Sensex gains 565 points, Nifty ends at 8119; banks surge

3:30 pm Market close: After a super rally, the market ended with strong gains. The Sensex ended up 564.60 points or 2.1 percent at 26785.55 and the Nifty was up 168.40 points or 2.1 percent at 8119.30. About 1998 shares advanced, 795 shares declined and 97 shares were unchanged.

Tata Motors, Tata Steel, ICICI Bank, HDFC and Hindalco are top gainers while Maruti, Dr Reddy's Labs, Lupin, HUL and Wipro are major losers in the Sensex.

3:10 pm Interview: A majority of IT business will come from digital transformation projects in coming years, says C P Gurnani, Managing Director (MD) and Chief Executive Officer (CEO), Tech Mahindra.

In an interview with CNBC-TV18, Gurnani says that he expects the company's digital enterprise solutions business to rise to 40 percent in the next two years. Currently, Tech Mahindra's 15 to 18 percent comes from the digital enterprise solutions.

Gurnani is confident that the IT industry will achieve 11-11.5 percent compounded annual growth rate (CAGR) over the next five years and will meet the 2020 revenue target of USD 225 billion.

2:59 pm Goldman on Bharti: Goldman Sachs has reiterated buy rating on Bharti Airtel and added it to conviction list as it feels sell-off looks overdone and earnings are set to rise. The stock has rallied more than 2 percent intraday Monday as the brokerage sees 40 percent upside.

Bharti has corrected sharply from its recent peak in July 2015 over concerns on forex, Reliance Jio's launch and a correction in Bharti Infratel (a subsidiary).

The brokerage believes correction is overdone and Bharti is set for an earnings upgrade cycle due to higher revenue market share (driven by faster 3G/LTE rollout); increasing data usage with more localised online content; and further deleveraging in Africa.

After attaining highest revenue market share (RMS) in 20 quarters, Goldman expects Bharti's market share to improve further to 31.2 percent in FY21.

Key risks, according to Goldman Sachs, are lower-than-expected elasticity to price cuts due to Jio's launch, slower-than-expected data uptake, forex volatility and continued Africa weakness.

2:45 pm GDP to exceed 7.5%?: Government today said revenue collection will fall short by Rs 50,000 crore but expressed confidence that economic growth will exceed 7.5 percent, with fiscal deficit remaining within the budgeted target.

"Our macro-fundamentals remain strong. We are now better placed to handle unforeseen external shocks and to put India firmly on the path of economic recovery and inclusive prosperity," Finance Secretary Ratan Watal said at a press conference along with other secretaries and the Chief Economic Advisor.

One of the concerns is revenue collection, which according to Revenue Secretary Hasmukh Adhia will fall short of the budgetary target by 5-7 percent, mainly because of subdued growth in direct taxes.

The total tax revenues are likely to be around Rs 14 lakh crore in the current fiscal, as against the budget estimate of Rs 14.5 lakh crore. As regards growth, Economic Affairs Secretary Shaktikanta Das said there are indications that it will exceed 7.5 percent in the current financial year.

"Despite the global slowdown and declining export demand, India has emerged as the fastest growing major economy in the world," said an official statement, adding that the government will continue to implement its reform agenda to realise potential growth rate of 8 percent plus over time.

2:30 pm Maruti deal: RC Bhargava, Chairman of Maruti Suzuki says the manufacturing contract with Suzuki Motor Gujarat (P) will prove to be a win-win opportunity for Maruti, Suzuki and all shareholders as opposed to the general zero-sum game sentiment.

The board of Maruti has approved the contract with Suzuki Motor Gujarat subject to the arrangement being approved by the minority shareholders of MSIL and regulatory approvals.

Recently, brokerage house Jefferies downgraded the auto major to underperform from buy.

2:15 pm India-Germany MOUs: India and Germany signed a deal today to fast-track business approvals, an arrangement to make it easier for German companies to operate in Asia's third largest economy that was announced as Chancellor Angela Merkel visited New Delhi.

The fast-track approvals process will ensure that German firms will have a single point of contact in the Indian administration, helping them to navigate a web of red tape that often thwarts business initiative.

The agreement is the first of its kind and comes as Prime Minister Narendra Modi seeks to attract foreign investment in support of his "Make in India" drive to boost industrial investment and create skilled jobs.

Indian Commerce Secretary Amitabh Kant said that under the fast-track arrangement India "would monitor on a monthly basis all issue for German companies.'

2:00 pm Market Check
The market rallied further in afternoon trade with the Nifty hitting 8100-mark for the first time since August 21. It was led by rally in banking & financials, infrastructure, oil and auto stocks.

The Sensex surged 524.03 points or 2 percent to 26744.98 and the Nifty rose 153.65 points or 1.93 percent to 8104.55. The BSE Midcap and Smallcap indices gained 1.5 percent each. More than two shares advanced for every share declining on the Bombay Stock Exchange.

Bank Nifty outperformed benchmarks, up 2.5 percent. ICICI Bank, HDFC Bank, Axis Bank and SBI gained 2-4 percent.

HDFC surged 4.5 percent after the company successfully raised around Rs 10,000 crore via a mix of warrants and non-convertible debentures to qualified institutional investors. The housing finance company allotted 3.65 crore warrants at an exercise price of Rs 1,475 per share.

Larsen and Toubro (L&T) shares gained 4 percent after Citi has upgraded the stock to buy from neutral, citing negative newsflow more than priced in.

Among others, TCS, Reliance Industries, ONGC, Hero Motocorp, Bajaj Auto, Bharti Airtel, Tata Steel, Hindalco Industries and BHEL climbed 2-5 percent.

1:55 pm Road Safety Bill: Vested interests opposed to transparency and computerisation in the transport sector are against the new road safety bill but government is committed to enacting the law, Union Minister Nitin Gadkari said today. "Despite our best efforts the Bill (Road Transport and Safety Bill, 2015) which we made could not be introduced in Parliament. This is a difficult problem for us.

The Act falls in the purview of concurrent list and both state governments and the Centre have rights. Different lobbies are there who are opposing the Bill," said the Road Transport and Highways Minister. Addressing a conference on road safety, organised here by International Road Federation, Gadkari said the proposed Act will not only computerise the entire system, eradicating corruption but is also designed to bring greater transparency and benefit the public.

1:45 pm FII view: India is looking like an island of prosperity among emerging markets, says Nandita Parker, general partner at Karma Capital Management LLC. The situation could have been better for India, but atleast now the country can build its infrastructure at a lower cost compared to China, she told CNBC-TV18. The world, however, will have to adjust to slower growth scenario.

On the brighter side, with the US Federal Reserve liftoff getting delayed, the market, especially emerging markets, are getting enough time to adjust to the first rate hike, whenever that might happen.

Coming back to India, Parker is glad to see the Reserve Bank governor Raghuram Rajan finally bite the bullet and give the market some reason to cheer. She is increasing her exposure to India - deploying cash into Indian markets - and says investors in the US too are positive on the country.

1:30 pm Black money disclosure: Government collected Rs 4,147 crore during the 90-day black money disclosure compliance window, which is higher than the previously announced amount of Rs 3,770 crore, Revenue Secretary Hasmukh Adhia said on Monday.

Hasmukh Adhia said while the total number of disclosures is 638 as stated last week, the total illegal foreign assets brought to book stands at Rs 4,147 crore. The government's total tax receipt from the black money declared during the window will be Rs 2,488.20 crore.

The government had on October 1 declared that a total of Rs 3,770 crore of black money was declared during the compliance window. This, he said, was based on preliminary count of the declarations made.

The market continues to rise with the Nifty inching close to 8100 mark. The 50-share index is up 121.05 points or 1.5 percent at 8075.35 while the Sensex is up 427.45 points or 1.6 percent at 26648.40. About 1849 shares have advanced, 723 shares declined, and 89 shares are unchanged.

Tata Motors, Hindalco, HDFC, Tata Steel and L&T are top gainers while Maruti, Dr Reddy's Labs, HUL, Lupin and Infosys are laggards.

Crude oil futures edged up on Monday after Russia said it was ready to meet other producers to discuss the situation in the global oil market, where prices have more than halved from last year's highs due to a persistent supply glut.

Russia, the world's top oil producer, has been unwilling to cut output to support crude prices and last November it even refused to co-operate with the Organization of the Petroleum Exporting Countries (OPEC) in order to defend its market share.

12.59 pm Market Update: Equity benchmarks remained strong. The Sensex rallied 401.07 points or 1.53 percent to 26622.02 and the Nifty rose 114.70 points or 1.44 percent to 8065.60. About 1827 shares have advanced, 702 shares declined, and 94 shares are unchanged on the BSE.

The rupee also gained further, trading 23 paise higher at 65.27 a dollar.

12:45 pm Europe opens: European stocks rallied at the open today after a weak US employment report dampened expectations that the US Federal Reserve will start raising interest rates soon.

London's FTSE 100 index was 1.6 percent higher, the German DAX rose 1.5 percent higher while the French CAC saw a 1.9 percent pop.

The latest jobs data from the US are the focus for global markets today. September's closely-watched jobs report showed the US economy created 142,000 jobs, far below the expected 203,000. Unemployment held at 5.1 percent while the participation rate plunged to 62.4 percent, according to the Labor Department.

Many investors are now not expecting the Fed to raise interest rates this year, even though several officials have said in recent weeks that a hike probably would be appropriate before the end of 2015. Expectations for a rate increase fell further after the report was released, with traders pushing the probability out to March 2016.

12:30 pm Educomp in News: Educomp Solutions said subsidiary Educomp Intelliprop Ventures Pte Ltd has sold its entire stake in Wiz Learn Technology Pte Ltd, Singapore to V-cube Global Services Pte Ltd.

Further, corresponding to such sale the investment of Wiz Learn Technology Pte Ltd in 3 subsidiaries naming Singapore Learning.com Pte Ltd; Pave Education Pte Ltd and Wiz Learn Pte Ltd will also get sold, it added.

12:15 pm FII View: In the surge seen globally, India is the 'only significant' player among all emerging markets, says Xavier Denis, Societe Generale Securities.

With a base rate cut of 50 basis points from Reserve Bank of India, Indian economy reflects a slowing inflation among Asian countries, he tells CNBC-TV18.

Denis believes the market is "over-pessimistic" of global problems, not only specific to China but all throughout emerging Asia and recommends equity investors to be more cautious of EMs.

Equity benchmarks have maintained strong northward journey in noon trade led by banking & financials. The Sensex rallied 368.90 points or 1.41 percent to 26589.85 and the Nifty rose 105.70 points or 1.33 percent to 8056.60. About 1745 shares have advanced, 665 shares declined, and 82 shares are unchanged on the BSE.

Asian markets traded higher on Dovish Fed expectation even as World Bank trimmed China's 2015 GDP growth forecast to 6.9 percent from 7.1 percent. Markets in China remain closed until Wednesday.

Tata Motors gained more than 6 percent after a stellar sales performance in US. JLR US sales increased 61 percent year-on-year. Bajaj Auto rose 1.8 percent after better-than-expected sales data in September. The company said domestic market share will exceed 20 percent in festive season.

HDFC soared 4 percent after the company successfully raised around Rs 10,000 crore via a mix of warrants and non-convertible debentures to qualified institutional investors. The housing finance company allotted 3.65 crore warrants at an exercise price of Rs 1,475 per share.

11:55 am View on market: Chris Wood, CLSA says RBI's move last week to cut rates was long overdue given the surge in real interest rates in recent months. 
According to him, it is also positive that the government bond market has been further opened up to foreigners and that the statutory liquidity ratio (SLR) will be gradually reduced for banks.

He says foreigners will want to buy more Indian bonds given RBI Governor Raghuram Rajan's new inflation targeting regime, based on CPI, while the relaxation in the SLR should create more room for banks to lend.

The final positive is that the rupee did not weaken on the 50 bps cut, says Wood.

11:45 am FII view: In the surge seen globally, India is the 'only significant' player among all emerging markets, says Xavier Denis, Societe Generale Securities.

With a base rate cut of 50 basis points from Reserve Bank of India, Indian economy reflects a slowing inflation among Asian countries, he tells CNBC-TV18.

Denis believes the market is "over-pessimistic" of global problems, not only specific to China but all throughout emerging Asia and recommends equity investors to be more cautious of EMs.

11:30 am Home loan rate: SBI may have cut its base lending rate by 40 basis points to 9.3 percent following RBI's latest policy rate cut, but home loan customers of the top lender will have to pay up to 0.7 percent above the base rate, and interest of as much as 10 percent for their loans.

Accordingly, the actual reduction in home loan rate will be a maximum of only 20 basis points, while a higher margin above the base rate will mean that customers will have to pay the same rate of interest for home loans above Rs 1 crore.

The rate for Maxgain home loans above Rs 1 crore - at 9.75 percent for women - would come down by only 20 basis points, while for other customers it would actually remain unchanged at 10 percent with effect from today despite a reduction of 40 basis points in base rate.

11:20 am Interview: S Ravikumar, President - Business Development, Bajaj Auto expects no great fireworks during the festival of Diwali, but expects its market share to rise by 1 percent to 20 percent. Speaking to CNBC-TV18, Ravikumar says the company expects total sales in October to be in the range of 4-4.25 lakh units and exports to be slightly lower than September's 1.74 lakh units to 1.5 lakh units. On the road ahead, he says the company plans to launch three new Avengers this month.

The market is surging ahead with major support from banks, auto and capital goods. The Sensex is up 402.99 points or 1.5 percent at 26623.94 and the Nifty gains 115.30 points or 1.4 percent at 8066.20. About 1687 shares have advanced, 539 shares declined, and 78 shares are unchanged.

Tata Motors, HDFC, ICICI Bank, L&T and TCS are top gainers in the Sensex. Among the losers are Maruti, Dr Reddy's Labs, Lupin, Coal India and Infosys.

Oil extended gains in Asia as a decline in US drilling pointed to a slowdown in production, but concerns over demand remain after a disappointing US jobs report.

Gold retained gains from its biggest daily jump in nearly nine months as weak US jobs data eased fears the Federal Reserve will hike rates this year. Gold, which had been weighed down all year by expectations the US central bank could soon rise rates, rallied as the dollar fell. The metal is still down nearly 4 percent this year.

10:45 am Market Expert: India is looking like an island of prosperity among emerging markets, says Nandita Parker, general partner at Karma Capital Management LLC. The situation could have been better for India, but atleast now the country can build its infrastructure at a lower cost compared to China, she told CNBC-TV18. The world, however, will have to adjust to slower growth scenario.

On the brighter side, with the US Federal Reserve liftoff getting delayed, the market, especially emerging markets, are getting enough time to adjust to the first rate hike, whenever that might happen.

Coming back to India, Parker is glad to see the Reserve Bank governor Raghuram Rajan finally bite the bullet and give the market some reason to cheer. She is increasing her exposure to India - deploying cash into Indian markets - and says investors in the US too are positive on the country.

10:30 am Buzzing: Shares of mortgage lender  HDFC touched an intraday high of Rs 1244 today, nearly 4 percent on news that the company has raised capital worth Rs 10,000 crore through mix of warrants and non-convertible debentures to qualified institutional investors.

The company on Saturday announced that it alloted 3.65 crore warrants at an issue price of Rs 14 apiece, at an exercise price of Rs 1,475 per share.

The warrant issue price of Rs 14 apiece would neither be adjusted against the exercise price nor would be refundable, the filing said. Besides, it has raised Rs 5,000 crore through issuance of non-convertible debentures (NCDs).

10:15 am FII View: Chris Wood, CLSA says RBI's move last week to cut rates was long overdue given the surge in real interest rates in recent months.

According to him, it is also positive that the government bond market has been further opened up to foreigners and that the statutory liquidity ratio (SLR) will be gradually reduced for banks.

He says foreigners will want to buy more Indian bonds given RBI Governor Raghuram Rajan's new inflation targeting regime, based on CPI, while the relaxation in the SLR should create more room for banks to lend.

The final positive is that the rupee did not weaken on the 50 bps cut, says Wood.

10:00 am Market Check
The market extended rally on positive global cues and supported by banking & financials and Tata Motors. The Sensex surged 379.13 points or 1.45 percent to 26600.08 and the Nifty rose 106.15 points or 1.34 percent to 8057.05.

The broader markets also traded in-line with benchmarks. The BSE Midcap and Smallcap indices soared more than 1 percent. The market breadth was positive too as about 1479 shares have advanced against 367 shares declined on the Bombay Stock Exchange.

HDFC was the biggest contributor to Sensex, up 3.4 percent after the housing finance company raised around Rs 10,000 crore via issuance of warrants and NCDs. Among banks, ICICI Bank, HDFC Bank, Axis Bank and State Bank of India gained 1.5-3 percent.

Tata Motors topped the buying list on Sensex, up more than 6.5 percent on strong Jaguar Land Rover and medium & heavy commercial vehicle (MHCV) sales in September. Its subsidiary Jaguar Land Rover (JLR) sold 6,850 vehicles in the US, higher by 61 percent compared to 4,248 vehicles sold in the year-ago period. MHCV sales continued to grow at 15,915 vehicles, higher by 52 percent over September 2014.

However, Maruti Suzuki, Dr Reddy's Labs and Coal India lost more than 1 percent.

Asian markets gained, taking positive lead from Wall Street. Hang Seng, Straits Times and Nikkei climbed over 1.5 percent while China is shut for holiday.

9:50 am FM: Hinting at stringent action against those who failed to disclose foreign black money under compliance window, Finance Minister Arun Jaitley said they "now stand the risk" of information on them reaching the tax authorities while those who disclosed can "sleep well". He also described as "ill conceived" the comparison between the assessed income of Rs 6,500 crore in HSBC and Rs 3,770 crore declared during the compliance window, saying these should not be treated as income under amnesty schemes.

9:40 am Buzzing: Shares of Tata Motors surged 8.4 percent intraday on strong Jaguar Land Rover and medium & heavy commercial vehicle (MHCV) sales in September.

Its subsidiary Jaguar Land Rover (JLR) sold 6,850 vehicles in the US, higher by 61 percent compared to 4,248 vehicles sold in the year-ago period. Land Rover sales grew by 88.5 percent to 5,855 vehicles while Jaguar sales declined 12.9 percent to 995 units year-on-year, said the luxury car maker.

The country's largest commercial vehicle maker said MHCV sales continued to grow at 15,915 vehicles, higher by 52 percent over September 2014.

However, light & small commercial vehicle sales continued to reflect industry decline. LSCV sales dropped 29 percent to 13,124 vehicles compared to year-ago period, which impacted overall commercial vehicles sales of the company in domestic market.

9:30 am Deal: Indian biotechnology major Biocon has acquired manufacturing assets of Vishakapatnam-based Acacia Life Sciences, with effect from October 1, on a going concern basis, Biocon said in a regulatory filing. The said business unit of Acacia currently manufactures advanced intermediates of potent active pharmaceutical ingredients (APIs) useful to the company's business as well as for supply to third-party customers. Biocon did not disclose any financial details of the deal.

9:20 am Market rises: The Sensex is up 312.81 points or 1.2 percent at 26533.76 and the Nifty is up 84.95 points or 1 percent at 8035.85. About 946 shares have advanced, 209 shares declined, and 36 shares are unchanged.

Tata Motors is up 5 percent while TCS, HDFC, ICICI Bank and L&T are other top gainers in the Sensex. Maruti Suzuki is down 2 percent while Dr Reddy's Labs, ONGC, Coal India and Vedanta are major losers.

It is a strong start of the market in October. The Sensex is up 232.60 points or 0.9 percent at 26453.55 and the Nifty is up 58.65 points or 0.7 percent at 8009.55. About 494 shares have advanced, 84 shares declined, and 28 shares are unchanged.

ICICI Bank, Tata Motors, Axis Bank, Hero and Hindalco are top gainers while Maruti and Infosys are in red.

The Indian rupee opened at seven week high as it surged 26 paise in the early trade on Monday at 65.25 per dollar against  Thursday's close of 65.51.

Agam Gupta of StanChart Bank said, "The dollar will open lower than the close of 65.51 due to the extremely weak US jobs data. We expect a range of 65.10-65.50/dollar for the day."

The dollar slipped against a basket of currencies after weak US jobs data led traders to pare bets that the Fed was poised to hike interest rates as early as this month.

Crude prices recovered after a report showed a fifth weekly decline in the US oil rig count. And precious metal gold rose as jobs data dented expectations the fed will raise interest rates this year.

Asian equities kicked off the trading week on a positive note after a weak US employment report on Friday cooled expectations that the Federal Reserve will start raising interest rates soon.

September's closely-watched jobs report showed the US economy created 142,000 jobs, far below the expected 203,000. Unemployment held at 5.1 percent while the participation rate plunged to 62.4 percent, according to the Labor Department.

Indications of softness in the labour market mean the Fed is unlikely to begin tightening monetary policy soon, analysts say. Fed funds futures are now pricing the first rate hike to come no earlier than March 2016.

US stocks closed more than 1 percent higher following the report, with major averages ending the week up more than 1 percent.