Sensex, Nifty at 10-month closing high; Adani Ports up 5%

3:30 pm Market closing: The market has ended at fresh 10-month closing high. The Sensex was up 499.79 points or 1.8 percent at 27626.69, and the Nifty up 144.70 points or 1.7 percent at 8467.90. About 1713 shares have advanced, 1052 shares declined, and 182 shares are unchanged.

Adani Ports, Tata Motors, ICICI Bank, Maruti and SBI were top gainers.

3:15 pm Macro data: May factory output and June inflation numbers are likely to reinforce the status that India's industrial activity remains weak while headline inflation hovers at recent highs, says a DBS report.

According to DBS, June consumer price index-based CPI inflation is expected to marginally ease to 5.6 percent year-on-year from May's 5.8 percent, but a shade above January-May average of 5.4 percent.

Food prices are likely to account for much of the pick-up. Moreover, domestic fuel prices have risen in the month, mirroring a global trend.

3:00 pm Market Update: The Sensex rallied 480.33 points or 1.77 percent to 27607.23 and the Nifty jumped 137.85 points or 1.66 percent to 8461.05.

About 1735 shares advanced against 996 declining shares on BSE.

2:45 pm Leyland bags order: Ashok Leyland has bagged orders for nearly 3600 buses from various STUs in the current fiscal. These orders would be executed in the current financial year which would help Ashok Leyland in furthering its leadership position in buses.

Domestic market share of Ashok Leyland in trucks increased from 29.2 percent in Q1 last year to 30.1 percent in the Q1 of current year.

Market Share for domestic buses has increased from 33.2 percent in Q1 last year to 35.9 percent in Q1 of current year. Overall, M&HCV volumes of Ashok Leyland have increased by 18.6 percent as compared to industry growth of 14.5 percent.

2:35 pm Earnings: IndusInd Bank's first quarter (April-June) earnings matched analysts' expectations with the profit rising 26 percent to Rs 661.4 crore compared with same period last year.

Profit was boosted by net interest, other income and operating profit despite higher provisions and tax expenses.

Net interest income, the difference between interest earned and interest expended, grew by 38 percent to Rs 1,356.4 crore in Q1 from Rs 981 crore in corresponding period of last fiscal.

According to analysts' polled by CNBC-TV18, net profit was expected at Rs 654 crore and net interest income at Rs 1,304 crore for the quarter.

2:20 pm Interview: India's largest drug maker Sun Pharma began the rollout of its anti-cancer product 'Gemcitabine InfuSMART', a ready-to-administer bag for oncology treatment in six European countries.

Talking about the above development and market share for the product Hellen De Kloet, Biz Head-Western Europe & ANZ, Sun Pharma said the launch will start in the UK and the Netherlands because these are the first two countries in Europe where we have final approval.

She said it would be difficult to estimate the revenue potential as of now but expects the market to switch to the ready-to-administer bag in two-three years.

2:00 pm Market Check
Bulls kept complete control over Dalal Street as the Sensex rallied 479.09 points or 1.77 percent to 27605.99 and the Nifty climbed 138.90 points or 1.67 percent to 8462.10. Bank, infra, oil and auto stocks led the market higher.

The market breadth remained positive as about 1742 shares advanced against 891 declining shares on the Bombay Stock Exchange.

ICICI Bank, HDFC Bank, HDFC, Tata Motors, L&T, SBI, Adani Ports, Maruti Suzuki and Hero Motocorp gained 2-4 percent while Axis Bank turned lower.

European stocks were higher as investors contemplated more monetary stimulus from Japan and continued to cheer the positive jobs data from the US on Friday. France's CAC, Germany's DAX and Britain's FTSE gained 0.5-1 percent.

1:55 pm PSU bank: The government is likely to announce a bank recapitalisation plan this month, sources have told CNBC-TV18.

The budget allocated is about Rs 25,000 crore. The expected infusion is said to be around Rs 22,000-23,000 crore for now, while the rest may be kept aside for further capitalisation as per need.

The move underlines the government's confidence and support in helping NPA-saddled public sector banks (PSBs) get back on their feet.

The initiative will also help the PSBs meet Basel III norms and maintain capital adequacy ratio above minimum threshold levels.

1:45 pm Auto sales: Private companies in India remain optimistic about growth prospects in the year ahead, but the level of confidence has taken a beating on concerns over challenging conditions in India and abroad, says a survey.

Amid subdued confidence, net balance for business activity among Indian companies is down from 16 per cent in February to 15 percent in June -- its lowest in the survey history and the weakest of all four BRIC economies.

"June outlook figures show that Indian private sector firms maintain an optimistic view about business prospects over coming 12 months. However, confidence levels have slipped slightly, with sentiment for activity, business revenues and profitability all dropping to new survey lows," Pollyanna De Lima, Economist, Markit, said.

1:30 pm Auto sales: Domestic passenger vehicle sales grew 2.68 percent to 2,23,454 units in June from 2,17,620 units in the same month last year.

However, car sales were down 5.18 percent to 1,54,237 units as against 1,62,655 units in June last year, according to data released by the Society of Indian Automobile Manufacturers (SIAM).

Motorcycle sales last month increased 7.52 percent to 9,43,680 units as against 8,77,690 units a year earlier. Total two-wheeler sales in June grew 12.26 percent to 14,68,035 units as compared with 13,07,704 units in the year- ago month.

Buying continues on Dalal Street with the Nifty holding 8450. The 50-share index is up 132.25 points or 1.6 percent at 8455.45. The Sensex is up 464.25 points or 1.7 percent at 27591.15.

Tata Motors is up 4 percent in the Sensex while other gainers are Adani Ports, ICICI Bank, Coal India and NTPC. Axis Bank is down.

Crude oil futures fell 0.85 percent to Rs 3,033 per barrel today, in line with a weak trend in Asian trade, as speculators indulged in trimming positions.

Although the midcap index on Monday was at a lifetime high, Deepak Shenoy, Capitalmind.in says one needs to be cautious because valuation of the CNX 500 level are at the highest level since 2008 and if first quarter earnings are not good then it will be a disappoint which will push the market down.

So, there could be an upside of 2-3 percent but the risk to the downside is much more, says Shenoy in an interview to CNBC-TV18.

12:59 pm Market Update: Bulls kept its complete control over Dalal Street in afternoon trade. The Sensex was up 461.01 points or 1.70 percent at 27587.91 and the Nifty rose 132.25 points or 1.59 percent to 8455.45.

About 1754 shares advanced against 804 declining shares on the Bombay Stock Exchange.

12:50 pm June auto sales growth: Domestic passenger vehicle sales grew 2.68 percent to 2,23,454 units in June from 2,17,620 units in the same month last year.

However, car sales were down 5.18 percent to 1,54,237 units as against 1,62,655 units in June last year, according to data released by the Society of Indian Automobile Manufacturers (SIAM).

Motorcycle sales last month increased 7.52 percent to 9,43,680 units as against 8,77,690 units a year earlier. Total two-wheeler sales in June grew 12.26 percent to 14,68,035 units as compared with 13,07,704 units in the year- ago month.

Sales of commercial vehicles were up 5.63 percent to 56,032 units in June, SIAM said.

Vehicle sales across categories registered a growth of 10.7 percent to 17,95,894 units from 16,22,254 units in June 2015, it added.

12:40 pm Europe opens: European stocks opened higher as markets rallied globally after US nonfarm payrolls data on Friday beat expectations.

The pan-European Stoxx 600 index opened 0.33 percent higher with all sectors in positive territory.

The latest jobs data from the US showed that the US economy had added 287,000 jobs during the month of June, beating expectations. Economists expected nonfarm payrolls to show growth of 175,000 for the month, according to a Reuters poll. The unemployment rate came in at 4.9 percent, also above expectations.

12:30 pm L&T Infotech IPO: The much-touted L&T Infotech intial public offer (IPO) has opened for subscription today. The IT arm of Larsen & Toubro group is aiming to raise Rs 1243 crore through an initial share sale offer.

The price band for the issue is fixed at Rs 705-710. The issue will close on July 13. The IPO comprises an offer-for-sale of up to 1.75 crore equity shares by L&T Ltd. It constitutes 10.3 percent of the post offer paid-up equity share capital of the company. It has already raised Rs 373 crore from 22 anchor investors by selling shares at a price of Rs 710 apiece. 

12:15 pm Market Expert: Although the midcap index on Monday was at a lifetime high, Deepak Shenoy, Capitalmind.in says one needs to be cautious because valuation of the CNX 500 level are at the highest level since 2008 and if first quarter earnings are not good then it will be a disappoint which will push the market down.

So, there could be an upside of 2-3 percent but the risk to the downside is much more, says Shenoy in an interview to CNBC-TV18.

12:00 pm Market Check: Equity benchmarks continued to hold morning gains, tracking strong global cues and on value buying. The market breadth remained positive as about 1694 shares advanced against 766 declining shares on Bombay Stock Exchange.

The 30-share BSE Sensex rose 468.13 points or 1.73 percent to 27595.03 and the 50-share NSE Nifty climbed 130.35 points or 1.57 percent to 8453.55. The BSE Midcap index gained 1.6 percent.

Asia markets traded higher, bolstered by election results in Japan and Australia and shrugging off concerns a strong US jobs report might push the Federal Reserve closer to hiking rates. Japan's Nikkei 225 rallied 3.98 percent. Those gains came despite the yen remaining relatively strong against the US dollar.

Oil fell over signs that US shale drillers have adapted to lower prices and on renewed indications of economic weakness in Asia. Brent crude futures were trading at USD 46.35 per barrel, down 0.88 percent from their last settlement. US West Texas Intermediate (WTI) crude was down 0.92 percent at USD 44.99 a barrel.

11:55 am USFDA: Drug firm Zydus Cadila has received final approval from the US health regulator to market Nateglinide tablets, used for treatment of diabetes, in the American market.

Zydus Cadila has received final approval from the US Food and Drug Administration (USFDA) to market Nateglinide tablets tablets USP, in the strengths of 60 mg and 120 mg, Zydus Cadila's group firm Cadila Healthcare said in a BSE filing.

Nateglinide tables is an anti-diabetic agent used in management of type-2 diabetes mellitus and will be produced at the group's formulation manufacturing facility at Pharma SEZ in Ahmedabad.

11:45 am Big deal: Lafarge Holcim has agreed to sell its Lafarge India business to Nirma Ltd for an enterprise value of around USD 1.4 billion, the world's biggest cement maker.

"This agreement is an important step in our 3.5 billion Swiss franc (USD 3.56 billion) divestment programme," LafargeHolcim Chief Executive Eric Olsen said in a statement.

"With this deal, two-thirds of the programme has been secured and the remainder of the program is well on track. We are confident that we will meet our target by the end of this year." The deal, the proceeds of which will be used to pay down LafargeHolcim's debt, is subject to approval by the Competition Commission of India.

11:30 am Result poll: Private sector lender IndusInd Bank 's first quarter (April-June) profit is likely to increase 24.5 percent to Rs 654 crore compared with Rs 525 crore in year-ago period, according to average of estimates of analysts polled by CNBC-TV18. Net interest income, the difference between interest earned and interest expended, may grow a whopping 32.9 percent to Rs 1,304 crore in quarter ended June 2016 compared with Rs 981 crore in same period last year. Analysts say the stock may react positively if gross non-performing assets remain below 1 percent (0.87 percent in Q4), credit cost below 20 basis points (17 bps in Q4) and net interest margin comes above 3.9 percent (3.94 percent in Q4).

It's a bulls day out on Dalal Street as market is at fresh 2016 high. The Sensex is up 462.51 points or 1.7 percent at 27589.41, and the Nifty is up 130.85 points or 1.6 percent at 8454.05. About 1679 shares have advanced, 626 shares declined, and 120 shares are unchanged.

Tata Motors, ICICI Bank, Adani Ports, Maruti and NTPC are top gainers. Auto, banks and metal stocks are lending support to the indices.

Crude oil futures fell 0.85 percent to Rs 3,033 per barrel today, in line with a weak trend in Asian trade, as speculators indulged in trimming positions.

Analysts said fall in crude oil futures is mostly in tune
with a weak trend in Asian trade as an increase in US drilling activity and a strong dollar reversed gains from last week's better-than-forecast US jobs report.

10:50 am Market Expert: Equity markets have rallied globally and this has helped Indian stocks as well, says Sridhar Sivaram of Enam Holdings. "The domestic picture seems to have improved and that has helped as well."

Speaking to CNBC-TV18, he said markets may move 5-8 percent higher going forward, in line with his expectations of earnings growth -- muted compared to other analysts on the street.

The reason he has tempered expectations from tempered growth is because he thinks consumption growth continues to remain spotty.

10:40 am Interview: Describing L&T as his "life with priority beyond wife and children", the diversified conglomerate's long-serving chief A M Naik says he will pass on the reins to his successor S N Subrahmanyan next year and the focus is now on grooming the next line of leadership.

74-year-old Naik, who has been with Larsen and Toubro for 52 years, including about 18 years as its head after rising through ranks, said he knows everything "on the pulse" at L&T and things might not be as easy for his successor but he will ensure that the company remains in strong hands.

"I don't want the criticism that Mr Naik did a great job when he was present, but as soon as he went the company did not do so well. It is my life.

"So I often sing Raj Kapoor song from the film Mera Naam Joker -- Jeena yahaan, marna yahaan; Iske siva jaana kahaan (I will live here and die here; Where else can I go)," Naik told PTI in an interview here.

10:25 am More FDI in dairy sector?: Aiming to double farmers' income in the next five years, the Centre is chalking out a national action plan to attract more foreign investment in the dairy sector.

The Department of Animal Husbandry under the aegis of Agriculture Ministry is holding a series of discussion with private players in this regard.

"We are preparing a national action plan to boost FDI in dairy sector. We want FDI in this sector in such a format that our farmers are benefited and their income goes up," Animal Husbandry Secretary Devendra Chaudhury told PTI.

The plan is to increase foreign investment in the dairy sector in the next five years from the current level of around Rs 141 crore, he said.

10:15 am Cadila's growth plan: Pharma firm Cadila Healthcare sees big growth opportunity in US and Latin American formulation markets and plans to enhance share in the US generics market by launching complex, oral solids and formulations.

"Going forward, the company's focus will continue to be on launching complex, difficult-to-make oral solids and formulations of other dosage forms like injectables, nasals, creams and ointments in order to enhance share in the US generics market," Cadila Healthcare Chairman Pankaj Patel said in the company's annual report.

The US is the world's largest pharma market, both for branded and generics drugs, accounting for around one third of the global market. The company is present in generics market through its wholly owned unit Zydus Pharmaceuticals (USA) Inc.

During 2015-16, the company's business in the US remained the largest contributor to the consolidated revenue, which crossed USD 600 million in sales for the first time.

10:00 am Market Check
The market extended rally in morning trade with the Nifty reclaiming 8450 level for the first time since August 2015.

The 30-share BSE Sensex rose 466.49 points or 1.72 percent to 27593.39 and the 50-share NSE Nifty was up 132.35 points or 1.59 percent at 8455.55. The broader markets remained strong with the Midcap index hitting record high.

The market breadth was strong as about four shares advanced for every share falling on the Bombay Stock Exchange.

All sectoral indices traded in green with the PSU Bank and Infra rising the most.

ICICI Bank, HDFC Bank, HDFC, Tata Motors, L&T, ITC and SBI surged 2-4 percent.

Asia markets traded higher, bolstered by election results in Japan and Australia and shrugging off concerns a strong US jobs report might push the Federal Reserve closer to hiking rates.

Japan's Nikkei 225 rallied 4 percent. Those gains came despite the yen remaining relatively strong. In upper house elections on Sunday, Prime Minister Shinzo Abe's ruling coalition won in a landslide, in a development analysts said was likely to make it far easier to push through his economic agenda, dubbed Abenomics.

10:00 am Midcap rises: Midcap index is at record high, up over 1 percent at 14238. Jindal Steel, LIC Housing Finance, Bank of India, Cadila Health and Berger Paints are top gainers in the index. Shree Cement, I-bulls Hsg & IOC Top Contributors To Midcap Index Gainers.

9:55 am Monsoon update: Around 89 percent of the country has received normal and excess rainfall, owing to a good amount of monsoon in several parts, while large parts of Gujarat have recorded deficiency of more than half. Overall, the country has recorded 254 mm of rainfall from June 1 to July 10, as against 251 mm, which is one percent more. The India Meteorological Department said 26 percent of the country has received "excess" rainfall while the 63 percent "normal" rainfall. Only 11 percent has received "deficient" rainfall. However, according to the IMD, the rainfall deficiency in the east and northeast region of the country has reached a whopping 21 percent. Only four sub-regions have, until now, recorded deficient rainfall.

9:45 am No trouble for IT cos? Two US lawmakers have introduced a new bill in the House of Representatives that proposes to prevent IT companies from hiring more H-1B workers if a maximum of 50 or 50 percent of their employees are already on H-1B/L1 visas.

Speaking to CNBC-TV18, NASSCOM President R Chandrashekhar said the proposal is a long way off from becoming law and is unlikely to be passed before the presidential elections later this year.

The Bill is yet to be tabled in the Senate and post that it needs to be signed into law by the President.

Industry expert Moshe Katri termed the news as "noise", saying it could be just "election propaganda".

9:30 am Market climbs: The Sensex is up 395.44 points or 1.5 percent at 27522.34 and the Nifty is up 113.70 points or 1.4 percent at 8436.90. About 1302 shares have advanced, 207 shares declined, and 48 shares are unchanged.

ICICI Bank, Bharti Airtel, L&T, NTPC and BHEL are top gainers.

The market has opened at new 2016 high while the midcap index is at 11-month high. The Sensex is up 368.52 points or 1.4 percent at 27495.42, and the Nifty is up 104.45 points or 1.2 percent at 8427.65. About 932 shares have advanced, 111 shares declined, and 36 shares are unchanged.

ICICI Bank, BHEL, Tata Motors, Bharti and L&T are top gainers.

The Indian rupee gained in the early trade. It has opened higher by 24 paise at 67.12 per dollar versus 67.36 Friday.

Pramit Brahmbhatt of Veracity said, "Rupee is expected to trade with a positive bias, taking cues from global equity market. The trading range for the spot USD-INR pair will be 67-67.50/dollar."

Asia enjoyed a relief rally as upbeat US jobs data lessened immediate concerns about health of the world's largest economy, though long-run fallout from Brexit kept sovereign yields near record lows.

MSCI's broadest index of Asia-Pacific shares outside Japan, While Australia added 1.3 percent. Japan's Nikkei climbed 2.9 percent in the wake of a clear win by the government in upper house elections.

Prime Minister Shinzo Abe's ruling coalition won a landslide victory giving it the power to potentially revise the nation's post-war pacifist constitution for the first time.

One major event this week will be a Bank of England meeting on Thursday when it might well cut its 0.5 percent rate to offset the drag from the vote to leave the European Union.

Meanwhlie, among other asset classes sterling was stuck at USD 1.2948, having failed utterly to rebound from the 13 percent loss suffered in the immediate wake of Brexit.

The Japanese yen eased a little to 100.80 per dollar, while the euro stayed on the defensive at USD 1.1043having touched a low of USD 1.1003.

In commodity markets, spot gold was a shade higher around USD 1,369.70 per ounce. Crude prices edged down to near two-month lows on seasonally weak consumption, despite comments from Saudi Arabia's oil minister that the oil market was becoming more balanced.