Sensex, Nifty end 1.4% higher; bank sparks, auto & infra up

3:30 pm Market close: After a volatile day, the market ended at higher levels. The Sensex was up 373.62 points or 1.4 percent at 27251.10 and the Nifty ended up 108.50 points or 1.3 percent at 8235.45. About 1652 shares  advanced, 1051 shares declined and 160 shares were unchanged.

Banks surged through out the day with big gainers like Axis Bank, ICICI Bank and SBI. GAIL and BHEL were other top gainers in the Sensex. Among the losers were Hindalco, Bharti Airtel, NTPC, Vedanta and Bajaj Auto.

3:00 pm China growth outlook: China's economic growth looks set to miss the government's targets, but the mainland's markets still offer good value, Pimco said in a note Wednesday.

"China is dealing with a property slowdown and deleveraging of the shadow banking system, and can no longer rely on low wages and a competitive currency to support an endless export boom," Isaac Meng, Pimco's emerging markets portfolio manager, said in the note.

Pimco expects the mainland's economic growth in "the low 6 percent territory" this year, compared with official expectations for around 7 percent.

2:30 pm Moddy's on PSU banks: Indian PSU banks will need years to improve their credit profiles as the asset quality is tied up with a slow, multi-year recovery of corporate balance sheets, said global ratings agency Moody's on Wednesday.

"A longer time-frame is needed for the credit profiles of public-sector banks to improve, because their asset quality is tied to the slow, multi-year recovery of corporate balance sheets and the lagging recognition of associated credit costs," Moody's Vice President & Senior Credit Officer Srikanth Vadlamani said in a report.

The overall debt servicing metrics of Indian corporates are weak, which exhibit very high debt levels and will require years to improve, he said.

Improvement in credit profiles of Indian public-sector banks, which account for more than 70 percent of total banking system assets in India, will be achieved only in medium-term, given their high levels of impaired loans and weak capital positions, the report said.

The market is still on its northward journey with major support from bank stocks. The Sensex is up 345.30 points or 1.3 percent at 27222.78 and the Nifty is up 108.40 points or 1.3 percent at 8235.35. About 1561 shares have advanced, 975 shares declined, and 151 shares are unchanged.

Axis Bank is up 6 percent while GAIl, M&M, ICICI Bank and SBI are top gainers in the Sensex. Among the losers are NTPC, Hindalco, Bharti Airtel, Bajaj Auto and HUL.

State-owned equipment maker BHEL said that it surpassed its power generation capacity addition target for utilities by 19 per cent in 2014-15. "Accelerating its project execution momentum as part of its six-point agenda for dynamic growth, Bharat Heavy Electricals Limited (BHEL) has surpassed the capacity addition target, set by the government for utility projects, by 19 per cent," BHEL said in a press statement.

According to the statement, BHEL has commissioned 8,230 MW of utility sets against the target of 6,914 MW for 2014-15.

1:50 pm Moody's on monsoon: Rating agency Moody's said monsoon and global financial volatility will pose additional risks to India's growth this year, but the GDP is likely to average around 7.5 per cent over the next 18-24 months due to improvement in business environment induced by reforms. The current subdued growth conditions in India reflect both global and domestic factors, which include weak domestic credit conditions, tepid local demand and uncertain global growth, Moody's Investors Service said in a report.

"Since India's structural reform efforts will revive domestic investment and competitiveness over the medium rather than near term, the above factors will limit the pace of economic recovery in India over the next two quarters, while the monsoon and the potential for global financial volatility pose additional risks to growth this year," it said.

1:30 pm Market check: The Sensex is up 309.19 points or 1.1 percent at 27186.67 and the Nifty is up 99.70 points or 1.2 percent at 8226.65. About 1477 shares have advanced, 1005 shares declined, and 165 shares are unchanged.

Axis Bank and GAIL are up 4 percent while M&M, SBI and ICICI Bank are top gainers in the Sensex. Among the losers are NTPC, Hindalco, Bharti Airtel, Vedanta and HUL.

The market is surging ahead amid volatile trade. The Sensex is up 155.31 points or 0.6 percent at 27032.79 and the Nifty is up 50.55 points or 0.6 percent at 8177.50.  About 1374 shares have advanced, 1051 shares declined, and 171 shares are unchanged.

Firm buying is in bank, auto and capital goods shares. Bank Nifty is up over 200 points. GAIL is up 4 percent while Axis Bank, M&M, ICICI and SBI are top gainers in the Sensex. Among the losers are Hindalco, Bharti Airtel, Bajaj Auto and HUL.

Shares of NTPC and Indian Oil are under selling pressure as Union Cabinet has approved proposals to divest its stake in both the companies.

Eight companies including Bharti Infratel, Eicher Motors, Lupin and Bharat Forge will be added to MSCI India Index, while Reliance Infrastructure is being removed. There are, at present, 64 stocks in MSCI India index, including Infosys, HDFC, TCS, RIL, Sun Pharma and ITC. The other companies being added to the index include Container Corp of India, Marico, Shree Cement and UPL. All the changes would come into effect from May 29.

12:30 pm Report card: It is almost a year since Narendra Modi came to power and became India's prime minister. The pro-business BJP has done quite well for itself in this one year, believes Ajit Gulabchand of HCC. Gulabchand reckons the government inherited an economy that was severely impacted by old policies. However, the government's focus on fundamentals to revive the economy has brought in a sense of solidity for the country. On what Modi should focus on in the days to come, he says by removing the retrospective taxation the government will send a strong signal abroad that we are ready to do good business here.

The market is extremely choppy as the Sensex is up 9.68 points at 26887.16. The Nifty is up 5.70 points at 8132.65. About 1278 shares have advanced, 1019 shares declined, and 161 shares are unchanged.

GAIL, Axis Bank, M&M, Hero MotoCorp and SBI are top gainers in the Sensex. Among the losers are NTPC, Hindalco, Bharti Airtel, Vedanta and TCS. Midcap stocks are outperforming the benchmark indices.

Asian shares advanced despite another set of disappointing Chinese economic reports, as investors instead focused on hopes of further stimulus from Beijing to prevent a sharper slowdown in the world's second-largest economy.

European shares were expected to get the day off to a bright start, with financial spreadbetters predicting Britain's FTSE 100 would open up as much as 0.2 percent up, Germany's DAX 0.4 percent higher, and France's CAC 40 was seen up 0.3 percent.

China's factory output rose a less-than-expected 5.9 percent in April compared with the same period last year, boosting bets the government will have to step up its efforts to shore up the sputtering economy in order to meet its gross domestic product target. Fixed-asset investment and retail sales also fell short of expectations.

11:50 am Result poll: Lupin is expected to report net profit of Rs 621.4 crore, up 12.4 percent in the quarter ended March 2015 as against Rs 553 crore in the year-ago period. During the period, its revenue is likely to grow 10.2 percent to Rs 3362.8 crore versus Rs 3051.6 crore year-on-year. According to CNBC-TV18 poll, Lupin is likely to report slow growth due to high base. Margins are seen to be maintained in 26-28 percent range, despite slowdown in revenue growth. Its US business may have slowed down, in Q4FY15, due to high base and no significant launches in the region.

11:22 am Market check: The Sensex is up 44.78 points at 26922.26 and the Nifty is up 15.20 points at 8142.15. About 1250 shares have advanced, 917 shares declined, and 163 shares are unchanged. GAIL Axis Bank, Hero MotoCorp, M&M and Tata Steel are gainers in the Sensex. NTPC, Hindalco, Vedanta, HUL and TCS are amogn laggards.

11:10 am Market check: The Sensex is down 64.88 points at 26812.60 and the Nifty is down 21.05 points at 8105.90. About 1218 shares have advanced, 879 shares declined, and 157 shares are unchanged. Metal stocks are under pressure.

There is a sudden sharp fall in the market metals and oil stocks struggle. The Sensex has slipped nearly 500 points from day's high. The 30-share index is down 35.29 points at 26842.19 and the Nifty is up 22.10 points at 8149.05. About 1336 shares have advanced, 720 shares declined, and 142 shares are unchanged.

NTPC loses 4 percent while Hindalco, HUL, Bajaj Auto and TCS are among laggards in the Sensex. Among the gainers are GAIL, M&M, Hero, Axis Bank and Tata Power.

HSBC downgraded Indian stocks to "underweight" from "overweight", citing slowing earnings growth, little room for rate cuts and potential negative impact from an unusual weather due to El Nino.

India remains one of the most over-owned market in Asia and the bank says the potential for more equity outflows has increased because foreign positions look stretched. Overseas investors have sold nearly USD 2.2 billion worth of cash shares in the last 16 sessions, excluding Japan's Daiichi Sankyo's block sale of Sun Pharmaceutical Industries shares.

10:50 am Result: Jubilant Life Sciences posted a 56.75 percent decline in consolidated net profit at Rs 42.73 crore for the fourth quarter of 2014-15 financial year ended March 31. The company had posted a net profit of Rs 98.81 crore during the same period of previous fiscal.

Net sales of the company declined to Rs 1,523.25 crore for the fourth quarter, as compared to Rs 1,551.62 crore during the same period of previous fiscal, Jubilant Life Sciences said in a statement.

For the year ended March 31, the company posted a consolidated net loss of Rs 57.76 crore, as against a net profit of Rs 109.04 crore during the previous fiscal. Net sales of the company, however, rose to Rs 5,776.14 crore, from Rs 5,721.61 crore during the 2013-14 fiscal.

10:30 am FII View: Bharat Iyer of JP Morgan believes India hasn't lost its star status permanently and FII money is just being rotated into other countries. Iyer's views come on the back of brokerage house HSBC downgrading India over poor earnings growth and little room for rate cuts. In an interview to CNBC-TV18, Iyer says the equity market may correct further from its current levels but caps the fall to 5 percent. Iyer believes the central bank Reserve Bank of India (RBI) can cut policy rate one more time this year.

The market continues to gain strength bit by bit. The Sensex is up 374.17 points or 1.4 percent at 27251.65 and the Nifty is  up 112.35 points or 1.4 percent at 8239.30. About 1223 shares have advanced, 393 shares declined, and 106 shares are unchanged.

GAIl, M&M, HDFC, SBI and Hero are top gainers in the Sensex. Among the losers are Hindalco, NTPC and Vedanta.

Oil prices extended gains in Asia on a weaker dollar and amid expectations the latest US crude-oil inventories report will show a decline, easing a global supply glut, analysts said.

US benchmark West Texas Intermediate (WTI) for June delivery gained 46 cents to USD 61.21 while Brent crude for June rose 20 cents to USD 67.06 in mid-morning trade. WTI surged USD 1.50 in New York while Brent closed up USD 1.95 in London, gaining support from a weaker US dollar.

The greenback bought 119.78 yen in Asia today, down from 119.90 in New York on Tuesday and 120.11 on Monday. A weaker greenback makes dollar-priced oil cheaper for buyers using weaker currencies, boosting demand and pushing global prices higher.

9:55 am Outlook on world markets: Bond investors shouldn't expect a "rate riot or rate rage" when the Federal Reserve begins to raise interest rates because the central bank has already telegraphed what it is going to do, economist Nouriel Roubini said Tuesday. "It's not going to be a significant surprise. As the economy recovers, as inflation goes higher, gradually long-term interest rates are going to go higher," said the co-founder and chairman of Roubini Global Economics, also known as "Dr. Doom."

9:40 am FII view: Morgan Stanley has recently downgraded China and Russia, while increasing its exposure to India. Jonathan Garner, managing director, Morgan Stanley says China is seeing significant valuation de-rating, deteriorating profitability and is technically overbought. He is also overweight on Taiwan.

He sees significant growth pickup in India. According to him, bond yields here may start coming down as inflation looks to be under control. He is bullish on consumer cyclicals and private financials in India.

Garner is underweight bonds on a global level. He expects to see Brent crude trading at an average of USD 60/ bbl in the coming days.

9:20 am Market surges: The Sensex is at 27,189.31 up 322 points or 1.1 percent  while the Nifty is up 94.20 points or 1.1 percent at 8221.15. GAIL, Hero Motocorp, ICICI Bank, HDFC and M&M are top gainers in the Sensex. Among the losers are Hindalco, Vedanta and NTPC.

After the deep cuts yesterday, the market has opened on a strong note Wednesday. The Sensex is up 152.35 points or 0.6 percent at 27029.83 and the Nifty is up 54.60 points or 0.7 percent at 8181.55. About 313 shares have advanced, 63 shares declined, and 71 shares are unchanged.

Axis Bank, BHEL, Wipro, ICICI Bank and Tata Steel are top gainers in the Sensex. Hindalco falls 2 percent.

The Indian rupee opened flat at 64.17 per dollar against previous day close of  64.17. The US dollar slumps against the euro and swiss franc after a spike higher in German bond yields overshadowed a similar rise in US treasury yields and generated demand for the European currencies. The dollar index dipped below 95 marks.

NS Venkatesh of IDBI Bank said, "The USD-INR pair weakened yesterday mainly due to the weakness seen in emerging market currencies. Today we expect the USD-INR to gain some strength based on the cues from the bond markets as well as anticipated liquidity which is expected to follow with the possibility of a rate cut. The USD-INR is expected to trade in the range of 63.90-64.30/dollar today."

Globally, the US markets ended mildly lower, recovering some of its losses as investors took relief from a slight recovery in the bond market. Asian markets are in the green in morning trade.

European equities finished sharply lower yesterday as bond markets sold off amid a raft of corporate earnings.

Oil prices surged as a weak dollar lifted commodities denominated in the currency and OPEC slightly raised its forecast for world oil demand growth. Violence in Yemen also boosted oil prices, raising concerns over the security of west Asia crude supplies.  Brent crude prices surged to USD 67 per barrel.

Gold prices rose to USD 190 an ounce following weakness in dollar.