Sensex rebounds to close above 17000; Bank Nifty swells 2%

The 30-share BSE Sensex rebounded quite sharply in last hour of trade on Thursday, even after a downtrend in global markets. Banks, capital goods and FMCG took the lead in driving the benchmark index above 17,000 level (at close) for the first time since May 3.

The BSE benchmark gained more than 1,000 points in last eight out of 11 sessions, which rose 135.93 points or 0.80% to close at 17,032.56 today. The NSE benchmark was up 44.45 points at 5,165.

The investment bank JP Morgan has upgraded Indian equities to "overweight" from "neutral" that also helped Indian equities move higher. The rating was based on number of factors including historic valuations, expectations for monetary stimulus, lower oil prices, and a weak rupee, according to its report dated June 21.

The Indian rupee hit a record low of 56.53 to the dollar today on dollar demand from corporates. It was trading at 56.43 a dollar, down 28 paise over previous close.

The rally was majorly led by banks stocks; the Bank Nifty gained 202 points or 2.05% to 10,033.65. Country's largest lenders State Bank of India and ICICI Bank shot up 2.9% and 2%, respectively. Private sector lender HDFC Bank and housing finance company HDFC were up over 1%.

State-owned power equipment manufacturer BHEL rallied 3.6% on media reports that the government is likely to impose 21% power equipment duty. Engineering and construction major by sales Larsen & Toubro was up 2.3%. Power producers like NTPC and Tata Power gained 1-2%.

Cigarette major ITC rose over 2%. Among auto stocks, Tata Motors, Maruti Suzuki and Hero Motocorp moved up 1-2%.

State-owned oil & gas producer ONGC climbed 1%. Even shares of oil marketing companies HPCL and IOC surged 3-4% while BPCL gained 0.65% due to sharp fall in crude oil prices. Brent crude declined 1.2% to USD 91.56 a barrel and NYMEX crude slipped 1.14% to 80.53 a barrel on rising US inventory, concerns over China's economic data and no stimulus from Federal Reserve.

However, index heavyweight Reliance Industries tanked 2.6% as its partner (with 10% stake in KG D6 with BP & Reliance) Niko Resources has slashed KG D6 reserve estimates by 80%. Even other reason was that the fall in crude oil prices will have an impact on realisation of crude oil sales. Cairn India dropped 1.8%.

Country's largest software services exporter TCS tumbled over 2% while its rivals Infosys and Wipro advanced 0.9% and 0.5%, respectively.

Cement stocks like ACC and Ambuja Cements fell 1-2% as CCI in its order (that came in after market hours) said CCI levied Rs 6,200 crore fine on 11 cement companies.
In the second line shares, HDIL, Indiabulls Real Estate, NCC, IVRCL and HCC rallied 3-10%. OnMobile and Tulip Telecom shot up 13% and 11%, respectively.

WWIL, Essar Oil and Dish TV surged 3-5% amid good volumes.

About two shares advanced for every share declining on the National Stock Exchange.

On the global front, European markets like France's CAC, Germany's DAX and Britain's FTSE were down 0.4-0.6% after Federal Reserve disappointed by restricting monetary stimulus to Operation Twist of USD 267 billion. Even preliminary HSBC China Manufacturing Purchasing Managers' Index also weighed on global markets.
Asian markets barring Nikkei closed 0.8-1.4% lower; Nikkei gained 0.8%.

At 14:37 hours IST; Sensex rises 100 pts; banks, capital goods, FMCG lead

Indian equity benchmarks bounces back led by further buying interest in banks, capital goods and FMCG stocks, even after weak global cues. The Indian rupee too recovered from record low of 56.53 a dollar to 56.37, down 22 paise over previous close.

The BSE benchmark rose 98.33 points to 16,994.96 and the NSE benchmark moved up 31.70 points to 5,152.25.

The Bank Nifty gained 1.5% as country's largest private sector lender ICICI Bank rallied 2.2% while its rivals State Bank of India and HDFC Bank climbed 1.4% each.

Engineering and construction major by sales Larsen & Toubro too extended upmove, rising over 2% and state-owned power equipment manufacturer BHEL was up more than 3%. Newspaper reported that government is likely to impose 21% import duty on power equipment.

Housing finance company HDFC, state-owned oil & gas producer ONGC and top commercial vehicle maker Tata Motors jumped 1% each.

Software services exporters Infosys and Wipro too bounced back, rising 0.5% while TCS lost over 2%, though recouped somewhat losses.

Index heavyweight Reliance Industries too trimmed losses to 2.66% from 3.5%.

Even the market breadth improved; advancing shares outnumbered declining by 829 to 532 on the National Stock Exchange.

In the second line shares, HDIL, Tulip Telecom, Motilal Oswal, Schneider and Indiabulls Real shot up 4-8% whereas Sunteck Realty, Allcargo Global, IOB, Blue Dart and Jubilant Foodworks lost 2-8%.

Among European markets, France's CAC, Germany's DAX and Britain's FTSE fell 0.5% each. Even the Dow Jones futures declined 42 points.

At 13:45 hours IST: Sensex marginally down; Rupee hits record low of 56.53/$

The BSE Sensex and NSE Nifty were trading marginally lower due to weak global cues and sharp fall in rupee. Private oil & gas producer Reliance Industries and top software services exporter TCS tanked 3% each.

The BSE benchmark fell 69.61 points to 16,827.02 and the NSE benchmark dropped 18.50 points to 5,102.05.

France's CAC, Germany's DAX and Britain's FTSE declined 0.7% each as Federal Reserve disappointed with limited monetary stimulus. Fed extended Operation Twist by USD 267 billion for six months to December 2012.

The Indian rupee hit new all-time low on the back of strong demand for dollars from corporates. It depreciated by 37 paise to 56.52 as against the US dollar.

Anant Narayan of Standard Chartered Bank says, the mood is pretty somber. ''The somber mood will remain. Is the market clear that there is something to stop it going to 58 or 60? No, it is not. So that cannot be ruled out as a possibility,'' he adds.

Brent and NYMEX crude slipped 1.55% each to 91.2 a barrel and 80.06 a barrel. Fall in crude oil prices reduces realisation from crude oil sales for oil producers like Cairn India and Reliance Industries. Cairn India tanked 2.7%.

Country's largest lender State Bank of India was down 0.6% whereas its rival ICICI Bank rose 0.3%.

However, capital goods majors Larsen & Toubro and BHEL climbed 1.35% and 2%, respectively. State-owned oil & gas producer ONGC rose 1%.
The broader markets remained flat as the market breadth was neutral.

At 12:33 hours IST: Choppy Nifty hits 5100 amid pressure; metals, auto, IT down

The 50-share NSE Nifty touched the 5100 level amid selling pressure as index heavyweights Reliance Industries, Tata Consultancy Services and State Bank of India extended fall in afternoon trade.

Metals and auto stocks too were down whereas the buying in FMCG, PSU oil & gas, capital goods and power stocks has limited the downside.

The BSE benchmark went down 62 points to 16,834.70. Meanwhile, the NSE benchmark was trading at 5,103.45, down 17 points after hitting an intraday low of 5,094.60.

Reliance Industries, India's most valued stock, slid more than 3% after its partner (with 10% stake in KG D6 with BP and Reliance) Niko Resources has slashed KG D6 reserve estimates by 80%.

Country's largest software services exporter TCS plunged 2.5% while its rivals Infosys and Wipro were down 0.5% each.

Among metals and mining stocks, Hindalco, Jindal Steel, Tata Steel and Coal India fell 0.5-1.5% whereas Sterlite Industries gained 0.6%.

Auto stocks remained under pressure; Tata Motors, Bajaj Auto, Maruti Suzuki and M&M dropped 0.7-1%, but top two-wheeler major Hero Motocorp rose 1%.

State-owned power equipment producer BHEL tumbled 2.5% on newspaper reports that government is likely to impose 21% import duty on power equipment.

Engineering and construction major by sales Larsen & Toubro moved up 1% as it is in race alongwith HCL and Tata for Rs 10,000 crore defence order.

The Indian rupee depreciated by 28 paise to 56.43 as against the US dollar.

At 11:44 hours IST: Sensex, Nifty volatile; L&T, ONGC, BHEL on buyers' radar

Key benchmarks remained volatile as market was getting support from capital goods, private banks, FMCG and power stocks whereas the selling continued in technology, auto stocks, Reliance and SBI.

The market has been in a consolidation mode for the third consecutive session, especially after the RBI's rate status quo. The BSE benchmark declined 37 points to 16,859.31 and the NSE benchmark slipped 10 points to 5,110.95.

The Indian rupee was consistently trading below the 56 level since early trade to 56.39 as against the US dollar, down 24 paise.

Index heavyweight Reliance Industries tanked over 3% as its partner in KG D6 - Niko Resources said total proved plus probable natural gas reserves have fallen almost 51% to 377 billion cubic feet equivalent (bcfe) as it struggles with low reserves at its KG D6 block in India.

Cairn India fell over 2% as crude oil prices have been falling sharply since yesterday after EIA inventory report. However, oil marketing companies like BPCL, HPCL and IOC gained 1-4% on falling oil prices. State-owned oil & gas producer ONGC rallied over 1%.

Country's largest lender State Bank of India dropped 0.6% while its rivals HDFC Bank and ICICI Bank rose 0.3% each.

Top software services exporter TCS tumbled over 2%, but Infosy and Wipro were down just 0.5% each.

Among auto stocks, Mahindra & Mahindra, Tata Motors, Maruti Suzuki and Bajaj Auto declined 0.4-1%.

However, engineering and construction major by sales L&T and state-owned power equipment manufacturer BHEL jumped 1% and 2.65%, respectively.

FMCG majors ITC and HUL gained over 0.5%.

Asian equities stayed in bear grip barring Nikkei. Shanghai fell 1.6% after weak PMI data. Hang Seng, Straits Times, Kospi and Taiwan Weighted went down 0.7-1% whereas Nikkei gained over 1%.

At 10:28 hours IST: Sensex down 50 pts; RIL falls 2.5%, SBI, Infosys slip too
The BSE Sensex and NSE Nifty continued to trade with marginal losses due to fall in Reliance Industries and State Bank of India. Infosys and TCS too were adding pressure. However, the buying interest in capital goods, ITC and ONGC has limited the downside.

Index heavyweight Reliance Industries tumbled 2.5% after Niko Resources, which holds 10% stake in the D6 block, said total proved plus probable natural gas reserves have fallen almost 51% to 377 billion cubic feet equivalent (bcfe) as it struggles with low reserves at its KG D6 block in India.

The BSE benchmark went down 52.76 points to 16,843.87 and the NSE benchmark was down 15 points to 5,105.45.

Country's largest software services exporters TCS and Infosys dropped 1-1.5% while rival Wipro declined 0.5%.

Top lender State Bank of India slipped over 1% while its rival HDFC Bank was down just 0.3%.

Metals stocks were under pressure due to fall in commodities in international market. Tata Steel, Jindal Steel and Hindalco were down 0.6-1%.

However, capital goods majors L&T and BHEL gained 0.85% and 2.33%, respectively after The Economic Times reported that government is likely to impose a 21% duty on imported power equipment.

Cigarette major ITC and state-owned oil & gas producer ONGC moved up 0.8% each. Top telecom operator Bharti Airtel rose 0.7%.

Asian markets remained under pressure. Shanghai, Hang Seng, Kospi, Taiwan Weighted and Straits Times fell 0.8-1.5% whereas only Nikkei gained 0.8%.

At 9:20 hours IST: Sensex trades lower on weak Asian cues; Rupee at 56.4/$

The BSE Sensex and NSE Nifty retreated in early trade on Thursday following downward journey in Asian markets as there was no announcement of QE3 by Federal Reserve yesterday. The Indian rupee depreciated by 25 paise to 56.40 as against the US dollar.

The BSE benchmark fell 24.72 points to 16871.91 and the NSE benchmark was down 11 points to 5,109.80.

Among Asian markets, Shanghai tanked 1.6% after June HSBC preliminary PMI fell to 48.1 as against final May PMI of 48.4. Hang Seng, Straits Times, Kospi and Taiwan Weighted dropped 0.7-1% while Nikkei gained 1%.

The US Federal Reserve kept rates unchanged, extended Operation Twist by USD 267 billion for 6 months to December 2012 and hinted that it is prepared to launch a third round of quantitative easing if required.

Peter Hooper, chief economist, Deutsche Bank says, the Fed's decision was pretty much in line with expectations. ''I wasn't expecting a big boost either to the markets or to growth out of this action,'' he adds.

Back home, Ambuja Cements, ACC, Bank of Baroda, Axis Bank, PNB, SBI, ICICI Bank, Coal India, Cairn, JSPL, Reliance Industries, Ranbaxy Labs, Dr Reddy's Labs, HUL and Tata Motors were down.

However, BHEL gained over 1% after The Economic Times reported that Government is likely to impose a 21% duty on imported power equipment.

HCL Tech, ITC, Hero Motocorp and Maruti Suzuki were marginally higher.

The CNX Midcap Index was down 16 points to 7,030 while the market breadth was neutral.

Shares of oil marketing companies gained due to sharp fall in crude oil prices in international market yesterday. WTI crude fell below USD 81 a barrel. BPCL, IOC and HPCL gained 1-2.5%.

In the second line shares, Petronet LNG, IRB Infra, GVK Power, Reliance Infrastructure and Sintex Industries were up 1-2%.

WWIL shot up 5% while Den Networkds fell 2%.

Kingfisher Airlines continued its surge, rising 2%.

However, India Cement was down 2.5%.