Nifty above 7850 on F&O expiry day; Sun Pharma up 4%

Moneycontrol Bureau11:55 am Buzzing: Shares of Lumax Auto Technologies surged 14.6 percent on a joint venture with Italian company as it forays into defence space.

"Lumax announced its entry into the Indian aerospace and defence sector by formation of it’s new joint venture with SIPAL S.p.A of Italy (part of the Turin based euro 240 million FININC S.p.A. group)," says the New Delhi-based and DK Jain Group company in its filing.

As per the JV agreement, Lumax will hold 51 percent equity with management control over JV and SIPAL S.p.A. will hold 49 percent equity in new JV company Lumax SIPAL Engineering Private limited.

11:45 am Recall: South Korea said its own testing showed that Volkswagen AG intentionally manipulated a diesel emissions device in vehicles with an older engine, and ordered the recall of 125,522 cars.

South Korea is the first country after the United States to announce measures based on it own testing to address the diesel emissions scandal that has engulfed Europe's biggest auto manufacturer.

In September, Volkswagen admitted that it installed software in up to 11 million diesel vehicles worldwide that vastly understated their actual emissions of smog-causing nitrogen oxides.11:30 am IPO plans: Isaac George, director- finance, GVK Power and Infrastructure, says the company has readied the Draft Red Herring Prospectus (DRHP) for its airport business, but is waiting for a particular transaction to take place before filing the DRHP.

Speaking to CNBC-TV18, George says the airport business is doing well across cities. Mumbai's passenger traffic has risen 16 percent at 9.8 million passengers in Q2FY16 while Bangalore has outperformed with a 21 percent growth in traffic at 4.6 million passengers.

For the next quarters he expects the cities to log in 20 percent and 30 percent passenger growth, respectively.Don't miss: Hero MotoCorp up 1%; Bain to exit from co via block deal

The market is surging ahead on November Futures and Option (F&O) expiry day. The Sensex is up 154.70 points or 0.6 percent at 25930.44 and the Nifty is up 43.70 points or 0.6 percent at 7875.30. About 1485 shares have advanced, 692 shares declined, and 143 shares are unchanged.

Sun Pharma, Tata Motors, Coal India, Hindalco and Wipro are top gainers in the Sensex. Dr Reddy's Suzuki, Maruti, GAIL, Hero and TCS are major losers in the Sensex.

Viktor Shvets, Macquarie says combination of dollar shortage & divergent global monetary policies is likely to lead to significant shifts in currency, bond & commodity markets in 2016.

The global economy can only be re-flated if Fed joins other central banks in stimulating, he feels. According to him, divergent policies are likely to compress aggregate demand & trade. Whilst short emerging market (EM) equities/long dollar is the consensus view, it could remain so in 2016, Shvets says.