Sensex rebounds, Nifty reclaims 8200 on global cues; Infosys up

Moneycontrol Bureau10:57 am Market Update: Equity benchmarks traded higher. The Sensex rose 64.86 points to 26690.77 and the Nifty advanced 14.20 points to 8184.40.About 1059 shares advanced against 999 declining shares on BSE.10:52 am Interview: The steel market continues to be volatile currently. Soon after the government had implemented minimum import price (MIP), international prices had gone up, which are again softening now, says Ravi Uppal, MD & CEO of JSPL. “The whole market is in a fluid stage,” he says.Even if MIP is not extended, some protective mechanism is needed for the industry, Uppal says, adding that extending MIP for the short-term is also a good option. In the power sector, demand and rates continue to be tepid. The implementation of UDAY scheme will push power rates up, he says. The company’s plant load factor (PLF) of power business is at 50 percent plus level and average realisation is Rs 3 per unit.10:46 am Coal auction: After conducting auctions of coal linkages for the sponge iron sector, CIL will go forward with the bidding for the cement sector by the end of this month.

Coal India (CIL) has been directed to conduct auction of coal-linkages for the non-regulated sector to ensure fuel supply to end users.

According to a source, the e-auction for the cement sector is scheduled to start from June 28.

"Notice inviting application (for the auction of linkages for cement sector) was published on June 11," the source said.

This will the second sale of the dry fuel for non-regulated industries through bidding route.

10:40 am Market Expert: Vallabh Bhansali Chairman of Enam Securities does not expect the Raghuram Rajan's exit to be an overhang for the market. Echoing other market experts he too believes the institution is far bigger than a person.

Although on a personal level, he is saddened with his exit, life goes on.

Going forward, earnings will remain a key trigger for the market and he would be watching the first quarter closely, says Bhansali.

With regards to Brexit, he says, if it happens the market may not react too much because the news is already discounted.

Monsoon, too, is a big trigger and if it is good as expected, then inflation could be seen trending down, making a case for a rate cut, says Bhansali.10:32 am Asia Update: Asia markets were mostly higher while the pound rose today, amid easing Brexit concerns after several weekend polls showed the remain camp regained momentum ahead of a referendum vote to decide the UK's future within the European Union (EU).

The benchmark Nikkei 225 was up 2.4 percent as a relatively weaker yen took some pressure off stocks and investors ignored news of a more than 11 percent drop in Japanese exports for the month of May. Across the Korean Strait, the Kospi gained 1.45 percent. In Hong Kong, the Hang Seng index added 1.08 percent.

Bucking the trend were the Chinese mainland markets, with the Shanghai composite down 0.17 percent and the Shenzhen composite flat.10:25 am Deutsche on HDFC-Max merger: The proposed merger of HDFC Life and Max Life would create the largest private life insurance company in India by individual premium market share.Deutsche Bank says the merger could lead to significant synergies in terms of product mix and distribution and also drive cost efficiencies.As a first step, Max Life is expected to be merged with Max Financial Services (MFS) and then MFS would merge with HDFC Life. By virtue of MFS already being a listed company, this would lead to a listing for HDFC Life, it adds.Max Financial Services (MFS) gained around 25 percent over the past month. Deutsche believes that at current valuations most of the merger benefits are already priced in. Hence, it downgrades MFS to hold.10:20 am Bajaj Auto to up market share: After overtaking rivals Hero MotoCorp and Honda Motorcycle and Scooter India (HMSI) in the mid-end motorcycle segment in the first two months of the ongoing fiscal, Bajaj Auto is focussing to further increase market share in the category.

In order to turn up the heat on its competitors, the Pune-based firm has also reduced the price of its Pulsar 134LS model by around Rs 4,000.

In the mid-end segment (more than 110cc to less than 150cc) of the motorcycle market, as per SIAM data, sales were at 5,90,318 units in the April-May period this fiscal, up 35.57 percent from 4,35,412 units in the year-ago period.

Bajaj Auto sold 1,75,190 units during the period as against 94,761 units in the corresponding period last fiscal, up 84.87 percent.

On the other hand Hero Motocorp sold 1,58,304 units in the April-May period this fiscal in the segment as against 1,28,767 units in the year ago period.10:15 am Oil Update: Oil prices extended gains as a weaker dollar and easing worries over Britain's possible exit from the European Union helped buy back the commodity after six straight days of declines.

London Brent crude for August delivery was up 47 cents at USD 49.64 a barrel, after settling up USD 1.98, or 4.2 percent, at USD 49.17 on Friday.

NYMEX crude for July delivery, which expires on Tuesday, was up 52 cents at USD 48.50 a barrel, after closing up USD 1.77, or 3.8 percent, on Friday.10:10 am Udayan on Market: With Reserve Bank chief Raghuram Rajan not willing to continue after September when his first terms ends, some knee-jerk market reaction is expected, but nothing major, says CNBC-TV18’s Consulting Editor Udayan Mukherjee. “(Rajan leaving) it is not a good move; it's an anti-reform move,” he says. However, he adds that the move isn’t “big liquidity exodus kind.”If Brexit gets out of the way and monsoons are good, the Nifty could return to 8300-8400 levels.The key source of worry is global economy, says Mukherjee. India story is coming back into place with improvement in earnings and other indicators. If market has to rally, if global market permits, Bank Nifty will lead, he adds. 10:05 am Nifty reclaims 8200: The index reclaimed 8200 after recouping 90 points from day's low. The Sensex gained 100 points as Infosys gained more strength.Also read - Speculation mounts on Rajan successor; mkt braces for volatility10:00 am Market Check

The market bounced back after its early losses, tracking positive global cues. It shurgged off the RBI Governor Raghuram Rajan's exit and started focussing on Britain's referendum due on Thursday. Today's global rally is on hopes that UK is unlikely to exit European Union.The Sensex rose 66.94 points to 26692.85 and the Nifty advanced 12.55 points to 8182.75.

Infosys, L&T, TCS and Tata Motors gained a percent each while Axis Bank, Asian Paints, ICICI Bank, Lupin and Sun Pharma fell 0.5-1 percent.