Sensex ends 106 points up ahead of RBI policy; Bankex up 1.8%

The BSE Sensex stayed higher for the fourth consecutive session on Wednesday, tracking positive global cues. Bank stocks spiked in late trade ahead of Reserve Bank of India's monetary policy review tomorrow (March 15).

The 30-share BSE Sensex rose 105.68 points or 0.59%, to close at 17,919.30 after hitting an intraday high of 18,040.69. Meanwhile, the 50-share NSE Nifty went up 34.40 points or 0.63% to 5,463.90.

Bond 8.79% 2021 yield spiked to 8.36 in opening trade today, but that slipped sharply to 8.29 in afternoon trade. Even fall in core inflation (non-food manufacturing) may be another indication for rate cut; WPI manufacturing products inflation dropped at 5.75% in February versus 6.49% in January while WPI inflation increased at 6.95% from 6.55% during the same period.

Majority of experts said there would be no rate cut, but Nitin Jain, MD & Co-Head, Fixed Income, Nomura India feels the components of today's inflation actually provide a larger opportunity for RBI to cut rates tomorrow. He quickly, however, said the case can be made either way. According to him, if it happens, then quantum will certainly be 25 basis points.

Overall the Railway Budget 2012-13 became a non-event for the market. Railway Minister presented his first Rail Budget and put more focus on safety standards and modernisation of railway, though he hiked fares by 9-16%. He insisted that the railway should get 10% of total govt's infrastructure funds, but the company related to the railway is more worried about implementation of these projects announced by Rail Ministry today.

At 14:35 hours IST: Nifty holds 5450; Bankex leads on rate cut hopes

The Nifty managed to hold 5,450 level quite nicely on positive global cues. Banks were quite supportive ahead of RBI's monetary policy review. The BSE Bankex rose 1.8% or 200 points, may be on hopes that RBI may consider rate cut tomorrow. Even capital goods, auto and power stocks were on the buyers' radar.

Nitin Jain of Nomura India says February WPI inflation at 6.95% provides opportunity for the Reserve Bank of India to go for rate cut. He expects 25 basis points rate cut tomorrow and another 25 basis points in April.

Shares of ICICI Bank gained 2% while rival HDFC Bank rose just 0.1%. SBI, country's largest lender, was up 0.5%

The BSE benchmark rose 84 points to 17,897.52 and the NSE benchmark moved up 28 points to 5,457.85.

European markets extended gains after optimistic statement by Federal Reserve about economic developments. France's CAC, Germany's DAX and Britain's FTSE were up 0.3-0.8% in early trade.

Wipro, India's No.3 software services exporter, dropped nearly 1.5% on the back of dilution of stake by the company via auction process. It has received bids for 2.47 crore equity shares as against offer for sale of 3.5 crore shares, which means the issue was undersubscribed. Now, the important point is at what price the company will allot these shares. BSE said it would announce floor price after market hours.

Shares of TCS topped the selling list, falling nearly 4% while rival Infosys gained 0.5%.

Index heavyweight and oil & gas producer Reliance Industries fell 0.7% and housing finance company HDFC dropped 1%.

Engineering and construction major Larsen & Toubro climbed 2.4% and state-run BHEL was up 1%.

At 13:38 hours IST: Sensex maintains uptrend; Wipro down 1% on auction

The BSE Sensex gained around 100 points amid choppy trade, led by support from banks, capital goods, power and metals stocks. However, Wipro lost 1.4% as its auction for 3.5 crore shares by Azim Premji Trust closed for bidding.

The BSE benchmark rose 107 points to 17,920 and the NSE benchmark moved up 35 points to 5,464.4 while the broader markets were flat.

Railway Budget 2012-13 has been announced quite nicely by the Railway Minister Dinesh Trivedi. He focussed more on safety standards and modernization of railway going forward, but he asked for more funds from the government. Dinesh Trivedi says Railways must get at least 10% of government's total infrastructure spending.

Companies related to Railway said implementation of these projects would be the key as it needs huge funds.

Wagon manufacturers Titagarh Wagons and Texmaco tumbled 4-5%. Stone India and Kalindee Rail were down 4% each. However, Nelco and Zicom rallied 5% on safety standards.

Among largecaps, shares of ICICI Bank, Larsen & Toubro, M&M, NTPC, Hindalco and Tata Power gained 2-2.7%. ITC and Tata Motors were up 1.5%.

Infosys, SBI and Bharti Airtel moved up more than 0.5% while HDFC, Bajaj Auto and Wipro were down over 1%. Index heavyweights TCS and Reliance Industries fell 3% and 0.5%, respectively.

At 12:46 hours IST: Sensex gains 70 points; Zicom, Nelco up 6% on rail safety

The BSE Sensex gained nearly half a percent amid choppy trade in afternoon trade, supported by ICICI Bank, L&T and Bharti Airtel. ITC, SBI, Infosys and BHEL too were quite supportive. However, the fall in HDFC, Reliance Industries, TCS and Wipro has limited the upside.

The BSE benchmark rose 70 points to 17,883.91 and the Nifty benchmark gained 22 points at 5,451.35.

Railway Minister focussed more on safety standards in his first Railway Budget for 2012-13. He said ministry would set up independent railway safety authority and set up committee to examine safety standards. "We will create SPV to eliminate all level crossings in 5 years," he affirmed.

Zicom Security Systems and NELCO shot up 6% amid heavy volumes. Kernex Microsystems was up 1% amid huge volumes. Bharat Electronics moved up 1.5%.

However, Kalindee Rail, Texmaco, Stone India and Titagarh Wagons crashed 3-4%.

At 12:28 hours IST: Sensex moderately up; railway stocks derail

The BSE Sensex continued to trade with moderate gains after shedding more than 150 points gains from day's high of 18040 level due to higher than expected inflation in February. Index heavyweights Reliance Industries and TCS weighed down the market.

The BSE benchmark was up 35.5 points at 17,849.10 and the NSE benchmark rose 12 points to 5,441.55.

Railway stocks slipped further during the Railway Budget announcement. Stone India, Titagarh Wagons and Texmaco tanked 3.5%. Kalindee Rail fell 2.7% while Hind Rectifiers and ConCor were down over 1%.

Shares of oil & gas producer and India's most valued stock Reliance Industries dropped 1.4%. TCS, country's No. 1 software services exporter tumbled 3%.

However, ICICI Bank, L&T and M&M gained more than 2%. ITC, Tata Motors, Hindalco, NTPC and Tata Power were up 1-1.5%.

The market breadth turned in favour of declines; about 686 shares advanced while 716 shares dropped on the National Stock Exchange.

At 11:53 hours IST: Feb inflation spikes, Sensex sheds gains; rail stock down

The BSE Sensex shed more than 150 points from intraday high 18,040.69 after slightly higher than expected inflation data for February. It seemed to be easing hopes of rate cut in the upcoming RBI's monetary policy review.

The BSE benchmark rose 52 points to 17,865.51 and the NSE benchmark gained 16.65 points at 5,446.15.

Inflation for the month of February came in at 6.95% while CNBC-TV18 had expected at 6.75%. Primary article inflation increased at 6.28% versus 2.25% month-on-month basis while WPI manufacturing products inflation declined at 5.75% versus 6.49% and fuel inflation too fell at 12.83% versus 14.21%.

Shares of index heavyweight and oil & gas producer Reliance Industries fell over 1%. TCS, country's largest software services exporter tanked more than 3%.

Housing financing company HDFC too declined over 1% on profit booking.

Shares of Wipro lost 1.3% as Azim Premji Trust will sell 3.5 crore equity shares via auction today.

However, country's largest private sector lender ICICI Bank rose 2% while rival SBI gained 0.6%. Capital goods major Larsen & Toubro went up 1.8%.

Railway stocks slipped on profit booking ahead of Railway Budget 2012-13 announcement. Stone India, Titagarh Wagons, Texmaco and Kalindee Rail were down 1-3.6%.

At 11:12 hours IST: Sensex off day's high ahead of inflation; Texmaco up 5%

The BSE Sensex was off day's high ahead of February inflation data, though it stayed higher led by strong global cues. Railway stocks were higher ahead of Railway Budget 2012-13; Kalindee Rail Nirman, Texmaco Rail, Kernex Microsystems and Gateway Distriparks were up 1-2.5% while Stone India fell 1.8%. Texmaco shot up 5%.

Inflation is the last major data point that comes out before the crucial credit policy on Thursday. A CNBC-TV18 poll sees February inflation at 6.75%, which is slightly higher than 6.56% in January. The Reserve Bank will watch this number very crucially.

The BSE benchmark rose 118 points to 17,931.74 after losing more than 100 points from day's high. Meanwhile, the NSE benchmark gained 37 points at 5,466.45.

M&M, ICICI Bank, L&T, Tata Motors, IDFC and Tata Power were top gainers among largecaps, rising 2-2.8%.

However, shares of TCS extended fall due to appreciating rupee; the stock was down 2.7%. Indian rupee moved up by 6 paise to 49.87 a dollar.

Jaiprakash Associates, Wipro, Reliance Power and HDFC were down 1% each.

Advancing shares outnumbered declining by 1424 to 1002 on the BSE.

In the second line shares, Apollo Hospital, Financial Tech, Sadbhav Engg, BASF and Patni Computer gained 4-6% while Manappuram Finance, Vaarad Ventures, HDIL, Godrej Industries and Indiabulls Real lost 2.5-5%.

At 10:20 hours IST: Sensex up over 150 pts; Kalindee Rail, Kernex Micro gain

The BSE Sensex erased some gains due to somewhat profit booking and further fall in TCS and Wipro, but it is still near to 18000 level. The Nifty was tad away from 5500 level. Banks, metals, FMCG, capital goods and power stocks continued to support the market.

The market, Sudarshan Sukhani of s2analytics.com finds is in a cheerful mode so the important point is to remain long partially.

In the very short-term, according to him, upside targets are a test of 5,630 but it's not an exact number and could be in the 5,600 or 5,700 zone.

The BSE benchmark Sensex gained 161 points at 17,974.41, supported by 27 stocks. Meanwhile, the NSE benchmark rose 53 points to 5,482.35.

Shares of country's largest private sector lender ICICI Bank, engineering & construction major Larsen & Toubro and India's largest commercial vehicle maker Tata Motors were up 2.5-2.8%.

Railway stocks like Kalindee Rail, Texmaco Rail and Kernex Microsystems were up 1.4-3% while Stone India fell 1.4% ahead of Railway Budget today.

Infosys, ITC, SBI, HDFC Bank, Tata Steel, Sun Pharma, Sterlite Industries and HUL gained 0.4-1.4%.

However, TCS, India's No. 1 software services exporter fell 1.5% while rival Wipro tanked 1% as Azim Premji trust will sell 3.5 crore shares via auction today.

The market breadth was positive; about three shares advanced for every share falling on the National Stock Exchange.

Asian markets too retained their gains after positive US economic data and optimistic statement about economy by Federal Reserve yesterday. Japan's Nikkei rose 1.7% while others gained 0.7-1.2%.

At 9:19 hours IST: Sensex hits 18000 in early trade on firm global cues

The BSE Sensex rallied 200 points in early trade to hit 18000 level on the back of firm global cues, tracking optimistic Federal Reserve statement and positive economic data. However, the Nifty was tad away from 5500 level.

The US markets saw strong rally yesterday, recording biggest gains in the  year so far after February retail sales data. US Federal Reserve kept fed fund rates unchanged and said unemployment rate had declined notably, though still elevated.

Back home, the BSE benchmark gained 169 points at 17,982.16 and the NSE benchmark was up 53 points at 5,482.65.

Frontliners like IDFC, Sterlite, Hindalco, Tata Steel, Sesa Goa, Axis Bank, SBI, L&T, Ambuja Cements, ICICI Bank, BHEL, Tata Motors, DLF and Coal India rose 1-3%. Reliance Power, BPCL and Bharti were marginally higher.

HCL Tech climbed 2.5% after Business Standard reported that the company bagged USD 250-300 million outsourcing from Union Bank of Switzerland.

However, Wipro fell 0.5% as Azim Premji trust is selling 3.5 crore share via auction today.

The CNX Midcap Index went up 77 points to 7,909. About six shares advanced for every share falling on the National Stock Exchange.

Railway stocks like Texmaco Rail and Texmaco gained 1.5-2.5% ahead of Railway Budget today.

In the second line shares, Manappuram General Finance was flat amid heavy volumes. More than 36 lakh shares changed hands in two block deals.

Education stocks were witnessing buying interest ahead of Budget. Zee Learn was up 3%.

Lanco Infratech, Suzlon, Jain Irrigation, Jaypee Infrra, Jet Airways and Thomas Cook were up 1.5-4%.

Patni rose 2.5% as its delisting offer will open on March 28 and end on March 30.

However, United Breweries tanked 4% on profit booking.