Nifty hits 8000, Sensex rises 200 pts post RBI policy

12:40pm Gold Update

 

Gold held steady above a nine-month low as Asian equities remained unsettled by political unrest in Hong Kong, but was poised to post its sharpest monthly loss since June 2013 as a rapid climb in the dollar dimmed its appeal. 

The precious metal is down about 5.5 percent for the month after hitting a nine-month low of USD 1,206.85 last week. Gold is also on track to post its first quarterly loss of the year, though it is still up about 1 percent for the year.

 Spot gold edged up USD 1 to USD 1,216.71 an ounce by 0627 GMT, after dipping in the last two sessions, reports Reuters. 

12:30pm Market Check

 

Equity benchmarks extended rally in afternoon trade with the 50-share NSE Nifty hitting 8000 level supported by banking and financials, auto, capital goods and pharma stocks. 

The index climbed 59.60 points to 8018.50 and the 30-share BSE Sensex rose 214.69 points to 26811.80. The broader markets gained 0.9 percent. About 1549 shares have advanced, 983 shares declined, and 100 shares are unchanged.

 12:15pm Expert on RBI policy

 The Reserve Bank of India left policy rates unchanged. "The main reason behind this is that RBI is holding the job of maintaining the credibility of the processes like anti-inflation process while keeping in the consideration quite a lot of currency pressure," said Rohit Gadia, founder and CEO, CapitalVia Global Research.

 "RBI has set a glide path for CPI inflation at 8 percent by January 15 and 6 percent by January 2016. So RBI can raise interest rate even in the next review if they see that CPI numbers are going out of ease," he added. 

12:00pm Market check

 

Equity benchmarks gained strength in noon trade with the Sensex rising 92.19 points to 26689.30 and the Nifty advancing 22.85 points to 7981.75 after the Reserve Bank of India kept policy rates unchanged. Auto, healthcare, capital goods and HDFC twins supported the market while technology and FMCG stocks remained under pressure.

 The broader markets extended gains with the BSE Midcap and Smallcap indices rising 0.8 percent each. Advancing shares outnumbered declining ones by a ratio of 1473 to 975 on the Bombay Stock Exchange.

 The Reserve Bank of India maintained status quo on all rates (be it repo rate, cash reserve ratio or statutury liquidity ratio) in today's policy meeting. The apex bank expects inflation to dip to 6 percent by November but that may climb back to 8 percent by January-March 2015. 

Auto stocks like Maruti Suzuki, Bajaj Auto and Hero Motocorp gained 1-1.8 percent followed by Tata Motors with 0.4 percent upside while HDFC and HDFC Bank were up 2.6 percent and 0.4 percent, respectively.

 Drug makers Sun Pharma, Cipla and Dr Reddy's Labs climbed 1-1.6 percent. L&T advanced 1.7 percent on bagging orders worth Rs 1,423 crore in September. More information please visit this site www.bigprofitbuzz.com

Sensex volatile ahead of RBI policy; midcap, smallcap gain

Equity benchmarks remained directionless ahead of much-awaited RBI monetary policy. The Sensex declined 3.52 points to 26593.59 and the Nifty lost 3.55 points to 7955.35.

However, the broader markets outperformed benchmarks with the BSE Midcap and Smallcap indices rising 0.5 percent each. About 1107 shares have advanced, 713 shares declined, and 61 shares are unchanged.

 The Reserve Bank of India will announce its monetary policy today at 11 am. Experts do not see any rate cut but they feel there could be SLR cut.

Soumya Kanti Ghosh, Chief Economic Advisor at State Bank of India, expects status quo from the Reserve Bank in its credit policy. In fact he does not see a rate cut this year and the first half of next year.

On the central bank’s tone, Ghosh thinks it would be favourable on the back of positive developments in the past couple of days like the Scotland verdict, the current disinflationary trend and better core numbers.

Though he feels the central bank may cut the statutory liquidity ratio by 25-50 bps, he does not expect any movement in the CRR (cash reserve ratio).

Shares of TCS, Axis Bank, Hindalco Industries and Gail India fell over a percent followed by Infosys, ITC, ICICI Bank, Reliance Industries, and Mahindra and Mahindra with 0.4 percent loss.

However, HDIL topped the buying list, up 1.6 percent. L&T, Bharti Airtel, Tata Motors, HDFC Bank, Sun Pharma, Dr Reddy's Labs, Bajaj Auto, Maruti Suzuki and Tata Power gained 0.3-1.3 percent. More information please visit this site www.bigprofitbuzz.com

Nifty hovers around 7950 ahead of RBI policy; SBI falls

9:55 am Buzzing: Shares of Housing Development and Infrastructure (HDIL) jumped 5 percent intraday after its promoters have revoked all shares pledged with IL&FS Trust Company. 

"Promoters of HDIL have revoked all shares earlier pledged with IL&FS Trust Company and now the entire 100 per cent shares in the promoters category is non-pledged," it said. 

IL&FS Trust has released over 7.54 crore equity shares of promoters, including those of Rakesh Kumar Wadhawan. The released shares in the latest tranche comprise 51.89 percent of the total shares pledged by promoter group. 

9:45 am Will Hong Kong unrest spook market? Unrest in Hong Kong is spooking markets for fear it could escalate, challenging Beijing to make a measured political response, at a time when Chinese and global growth are at the heart of market anxiety. Worries about soft Chinese growth and European weakness has made investors uneasy, while the US Federal Reserve signals it is moving away from easy policy and getting closer to returning to a more normal interest rate environment as the US economy gets stronger.

 A wave of weekend protests in Hong Kong extended into Monday with thousands defying a government call to end street blockades, after police used tear gas, pepper spray and batons to break up a sit-in by students and other residents seeking democratic elections in the former British colony.

 9:35 am FII view: Mahesh Nandurkar, CLSA says after the setback to the BJP in the recent state assembly bypolls, the focus is back on politics and the two important state government elections (Maharashtra and Haryana) soon. 

“A potential loss for BJP will be a sentiment negative for the market but it will not impact Modi's policy making and the growth improvement trajectory remains intact. Any potential dip after elections will be a buying opportunity,” he adds.

The market has once again opened on a flat note ahead of RBI's monetary policy. The Sensex is down 6.91 points at 26590.20 and the Nifty down 10.10 points at 7948.80. About 364 shares have advanced, 198 shares declined, and 24 shares are unchanged.

 Dr Reddy's Labs, Tata Power, M&M, Tata Motors and Wipro are top gainers in the Sensex. Among the losers are Hindalco, Hero MotoCorp, BHEL, Reliance and SBI. 

The Indian rupee opened marginally lower at 61.60 per dollar as against previous day's closing of 61.53 a dollar. The dollar was hovering at a four-year peak against a basket of major currencies on track to post its biggest monthly gain in well over a year. 

Ashutosh Raina of HDFC Bank said, "The focus will be on RBI credit policy today. Globally, the dollar strength continues to be the theme with dollar index settling above the 85 level. Expect the USD/INR pair to trade in 60-61 range as of now, although it will perform better than its peers."

 On the global market front, US stocks ended lower following protests in Hong Kong that added to worries about Chinese growth and after a disappointing forecast from Ford Motor Co. 

Asian markets too were cautious over developments in Hong Kong and as investors focused on data in China and Japan. Kospi weighed down by data showing August industrial output posted its worst monthly fall since 2008. 

In commodities, crude hovers around USD 97/bbl on support from strong US economic data last week 

From precious metals space-- gold holds steady above a nine-month low but poised to post its sharpest monthly loss in 15 months as a rapid climb in the dollar dimmed the metal's appeal. More information please visit this site www.bigprofitbuzz.com

Sensex, Nifty end down; Strides Arcolab up 6%, IT gains

03:30 pm Market closing:

 

The market ended volatile session on a flat note. The Sensex is down 29.21 points at 26597.11 and the Nifty down 9.95 points at 7958.90. About 1857 shares have advanced, 1088 shares declined and 100 shares were unchanged. 

IT and pharma stocks were on buyers radar while banks, metals and FMCG were down. TCS, Sun Pharma, GAIL, Infosys and Hindalco were top gainers in the Sensex. Among the losers were Tata Steel, Sesa Sterlite, Coal India, ICICI Bank and ITC. 

03:15 pm Currency movements: The dollar hit its highest in almost two years against the euro with German inflation data expected to keep pressure on the ECB to ease monetary policy further, while unrest in Hong Kong hurt Asian-exposed European shares. 

The dollar was broadly stronger, hitting a four-year high against a basket of currencies, a six-year peak against the yen and a 13-month high against the New Zealand dollar. Reserve Bank of New Zealand data showed the central bank intervened last month to speed its currency's descent. 

Data on Friday showing higher US growth in the second quarter fuelled speculation that a Federal Reserve interest rate hike may come sooner than expected, in striking contrast with the outlook for the European Central Bank. 

3:00 pm Buzzing: Shares of Strides Arcolab jumped 9 percent after board approved its merger with Shasun Pharmaceuticals . Shares of Shasun Pharma were up 5 percent intraday. 

“Each equity shareholder of Shasun will be entitled to receive five equity shares of Strides in lieu of 16 equity shares held in Shasun. Based on the exchange ratio, Shasun shareholders will own 26 percent of the combined entity. The current promoters of Shasun will, post the approval of the merger, be categorised as promoters of the combined entity, along with the existing promoters of Strides,” a BSE filing said. 

The combined entity to be amongst the top 15 listed Indian pharmaceutical companies by revenue with a turnover in excess of Rs 2,500 crore. The board of directors of the combined entity will comprise of independent directors. The appointed date for the Scheme of Amalgamation is April 1, 2015. 

The Nifty is hovering around 7950, down 12.80 points at 7956.05. The Sensex is down 32.78 points at 26593.54. About 1846 shares have advanced, 1004 shares declined, and 84 shares are unchanged. 

Defensives like pharma and IT lend support while select metal and FMCG stocks correct and midcaps outperform. 

Sun Pharma is the top gainer on the Nifty. Its merger with Ranbaxy is expected to be on FIPB agenda on October 1. Additionally, CNBC-TV18 learns the company is planning to focus on dermatology post Ranbaxy merger. It expects almost 38-40 percent of US sales to come from dermatology by FY18.

 TCS, Infosys, BHEL, GAIL are top gainers in the Sensex. Among the laggards are the Tata Steel, ITC, Sesa Sterlite, Coal India and Bajaj Auto. More information please visit this site www.bigprofitbuzz.com

Sensex, Nifty flat as traders cautious; ITC drags 1%

The market seems to be tired on first day of week as traders are cautious ahead of RBI policy review. The Sensex is up 23.97 points at 26650.29 and the Nifty is up 2.35 points at 7971.20. About 1851 shares have advanced, 833 shares declined, and 77 shares are unchanged. 

Sun Pharma, TCS, BHEL, Infosys and GAIL are top gainers while Hindalco, ITC, HUL, Tata Steel and Bajaj Auto are laggards. 

Crude oil futures eased by 0.59 percent to Rs 5,741 per barrel today as speculators reduced their exposures amid a weakening trend in Asian trade. The trading sentiment eased at futures trade after crude oil prices fell in Asian trade today as the US dollar strengthened, analysts said. 

Meanwhile, West Texas Intermediate (WTI) crude forNovember delivery dropped 59 cents to USD 92.95, while Brent crude for November fell 25 cents to USD 96.75 a barrel on the New York Mercantile Exchange in mid-morning trade. More information please visit this site www.bigprofitbuzz.com

Sensex, Nifty in consolidation mode; banks & metals drag

11:30 am Market outlook: India received a shot in the arm as global rating agency Standard & Poor's on Friday revised India's credit outlook to "stable" from "negative", acknowledging the improvement in the country’s economic environment. The revision was backed by an improvement in India’s external position and growth prospects and means it’s no longer on the brink of a "junk" rating. 

S&P was the last of the three main global ratings agencies with a negative outlook on India; Moody’s never changed India’s outlook, while Fitch upgraded it to stable in 2013. Although Moody’s outlook on India remains stable, Andrew Colquhoun, Head of Asia-Pacific Sovereign Ratings Group at Fitch Ratings doesn't see any chance of an alteration in ratings for India in the medium-term.

The Nifty starts the week in consolidation mode as traders seem to be cautious ahead of the Reserve Bank of India's monetary policy review tomorrow. The 50-share index is down 1.20 points at 7967.65. The Sensex is up 35.34 points at 26661.66. About 1633 shares have advanced, 663 shares declined, and 66 shares are unchanged. 

Defensives continue to gain as Sun Pharma builds on to Friday’s rally while banks trade mixed & metals are weak. TCS, BHEL, Cipla and Infosys are top gainers in the Sensex. On the losing side are Hindalco, M&M, Tata Power, Coal India and Bharti Airtel. 

Tourism stocks are higher after the PM Narendra Modi eased visa norms for US nationals and PIO card holders.

 NSE's volatility gauge, India VIX has surged 7.3 percent and is heading towards fourth day of gains in five on fears of foreign investor sales. It has risen nearly 20 percent since September 22. Traders cite uncertainties including the Supreme Court's cancellation of most coal blocks allotted since 1993. State elections in October are also seen weighing. 

Globally, Asia is mixed while Hang Seng is at a two-month low on account of pro-democracy. More Information please visit this site www.bigprofitbuzz.com