Nifty ends below 5900; realty, FMCG, cap goods, metals lead

4 pm Market closing: It was a very strong start to the week as both the Nifty and Sensex surge about a percent. The Sensex ends up 181.58 points at 19577.39, and the Nifty closes at 5898.88, up 56.65 points. About 1601 shares advanced, 764 shares declined, and 139 shares are unchanged.

3:55 pm: RBI issues master circular incorporating know-your-customer changes. According to the central bank, KYC norm changes are to incorporate financial action task force with regards to anti-money laundering

3:45 pm Alert: Bombay HC adjourns YESBank dispute case till July 5. The stock closes at Rs 470.25, up Rs 9.25, or 2.01 percent on the BSE.

3:40 pm Big realty winners:  HDIL ends at the day with a gain of around 12 percent, while DLF (up 5 percent), IndiaBulls Real Estate (up 9 percent), Oberoi Realty (up 9.5 percent) and Unitech (up 9.9 percent) are other big gainers in the Realty index.

3:35 pm Index gainers and losers: BSE Realty index closes 5 percent up, FMCG was up 2 percent, Capital Goods gains 2.6 percent, Metals 1.9 percent are the big index gainers. While all the indices are up, technology index ends under pressure with a lose of 1.6 percent from its previous close.

3:30 pm Market closing: The Sensex ends up 181.58 points at 19577.39, and the Nifty closes at 5898.85, up 56.65 points (provisional). About 1598 shares have advanced, 765 shares declined, and 141 shares are unchanged.

3:25 pm Opinion on gas price: Fitch says gas hike is positive for upstream oil & gas companies and feels that it will lead to higher investments in gas production. Power sector will be impacted with higher costs immediately, it says. According to the rating agency, cost of gas-based electricity generation to increase by 60 percent while average increase in electricity generation costs is likely to be 10-12 percent.

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The market has picked up momentum in last trading hour of the day. The Sensex is up 200.84 points at 19596.65, and the Nifty adds 61.10 points at 5903.30. About 1585 shares have advanced, 753 shares declined, and 157 shares are unchanged.

HDIL rallies 12 percent on interim relief from the Bombay High Court in the slum rehabilitation case against MIAL. The case is adjourned till July 10 and the court has barred the company from starting proceeding for repossession of tenements. The contract between HDIL and MIAL for slum rehabilitation was terminated in February.

03:00pm Indian equity benchmarks extended gains in late trade today with the NSE Nifty hitting 5900 for the first time since June 10.

The BSE Sensex is up 193.99 points or 1.00 percent at 19589.80, and the Nifty is up 57.90 points or 0.99 percent at 5900.10.

The CNX Midcap and BSE Smallcap gained 2 percent while Nifty Junior surged 3 percent.

Shares of Larsen & Toubro, Tata Motors , State Bank of India , NTPC and Tata Power rallied 3 percent each while index heavyweight Reliance Industries rose 2 percent.

02:50pm TCS shares dropped 2 percent as Macquarie has an underperform rating on the stock with a target price of Rs 1200.

"Mixed demand signals and overhang of a moderate probability of the draft immigration bill going through, with stringent clauses continues to remain on the sector," the brokerage house reasons.

The BSE Sensex is up 154.96 points or 0.80 percent at 19550.77, and the Nifty is up 44.60 points or 0.76 percent at 5886.80.

02:40pm Reliance Infrastructure topped the buying list with 4.65 percent gains after the company exited Delhi Airport Metro Line project.

Jaiprakash Associates , Ranbaxy Labs , Sesa Goa and Maruti Suzuki rallied 3.6-4 percent while Tata Motors, Sterlite Industries, NTPC and Jindal Steel gained 3 percent each.

Reliance Communications is the most active stock on both exchanges, which extended gains to 12 percent. The telecom operator has completed full repayment of two syndicated ECB (external commercial borrowing) loans worth USD 1 billion during the quarter ended June 30, 2013.

02:25pm Mahindra and Mahindra (M&M) shares rebounded quite smartly after tractor sales numbers. The utility vehicle maker's total sales have fallen in June compared to May, but tractor sales improved quite nicely.

Domestic tractor sales rose by 18.9 percent month-on-month to 26,723 units in June while total sales increased by 17.5 percent M-o-M to 27,749 units in June.

02:15pm Indian equities stayed positive despite fall in European markets and rupee trimmed gains from day's high of 58.98 per dollar. The BSE Sensex is up 137.74 points or 0.71 percent at 19533.55, and the Nifty is up 37.95 points or 0.65 percent at 5880.15.

Indian rupee trimmed gains from 40 paise to 15 paise at 59.23 per dollar after breaching 59 mark in mid-afternoon trade.

The BSE Midcap and Smallcap indices rallied 1.5 percent each as two shares gained for every share declining on the Bombay Stock Exchange.

Gujarat Gas shares surged 7.5 percent after the Petroleum and Natural Gas Regulatory Board (PNGRB) cut Gujarat State Petronet's low pressure gas pipeline rate up to 69 percent and set it at Rs 1.90/mmbtu. The low pressure gas grid rate is effective from November 2008.

Among European markets, France's CAC erased all its early gains and slipped into red. Britain's FTSE trimmed gains to 0.15 percent from 0.8 percent and Germany's DAX dropped 0.8 percent after seeing 0.5 percent gains in opening trade.

1:57 pm Rupee check: The rupee gained to a near two-week high on Monday, as worries temporarily eased after foreign investors turned buyers of domestic shares, while rumoured inflows from Unilever's open offer for its local unit also helped, reports Reuters.

1:50 pm Management speaks: Personal healthcare product manufacturer Emami expects strong growth in its margins and volumes in 2013-14, said NH Bhansali, CEO of Emami Group .

The company has seen significant decline in price of key raw material menthol since last quarter. "From last quarter the prices has started easing and there had been an impact in cost of goods (COG) in last quarter itself. We expect this to continue in the current year also. So, there would be some margin expansion on COGs," Bhansali explained.

1:40 pm Winners and losers: Sterlite Industries (up 3.2 percent), Jindal Steel (up 2.6 percent), Bharti Airtel , L&T and Tata Motors are top gainers in the Sensex. TCS , Infosys , M&M, Sun Pharma and HDFC Bank are major losers.

1:35 pm Rupee outlook: The rupee, which has depreciated by nearly 10 per cent in the last few months, is likely to weaken further and may touch 61.50/USD in next three months and 62/USD in the next 12 months, Credit Suisse said, reports Reuters.

Credit Suisse forex strategists are currently expecting the rupee to fall to 61.5 against the dollar in the next three months and reach 62 this time next year.

1:30 pm Expert view: The Reserve Bank of India (RBI) is unlikely to reduce the policy rate in its July policy. However, the higher current account deficit coupled with the free fall in the rupee's rate against the US dollar would weigh on the RBI's policy decisions, said Keki Mistry, vice-chairman and CEO, HDFC - India's largest housing finance company .

"The benefits of rate cuts can be passed on if sufficient liquidity is available. Rate cut is not expected in RBI's policy," he told CNBC TV18 in an interview.

Since the beginning of 2013, RBI has so far slashed the policy rate by 50 basis points. However, lenders have not passed on the benefits of rate cuts on the ground of liquidity.

HDFC has already put in application to raise funds through external commercial borrowing (ECB) route. Last week, RBI had eased fund raising norms through ECB route for the low cost affordable housing projects. Both housing finance companies (HFCs) and developers are the direct beneficiaries.

1:20 pm FIIs pull out: In their highest monthly outflow , overseas investors pulled out a record Rs 44,162 crore (over USD 7.5 billion) from the Indian capital markets this month amid concerns over the depreciating rupee.

The net investments withdrawn in June include outflows worth about Rs 33,135 crore (USD 5.7 billion) from the debt securities and another Rs 11,027 crore (USD 1.85 billion) from equities, data available with market regulator Sebi showed.

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The market is climbing higher in afternoon trade as the Nifty is inching closer to 5900 powered by capital goods and power stocks. The Nifty is up 38.90 points at 5881.10 while the Sensex jumps 140.13 points to19535.94.

The midcap and small caps outperform with the midcap index up close to 2 percent. IVRCL , HDIL , Tata Communications and Hind Motors are among the stars of the day.

Tata Communication surges 11 percent as promoters sell 33 lakh shares in last 1 month.

The rupee continued with its remarkable recovery and is trading below 59 against the dollar as banks continued to unwind long positions in anticipation of one-off corproate flows like Diageo and Unilever.

12:55pm Indian rupee breached 59 level, continuing its recovery from last Thursday. It is trading at 59.99 per dollar, up 39 paise over Friday's closing of 59.38.

The rupee had touched its record low of 60.76 per dollar and all-time closing low of 60.71 on last Wednesday on selling by foreign institutional investors and higher demand for dollar from oil importers. From Thursday, the currency recovered 2.8 percent or 1.71 rupees in three sessions.

12:45pm Among midcaps, Jaypee Infrastructure, HDIL and Tata Communications surged 12 percent.

Shares of Mahindra & Mahindra declined nearly one percent as utility vehicle maker's total sales dropped to 38,092 units in June from 43,460 units in previous month.

The company says SUV sales for April-May were affected by additional duty, adding the sales degrew by 13 percent year-on-year.

M&M says challenging times will continue unless drastic measures taken by the government.

12:35pm The BSE Sensex gained 181 points and the NSE Nifty is inching closer to 5900 level after European markets opened higher on Monday.

France's CAC rose one percent while Germany's DAX gained 0.5 percent Britain's FTSE soared 0.9 percent.

The 50-share NSE Nifty climbed 48.45 points or 0.85 percent to 5891.65.

Among Nifty 50 stocks, Ranbaxy Labs topped the buying list, rising nearly 4 percent followed by Larsen & Toubro, Bharti Airtel , BHEL and Jindal Steel with 2.5-3 percent gains.

Indian rupee gained 35 paise to 59.03 per dollar as against Friday's closing value of 59.38.

12:25pm Siemens shares gained more than 2 percent as its consortium received order worth Rs 248 crore from Delhi Metro.

Shares of Mahindra & Mahindra declined nearly one percent as utility vehicle maker's total sales dropped to 38,092 units in June from 43,460 units in previous month.

Total passenger vehicle sales slipped to 17,232 units from 22,244 units month-on-month. Its domestic sales fell to 36,207 units from 42,104, but export sales increased from 1,356 units to 1,885 units M-o-M.

12:15pm Equity benchmarks extended gains in afternoon trade Monday, led by oil & gas, capital goods, metals, telecom and financials. Even major Asian markets bounced back - Shanhgai rose 0.2 percent and Nikkei jumped 1.3 percent.

The BSE Sensex is up 155.62 points or 0.80 percent at 19551.43, and the Nifty is up 25.30 points or 0.43 percent at 5867.50.

Indian rupee recovered further, inching back towards 59 level. It gained 30 paise to 59.08 per dollar on low dollar demand and stoppage of selling by foreign institutional investors. FIIs were net buyers for the first time in last 14 sessions, buying more than Rs 1,100 crore on Friday.

More than two shares advanced for every share declining on the Bombay Stock Exchange.

12:00 pm Alert: Shares of jewellery retailer Gitanjali Gems  continued their downward spiral on Monday, with unexecuted sell orders for over 1 crore shares on both exchanges put together. Trading in the stock was frozen at Rs 224.70, down 5 percent over the previous close, as exchanges reduced the band for the intra-day circuit filter from 10 percent earlier.

The stock has now shed nearly 60 percent in the last couple of weeks, but there are no buyers in sight. Brokers say financiers who had loaned money to market operators against Gitanjali shares as collateral, are desperate to offload the stock. There are reports that the NSE has frozen the pay out of a few brokers who have been dealing in the stock, since these brokers had put up the shares are collateral with the exchange.

11:55 am Management speaks: Speaking to CNBC-TV18 on gas price hike impact , Aloke Kumar Banerjee, director for finance at Oil and Natural Gas Corporation ( ONGC ) said the hike will show an improvement in profits if all other things remain constant. He also saw a positive impact on the overall investment scenario in the oil and gas sector. 

The government's move on gas price hike also raised questions on subsidy break to be followed. Banerjee said the company has not received any communication from the government on the issue.

11:47 am Gainer: Hindustan Copper rallies around 4 percent as the panel of ministers on divestment will meet tomorrow to decide on the base price for around 4 percent stake sale in company. The issue is likely to hit the market on the July 3.

11:40 am Buzzing: United Spirits clocks over 6 percent gains. Morgan Stanley Asia bought almost 11 lakh shares of United Spirits at Rs 2118 a share. Morgan Stanley Asia already holds around 4 percent stake in the company as per its March filing.

11:30 am Auto sales: Auto stocks are muted in trade today. Maruti's June sales come in a tad lower month-on-month at close to 84500 units. From the two-wheeler space, TVS Motor sales slip to 1.64 lakh unites from 1.65 lakh vehicles last month. Experts see the overall car industry volumes declining by 13-14 percent while 2-wheeler volumes may remain flattish.

11:25 am Buzzing: Many banking license hopefuls like IDFC , IFCI , L&T Finance, Muthoot are buzzing in trade as the deadline for submitting application draws to a close today. Experts say that it is unlikely to see more than 4-5 successful candidates and it might take another six months for the entire process to be completed.

11:20 am Index check: Technology stocks are under pressure today. The index is down 1.2 percent while Infosys loses 1.5 percent as Morgan Stanley says that Infosys may cut its FY14 revenue guidance to 4-6 percent from the earlier guidance of 6-10 percent. TCS is down 1.8 percent on the BSE.

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It's a flat start to the week with the Nifty holding 5850 led by capital goods and power. The Nifty is at 5855.65 up 13.45 points while the Sensex is up 52.00 points at 19447.81. About 1094 shares have advanced, 566 shares declined, and 104 shares are unchanged.

The mid and small caps outperform. Goldman Sachs sees the Nifty touch 6600 by March 2014.

The rupee continued with its remarkable recovery against the dollar as banks continued to unwind long positions in anticipation of one-off corporate flows like Diageo and Unilever. The absence month-end importer demand as well as lessened exit pressure from FIIs is also propping the rupee.

Bonds are higher on hopes the rupee recovery will reduce the pressure on inflation and slowly yield some place to the reserve banks to cut rates. There was also continued value buying after the steep fall in bond prices over the past two weeks.

Asia is soft, dragged down by china PMI which shows continued slowdown. HSBC's final China PMI for June came out at 48.2 - the lowest reading in nine months. China's official PMI for june, at 50.1 was inline with expectations. Japans positive tankan which came out at its highest level in more than two years gave support to Nikkei.

Gold surges to USD 1240/ounce on end-of-quarter short covering. Crude hovers near USD 102.

Dollar index is firm above 83. Yen weakens further and hits three-week low of 99.50.

10:55am Reliance Communications shares soared 5 percent after the telecom operator completed repayment of 2 ECB loans worth USD 1 billion and also repaid USD 207 million towards other foreign currency loans.

TVS Motor sold 1.64 lakh units in June as against 1.65 lakh units in previous month. Shares climbed over 2 percent.

10:50am Vakrangee Software rose one percent as the stock will be included in S&P BSE TECk Index with effect from July 4, 2013.

BSE Midcap and Smallcap indices rose over 1 percent. Among smallcaps, Garware Poly, Dhanlaxmi Bank , Patel Engineering, Visa Steel and Panacea Biotec rallied 10-16 percent.

10:40am Hero MotoCorp shares gained one percent as the two-wheeler major invested USD 25 million to acquire 49.2 percent stake in EBR. "EBR deal will extend to buying, selling products in western market."

Hero says it will be placing 2 directors on EBR's board and will pay for EBR deal from company's own accruals.

10:30am Liquor producer United Spirits rallied 5 percent today after Morgan Stanley Asia PTE bought 10.8 lakh shares (0.7%) at Rs 2118/share on Friday. The global brokerage house already holds 4.02 percent stake in company as per March filing.

Reliance Infrastructure gained 2 percent after the company exited Delhi Airport Metro Line project. Mumbai-based infrastructure company said it sought termination payment from DMRC for 130 percent of equity and 100 percent of debt due.

"Termination is owing to DMRC's failure to cure defects in civil structure. Civil structure was designed & built by DMRC. Material Breach and event of default by DMRC under agreement," Reliance Infrastructure reasoned.

10:25am Maruti Suzuki shares lost 0.7 percent after fall in sales numbers. The country's largest car maker sold 84,455 units in June (down 0.26 percent sequentially and 12.5 percent year-on-year) as against 84,677 units in previous month. Analysts on an average had expected sales at 83,000 units.

Domestic sales slipped 8 percent Y-o-Y to 77,000 units and exports dropped 43 percent Y-o-Y to 7,453 units in June.

10:15am Muthoot Finance shares gained nearly 6 percent as the gold loan financing company will apply for banking license. Even L&T Finance Holdings will apply for banking license; the stock rallied nearly 3 percent.

Gitanjali Gems is locked at 5 percent lower circuit for the sixth consecutive session today, which lost more than 57 percent last week after RBI norms.

10:05am Indian equity benchmarks are trading higher with marginal gains and rupee gained further on Monday morning, but the broader markets outperformed benchmarks.

The BSE Sensex is up 44.73 points or 0.23 percent at 19440.54, and the Nifty is up 11.55 points or 0.20 percent at 5853.75.

After crossing the 200-day moving average, which is around 5810, Nifty is holding above that, but from here to 5850, rather 5870 to 5920, there are a series of resistances that will be difficult to cross, says Anu Jain of IIFL Private Wealth Management.

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The BSE Midcap and Smallcap indices gained 0.7-0.9 percent as advancing shares outnumbered declining ones by 894 to 373 on the Bombay Stock Exchange.

Tata Power shares rallied more than 2 percent after Maharashtra Electricity Regulatory Commission (MERC) has approved an average increase in tariff to Rs 5.26 from Rs 4.19 per unit.

Indian rupee gained 15 paise to 59.24 per dollar Monday as against 59.39 per dollar on Friday.

9:50 am Buzzing: Morgan Stanley says that Infosys may cut its FY14e revenue guidance to 4-6 percent year-on-year. Earlier Infosys had given revenue guidance of 6-10 percent. The stock is down 1 percent on the BSE.

9.43 am Market check: The Sensex is up 83.54 points at 19479.35, and the Nifty is up 23.65 points at 5865.85. About 790 shares have advanced, 341 shares declined, and 55 shares are unchanged.

9:40 am Chinese data: China's official purchasing managers' index (PMI) slipped to 50.1 in June from 50.8 in May, a survey showed on Monday, reinforcing worries about tepid growth in the second quarter.

The PMI reading, published by the National Bureau of Statistics, was slightly stronger than market expectations of 50.0 in a Reuters poll.

9:35 am Losers: Infosys (down 1.33 percent), Bajaj Auto , Wipro , TCS and HUL are top losers in the Sensex.

9:30 am Buzzing: Consumers of Tata Power will have to pay 25 percent more tariff as MERC has approved an average increase in tariff to Rs 5.26 per unit from Rs 4.19 per unit. Price changes applicable today onwards. The stock is up around 3 percent on the BSE.

9:20 am Expert view: Mohan Shenoi of Kotak Mahindra Bank sees the rupee trading in 59-59.50 range this week . He told CNBC-TV18 that the Indian rupee has become much more volatile compared to any other emerging market (EM) currency and he expect this volatility to continue.

"Our flows are larger as compared to other EMs and we have the current account deficit," he added.

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The market has opened on a flat note with a negative bias. The Sensex is down 48.24 points at 19347.57, and the Nifty slips 8.10 points to 5834.10.

According to technical analyst Sudarshan Sukhani of S2anlytics.com, the short-term market is up. Intra-day traders should trade on the long side. "Buy on dips. Those holding Puts for July can continue to hold them. But, this current bull trend won't continue for the long period of time," he told CNBC-TV18.

Indian rupee has opened lower by 7 paise to 59.46 per dollar on Monday as against Friday's closing of 59.39.

Arvind Narayanan of DBS Bank says the rupee is expected to weaken primarily driven by underlying dollar demand by OMCs (oil marketing companies) and banks. "Also, weak Chinese manufacturing data is dollar positive," he adds.

Later in the session today, HSBC's final PMI score for June will be released. Its preliminary reading for the month came out at a nine-month low.

Asian markets were cautious in morning trade on Monday. Chinese manufacturing data showed a continued slowdown in factory activity, China's official Purchasing Managers' Index for June came in at 50.1, slightly better than the of 50, but still a decline from May's reading of 50.8.

Brent crude was trading below USD 102 levels after slipping on Friday. From precious metals space, gold price stood around USD 1230 an ounce. Back home, the government has cut base import price of gold to USD 401 per 10 gram and for silver it cut to USD 604 per kg.