BSE Sensex logs 490 pts gain; Nifty scores 150

Equity benchmarks logged their biggest single day gain in 28 months, as India joined the ongoing party in emerging markets.

The Sensex jumped 490 points to close at 20212.96, after touching a 28-month high of 20241.96 intra-day. The Nifty touched a 28-month high of 6157.10 intra-day before settling at 6146.75, up 151 points over the previous close.

Interest rate sensitive sectors like realty, banking, capital goods and auto led the powerful rally, as foreign investors chased risk assets across the globe. All BSE sectoral indices ended in green.

Bank Nifty closed at highest levels since November 2010. All 12 banking stocks comprising the Bank Nifty closed between 2 to 7 percent gains.

Shares of IT companies failed to participate in today's rally on concerns of visa.

Some experts cautioned that this was purely a liquidity-driven rally and was susceptible to a reversal in case flows suddenly reversed.

"Unless things materially improve on earnings, we will see probably just a liquidity-driven rally, which will look for profit booking opportunities at any point in time,'' Tirthankar Patnaik of Religare Capital Markets said in an interview to CNBC-TV18.

''If you see overall, this is not an India-specific story. This is an emerging market story and the capital flows have gone to all markets,'' he said.

The steady decline in wholesale and consumer price indices has raised hopes of a further reduction in interest rates when the RBI reviews its monetary policy in June.

Punjab National Bank, HDFC, DLF, IndusInd Bank, Reliance Infra, M&M, SBI and ICICI Bank were the big gainers in the Nifty, rising between 3 to 7 percent.

Only 3 stocks in the Nifty 50 ended in red. Power Grid Corp, Cairn India and UltraTech Cement closed marginally in red.

The most active shares on NSE were SBI, HDFC, ICICI Bank, United Spirits and ITC.

Heavyweights like HDFC, Bajaj Finance, HDFC Bank, Kotak Mahindra Bank, Lupin, MRF, Mahindra & Mahindra, Glaxosmithkline Consumer, Eicher Motors, Zee Entertainment, Apollo Hospitals, IPCA Labs, Indusind Bank, Glenmark Pharma, Maruti Suzuki, Reliance Communications, Maruti Suzuki and Yes Bank closed at fresh year highs today.

03:29 pm Top gainers in the BSE Smallcap: Essar Shipping (Rs 24.15, 19.85%), Madhucon Projects (Rs 28.00, 16.67%), Marathon Nextgen (Rs 149.00, 16.41%), S Mobility (Rs 35.00, 13.64%), Vikas WSP (Rs 32.95, 13.62%)

Alert: The Reserve Bank of India will sell 10-20 billion rupees of inflation-indexed bonds on June 4, kickstarting monthly sales of a new type of debt the country is introducing this year.

03:21 pm: Bank Nifty up 500 pts at 13086.60, hits 30-month high

03:20 pm Sensex up 500 pts: The Sensex is up 500.41 points or 2.54% at 20222.70, and the Nifty up 157.40 points or 2.63% at 6152.80. About 1448 shares advanced, 971 shares declined, and 166 shares are unchanged.

03:19 pm: Tata Motors April JLR sales down month on month

-April global JLR wholesales at 28,874 versus 42,682 units (M-o-M)
-April group global wholesales at 81,241 compared to 1.16 Lakh Units (MoM)

03: 16 pm: Udayan Mukherjee's quote on today's rally: "The extent of rally certainly has been surprising. Rate sensitives have come back in a big way today. The WPI numbers yesterday and the fall in the bond yields overnight and this morning has taken the sting out of the Current Account Deficit (CAD) or the trade deficit surprise which led the market down on Monday.

03:11 pm: Index heavyweight Reliance was trading at Rs 818.80 up 2.65% from its previous close of Rs 797.70. Cigarette major ITC was trading at Rs 342.05 up 1.83% from its previous close of Rs 335.90.

03:09 pm  Losers: Laggards included Power Grid (Rs 113.90, 0.39%), Cairn India (Rs 295.55, 0.3%), HCL Tech (Rs 745.00, 0.01%)

03:06 pm Gainers: Key gainers in the Nifty were PNB (Rs 819.30, 6.99%), DLF (Rs 242.40, 5.28%), Kotak Mahindra Bank (Rs 767.00, 5.08%), IndusInd Bank (Rs 512.60, 4.55%), HDFC (Rs 910.30, 4.53%)

It was a party across Dalal Street. The Nifty saw a triple digit rally to 28-month highs above 6100. The Sensex too clocked nearly 400 points gain cruising comfortably above 20100. Banks were the big star in trade today. The Bank Nifty was up nearly 3 percent led by names like PNB (up 6.6 percent) and SBI (up 3.5 percent).

The mid and small caps too are buzzing.

At 14.56 hrs IST, the Sensex is up 447.72 points or 2.27% at 20170.01, and the Nifty up 138.45 points or 2.31% at 6133.85. About 1406 shares have advanced, 928 shares declined, and 160 shares are unchanged.

IRB Infrastructure Developers has gained 5.6 percent. The company has approved raising of funds by issue of Redeemable Non Convertible Debt Securities (including senior debt securities or subordinate debt securities) up to Rs 500 crore in one or more tranches on private placement basis.

2:50 pm Market Levels: The Sensex was up 444.19 points or 2.25 percent at 20166.48, and the Nifty up 135.65 points or 2.26 percent at 6131.05.

2:45 pm Buzzing Now: IRB Infrastructure Developers has gained 6.1 percent. The company has approved raising of funds by issue of Redeemable Non Convertible Debt Securities (including senior debt securities or subordinate debt securities) up to Rs 500 crore in one or more tranches on private placement basis.

2:45 pm Key Gainers: HDFC (4.74 percent), M&M (4.09 percent), ICICI Bank (4 percent), L&T (up 3.61 percent) and SBI (up 3.53 percent) are major gainers in the Sensex.

2:40 pm Global data watch: Eurozone Q1 GDP down 0.2% (QoQ), down 1%   (YoY)

France: April CPI Down 0.1% (MoM), Up 0.7% (YoY)

Germany: Q1 GDP up 0.1% (QoQ); down 0.2% (YoY)

2:35 pm: Century Textiles gains 2 percent after the company reported a profit of Rs 18 crore in March quarter versus a loss of Rs 24 crore year-on-year. There has been a tax write back of Rs 17 crore.

2:30 pm Market levels: The Sensex is up 468.30 points or 2.37 percent at 20190.59, and the Nifty gains 146.40 points or 2.44 percent at 6141.80. About 1418 shares have advanced, 912 shares declined, and 157 shares are unchanged.

2:20 pm Big stars: Banks are the big star in trade today. The Bank Nifty is at 13045.62, up 462 points or 3.67 percent. It is led by largecap winners like PNB and SBI. Union Bank, Canara Bank and UCO Bank are some of the midcap gainers.

02:15 pm Expert take: Tirthankar Patnaik of Religare Capital Markets says the spectacular market rally is clearly on the back of heightened expectations of further easing by the central bank going forward. However, he says unless there is a revival in the economy, this is likely to end up just as a purely valuation-driven rally. "Unless things materially improve on earnings, we will see probably just a valuation-driven rally, which will look for profit booking opportunities at any point in time," he told CNBC-TV18.

02.10 pm: The Sensex was up 457.22 points or 2.32 percent at 20179.51, and the Nifty up 140.95 points or 2.35 percent at 6136.35. About 1346 shares have advanced, 895 shares declined, and 157 shares are unchanged.

Key equity benchmarks resumed their bull run and surged over 2 percent on Wednesday and touched a fresh 28-month high. Brokers attribute today's rally to heavy buying of Indian shares by ETF funds.  The Nifty has rallied more than 12 percent in last one month.

Japan's Nikkei also touched fresh 5 ½ year high on weakness in its local currency yen.

The Sensex was up 396.46 points or 2.01% at 20118.75, and the Nifty was up 123.95 points or 2.07% at 6119.35. About 1357 shares advanced, 885 shares declined, and 149 shares were unchanged.

Key gainers in the Nifty were PNB, HDFC, DLF, Reliance Infra and IDFC, up between 4 to 7 percent.

Laggards included UltraTech Cement, Cairn India, HCL Tech, Power Grid and Ambuja Cements.

Earnings Corner: Bajaj Finance Q4 net profit at Rs 163.8 crore compared to Rs 108.3 crore, a year ago. Total income at Rs 832.3 crore against Rs 618.9 crore, Y-o-Y.

01:45 pm Top percentage gainers on the NSE: Wanbury (Rs 26.45, 19.95%), Essar Shipping (Rs 23.00, 15.58%), TIL (Rs 178.15, 13.72%), Ramky Infra (Rs 74.30, 12.92%), Alembic (Rs 20.90, 11.47%)

01: 37 pm Volume Shockers: Tube Investments (Rs 159.95, volumes up 6255 percent over average volume), Jagran Prakashan (Rs 92, volumes up 3753 percent)

Nectar Life (Rs 17.25, volumes up 2011 percent),  Rajesh Exports (Rs 119.45, volumes up 1352 percent), City Union Bank (Rs 55.05, volumes up 1103 percent)

01:30 pm Sectoral Gainers: S&P BSE BANKEX (14,825.59, up 430.52  or 2.90%), S&P BSE Capital Goods (9,979.98, up 231.88 or 2.32%).

S&P BSE Oil and Gas (8,864.13, up 147.28 or 1.66%), S&P BSE Metals (8,756.32, up 145.98 or 1.67%), S&P BSE Auto (11,295.72, up 280.52  or 2.48%)

01:25 pm Broader markets - S&P BSE Smallcap (6,169.24, up 52.57 or 0.85%), S&P BSE Midcap (6,551.21, up 88.90 or 1.36%)

01:20 pm Key gainers in the BSE Midcap: UCO Bank (Rs 81.25, 8.33%), Eicher Motors (Rs 3,450.00, 5.73%), (Anant Raj Rs 70.75, 5.52%), Indiabulls Real (Rs 79.45, 5.09%) DB Realty (Rs 75.65, 5.07%)

01:18 pm Wipro is the only loser among BSE Sensex 30 stocks.

01:16 pm Top gainers on the Sensex: HDFC (Rs 907.50, 4.44%), Mahindra and Mahindra (Rs 986.00, 3.74%), SBI (Rs 2,368.30, 3.36%), Larsen (Rs 1,570.50, 3.21%) and Hindalco (Rs 108.50, 2.94%)

01:08 pm F&O Action - Most Active Stock Calls: SBIN May 2400 Call (Rs 46.70), DLF May 240 Call (Rs 8.40), RCOM May 120 Call (Rs 4.10), Reliance May 820 Call (Rs 15.65)

01:03 pm Last Time Nifty closed above 6100 was on 4th Jan 2011.

Indices are holding on to their gains, as bulls are in no mood to loosen their grip on the market. Buyers now are turning their attention to second line shares, which are now looking undervalued relative to their large cap counterparts. GMR Infra, UCO Bank, L&T Finance Holdings, Eicher Motors and IPCA Lab are among the key gainers at this hour, up between 5-8 percent.

The Sensex soared 401.96 points to 20124.25, and the Nifty was at 6119.05, up 123.65 points.

Bulls did take a hammering on Monday, but according to Vineet Bhatnagar of Phillip Capital, it does not indicate a reversal of the recent uptrend.

United Breweries shares are off the day's high of Rs 788, but still going strong at Rs 770, up 4 percent over their previous close.

With inflation easing, investors seem to have taken for granted another 25-basis cut in repo rates when the RBI reviews its monetary policy in June. Will the central bank be generous enough as to surprise the market with a 50 basis point-cut?

Here is what Kotak Securities has to say that:

''While it would remain the endeavor of the RBI to support growth and aim to reduce the negative output gap through its monetary-policy easing, it is still not time for the RBI to move away from its cautious communication to the market. With inflation likely to turn from September with a waning base effect, the RBI will desist from a 50 bps repo easing, at one go.''

12:58 pm The Sensex was up 407.58 points or 2.07% at 20129.87 and the Nifty was up 127.60 points or 2.13% at 6123.00.

12: 56 pm Market breadth positive: About 1339 shares advanced, 814 shares declined, and 142 shares were unchanged.

12:48 pm Only Buyers: Nectar Lifescience, Todays Writing, Elder Pharma, VTX Industries, Somi Conveyor, JMT Auto locked at upper circuits.

12: 35 pm F&O Action: Nifty May futures at 6128, up 122 points, premium of 14 points with respect to Nifty spot price.

Most Active Nifty Calls: Nifty 6100 Call (Rs 100.10, Open Interest up 13.66%), Nifty 6200 Call (Rs 52.25, Open Interest up 5.07%), Nifty 6300 Call (Rs 23.20, Open Interest up 7.30%)

Most Active Nifty Puts: Nifty 6000 Put (Rs 43.05, Open Interest up 22.61%), Nifty 6100 Put (Rs 73.65, Open Interest up 84.08%), Nifty 5800 Put (Rs 13.40, Open Interest up 3.84%)

12:31 pm Europe opens lower. DAX, CAC, FTSE down between 0.15-0.4 percent.

12:25 pm All BSE Sensex 30 stocks are trading in green

12:22 pm News Flash: Darashaw says 6138 key for Nifty; banks at selling point

12:20 pm Bonds check Government bonds continued their rally on hopes of a rate cut after lower than expected inflation number. The yield on the 10 year bond which fell from 7.57 percent to 7.47 percent yesterday, fell further to 7.4 percent today

12:17 pm Banking stocks are big winners in trade today. The Bank Nifty rallied nearly 2.5 percent led by PSU large caps like PNB, SBI. Union Bank, Uco Bank & Canara Bank are some of the stars in the midcap space.

12:15 pm Intraday block deals: Big-ticket deals were seen in heavyweights like TCS, Cairn India, Hero Motocorp, Jaiprakash Power, Wipro, Idea Cellular, HCL Tech

It was a big rally for the Indian market. The Nifty hit a 28-month high above 6100. The Sensex too clocked nearly 400-point gains to trade above 20,100. The Sensex was up 397.75 points at 20120.04, and the Nifty gained 120.35 points to be at 6115.75.

HDFC, M&M, SBI, Hindalco and L&T gainers in the Sensex.

The rupee is growing stronger on the back of the strength showing in Asian and Indian equities and currencies. Sale of dollars by a foreign bank lend strength to the view that foreign funds are bringing more inflows.

11:55 am News Flash - Heineken takes 3.2% stake in United Breweries

Data check with CNBC-TV18's Nigel Dsouza
Bank Nifty is way above its Jan 4th 2011 levels (CNX FMCG was not yet formed then)
Other indices are way below their Jan 4th 2011 levels (CNX Metal Index didn't exist then)

Nifty Stocks: Few Nifty stocks have gained 50% plus comparing with their Jan 4th 2011 close when Nifty was last above 6100:

11:43 am Dealer's check with Nimesh Shah
-Initial feedback: Many dealers were surprised by the upmove
-It looks like ETF led buying in the market with only index stocks in focus
Outside index stocks, brokers are struggling to generate demand
-MSCI re-balance of indices to be announced tonight, some front running in stocks seen ahead of that.
-Indus Ind, Wokckardt likely inclusion in MSCI India Index

11:40 am Nifty chart check: Regan Homavazir, Associate VP-Technical Research, Darashaw feels the Nifty will get into a ''very bullish state'' if it decisively moves past 6138 and sustains it on a quarterly basis.

11: 39 am: Indian Rupee down 2 paise at Rs 54.80 per dollar

11:36 am How to trade Gold in short term: Weaker rupee may limit downside in gold prices, says Emkay

11:33 am News Flash - Reliance Infra Boardroom: To get Rs 750cr yearly subsidy cess from Tata Power, says RInfra

11: 31 am BSE Sectoral Gainers: S&P BSE BANKEX up 2.54%, S&P BSE Capital Goods up 2.31%, S&P BSE Oil and up 2.10%, S&P BSE Metals up 1.93%, S&P BSE Auto up 2.54%.

11:24 am The Sensex was up 385.28 points or 1.95% at 20107.57 and the Nifty was up 118.90 points or 1.98% at 6114.30.

11:23 am Nifty at highest level since January 2011

11:19 am A-Group stocks that have touched 52-week highs today: Apollo Hospital, Bajaj Finance, Eicher Motors, GlaxoSmithkline Consumer, Glenmark Pharma, HDFC, Ipca Labs, Kotak Mahindra Bank, Lupin, Mahindra and Mahindra, Maruti Suzuki, MRF, Reliance Communications and Zee Entertainment.

11:17 am Laggards in the Nifty: Ony 4 stocks in Nifty 50 trading in red. Ranbaxy Labs (Rs 453.75, -0.42%), Sun Pharma (Rs 960.45, -0.34%), Power Grid (Rs 114.00, -0.31%), Ambuja Cements (Rs 186.00, -0.05%)

11:11 am Key gainers in the Nifty: PNB (802.50 up 4.79%), HDFC (Rs 910.50, up 4.55%), Reliance Infra (Rs 403.50, up 3.70%), Lupin (Rs 777.00, up 3.43%), Jaiprakash Associates (Rs 75.15, up 2.8%)

11:07 am HDFC hits life high of Rs 911.50. Market-cap: Rs 139556.85 crore 

10: 59 am The market seemed to be on booster shots today. The Sensex surged up 366.75 points at 20089.04, and the Nifty was at 6105.60, up 110.20 points.

Banking, realty, auto and realty stocks are lending strength to the indices.

HDFC, Hindalco, SBI, HDFC Bank, Jindal Steel continued to lead the Sensex.

DLF gained 2.1 percent after a strong response to its IPP yesterday. The company received bids for 1.8 times its total size and raised Rs 3500 crore.

From commodities brent crude fell below USD 103 per barrel on a benign supply outlook while gold snapped a 4 day fall and gaining around 0.1 percent.

The dollar index saw its highest levels since July 2012 at 83.63 while the yen eased to 102.2 and the euro trades sub 1.30 to dollar.

Reliance Infra, HDFC, Lupin, PNB and Jaiprakash Associates were laggards in the Sensex.

Key equity benchmarks rallied more than 1 percent in the morning trade tracking positive regional shares. Japan's Nikkei hits fresh 5 ½ year highs on Wednesday on further weakness in yen. US stocks also ended at record highs on hopes of steady US growth will extend the bull run in equity markets.

The Sensex was up 310 points or 1.57% at 20032 and the Nifty was up 91 points or 1.53% at 6087. About 1263 shares advanced, 467 shares declined, and 118 shares were unchanged.

Key gainers in the Nifty were Reliance Infra, HDFC, Lupin, Punjab National Bank and IndusInd Bank, up over 2 percent each.

Laggards included Sun Pharma, Power Grid, Ambuja Cements and Ranbaxy Labs. Only four stocks in the Nifty 50 were trading in red.

The most active shares on NSE were SBI, HDFC, TCS, United Spirits and Reliance Communications.

Heavyweights like Bajaj Finance, Kotak Mahindra Bank, Lupin, MRF, Glaxosmithkline Consumer, Eicher Motors, Zee Entertainment, Apollo Hospitals, Glenmark Pharma and Reliance Communications touched fresh year highs today.

DLF gained 2 percent after a strong response to its IPP yesterday. The company received bids for 1.8 times its total size and raised Rs 3500 crore.

Hindalco was up 1.5 percent after its subsidiary company Novelis reported strong numbers with an adjusted EBITDA of 240 million compared to analyst estimates of around 220 million dollars.

VIP was up 3.5 percent ahead of its results today. Analysts will watch it closely to see if the business has bottomed out in Q2 and Q-o-Q recovery seen in Q3 results can be called a recovery and will sustain going forward.

SPARC was up 4 percent adding to the 20 percent upmove on Tuesday after the company reported strong results. Sales jumped up to Rs 71.8 crore from Rs 4.2 crore a year ago and reported a profit of Rs 44 crore versus loss of Rs 21.5 crore.

The market opened in positive territory on strong global cues. In the US, Wall Street surged to record highs on Tuesday hoping that steady US growth will extend equities' stellar run. Strength in dollar also led to further losses in oil and gold.

On home turf, the Sensex soared 207.10 points at 19929.39, and the Nifty was up 60.50 points at 6055.90. About 743 shares have advanced, 291 shares declined, and 62 shares are unchanged.

Hindalco, Tata Motors, HDFC and Hero MotoCorp were the lead gainers in the Sensex.

DLF was up 1.5 percent as its Institutional Placement Programme (IPP) was successful with the overall book subscribed 1.83 times.

Among the midcap stocks, Elder Pharma was up 8.1 percent and VIP Industries gained 3.3 percent .

 Stocks that were on the losing side included TCS, Sun Pharma and Cipla.

Companies that are expected to announce March quarter earnings today are Adani Ports, United Spirits, GVK Power, IRB Infra, J&K Bank, Karnataka Bank, Manappuram Finance, Orchid Chem, Century Textiles, VIP Inds, Welspun India, Bajaj Finserve, Bajaj Finance among others.