Sensex ends 174 pts up on reform hopes; awaits Infy Q2, IIP

Indian equity benchmarks gained one percent on Thursday ahead of Infosys earnings & industrial output data tomorrow, and on hopes of more reforms following clearance to direct transfer of urea subsidy.

The 30-share BSE Sensex rose 173.65 points to close at 18,804.75, supported majorly by FMCG, banking & financials, oil & gas, capital goods and metals stocks.

Infosys rallied as much as 2.9 percent intraday ahead of September quarter earnings that are scheduled for tomorrow morning . The stock closes 1 percent up. Investors have been eagerly waiting for the results after that had been disappointed in the last three quarters.

Experts feel it would be a non-event for the market tomorrow. But if software bellwether delivers over 4 percent growth in profit and dollar revenues then there may be somewhat upmove. However, the growth at sub 3 percent will be bad for the stock, say experts.

Meanwhile, the 50-share NSE Nifty advanced 55.90 points to close above the 5700 level at 5,708.05.

The steady inflow of foreign money in October (especially after unlimited bond buying plans by Federal Reserve and European Central Bank last month) also improved sentiment despite 400 points correction on the Sensex in last three out of four sessions. Foreign institutional investors have bought Rs 8,000 crore worth of equity shares consistently since the start of October.

Experts said the correction was in the wake of profit booking after the Nifty hit 5800 level and Sensex touched 19000 level last week.

The Indian rupee too rebounded quite nicely, rising 33 paise to 52.71 against the US dollar (at 15:30 hours IST) after the Finance Minister P Chidambaram says there is no serious threat of a ratings downgrade. The rating agency Standard & Poor's has warned yesterday about a significant chance of cutting India's credit rating in the future.

Chidambaram says they have been taking threat of ratings downgrade seriously. "Many reforms can be implemented over 1.5 years."

Today the Cabinet has given approval to direct transfer of urea subsidy, which led fertiliser stocks 3-4 percent higher.

Sugar stocks too gained between 2 percent and 4 percent as the Rangarajan Committee, set up by the prime minister's office (PMO), is going to submit sugar decontrol report to Prime Minister tomorrow.

On the economic front, industrial output data will be announced tomorrow and the inflation on Monday. The index of industrial production (IIP), which measures output at factories, mines and utilities in India, likely inched up a median 1.1 percent year-on-year in August, after posting a negligible 0.1 percent growth in July, a Reuters poll showed.

Engineering conglomerate Larsen & Toubro and power equipment maker BHEL gained 2-2.6 percent.

Country's largest lender State Bank of India was up 1.9 percent while its rival HDFC Bank rose 1 percent.

Steel producer Tata Steel, commercial vehicle maker Tata Motors and telecom operator Bharti Airtel rallied 2 percent each.

Cigarette major ITC and housing finance company HDFC went up 0.9 percent. FMCG major Hindustan Unilever and oil & gas producer ONGC were up 1 percent.

Private sector lender ICICI Bank and index heavyweight Reliance Industries gained 0.4 percent.

Drug producer Cipla lost 2 percent. Software services exporter Wipro and top car maker Maruti Suzuki were down 0.6 percent each.

The BSE Midcap Index outperformed benchmarks, rising 1.16 percent while Smallcap Index moved up 0.84 percent.

Advancing shares outnumbered declining by a ratio of 1617 to 1162 on the BSE.

In the second line shares, Unitech shot up 17.5 percent after the company decided to exit telecom business and concentrate on realty business.

Indiabulls Real, HDIL, Punj Lloyd and NCC bounced back with 3-6 percent gains.

Sintex Industries gained 5% on second quarter results. Kingfisher surged 5 percent after three percent equity changed hands via block deal.

On the global front, European markets edged higher despite worries about Spain's economy after ratings agency Standard & Poor's downgraded the country's sovereign rating to a notch above junk. (With inputs from Reuters). FTSE and CAC gained 0.34 percent while DAX was up 0.6 percent.

The 50-share NSE Nifty touched the 5700 level quite nicely following recovery in Indian rupee. Finance Minister P Chidambaram says there is no serious threat of a ratings downgrade after the rating agency Standard & Poor's has warned about a significant chance of cutting India's credit rating in the future.

Chidambaram said they have been taking threat of ratings downgrade seriously. "Many reforms can be implemented over 1.5 years," he said.

The BSE Sensex rose 153.65 points or 0.82 percent to 18,784.75 and the NSE Nifty gained 51.40 points at 5,703.55. The Indian rupee appreciated 26.50 paise to 52.78 against the US dollar.

State-owned power equipment maker BHEL rallied 3 percent. Telecom operator Bharti Airtel, commercial vehicle major Tata Motors and engineering conglomerate Larsen & Toubro were up 2 percent each.

Public sector lender State Bank of India and state-run oil & gas producer ONGC gained 1 percent each. Private sector lender HDFC Bank moved up 1 percent too.

Software services exporter Infosys rallied 1.6 percent amid large volumes while drug producer Cipla tanked nearly 2 percent.

The BSE Midcap Index was up 1 percent and Smallcap rose 0.75 percent. Advancing shares outnumbered declining by a ratio of 892 to 540 on the National Stock Exchange.

Indian shares gained strength following rebound in European markets and on hopes of more reforms by the government. Today the Cabinet has allowed to direct transfer of urea subsidy, and tomorrow the Rangarajan Committee, set up by the prime minister's office (PMO), is going to submit sugar decontrol report to Prime Minister.

The 30-share BSE Sensex rallied 183.33 points to 18,814.13, supported by banking & financials, technology, oil & gas, metals stocks and Tata pack. Meanwhile, the 50-share NSE Nifty rose 58.45 points to 5,710.60.

The Indian rupee rose by 32 paise to 52.73 against the US dollar and 23 paise to 67.95 against the Euro.

Infosys, country's second largest software services exporter surged nearly 3 percent ahead of second quarter numbers that are due to be declared tomorrow morning. Analysts on an average expect more than 3 percent growth in profit after tax and revenues quarter-on-quarter.

Commercial vehicle maker Tata Motors and top telecom operator Bharti Airtel rallied 2 percent each.

India's largest lenders State Bank of India, ICICI Bank and HDFC Bank gained 1 percent each. Housing finance company HDFC and engineering conglomerate Larsen & Toubro were up 0.7 percent and 1.7 percent, respectively.

Oil & gas producers ONGC and Reliance Industries rose 1.5 percent and 0.5 percent, respectively.

However, shares of Maruti, Hero Motocorp, GAIL and Mahindra & Mahindra declined 0.4-1 percent.

On the global front, France's CAC, Germany's DAX and Britain's FTSE gained 0.4-0.6 percent after initial marginal fall.

Indian shares remained lacklustre but the broader markets outperformed due to rally in fertiliser stocks. Today the Cabinet has allowed direct transfer of urea subsidy, which was pending for long time. Chambal Fertiliser, Rashtriya Chemical Fertiliser, Madras Fertiliser and National Fertiliser gained 6 percent each amid large volumes.

The 30-share BSE Sensex went down 23.26 points to 18,607.84 and the 50-share NSE Nifty fell 5.5 points to 5,646.65 while the BSE Midcap and Smallcap indices were marginally up.

Software services exporter Infosys, cigarette major ITC and private oil & gas producer Reliance Industries were down 0.5-0.75 percent.

Country's largest lender State Bank of India fell 1 percent while its rivals ICICI Bank and HDFC Bank gained 0.2-0.7 percent.

Utility vehicle maker M&M and top car maker Maruti Suzuki lost over 1 percent while two-wheeler makers Hero Motocorp and Bajaj Auto slipped 0.6 percent.

Telecom operator Bharti Airtel and private power producer Tata Power gained 1 percent. State-owned ONGC, Coal India and BHEL rose 0.6-0.9 percent.

On the global front, European markets opened flat to lower following weakness in US and Asian markets. Corporate warnings (by Alcoa and Chevron Corp) of slower growth highlighted concerns about a sluggish world economy.

Indian shares continued to consolidate since early trade following sharp drop in previous sessions due to profit booking. Investors seem to be cautious ahead of earnings season that will be kicked off tomorrow with Infosys (first company among largecaps) declaring results for the September quarter . The stock was down 0.67 percent; analysts feel the growth in dollar revenues at sub 3 percent may disappoint the street. FY13 guidance will also be watched carefully by investors tomorrow.

The 30-share BSE Sensex slipped 32.59 points to 18,598.51 and the 50-share NSE Nifty fell 6.5 points to 5,645.70.

Gains in ICICI Bank, HDFC Bank, TCS and Bharti has counterbalanced the fall in Infosys, Reliance Industries, SBI, FMCG and auto stocks.

Top telecom operator Bharti Airtel rose 1 percent and state-run power equipment maker BHEL gained 1.5 percent.

Country's largest private sector lenders ICICI Bank and HDFC Bank were up 0.4-0.7 percent while their rival State Bank of India lost 1 percent.

Public sector oil & gas producer ONGC moved up 0.6 percent while its rival Reliance Industries declined 0.4 percent. Cigarette major ITC went down 0.75 percent.

Among Tata pack, software services exporter TCS went up 0.35 percent and steel producer Tata Steel was up 0.5 percent while power producer Tata Power rallied 1 percent.

India's largest car maker Maruti Suzuki plunged 2 percent while other auto stocks like Tata Motors, Hero Motocorp, Bajaj Auto and M&M were down 0.3-0.8 percent.

The 50-share NSE Nifty fell below the 5650 level amid choppy trade, weighed down by auto and FMCG stocks. The rise, however, in HDFC Bank, TCS and Bharti Airtel has limited the downside.

The BSE Sensex declined 42 points to 18,589.04 and the NSE Nifty slipped 13 points to 5,639.05.

Realty stocks bounced back with the BSE Realty index rising 1.55 percent on short covering following sharp fall in previous session. Stocks tanked 4-10 percent yesterday after allegations on Indiabulls Real Estate and DLF by India Against Corruption leader Arvind Kejriwal.

DLF rose 1.4 percent following a loss of 12% in previous three sessions. Indiabulls Real Estate, which lost 8 percent yesterday, gained 2 percent.

FMCG majors ITC and HUL, which gained in early trade, fell nearly 1 percent.

Country's largest lender State Bank of India tumbled 1.5 percent while its rival HDFC Bank gained a percent.

Engineering conglomerate Larsen & Toubro and commercial vehicle maker Tata Motors dropped 0.8 percent each. Shares of M&M, Bajaj Auto, Maruti and Hero Motocorp were down 0.3-1 percent.

Software services exporter Infosys was down 0.4 percent while its rivals TCS and Wipro gained over 0.5 percent.

State-run power equipment maker BHEL, which has been loser since Monday, bounced back with 1.2 percent gains. Telecom operator Bharti Airtel rose 0.9 percent.

Declining shares outnumbered advancing by 745 to 548 on the National Stock Exchange.

Indian equity benchmarks opened volatile on Thursday following a fall of about 400 points on the Sensex since the start of this week. They entered into a consolidation phase with the indices hovering around their previous closing values in early trade.

The BSE Sensex fell 22.66 points to 18,608.44 and the NSE Nifty declined 8.25 points to 5,643.90.

Infosys fell 0.6 percent ahead of its second quarter earnings that are due to be announced tomorrow morning.

JP Associates gained another 1 percent following a rise of 2.4 percent yesterday.

Country's largest lender State Bank of India lost 1 percent while its rival ICICI Bank was down 0.24 percent.

State-run power equipment maker BHEL shed another 1.5 percent following 2 percent fall yesterday.

HDFC, M&M, Larsen & Toubro, Bajaj Auto, Sterlite, Maruti, Hindalco and NTPC were under pressure.

Shares of Reliance Industries, ONGC, HDFC Bank, ITC, HUL, Bharti Airtel, TCS and Tata Steel were quite supportive.

The broader markets were flat but the market breadth was in favour of advances.

In the second line shares, Suzlon Energy plunged 4.5 percent after bondholders denied 4-month extension on foreign currency convertible bonds worth USD 220.8 million that is due for redemption in October.

Tulip Telecom lost 5 percent on concerns over redemption of FCCBs.

Unitech rallied 5 percent as chairman said all existing disputes with Telenor suspended.

Chambal Fertiliser and Rashtriya Chemical gained 3-3.5 percent as sources said Cabinet would meet today to mull direct urea subsidy transfer.

Technical rebound: Indiabulls Real and GMR Infra gained 0.5-1 percent.

Sintex was up 0.4 percent ahead of second quarter numbers today.

Kingfisher was down 5 percent as the company is likely to extend lockout again. The stock has been in 5 percent lower circuit since Monday.

UB Holding was down 1.5 percent as The Economic Times reported that UB group stocks come under SEBI scanner and the regulator has been probing stock movement for violation.

On the global front, Asian markets were flat to lower today as weak forecasts from US corporate bellwethers underscored concern over global demand, particularly from China, and kept oil and other commodity prices under pressure.