BSE Sensex up over 400 pts, Nifty hits 5800

Moneycontrol Bureau
Live Market Commentary

9:50 am Buzzer: Telecom stocks rallied quite smartly in after Telecom Regulatory Authority of India (TRAI) recommended steep cuts in reserve prices for the next round of specturm auctions.

At 9:40 hours IST, shares of country's largest telecom operator Bharti Airtel gained more than 4 percent to Rs 327.05 followed by Idea Cellular with 4.17 percent gains at Rs 164.70 on the BSE.

MTNL rose 2.33 percent while Reliance Communications and Tata Teleservices advanced over 1 percent.

The telecom regulator said no spectrum would be reserved for existing players when their licences expire and suggested that airwaves can be traded.

TRAI slashed the combined spectrum auction reserve price in the premium 900 MHz band in the circles of Delhi, Mumbai and Kolkata by about 79 percent to Rs 650 crore per MHz against Rs 3,074.18 crore per MHz earlier.

9:35 am FII view: Rakesh Arora of Macquarie says that the market appears to be too tightly anchored to RBI's September 20 midquarter review, like it was to the Union Budget earlier this year. However, it is likely to be disappointed. “Valuations look tempting, but the macro environment looks fraught with headwinds. We advise caution. Buy quality large caps on dips only. Our top picks are L&T, HDFC Bank, Reliance Industries, Coal India and M&M with a 3-year view which can give 100 percent returns,” he says.

9:20 am Movers and losers: Banking stocks have held the market higher. Bankex is up 3 percent. HDFC, Bharti Airtel, Tata Motors, L&T and SBI are top gainers in the Sensex. BHEL, ONGC, Dr Reddys'Lab are losers in the Sensex.

Don't miss: India Inc to policymakers: shape up, or we'll ship out

After an extended weekend, the market seems to be in a good mood today. The Sensex surges 245.45 points or 1.27 percent at 19515.51, and the Nifty is up 58.10 points or 1.02 percent at 5738.50.

About 294 shares have advanced, 56 shares declined, and 22 shares are unchanged.

The Indian rupee opened higher by 85 paise at 64.39 per dollar versus 65.24 Friday. Mohan Shenoi, Kotak Mahindra Bank said, "EM currencies have seen gains against the dollar. After a long weekend rupee is also expected to continue its recent strength. The currency may breach 65/USD and trade in a range of 64.20-65/USD.

The euro held steady around a more than one-week high in early Asian trade on Tuesday, as risk appetite ticked up following Russia's non-military solution to the Syria crisis.

In the global front, US markets gained 1 percent across the board on Monday led by upbeat Chinese exports data with the Dow recording its best day in two months and closing above the 15,000 mark. Earlier, European markets closed lower weighed down by uncertainty over Syria and fears of Fed tapering.

Asian markets were trading higher in early trade today morning. In the currency space, the euro held steady around a more than one-week high in early Asian trade on Tuesday, as risk appetite ticked up following Russia’s non-military solution to the Syria crisis.

In commodities, Brent prices fell to 1-week lows of USD112/barrel as concerns of an imminent strike on Syria eased. Nymex stood at USD 108/barrel levels. From precious metals space, gold prices trend lower, surrendering some of the gains made in the previous session, on market expectations that the Federal Reserve may taper its monetary stimulus.