Sensex shrugs off RBI policy; rallies 148 ahead of Fed meet

Equity benchmarks gained momentum in late trade Monday ahead Federal Reserve's meeting, ignoring  RBI's status quo credit policy .

BSE Sensex rose 147.94 points or 0.77 percent to close at 19325.87, and NSE Nifty gained 43.10 points or 0.74 percent at 5851.50, continuing an uptrend for the second consecutive session today.

The Reserve Bank of India (RBI) left the key policy rates unchanged the repo rate at 7.25 percent and the cash reserve ratio at 4 percent, in line with expected, saying only durable receding of inflation will open up space for easing.

"Weakening rupee and increase in minimum support price (MSP) are risks to inflation," the RBI says.

The bank further says the growth, inflation and balance of payments will determine policy stance going forward.

WPI inflation fell to 4.7 percent in May as against 4.89 percent in previous month.

Also Read - RBI will cut repo rate by 25 bps at Jul meet: Credit Suisse

Barclays Bank feels that most of the inflation indicators will remain supportive in the coming months and, hence, will eventually open up more room for monetary easing.

Accordingly, the bank continues to expect a further 75 basis points reduction in the repo rate during the remaining months of 2013.
 
In the near term, particularly in case of the RBI policy meeting on 30 July, Barclays feels the developments in the global economy and the trend in the INR in the next few weeks will have a strong bearing on the RBI's action.

Shares of capital goods, financials, auto, FMCG, telecom and technology led the rally that was also supported by index heavyweights Reliance Industries and Infosys both gained more than one percent.

HDFC and Larsen & Toubro shares climbed over one percent while Sun Pharma , Bharti Airtel , Bajaj Auto and BHEL gained 2-3.4 percent.

Mahindra and Mahindra topped the buying list, rising 4.4 percent after the Mahindra Group  bought 13.5 percent stake in CIE Automotive .

Jet Airways rebounded 1.56 percent, after the airline said that it has entered into codeshare agreements with European carriers Air France and KLM . The stock had fallen more than 10 percent in morning trade, after Foreign Investment Promotion board deferred its decision on the Rs 2,058 crore deal between Jet and Etihad Airways for want of more details on ownership and effective control of the resultant entity.

Orchid Chemicals gained 10 percent, after the company's oral formulations facility at Irungattukottai near Chennai was successfully inspected and accepted by the USFDA without any observations .

Market breadth also improved slightly in late trade as the broader markets marginally gained.

Advancing shares outpaced declining ones by 1199 to 1088 on the Bombay Stock Exchange.

European markets gained 1-1.5 percent as investors looked ahead to the outcome of US Federal Reserve meeting later this week. Investors are eager to know when the Fed may start scaling back its USD 85 billion monthly bond purchases, with past weeks' data inconclusive as to the extent of economic recovery, reports CNBC.com.

3:50 pm Index gainers: BSE Capital Goods (up 1.1 percent), BSE Auto (up 1.9 percent) are top index gainers in today's trading session.

3:40 pm Macro outlook: The Reserve Bank of India's inaction today was widely anticipated with concerns around the rupee getting highlighted. Anant Narayan, Co-Head of wholesale banking, South Asia, Standard Chartered Bank does not see the fall in rupee abating and points out that foreign investors may now start pulling out of equities.

From the point of view of market, he see FOMC meet as the next trigger. On the other hand, S Narayan, former finance secretary sees RBI's status quo on rates as a message to the government to urgently address rising food inflation and stem currency fall.

Speaking about the complex statements of RBI's caution, S Narayan said food inflation's persistence presence signals that the government and policymakers are not addressing the reason of its rise. He fears unless the core issue is addressed, food inflation will continue to rise.  "Is it an issue of supply? Is it an issue of distribution? Is it an issue of urbanization? Is it an issue of market pricing? I think because we have large stocks of cereals in our food grains, it is purely a distribution issue," he told CNBC-TV18. ( Read full interview )

3:35 pm Update: JSW Steel has recorded 40 percent month-on-month jump in crude steel production in May on improved demand.

The firm produced 10.13 lakh tonne of steel during the month when compared with 7.24 lakh tonne in April. The company said, flat rolled products production was up 57 percent to 8.06 lakh tonne year-on-year, while rolled products-long was 1.68 lakh tonne, reflecting a 13 percent growth YoY.

3:31 pm Gainers: M&M (up 4.3 percent), BHEL (up 3.7 percent), Bajaj Auto (up 2.3 percent), Bharti Airtel and Sun Pharma are key gainers in the Sensex.

3:30 pm Market update: The Sensex closes up 141.45 points at 19319.38, and the Nifty ends at 5851.50, up 43.10 points 5851.50 (provisional).

3:25 pm Buzzing: Telecom major Bharti Airtel on Monday announced completion of 5 percent stake sales to Qatar Foundation Endowment for Rs. 6,796 crore.

Airtel has allocated 199,870,006 new equity shares at price of Rs. 340 each share, representing 5 percent equity stake in the company to QFE.

"This is a landmark transaction for India and its telecom sector and a vote of confidence from one of the most respected investors in the world. We look forward to a long and fruitful partnership with Qatar Foundation Endowment," Bharti Airtel Chairman Sunil Bharti Mittal said in a statement.

3:20 pm Gold update: Government has cut gold base import price to USD 450/10gm from USD 459/10gm. The government has also reduced silver base import price to USD 709/kg from USD 737/kg.

3:17 pm Market update: The Sensex is up 151.04 points at 19328.97, and the Nifty up 42.20 points or 0.73% at 5850.60.

Expert take:  Rupee weakness good way of economic readjustment, says Vetri Subramaniam

The market has gathered momentum in afternoon trade. The Nifty is inching closer to 5850 levels led by capital goods, autos and select heavies. The Sensex is up 119.01 points at 19296.94, and the Nifty is up 36.55 points at 5844.95. About 1049 shares have advanced, 1038 shares declined, and 247 shares are unchanged.

Reliance Communication surges around 4 percent on the BSE. Bharti Airtel has also gained around 3 percent. Among other gainers in the Sensex are M&M, Bhel, Bajaj Auto, Bharti Airtel and Sun Pharma.

02:59pm Natco Pharma gained more than 3 percent, as more than 4 lakh shares changed hands at Rs 445 a piece on exchanges via two block deals.

Reliance Communications and Aurobindo Pharma are trading at day's high, up 3.55 percent and 6.7 percent, respectively.

TRAI Chairman Rahul Khullar says the ministry will review national mobile roaming tariff regime in a year. He also says the ministry cannot currently mandate a fully free national roaming regime.

02:55pm M&M Financial shares rose by 2.35 percent amid hefty volumes, after more than 10 lakh equity shares changed hands at Rs 260 a piece via block deal on National Stock Exchange.

Linde India rallied more than 4 percent, after nearly 3.43 equity shares changed hands at Rs 275 a piece on National Stock Exchange via block deal.

02:45pm SBI , Jet Airways , ICICI Bank , Apollo Tyres , United Spirits and Tata Motors are the most active shares on exchanges.

Telecom stocks are also on buyers' radar today; Bharti Airtel rallied nearly 3 percent and Idea Cellular is up 2 percent.

02:35pm Indian equities remain firm, led by gains in HDFC and Reliance Industries shares. Auto, capital goods, telecom too play a supportive role in today's afternoon trade.

BSE Sensex is up 80.02 points at 19257.95, and the Nifty is up 25.70 points at 5834.10.

Among smallcaps, Panacea Biotec is locked at 20 percent upper circuit and Rolta India soared nearly 16 percent.

02:25pm Era Infra Engineering joint venture received Kochi Metro order worth Rs 384 crore, but shares fell 3 percent.

The government cut gold base import price to USD 450 per 10 gram from USD 459/10gm while it reduced silver base import price to USD 709 per kg from USD 737/kg.

The government says PSU oil companies' diesel revenue loss stands at Rs 6.31 per litre during June 16-30 and their subsidised sale revenue loss is at Rs 286 crore per day.

02:15pm Utility vehicle maker Mahindra and Mahindra extended gains to 5 percent on value buying, after Mahindra Group bought 13.5 percent stake in CIE Automotive.

Index heavyweights housing finance company HDFC and private oil & gas major Reliance Industries are the leaders behind recovery in equity markets, rising 1.86 percent and 0.9 percent, respectively.

Jet Airways shares trimmed losses quite significantly from 10 percent to 1.5 percent on short covering. The company is in code share pacts with Air France and KLM Royal Dutch.

02:10pm Equity benchmarks trade higher in afternoon trade, ignoring the Reserve Bank of India's credit policy review, wherein the RBI left repo rate and cash reserve ratio unchanged, saying only durable receding of inflation will open up space for easing .

BSE Sensex is up 88.74 points at 19266.67, and the Nifty is up 22.65 points at 5831.05.

On the global front, European markets extended gains; France's CAC and Germany's DAX rose more than one percent while Britain's FTSE gained 0.5 percent. Dow Jones futures jumped 116 points.

1:43 pm: TheSensex is up 74.72 points at 19252.65, and the Nifty adds 23.25 points to be at 5831.65. About 991 shares have advanced, 985 shares declined, and 267 shares are unchanged.

1:30 pm Buzzing: Adani Enterprises repledges 22.3 crore shares in Adani Power after completing lock-in process. Adani Enterprise is up 2.5 percent on the BSE.

1:20 pm: Sun Pharma , M&M, Bharti Airtel , BHEL and HDFC are some gainers in the Sensex.

1:15 pm Macro outlook: Although overall inflation is in the comfort zone of RBI, food inflation, widening current account gap and a falling rupee continue to worry the Reserve Bank of India , says C Rangarajan. The RBI has refrained form cutting rates today, June 17, citing inflationary pressures, which Rangarajan says was a cautious stand.

Speaking to CNBC-TV18, chairman of PMEAC C Rangarajan said the decision on rates in the July 30 meet will depend on various global factors. Although overall inflation is in the comfort zone of RBI, it is food inflation which is worrisome. If monsoon pans out as foretold, food inflation too will moderate, Rangarajan said.

Don't miss: Rupee weakness good way of economic readjustment, says Religare

The market has staged a significant recovery in afternoon trade as the Nifty climbs above 5800 led by autos and select heavies. The mid and small caps too come off intra-day lows but midcap energy and capital goods remain under pressure.

The Sensex is up 62.80 points at 19240.73 and the Nifty adds 19.40 points to be at 5827.80. About 905 shares have advanced, 966 shares declined, and 270 shares are unchanged.

The Reserve Bank of India maintains status quo on the credit policy and keeps the repo rate and cash reserve ratio unchanged but is hawkish on inflation. It says monetary policy stance will be determined by how growth and inflation trajectories and the balance of payments situation evolve in months ahead.

The rupee remains quiet after the inline RBI policy but banks are up on short covering as the street feels that the central bank's guidance not-as-hawkish as feared.

Meanwhile, Mahindra group stocks see massive gains led by M&M rally as the company picks up over 13 percent stake in Spanish auto component maker, CIE Automotive for around Rs 740 crore. Tata Motors , meanwhile, slips as lower Land Rover sales dent Jaguar Land Rover's overall sales in May, comes in below estimates of 32000 units.

12:55pm Yes Bank shares gained another 1 percent on top of a percent rise on Friday. Bank of America Merrill Lynch believes YES Bank is on track to deliver +25 percent EPS growth in FY14/15 (tweak-up FY15 EPS by less than 2 percent), even in challenging macro environment. "RoEs to remain above average, at around 25 percent, and,
hence, we retain buy rating and price object of Rs 625, for upside potential of 30 percent," Bank of America in its report said.

12:50pm Amar Ambani, Head of Research at India Infoline says, "Although headline and core WPI inflation continues to decline sharply and are at multi-year lows, the RBI had no choice but to maintain status quo on the repo rate front, on account of the 9% depreciation in the Rupee since 1st of May."

"While it is not clear if the Governor will cut rates in the next policy review, we expect an incremental 50-75 basis points Repo cut till March 2014. This is based on the likelihood of subdued global commodity prices, normal monsoons, deceleration in consumption momentum and some stability in the INR in the coming months," Ambani adds.

JSW Steel's crude steel production increased to 1.01 million tonne in May as against 0.72 million tonne in a year ago period.

Indian rupee recovered from 57.83 to 57.58 per dollar in today's trade, down 6 paise now compared to Friday's closing value.

12:40pm The government will consider 100 percent FDI in telecom tower companies, reports CNBC-TV18 quoting sources.

CNBC-TV18 reports that FDI policy revamp may propose 100 percent FDI in DTH. Dish TV shares surged 3 percent.

Sources also say FDI policy revamp may propose 100 percent FDI in non-news TV, FM Radio and telecom operators.

12:30pm Equity benchmarks continue to hover around Friday's closing levels in afternoon trade today, as the RBI's credit policy review is the non event for the market.

Also Read - RBI Credit Policy: No rate cut; Subbarao says inflation has to fall first

BSE Sensex is up 44.60 points at 19222.53, and the Nifty is up 10.40 points at 5818.80. Broader markets too are listless.

Jet Airways shares topped the selling list among midcaps, losing 6.67 percent after Foreign Investment Promotion board deferred its decision on the Rs 2058-cr deal between Jet and Etihad Airways for want of more details on ownership and effective control of the resultant entity.

Punj Lloyd tumbled 6.6  percent while Chennai Petroleum, Gateway Distriparks and Gujarat State Petronet slipped 3.3-5 percent.

12:25pm Amara Raja Batteries gained 0.2 percent, after brokerage house Nomura recommended a buy on the stock with a target price of Rs 342.

"The stock has re-rated significantly over the past two years on strong earnings and market share gains delivered across all segments. As it increases its scale of operations and continues to deliver strong and consistent earnings growth, it could trade in line with Exide," Nomura report said.

Emami Paper Mills rallied 5 percent, as the company will issue 30 lakh preferential shares at Rs 400 a share to promoters.

12:15pm Adani Enterprises fell 2.5 percent and Adani Power crashed 7.5 percent after Adani Enterprises repledged 22.3 crore shares in Adani Power.

22.3 crore shares repledged after completing lock-in process.

Trade deficit widened to USD 20.14 billion in May from USD 17.8 billion reported in previous month. Imports increased to USD 44.65 billion from USD 41.95 billion while exports increased marginally to USD 24.51 billion from USD 24.16 billion during the same period.

12:05pm Indian equity benchmarks rebounded after initial negative reaction to credit policy review announced by the Reserve Bank of India . The central bank kept rates unchanged, saying only durable receding of inflation will open up space for easing .

BSE Sensex is up 60.77 points at 19238.70, and the Nifty is up 11.50 points at 5819.90.

Declining shares outnumbered advancing ones by 673 to 506 on the Bombay Stock Exchange.

State Bank of India shares recouped losses completely, trading flat whereas ICICI Bank and HDFC Bank trimmed losses.

Sun Pharma and Mahindra & Mahindra rallied 3 percent while Bharti Airtel , Hero Motocorp and BHEL jumped 2 percent.

11:50 am Buzzing: Jet Airways has recovered a bit and is down 6.11 percent on the BSE.

11:40 am: Sun Pharma , M&M, Bharti Airtel , BHEL and Hero Motocorp are top gainers in the Sensex.

11:30 am Management interview: The deal inked with Spain's automotive component maker CIE SA is like a marriage made in heaven, Hemant Luthra, president of Mahindra & Mahindra's Systech Sector said on Monday.

M&M will merge all its auto components businesses into Mahindra Forgings , as per the deal announced on Saturday. Mahindra Forgings will be renamed Mahindra CIE Automotive, where the Spanish auto components maker will hold 51.1 percent and Mahindra 20.2 percent. T1he remaining stake will be with shareholders.

11:20 am Buzzing: Oil marketing companies (OMCs) are in focus after petrol prices was hiked on Saturday by a steep Rs 2 a litre. This is the second increase in rates this month, as devaluation of rupee against US dollar made imports costlier. BPCL told CNBC-TV18 that the diesel hike will happen at the start of July and the quantum will remain at 50 paise/litre.

11:10 am RBI outlook: The Reserve Bank of India made it clear that only a 'durable easing of inflation' will prompt it to lower interest rates . The central bank Monday left key rates unchanged at its monetary policy review.

"It is only a durable receding of inflation that will open up the space for monetary policy to continue to address risks to growth," the RBI said in its release.

Wholesale price index-based (WPI) inflation has been steadily falling, and touched a 43-month low of 4.7 percent in May. However, consumer price inflation remains sticks, and the 9.31 percent reading for May was way above market expectations.

Don't miss: WPI immaterial for RBI; fear further FII outflow, says Dalton

The market is still down as much-expected Reserve Bank of India leaves cash reserve ratio (CRR) and repo rate unchanged . The Sensex is down 46.21 points at 19131.72, and the Nifty is down 13.50 points at 5794.90. About 806 shares have advanced, 805 shares declined, and 210 shares are unchanged.

A CNBC-TV18 poll of bankers and economists shows that 70 percent of the respondents do not expect RBI to cut repo rate or the cash reserve ratio (CRR). Only 30 percent respondents expect a 25 basis points rate cut in the upcoming policy.

BSE Bankex is down 1.4 percent from its previous close as SBI is down 1.9 percent, Axis Bank is down 2.2 percent among others.

Meanwhile,  M&M, Sun Pharma, Hero Motocorp, Bharti Airtel and HDFC are top gainers in the Sensex.

10:59am Mahindra Systech says the company will get geographical reach to regions like Latin America, after Mahindra Group bought 13.5 percent stake in CIE Automotive.

Mahindra Forgings reported losses in financial year 2012-13 due to slump in Europe, says Mahindra Systech.

Supreme Court will now hear plea against Ranbaxy manufacturing licence on June 24.

10:55am Experts talk ahead of RBI credit policy review

Rajeev Malik of CLSA says he will be surprised if RBI cuts rates today. He expects a status quo policy.

He sees scope for a July rate cut if rupee stabilises. "July meeting is crucial since RBI will know monsoon status," he adds.

According to Malik, the role of RBI rate cuts being overemphasised and the government needs to act to improve growth.

Rupee has depreciated over 30 percent since 2007-end.

10:45am Orchid Chemicals shares surge 10 percent, after the US FDA gave a clean chit to company's Chennai facility.

Pipavav Defence soars more than one percent as the company received a contract worth Rs 1,160 crore to build 2 offshore vessels for European Client.

10:40am Among midcaps, MMTC , Opto Circuits , Adani Power , Adani Enterprises , United Breweries , Jain Irrigation and IVRCL slip 3-4.5 percent.

Tata Motors shares decline 1.8 percent, its UK subsidiary Jaguar Land Rover (JLR) wholesale sales numbers came in marginally lower-than-expected. JLR sales rose by 4 percent year-on-year at 31210 units as against expectations of 32000 units. Jaguar sales soared 62 percent Y-o-Y to 7061 units while Landrover sales dipped 6 percent Y-o-Y to 24149 units.

Brokerage house CLSA maintained a buy rating on the stock with a target price of Rs 375. The firm expects JLR's volume run-rate to settle at a new high by mid-FY14 once the global roll-out of the new RR Sport and F-Type Jaguar is over.

10:30am NSE Nifty continue to hover around the 5800 level. The market may be waiting for the RBI's move to get direction on either side.

Indian rupee depreciated 26 paise to 57.78  per dollar, after seeing appreciation of 47 paise on Friday.

BSE Sensex is down 9.55 points at 19168.38, and the Nifty is down 10.95 points at 5797.45.

10:25am Jet Airways shares tanked 8.6 percent, after Foreign Investment Promotion Board has deferred its decision on the Rs 2,058 crore deal between Jet and Etihad Airways for want of more details on ownership and effective control of the resultant entity. The fear is that Etihad Airways will have substantial control on decision making at the Jet Airways post the share-sale deal between the two carriers.

Banks declined ahead of the Reserve Bank of India 's credit policy review; State Bank of India, ICICI Bank and HDFC Bank slipped between 0.2 percent and 0.7 percent.

10:15am Mahindra group's Mahindra and Mahindra extended a rally to 3 percent, after it bought 13.5 percent stake in CIE Auto on Saturday.

Shares of HDFC and Bharti Airtel gained more than one percent. Hero Motocorp rallied over 2 percent.

Hindalco Industries remains flat since early trade, after it rallied more than 11 percent in previous two sessions on short covering.

10:07am Indian equity benchmarks continue to trade flat as investors await the Reserve Bank of India's credit policy review.

BSE Sensex is up 5.97 points at 19183.90, and the Nifty is down 4.70 points at 5803.70. About 716 shares have advanced and 583 shares declined on the Bombay Stock Exchange.

According to a CNBC-TV18 poll , 30 percent experts expect the Reserve Bank of India to cut cash reserve ratio and repo rate by 25 basis points, but 70 percent says there will be no rate cut.

Experts feel the rupee movement would be watched as Indian rupee saw a steep depreciation since May.

9:56 am Weak stocks: Tata Motors , GAIL , Jindal Steel , Wipro and ITC are major losers in the Sensex.

9:53 am Alert: Pipavav Defence bags contract worth Rs 1,160 crore to build two offshore vessels for European client. The stock is up 0.9 percent on the BSE.

9:50 am Credit Policy: Ahead of the mid-quarter review of monetary policy on Monday, the State Bank of India has said if the apex bank cannot reduce CRR rate , which is a must for lending rate cuts by banks, they should pay interest on cash reserves that banks park with the monetary authority.

Incidentally, most analysts expect the RBI to hold rates during its mid-quarter monetary policy review.

"If a CRR cut cannot be done due to inflation worries, let the RBI pay us interest on CRR. We will then do the transmission for sure. If the RBI pays me Rs 500 crore on interest on my CRR, I promise to transmit the entire Rs 500 crore to borrowers by reducing my base rate," SBI chairman Pratip Chaudhuri said recently.

9:45 am House view: Brokerage house Kotak Securities has upgraded its rating on Reliance Industries to 'add' from 'reduce', and raised price target to Rs 870 from Rs 855 earlier, on hopes of higher volumes and margins in the petchem and refining businesses.

"The beginning of a significant capex cycle (over USD 15 bn) in its core businesses will translate into (1) growth in volumes for the petchem and Exploration & Production segments and (2) enhancement of margins for the refining and petchem segments," said the Kotak note to clients.

9:40 am Midcap stocks: Among the midcap stocks Balrampur Chini , Future Retail , Guj Flourochem , Jet Airways , Opto Circuits and Punj Lloyd are major losers.

9:35 am Current Affairs: A day after the Congress party revamped its organisation, it is now likely that Prime Minister Manmohan Singh and UPA Chairperson Sonia Gandhi will reshuffle the Cabinet on Monday, reports CNN-IBN.

The swearing in for the new set of Cabinet Ministers is scheduled for 5:30 pm on Monday at the Rashtrapati Bhawan. It is possibly the last such change before the 2014 Lok Sabha elections.

9:29 am Market update: The Sensex is down 1.08 points at 19176.85, and the Nifty is down 6.65 points at 5801.75.

9:27 am Loser: Jet Airways crashes around 9 percent as the government deferred clearance of the Etihad's proposal to buy a 24 percent stake in the domestic airline.

9:20 am Buzzing: M&M has announced a multi-structured deal entering into a share swap with Spain's CIE Auto buying 13.2% stake in CIE automotive. The company will fund this buy via selling stake in three group firms to CIE. Mahindra Ugine Steel Company is  up 9.97 percent while Mahindra Forgings is up 2.47 percent.

Check out what Udayan Mukherjee says: RBI policy, FOMC meet major triggers for Nifty this week

The market opens on a stable note as it seems to be quite relaxed ahead of the RBI credit policy review. The Sensex is up 79.32 points at 19257.25 while the Nifty is up 9.00 points or 0.15% at 5817.40. About 193 shares have advanced, 81 shares declined, and 29 shares are unchanged.

A CNBC-TV18 poll of bankers and economists shows that 70 percent of the respondents do not expect RBI to cut repo rate or the cash reserve ratio (CRR). Only 30 percent respondents expect a 25 basis points rate cut in the upcoming policy.

M&M, Hindalco , Sun Pharma , Tata Steel and Maruti Suzuki are some top gainers in the Sensex. Meanwhile Wipro and HUL are on the downside in opening trade.

The Indian rupee opened lower at 57.70 per dollar against 57.51 Friday.

Agam Gupta, Standard Chartered Bank said, "The rupee could strengthen marginally on positive trade data and on a rate cut. Standard Chartered expects a 25 bps Repo rate cut, however the risk of a no rate cut is high due to the recent rupee deprecation. The range for the rupee is seen between 57.40-57.90/USD."

Euro stayed above 1.33 to the dollar ahead of the FOMC meet this week. The dollar index was below the 81 mark. The dollar-yen was sub 95.

Japan markets were up nearly 2 percent, while trade in the rest of Asia's equity markets was subdued ahead of this week's Federal Reserve policy meeting. Japan's Nikkei added 160 points, South Korea's benchmark was steady at the 1,890 mark.

In commodities, Brent Crude hit a nine-month high, rising above 105 dollars per barrel.

From the precious metals space, gold is hovering around 1388 dollars an ounce.