in China is only 10.5 percent compared to expectations of 25-30 percent.

10:15am Short covering and positive global cues pushed Indian equities more than one percent higher in morning trade Friday. BSE Sensex is up 241.69 points at 19068.85, and the Nifty is up 76.05 points at 5775.15.

Advancing shares outnumbered declining ones by 988 to 346 on the Bombay Stock Exchange.

Asian markets recovered from multi-month lows following a rebound in US markets on the back of upbeat economic data. But investors remained cautious ahead Federal Reserve policy meeting that will be scheduled next week.

Back home, short covering continues in most beaten down stocks like financials, auto, metals and oil & gas.

Indian rupee appreciated by 18 paise to 57.79 per dollar as against 57.98. Shankar Sharma of First Global says extent of fall in rupee will be less than equity fall.

"We could see 10-20 percent downside in equity markets," Sharma added.

10 am Market update: The Sensex is up 206.36 points at 19033.52, and the Nifty is up 63.10 points to 5762.20. Tata Motors (up 3.2 percent) is lead gainer in the Sensex followed by HDFC (up 2.6 percent), Tata Steel (up 2.5 percent), Tata Power and Hindalco .

9:50 am Alert: Government has released procurement norms for telecom and IT equipments. The norms will apply to all government purchases from private sector and 100 percent govt funded projects. There will be separate policy for security related needs. Foreign suppliers of telecom and IT products must comply with norms, the norms say.

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9:40 am: Tata Coffee is quoting at Rs 1,106.10, up Rs 76.65, or 7.45 percent. Sharad Shah sells 1.08 lakh shares at Rs 892, Kotak Mahindra prime sells 3 lakh shares at Rs 880 while Reliance MF buys 1 lakh shares at Rs 880.

9:35 am Buzzing: Jet Airways is up around 5 percent as the Foreign Investment Promotion Board (FIPB) is likely to decide on the Rs 2,058 crore Jet-Etihad deal today.

9.27 am Market update: The Sensex is up 193.47 points at 19020.63, and the Nifty is up 61.70 points at 5760.80.

9:20 am Losers: Wipro is down over 1 percent as its has been slapped with an over Rs 816 crore claim by tax department, becoming the latest IT company to have got such a notice after Infosys , WNS and iGate.

The Bangalore-headquartered company said the "draft assessment order" from tax authorities for 2008-09 fiscal has arised primarily due to denial of deduction under section 10A of the Income Tax Act, 1961, in respect of profit earned by its undertaking in the Software Technology Park (STP) at Bangalore.

Check out what Udayan Mukherjee says about the market?

After a long time, the market has added gains in the opening. The Sensex is up 163.91 points at 18991.07 while the Nifty is up 49.85 points to at 5748.95. About 325 shares have advanced, 57 shares declined, and 20 shares are unchanged.

Jindal Steel , Tata Motors, Tata Power, HDFC and Tata Steel are early gainers in the Sensex.

Indian rupee recovered in early trade Friday, rising 23 paise to open at 57.75 per dollar as against previous day's closing of 57.98 per dollar.

A CNBC-TV18 poll sees the May wholesale inflation largely unchanged at 4.8 percent versus 4.89 percent. Food inflation is seen coming higher, but core inflation could fall to 2.3-2.6 percent.

On the global market front, the US markets ended near session highs with over 1 percent gains lifted by a pair of better-than-expected economic data. What also boosted the stocks was a Wall Street Journal report that stated that an adjustment in the Federal Reserve's bond-buying program did not mean that the central bank would end "all at once" or that the Fed was "anywhere near raising short-term interest rates." the CBOE volatility index tumbled near 16.

The Dow Jones soared 180.85 points, or 1.21 percent, to finish at 15,176.08. The S&P 500 jumped 23.84 points, or 1.48 percent, to close at 1,636.36. And the Nasdaq rallied 44.94 points, or 1.32 percent, to end at 3,445.37.

The weekly jobless claims declined to 334,000 last week falling near the lowest level in nearly five years, retail sales, however, climbed 0.6 percent in May.

Tokyo rebounded strongly on the back of US gains. Rising retail-sales data helped weaken the yen and lift exporters from Thursday's steep losses. Several exporters gained with the dollar firmly back above 95 to the yen after dipping under 94 on Thursday . The MSCI Asia Pacific index also rose 1% yesterday

In the currency space, the  dollar continues to remain under pressure while the euro is still above 1.33 to the dollar. The dollar index stayed below the 81 mark. Meanwhile, the dollar yen is below the 95 level.

In commodities, Brent Crude is above 104 dollars per barrel. From the precious metals space, gold is hovering around 1385 dollars an ounce.