Sensex, Nifty extend gains; Lupin rises 2%, Idea surges 4%

Moneycontrol Bureau12:59 pm Market Update: Equity benchmarks extended rally following positive European cues. The Sensex rose 158.27 points or 0.60 percent to 26561.23 and the Nifty advanced 50.50 points or 0.62 percent to 8145.20. About 1586 shares advanced against 773 declining shares on BSE.12:50 pm Interview: March and April have seen good demand pick-up against the same period last year, although May has been a letdown, says Gurmeet Singh, Executive Director at Hitachi Home and Life Solutions (India).  

Speaking to CNBC-TV18, Singh says events like Seventh Pay Commission implementation which lead to higher disposable income levels tend to add at least 10 percent to the industry’s normal growth rate. He expects the upcoming 7th pay commission to boost sales.

"We witnessed strong tailwind, particularly in the room air conditioning segment, when the last pay commission was implemented. We expect a similar fillip this time around also," he says.

Considering the recovery in demand, he does not expect much pile-up of inventory this year.12:40 pm Europe opens: European stocks traded higher after two days of heavy losses amid continued volatility on global markets as a result of the UK vote to leave the European Union (EU).

The pan-European STOXX 600 was up 2.25 percent.

London FTSE index was up 1.55 percent while the FTSE 250 – which is mainly made of domestic-focused stocks – rallied.

Markets appear to becautiously optimistic despite sharp losses on Monday as investors digested the full implications of the UK's vote to leave the EU.12:20 pm Indiabulls Housing's fundraising: Indiabulls Housing Finance is planning to raise Rs 625 crore through issuance of non-convertible redeemable debentures, the company said today.

"The company proposes to issue 6,250 secured non- convertible redeemable debentures with a face value of Rs 10 lakh each aggregating Rs 625 crore (plus greenshoe option) on a private placement basis," the company said in a BSE filing.

The issue will open on June 30 and close on the same day.

The non-convertible redeemable debentures will have a coupon rate of 9 per cent and are proposed to be listed on NSE and BSE.

Also read - Morgan Stanley raises chances of a global recession up to 40%12:00 pm Market Check

The market has maintained its uptrend in noon trade with the Nifty trading above 8100 level amid consolidation, supported by FMCG, infra, pharma and telecom stocks.

The Sensex rose 58.53 points to 26461.49 and the Nifty gained 16.60 points at 8111.30. The market breadth remained positive as about two shares advanced for every share declining on Bombay Stock Exchange.

Lupin, Hindustan Unilever, Idea Cellular, Eicher Motors and Bharti Infratel gained 2-4 percent while Tata Motors and Tata Motors (DVR) fell 2 percent each.

Oil prices rose in Asia as a looming strike in Norway threatened to cut output in western Europe's biggest producer, although Britain's vote to leave the European Union was still weighing on markets. Brent crude futures were trading at USD 47.79 a barrel, up 1.34 percent.