Sensex jumps 314 points; Sun Pharma, Tata Power gain 4%

03:45 pm Power: Private power producers have made a pitch for pooling the price of domestic as well as imported gas aimed at revamping over Rs 1 trillion worth of plants stranded due to scarcity of fuel.

In a letter to the Power Minister Piyush Goyal, Association of Power Producers' a lobby representing as many as 20 private generators, said the government should seriously consider pooling the prices of natural gas. The power generation companies are seeking to balance any rise in domestic or international gas prices by pooling them and deriving at an average rate.

"Generation of environment friendly gas-based power can be achieved through implementation of pooling mechanism through appropriate pricing of domestic gas and imports of natural gas," Ashok Khurana, Director General of Association of Power Producers, said in the letter to the Power Minister.

03:35 pm Market closing: The market kickstarted the week with a strong rally, supported by banks, infra and pharma stocks. The Nifty managed to reclaim 7600, up 102.55 points or 1.4 percent to end at 7611.35 while the Sensex was up 313.86 points or 1.25 percent at 25413.78.

Sun Pharma and Tata Power jumped 4 percent each while ONGC, Dr Reddy's Labs and Hindalco were other gainers in the Sensex. Among the laggards were Bajaj Auto, Maruti Suzuki, M&M, Tata Motors and Wipro.

03:25 pm 300 stocks moved: In an attempt to curb speculative trading, the Bombay Stock Exchange has moved 300 stocks to the trade-to-trade or "T" segment, the exchange said in a notification. Scrips including BEML, Edelweiss Financial Services, GATI, Motilal Oswal Financial Services, Punj Lloyd, Sterlite Technologies and Suzlon Energy have been shifted to T segment. These changes would be effective from today June 30, 2014. In 'trade-to-trade' segment, no speculative trading is allowed and delivery of shares and payment of the consideration amount are mandatory. The move is part of the preventive surveillance measure taken by bourse to ensure the market safety and to safeguard the interest of investors.

03:15 pm FMC norms: In line with the practice followed by stock exchanges, commodity markets regulator Forward Markets Commission (FMC) has directed exchanges to expel members who have been expelled by any commodity exchange with immediate effect.

However, if a member is only suspended or debarred by a stock exchange, such member will not be suspended by any other commodity bourse, it said.

The norms on defaulted members have been modified following the representations from exchanges and members.

As per the modified norms, FMC said: "In case of expulsion of a member from one commodity exchange, such member would ipso facto stand expelled from all other commodity exchanges where he is a member."

03:05pm Market Update
The Sensex rose 341.47 points or 1.36 percent to 25441.39 and the Nifty advanced 108.90 points or 1.45 percent to 7617.70.

About 2077 shares have advanced, 904 shares declined, and 103 shares are unchanged.

03:00pm ONGC, Oil India in news
Oil ministry has started work to review subsidy sharing mechanism, reports CNBC-TV18 quoting unnamed government sources. The ministry is keen for USD 60-65 a barrel fixed realisation for ONGC & Oil India, and keen to link production with fixed higher realisations, say sources.

It is learnt that both companies must reinvest higher realisations to hike output and will submit production plans for higher realisations. ONGC gained 3 percent and Oil India rose 2 percent.

02:50pm Omaxe up 1.5%
Mohit Goel, CEO, Omaxe says the company is likely to launch 6-7 new projects in Q2FY15. "We do not need capital for projects to be launched in Q2," he adds.

According to him, first quarter earnings may be subdued. He says he expects revenue growth of 25 percent in FY15 and may see another 10-15 percent jump in average realisations. The net debt of the real estate company stands at around Rs 800 crore.

02:40pm Will Sun Pharma close Ranbaxy deal by December?
Uday Baldota, Senior Vice President of Finance & Accounts, Sun Pharma Baldota is optimistic of closing the Ranbaxy deal by December 2014 and of all businesses growing in a healthy manner.

According to him, the deal signed with Ranbaxy is in best interest of shareholders and believes that Ranbaxy has a strong employee base and brands. He clarified that Sund at  present is not looking at any other large deals and all their energies would be focused on closing the Ranbaxy deal, said Baldota.

On the sales growth front, he stands by the company's earlier guidance of seeing 13-15 percent growth in FY15 over that of FY14.

02:30pm Union Bank of India up 6%
Shareholders of the bank approved raising of capital up to Rs 1,386 crore via qualified institutional placement (QIP).

02:20pm Interview
Rajesh Gupta, CFO, Havells India says he does not see listing of Sylvania over next 2-3 years. Sylvania operates at around 6 percent margins currently, he adds.

He sees 2-3 percent growth for Sylvania business for FY15 and 6-6.5 percent growth in FY15 margins.

He expects 14 percent EBITDA margin on a standalone basis (Havells India) for FY15 and expects to grow at 15-20 percent on a standalone basis for FY15.

02:10pm IFCI up 2.7%
Media report suggested that the company is planning to sell its stake in toll road project in Madhya Pradesh.

"After deciding to reduce holding in National Stock Exchange and sale broking unit, now it intends to put on block its 26 percent stake in a Rs 900-crore operating toll road project in Madhya Pradesh," says the report.

The state-run finance company also put on block its assets of Majestic Hotels, according to its advertisement in newspapers. The reserve price for the same is Rs 130 crore. Earlier it had postponed sale of this property in April 2014.

02:00pm Equity benchmarks continued to hold morning gains supported by banks, capital goods and power stocks. The Sensex rose 276.86 points or 1.10 percent to 25376.78 and the Nifty climbed 90.25 points or 1.20 percent to 7599.05.

About 1979 shares have advanced, 913 shares declined, and 130 shares are unchanged.

IDFC and BPCL topped the buying list, rising 4 percent each. Punjab National Bank, Tata Power and Bank of Baroda gained nearly 4 percent. Sun Pharma, ICICI Bank, L&T and ONGC advanced 2.5-3 percent.

However, United Spirits fell 4 percent. Reliance Industries, Hero Motocorp, Maruti Suzuki and M&M declined 0.3-0.8 percent.

Most active shares on exchanges were Tech Mahindra, United Spirits, ITC, Reliance Capital, Godrej Industries, State Bank of India and Reliance Industries.

2:00 pm Aggressive plans: Over the weekend, CNBC-TV18 felicitated the best performing CFOs and Uday Baldota, Senior Vice President of Finance & Accounts at  Sun Pharma won the top honours in the pharmaceuticals and healthcare space.

Baldota is optimistic of closing the  Ranbaxy deal by December 2014 and of all businesses growing in a healthy manner.

According to him the deal signed with Ranbaxy is in best interest of shareholders and believes that Ranbaxy has a strong employee base and brands. He clarified that Sund at  present is not looking at any other large deals and all their energies would be focused on closing the Ranbaxy deal, said Baldota.

On the sales growth front he stands by the company's earlier guidance of seeing 13-15 percent growth in FY15 over that of FY14.

1:50 pm Market news: India will auction unutilised investment limits in government debt worth Rs 5516 crore to foreign investors on Tuesday, exchange operator BSE said in a circular.

The auction comes after the country previously auctioned 71.52 billion rupees worth of unused debt limits on June 11, which saw aggressive bidding by foreign investors.

These bond auction quotas give foreign investors the right to invest in debt up to the limit bought. BSE will notify bidders about the results of the auction shortly after 5:30 pm.India time on Tuesday.

1:40 pm Market outlook: Nomura's Prabhat Awasthi is not sure about a pre-Budget rally in the market, because of continuing macro-economic worries, particularly inflation.

In an interview with CNBC-TV18, he says high crude oil prices and concerns of a drought could keep sentiment in check. According to him one could expect some clarity on GST implementation from the Budget. On the positive side, Awasthi expects clarity on the implementation of the much delayed Goods and Services Tax in the upcoming Budget. He is bullish on the banking sector; both private sector and public sector banks. SBI , ICICI Bank and Axis Bank are the stocks he is bullish on.

1:30 pm Buzzing: Shares of Housing Development Finance Corporation (HDFC) gained as much as 2 percent intraday after CLSA maintained buy rating on the stock with revised target price of Rs 1140 from Rs 1000 apiece.

The brokerage expects HDFC's profit growth to improve from 10-12 percent in past three quarters to 18 percent in 2HFY15 led by pick up in commercial lending activity.

"Recent downward shift in yield curve offers scope to lower mortgage rates which can be positive for retail demand. A potential hike in foreign shareholding norms in life insurance sector could also be a catalyst. With 18 percent CAGR in profit over FY14-17 and valuations still at par with five year averages, we see triggers for re-rating," it says in a note.

1:20 pm Coal India not to split: Putting speculation of breaking up state behemoth Coal India to rest, Power and Coal Minister Piyush Goyal has said the new government will not split the world's largest coal miner but will work to smoothen the edges and improve its performance.

The new government wants to fix the coal sector quickly to ensure uninterrupted electricity supply across the country.

Coal is the cheapest fuel and is used to generate more than half of India's power.

India is home to the world's fifth-largest reserves of coal but delays in environmental approvals, land acquisition problems and inefficient systems have made the country the third-biggest importer.

The market is going strong with support from banks, capital goods and pharma stocks. The Sensex is up 280.55 points or 1.12 percent at 25380.47 and the Nifty is up 89.60 points or 1.19 percent at 7598.40.

About 1923 shares have advanced, 849 shares declined, and 117 shares are unchanged.

Sun Pharma continues its rally after Taro rallied 17 percent in the US markets on Friday. Sun owns a 70 percent stake in Taro and the Israel-based subsidiary contributes 28 percent to Sun's profits. Credit Suisse believes recent price increase has potential to add USD 300 mn to Taro's sales.

Tata Power is up 4 percent while ICICI Bank, L&T and SBI are top gainers in the Sensex. Among the losers are Reliance, M&M, Hero, Maruti and M&M.

From the money market space, rupee is at a one week high following a subdued dollar and stronger Asian currencies support.

Globally, Asian markets are marginally in the green. The mood is cautious ahead of key Chinese data due Tuesday. Also investors are awaiting June's US non-farm payrolls report on Thursday.

01:00pm Market Expert
Harendra Kumar, head of institutional broking & global economy at Elara Capital does not have high expectations from the Budget. Instead he thinks it is more likely to disappoint since the new government did not get enough time to plan it.

However, there could some directional statements from the government regarding fiscal deficit, reforms etc says Kumar in an interview to CNBC-TV18.

He sees the market drifting lower to 7000 level in absence of any triggers to take it higher and expects a 5-7 percent correction. Deficient monsoon and core inflation continue to worry the market, feels Kumar.

12:50pm Eicher Motors hits record high
Shares of Eicher Motors rallied 4.5 percent, hitting a record high at Rs 8074. Bank of America Merrill Lynch has raised target price on the stock to Rs 8825 per share, indicating a 19 percent upside.

The brokerage expects the stock to sustain performance as it sees no let up to earnings surprise. It expects the auto manufacturer to sustain premium multiples on its business constituents due to superior growth rates and better financial position (especially CVs).

BoA ML's revised target is driven by changes to EPS forecasts by 4-5 percent over next  two years (7-13 percent ahead of street), increased volume assumptions (CV exports, motorcycles) and roll over by three months to March 2016.

12:40pm T2T stocks
In an attempt to curb speculative trading, the Bombay Stock Exchange has moved 300 stocks to the trade-to-trade or "T" segment with effect from today.

Scrips including BEML, Edelweiss Financial Services, GATI, Motilal Oswal Financial Services, Punj Lloyd, Sterlite Technologies and Suzlon Energy have been shifted to T segment.

In 'trade-to-trade' segment, no speculative trading is allowed and delivery of shares and payment of the consideration amount are mandatory. The move is part of the preventive surveillance measure taken by bourse to ensure the market safety and to safeguard the interest of investors.

12:30pm CLSA on HDFC
CLSA expects HDFC's profit growth to improve from 10-12 percent in past three quarters to 18 percent in 2HFY15 led by pick up in commercial lending activity.

"Recent downward shift in yield curve offers scope to lower mortgage rates which can be positive for retail demand. A potential hike in foreign shareholding norms in life insurance sector could also be a catalyst. With 18 percent CAGR in profit over FY14-17 and valuations still at par with five year averages, we see triggers for re-rating. Buy," says the brokerage house in its note.

12:20pm Dr Reddy's Labs up 1.5%
JP Morgan remains overweight on Dr Reddy's Labs with a target price of Rs 3000, implying 15 percent upside from the current market price.

The brokerage is positive on Dr Reddy's growth trajectory, given its focus on limited competition generics in the US and the bio-similars opportunity longer term.

''Guidance for higher R&D investment has impacted stock performance over the last few months. However, we expect earnings growth of 16 percent over FY15-16E with a few key catalysts in the next year,'' it said in a note.

12:10pm FII View
Abhay Laijawala, Deutsche Bank says, "We see finance minister Arun Jaitley building a path breaking Budget around three key end objectives - shift the bias of government policy from consumption to investment, raise the sustainable GDP growth rate by intensively promoting labour-intensive manufacturing and infrastructure investments."

He sees FM addressing fiscal imbalances through combination of politically prudent subsidy rationalization and raising non tax revenues and creating enabling environment conducive for domestic savings to reduce the savings investment gap.

12:00pm The market remained strong with the Sensex rising 276.42 points or 1.10 percent to 25376.34 and the Nifty gaining 87.50 points or 1.17 percent to 7596.30 supported by banks, infrastructure and FMCG stocks.

The broader markets outperformed benchmarks with the BSE Midcap and Smallcap rising above 1.4 percent. Advancing shares outnumbered declining ones by a ratio of 1825 to 799 on the BSE.

Bank of Baroda, IDFC and Punjab National Bank topped the buying list, rising 4 percent each followed by BPCL, Sun Pharma, ICICI Bank, Larsen & Toubro, BHEL and SBI with 2-3.5 percent.

In the midcap space, Allahabad Bank, Tata Investment Corporation, Jaiprakash Power, Syndicate Bank and Oriental Bank of Commerce gained 6-7 percent whereas Tilak Finance, Responsive Industries, Page Industries, Natco Pharma and Sobha Developer fell 2-5 percent.

11:55 am Market update: The Nifty hits 7600, 89.35 points or 1.1 percent while the Sensex gains 290.01 points or 1.1 percent  at 25389.93. About 1813 shares have advanced, 790 shares declined, and 112 shares are unchanged.

Sun Pharma and L&T are up 3 percent each while BHEL, Tata Power and ICICI Bank are top gainers in the Sensex.

11:45 am Interview: Nitin Seth, Executive Director (LCV & Defence) at Ashok Leyland expects foreign direct investment (FDI) in defence to be raised to above 51 percent in the upcoming Union Budget. Currently, India restricts FDI in defence to 26 percent, beyond which, it is allowed on a case-to-case basis.  India is the largest importer of arms and defence equipment in the world. It has the third largest army and the ninth largest defence expenditure. Despite that, almost half of its equipment is obsolete. One of the reasons for the poor state of affairs has been the inability of the local industry to keep up pace with modern requirements.

According to SP Shukla of Mahindra Defence, the government must look to strengthen the local manufactures. He says three thing need to addressed quickly: 1) licencing, 2) defence procurement and 3) exports.   

11:40 am In news: Shares of oil refiners gain after crude oil prices cool down. Bharat Petroleum Corp gains 3.3 percent, Hindustan Petroleum Corp rises 3.1 percent and Indian Oil Corp is up 1.7 percent.

Brent futures dipped towards USD 113 a barrel, adding to last week's fall as supply disruption fears from Iraq eased as government forces launched a pushback against a Sunni militant takeover of large areas of the country.

11:30 am Market outlook: Harendra Kumar, head of institutional broking & global economy at Elara Capital does not have high expectations from the Budget. Instead he thinks it is more likely to disappoint since the new government did not get enough time to plan it. However, there could some directional statements from the government regarding fiscal deficit, reforms etc says Kumar in an interview to CNBC-TV18. He sees the market drifting lower to 7000 levels in absence of any triggers to take it higher and expects a 5-7 percent correction. Deficient monsoon and core inflation continue to worry the market, feels Kumar.

The house is likely to trim positions in utilities and capital goods sector but find pharma and IT attractive at lower levels.

11:20 am Buzzing: Shares of Eicher Motors rallied 4.5 percent, hitting record high at Rs 8074 intraday. Bank of America Merrill Lynch has raised target price on the stock to Rs 8825 per share, indicating a 19 percent upside.

The brokerage expects the stock to sustain performance as it sees no let up to earnings surprise. It expects the auto manufacturer to sustain premium multiples on its business constituents due to (superior growth rates and better financial position (especially CVs).

BoA ML's revised target is driven by changes to EPS forecasts by 4-5 percent over next  two years (7-13 percent ahead of street), increased volume assumptions (CV exports, motorcycles) and roll over by three months to March 2016.

The market is holding its gains firmly. The Sensex is up 276.70 points or 1.10 percent at 25376.62 and the Nifty is up 81.40 points or 1.08 percent at 7590.20. About 1713 shares have advanced, 675 shares declined, and 97 shares are unchanged.

Sun Pharma, SBI, Tata Power, ICICI Bank and L&T are top gainers in the Sensex. Among the losers are M&M and Maruti Suzuki.

The rupee is seen holding in a 59.80 to 60.30 range during the session. Demand for the greenback from oil refiners looking to meet month-end demand is expected to limit any sharp downward pressure on the USD/INR pair.

Most Asian currencies stronger against the dollar. Asian share markets edged cautiously higher while the dollar stayed under pressure ahead of packed week of economic data that will test investor hopes for a pick-up in the U.S. and global economies.

11:00am Havells India extends gains
The board of directors of the company approved sub-division of the nominal value of equity shares from face value of Rs 5 to face value of Re 1 per share, subject to the consent of the members.

10:50am HDIL gains 4%
Citigroup Global Markets Mauritius Private Limited bought 40 lakh shares of the company or about 0.96 percent of the equity, in a block deal on Friday.

10:40am Market Update
The Sensex rose 291.31 points or 1.16 percent to 25391.23 and the Nifty advanced 85 points or 1.13 percent to 7593.80.

Sun Pharma, SBI, Larsen & Toubro, Tata Power, BHEL, Bank of Baroda, Punjab National Bank and BPCL topped the buying list, up 2-4 percent.

10:30am Thomas Cook in News
Thomas Cook India says its subsidiary IKYA Human Capital Solutions completed acquisition of Hofincons Infotech & Industrial Services Private Limited.

"The board of directors of Hofincons Infotech & Industrial Services Private Limited on June 27 has approved the transfer of 55.39 lakh equity shares (representing 100 percent stake) of the company from Transfield Services (India) and Transfield Services (Mauritius) to IKYA and its nominee. Thus Hofincons is a wholly owned subsidiary of IKYA with effect from June 27 and correspondingly of Thomas Cook," the company says in its filing.

The stock was quoting at Rs 119.45, up 4.32 percent on the BSE.

10:20am Torrent Pharma, Elder Pharma in focus
Torrent Pharmaceuticals has completed acquisition of branded formulations business of Elder Pharma.

"Torrent Pharmaceuticals has completed acquisition of Elder Pharmaceuticals branded domestic formulations business in India and Nepal (India Business) on a slump sale basis. This transaction was in pursuance of the business transfer agreement entered into between TPL and Elder on December 13, 2013," says the company in its filing.

TPL gained 1 percent and Elder rose 2 percent.

10:10am FII View
Nomura's Prabhat Awasthi is not sure about a pre-Budget rally in the market,  because of continuing macro-economic worries, particularly inflation. In an interview with CNBC-TV18, he says high crude oil prices and concerns of a drought could keep sentiment in check.

On the positive side, Awasthi expects clarity on the implementation of the much delayed Goods and Services Tax in the upcoming Budget.

10:00am After a consolidation in previous three sessions, equity benchmarks strengthened with the Sensex rising 267.97 points or 1.07 percent to 25367.89 and the Nifty gaining 79.85 points or 1.06 percent to 7588.65.

The broader markets gained 1 percent too. About 1465 shares have advanced, 460 shares declined, and 58 shares are unchanged.

India's largest lenders State Bank of India, ICICI Bank and HDFC Bank advanced 2 percent each followed by Axis Bank and housing finance company HDFC with 1 percent. Engineering and construction major L&T climbed 2 percent.

Shares of ITC, ONGC, Sun Pharma, Sesa Sterlite, Tata Steel, Bharti Airtel, Dr Reddy's Labs, Tata Power, NTPC, Gail, Hindalco Industries and BHEL rose 1-1.8 percent.

However, TCS underperformed, falling 0.5 percent.

9:55 am FII view: Abhay Laijawala, Deutsche Bank sees finance minister Arun Jaitley building a path breaking Budget around three key end objectives - shift the bias of government policy from consumption to investment, raise the sustainable GDP growth rate by intensively promoting labour-intensive manufacturing and infrastructure investments.

He says FM may address fiscal imbalances through combination of politically prudent subsidy rationalization and raising non tax revenues and creating enabling environment conducive for domestic savings to reduce the savings investment gap.

9.46 am Market update: The Sensex is up 225.81 points at 25325.73 and the Nifty is up 64.00 points at 7572.80.  About 1308 shares have advanced, 425 shares declined, and 47 shares are unchanged.

HDFC twins, ONGC, ICICI Bank and SBI are top gainers in the Sensex.

9:45 am Monsoon spell: The monsoon lull in India persists and private weather forecaster Skymet believes that a drought is likely if the situation remains unchanged till mid-July. Skymet warned that a downgrade is not out of the question since this is turning out to be the worst June monsoon in the last ten years. While Skymet believes that there could be no reason to panic, it has urged the government to remain vigilant.

 9:35 am Buzzing: Shares of Cipla jumped over 1 percent intraday. The pharma major has acquired 51 percent stake in a pharmaceuticals manufacturing and distribution business in Yemen for USD 21 million with additional considerations to be paid over the next three years on achievement of agreed milestones.

"The company has signed a definitive agreement to acquire a 51 percent stake in a pharmaceuticals manufacturing and distribution business in Yemen (in turn owned by a UAE based parent company). Given the recent preference to local manufacturing, this secures company's presence in a fast growing market. The company already has a leading position in Yemen with over 200 products,'' it said in a statement.

Meanwhile, Cipla has also got a contract worth 345 million rand (Rs 195 crore) from the South African government. Cipla Medpro, the South African subsidiary of the Indian firm, has been awarded a 345 million rand share of the South African government's national respiratory tender, the company said in a statement.

9:25 am Market update: The market is surging as the Sensex is up 196.20 points at 25296.12. The Nifty is up 56.00 points at 7564.80. About 1016 shares have advanced, 275 shares declined, and 40 shares are unchanged. ONGC, HDFC twins, ICICI and Cipla are top gainers while TCS is only loser in the Sensex.

The market has opened higher as the Nifty races towards 7550. The Nifty is up 25.25 points at 7534.05 while the Sensex is up 79.63 points at 25179.55. About 521 shares have advanced, 108 shares declined, and 31 shares are unchanged.

ONGC, Cipla, Sun Pharma, Axis Bank and Tata Power are top gainers in the Sensex. Among the losers are GAIL and HeroMoto Corp.

The Indian rupee opened flat at 60.03 per dollar versus 60.08 Friday. The dollar struggled to get off a one-month low against a basket of major currencies, having posted its biggest weekly fall in over two months after a batch of disappointing US data dampened the allure of the greenback.

NS Venkatesh of IDBI Bank said that, "Rupee is expected to trade in a narrow range supported mainly by custodial flows coming into India, but at the same time there is a balancing effect which happens due to oil companies buying dollars. Expected range for the USD-INR seen between 59.95-60.25/dollar."

Asia shares open higher. Japanese investors reacted to the latest industrial production figures for May. Output rose 0.5 percent on month in May, rebounding from April's 2.5 percent decline. Kospi rose after the Bank of Korea's manufacturing business survey rose in July from the previous month.

In the US, stocks see a recovery late in the session on Friday as the Dow managed to close in the green after having lost more than 70 points earlier in the day. Better-than-expected quarterly performance from Nike and a rebalancing in Russell's benchmark indexes helped support the markets.

In Europe, markets finished slightly up last week, after wobbling around the flat line throughout the day. British engineering firm Rolls Royce was among the top FTSE gainers following media reports it is close to signing a key deal with airbus.

Crude was little changed in a choppy trading. Brent posted one of its biggest weekly falls this year, on reduced concerns over exports from Iraq. Gold continues to move above USD 1315 an ounce as weak US data on consumer spending hurt the dollar.