Sensex closes 1.3% up on broadbased rally; L&T, ITC lead

The BSE Sensex and NSE Nifty rallied more than 1% on Tuesday on strong European cues and addition of fresh long positions by traders after a consolidation phase started since last week.

The BSE benchmark rose 226.37 points or 1.30%, to close at 17,618.35 led by support from 27 out of 30 stocks. Meanwhile, the NSE benchmark gained 70.20 points at 5,345.35.

Dilip Bhat, Joint MD, Prabhudas Lilladher feels the market seems to be very happily consolidating around 5,300-5,350.

According to him, a series of complimentary events probably are playing it out like current bond yields suggest that the Reserve Bank of India is going to ease the monetary policy, appreciation in rupee and some kind of optimism on the reforms front.

France's CAC and Germany's DAX rose 1.2% each after the Eurozone finance ministers agreed a deal which will release euro 30 billion of bailout funds for Spain's troubled lenders by the end of July. Britain's FTSE rose 0.8%.

The euro zone ministers also decided to grant Spain an extra year until 2014 to reach its deficit reduction targets but made no apparent progress on how the bloc's new rescue fund, the ESM, will be used to help lower Madrid's elevated borrowing costs. Spain and Italy's 10-year bond yields declined after the news.

Back home, the Indian rupee recovered quite sharply, appreciating by 42 paise to 55.50 against the US dollar.

All sectoral indices closed in green. Capital Goods, FMCG, Auto, Bank, Metal, Realty and Power indices were up 1-1.75%. Oil & Gas, Healthcare and IT rose 0.6-0.9%.

Engineering and construction major by sales Larsen & Toubro surged 2% and state-owned power equipment manufacturer BHEL gained 1%.

Private sector lender HDFC Bank jumped 2% while its rivals ICICI Bank and State Bank of India were up 1.37% and 0.71%, respectively.

Cigarette major ITC spiked 2.7%. Top commercial vehicle maker Tata Motors and country's largest car manufacturer Maruti Suzuki moved up over 2.5%.

India's most valued stock Reliance Industries, housing finance company HDFC and top telecom operator Bharti Airtel were up over 1%.

Among metals stocks, Jindal Steel, Hindalco and Sterlite Industries climbed 2-2.7%. Software services exporters Infosys and TCS were up 0.8% and 0.4%, respectively.

Advancing shares outnumbered declining by 1739 to 1127 on the BSE.

In the second line shares, Punj Lloyd, HDIL, Voltas, Unitech, Indiabulls Real, PTC India, Manappuram Finance, Reliance Capital and Reliance Power gained 4-8%.

Dewan Housing advanced 6% after yesterday's fall of 14.5%. Reports yesterday suggested that the Dewan Housing stock was one of the few stocks which were manipulated by a few market players. Kapil Wadhawan, CMD of Dewan Housing, however, tells CNBC-TV18 that there has been no official communiqué from regulatory authorities regarding this matter.

At 14:44 hours IST: Sensex rises 200 pts on positive European cues; banks lead

Indian equity benchmarks rose 1.3% each following a rally in European markets. France's CAC and Germany's DAX climbed 1% each after Eurozone finance ministers approved a deal to rescue Spanish lenders. Britain's FTSE rose 0.77%.

The 30-share BSE Sensex jumped 225 points to 17,617.40 and the NSE benchmark was up 69.35 points to 5,344.50.

The euro zone ministers agreed to grant Spain an extra year until 2014 to reach its deficit reduction targets and set the parameters of an aid package for Madrid's ailing banks. But they made no apparent progress on how the bloc's new rescue fund, the ESM, will be used to intervene in bond markets. Spain's 10-year bond yields fell by 3.4% to 6.81% and Italy's 10-year bond yield declined by 2.66% to 5.93%

Back home, country's largest lenders State Bank of India and ICICI Bank gained 1% each while their rival HDFC Bank spiked 2%. Housing finance company too was up 1%.
Cigarette major ITC and engineering and construction major by sales Larsen & Toubro climbed 2% each.

Top commercial vehicle maker Tata Motors and largest car manufacturer Maruti Suzuki advanced 3% each.

Oil & gas producers Reliance Industries and ONGC were up 1% each. Top telecom operator Bharti Airtel gained 2.5% while its rival Reliance Communications shot up 6.5%.

Country's largest software services exporters TCS and Infosys moved up 0.7-0.9% ahead of earnings for the quarter ended June 2012 that scheduled for Thursday.

At 14:02 hours IST: Sensex, Nifty extend gains; Tata Motor, Maruti top buy list

The BSE Sensex and NSE Nifty extended gains in afternoon trade led by further buying interest in banks, oil & gas, telecom, auto and capital goods stocks. Cigarette major ITC bounced back to trade with 1.25% gains.

The BSE benchmark jumped 157.52 points to 17,549.5 and the NSE benchmark moved up 49.75 points to 5,324.9. The Indian rupee appreciated by 26 paise to 55.66 against the US dollar.

Country's largest private sector lender ICICI Bank and HDFC Bank moved up 1-1.5% while their rival State Bank of India was up 0.8%.

Top telecom operator Bharti Airtel rose 1.4% and Anil Dhirubhai Ambani group company Reliance Communications shot up 4%.

Commercial vehicle manufacturer Tata Motors topped the buying list, rising 2.9%. Top car maker Maruti Suzuki was up 2.4%. Bajaj Auto, Hero Motocorp and Mahindra & Mahindra gained 0.8-1.5%.

Housing finance company HDFC and software services provider Infosys advanced 0.8%. Oil & gas producers Reliance Industries and ONGC went up 0.9% and 0.7%, respectively.

However, shares of HUL, NTPC, Tata Power and Wipro were down 0.3-1%.

European shares ended four straight sessions of losses, inching up 0.2% to 1032.12 points led by banks, after the finance chiefs ratified a deal to rescue Spanish lenders.

The euro zone ministers agreed to grant Spain an extra year until 2014 to reach its deficit reduction targets and set the parameters of an aid package for Madrid's ailing banks. But they made no apparent progress on how the bloc's new rescue fund, the ESM, will be used to intervene in bond markets.

At 12:53 hours IST: Nifty holds 5300; HUL, NTPC, Tata Power underperform

The NSE Nifty continued to trade higher since early trade, though it stuck in particular range of 5290-5310. Index managed to recover somewhat yesterday's losses led by support from banks, auto, metals and pharma stocks. The Indian rupee too was quite volatile that appreciated by 14 paise to 55.78 against the US dollar.

The 30-share BSE benchmark moved up 100.43 points to 17,492.41 and the 50-share NSE benchmark was up 30.35 points at 5,305.50.

Auto stocks remained on buyers' radar despite SIAM cut FY13 car sales growth forecast. Society of Indian Automobile Manufacturers expect car sales to grow by 9-11% in FY13 as against earlier target of 11-13% while commercial vehicle sales to grow by 6-8% as against earlier growth of 9-11%.

Country's commercial vehicle maker Tata Motors rallied 2.6% while Mahindra & Mahindra, Bajaj Auto, Hero Motocorp and Maruti gained around 1%.

Top lenders State Bank of India, ICICI Bank and HDFC Bank were up 0.7-1.25%. Housing finance company HDFC went up 1%.

Engineering and construction major by sales Larsen & Toubro rose over 1% after its Malaysian subsidiary acquired Henikwon Corp.

Top telecom operator Bharti Airtel, software services exporter Infosys and oil & gas producer Reliance Industries advanced around 0.5-1%.

However, FMCG major HUL and private power producer Tata Power were down 0.5% each. Country's largest power producer NTPC fell over 1%.

In the second line shares, Sterlite Tech, Karnataka Bank, Manappuram Finance, Dewan Housing and Punj Lloyd gained 4-6% whereas Amtek India, Pidilite Industries, DB Corp, DB Realty and Shree Global lost 1.5-2%.

European markets were sideways in trade amid some progress on Spain at EU finance ministers' meet in Brussels. Market is also waiting for earnings for the quarter ended June 2012.

At 11:44 hours IST: Sensex gains 100 pts; ICICI Bank, Tata Motors, L&T lead

The 30-share BSE Sensex gained 100 points due to consistent buying interest in ICICI Bank and Tata Motors. L&T, Reliance Industries and State Bank of India too extended gains. The Indian rupee also recovered further, appreciating by 20 paise to 55.71 against the US dollar.

The BSE benchmark was up 101 points at 17,492.85 and the NSE benchmark went up 30.10 points to 5,305.25. The broader markets gained 0.7%.

Auto stocks moved up further after Society of Indian Automobile Manufacturers (SIAM) report. Top commercial vehicle (CV) maker Tata Motors surged 2.5%, even after the SIAM said overall CV sales declined 9.1% year-on-year to 60,231 units in June.

Domestic car sales increased 4.9% year-on-year to 1.89 lakh units and motorcycle sales rose by 5.9% to 10.5 lakh units during the same period. However, exports of vehicles fell by 9.2% YoY to 2.31 lakh units. M&M, Bajaj Auto, Hero Motocorp and Maruti were up 1%.

Country's largest lender State Bank of India climbed 0.9% while its rivals ICICI Bank and HDFC Bank gained 1.4% and 0.6%, respectively.

Engineering and construction major by sales Larsen & Toubro rose 1% and housing finance company HDFC was up 0.6%.

Infosys, country's second largest software services exporter and Reliance Industries, most valued stock gained over 0.5%.

However, shares of ITC, TCS, NTPC and Tata Power were down around 0.5%.

At 10:20 hours IST: Volatile Sensex trades higher; midcaps, smallcap outperform

Indian equity benchmarks extended gains amid somewhat volatility, rising 0.4% led by buying interest in banking and financials, oil & gas, technology, auto and metal stocks. However, power and FMCG stocks were slightly under pressure.

The 30-share BSE Sensex moved up 72 points to 17,464.14, supported by 26 components. Meanwhile, the 50-share NSE Nifty gained 20.15 points at 5,295.30. The Indian rupee too rebounded by 16 paise to 55.75 against the US dollar.

Siddharth Bhamre of Angel Broking continues to be positive on the market and suggests that one should not short at this point in time.

Country's largest lender ICICI Bank rallied 1% while its rivals State Bank of India and HDFC Bank were up 0.65% and 0.36%, respectively. Housing finance company HDFC went up 0.5%.

Engineering and construction major by sales Larsen & Toubro was up 1.3% and top telecom operator Bharti Airtel moved up 0.5%.

Technology majors TCS and Infosys were trading marginally higher ahead of their earnings for the first quarter ended June 2012.

Top commercial vehicle maker Tata Motors jumped 1.7% while shares of Hero Motocorp, M&M, Maruti and Bajaj Auto gained 0.5-1%.

Oil & gas producers Reliance Industries and ONGC were up 0.3% each.

However, power producers NTPC and Tata Power were down 0.5-1%. Cigarette major ITC declined 0.5%.

The broader markets outperformed benchmarks, with the BSE Midcap and Smallcap indices rising over 0.6%. About three shares advanced for every share declining on the National Stock Exchange.

At 9:20 hours IST: Sensex, Nifty rebound; banks, IT, oil & gas stocks gain

The BSE Sensex and NSE Nifty rebounded with marginal gains on Tuesday, even after a fall in Asian markets. Banks, oil & gas and technology stocks were quite supportive.

The BSE benchmark rose 57.25 points to 17,449.23 and the NSE benchmark was up 14.4 points to 5,289.55.

Asian markets were down after weak Chinese trade data. China's imports rose 6.3% in June from a year earlier, less than forecast of 10.4% by analysts as domestic demand flagged in the world's second biggest economy. Exports during the same period increased 11.3% as against forecast of 9% while trade surplus stood at USD 31.7 billion, which was ahead of expectations of USD 24.2 billion.

Shanghai and Kospi fell 0.5% each. Taiwan Weighted declined nearly 1%. Hang Seng and Nikkei were trading marginally lower while Straits Times gained 0.4%.

Back home, Infosys, HDFC Bank, HDFC, ICICI Bank, Reliance Industries, Tata Motors, SBI, ONGC, L&T, Coal India, TCS and Bharti Airtel were leading the markets in early trade.

However, ITC, Tata Power, Maruti, NTPC, Sun Pharma and BHEL were under pressure.

The CNX Midcap went up 12 points to 7,414. About two shares advanced for every share declining on the National Stock Exchange.

In the second line shares, OnMobile Global went down 2% after its CEO Arvind Rao has resigned. Mouli Raman another co-founder has been named as an interim MD. Company has initiated search for a new CEO.

Essar Oil fell 2.5%. Company has agreed to pay principal amount of Rs 6,169 crore post SC order.

Mercator was down 2% on pledge of large chunk of shares.

SKS Microfinance and Manappuram Finance rose 3% each. IndusInd Bank went up 1% ahead of first quarter numbers today.

Globus Spirits surged 7%. Orchid Chemical rebounded, rising 0.8%.

Varun Shipping shot up 10% after Mint reported that company recasted nearly Rs 2,000 crore of debt by transferring some of its ships to overseas subsidiaries.