Nifty near 8850, Sensex up 350 pts; Reliance hits 27-month high

Moneycontrol Bureau12:45 pm Europe opens: European stocks opened lower with banks taking a beating after news of a large fine for Deutsche Bank and as global markets look to next week's meeting of the Federal Reserve's policymaking committee.

The pan-European Stoxx 600 index opened 0.1 percent lower with the majority of sectors in negative territory.

Meanwhile, the US Federal Reserve continues to dominate market sentiment. The central bank's policy makers are meeting on September 20, although the chances of a rate hike are slim following a deluge of disappointing US data on Thursday.12:35 pm DBS on rupee: The rupee which is currently hovering around 67 per dollar level is expected to shift from a depreciation path to a consolidative trend over the next 12 months, says a DBS report.

According to the global financial services major, there is neither a need nor a macroeconomic rationale behind a deliberate attempt to devalue the currency.

There were media reports that the Commerce Ministry might propose devaluation of the domestic currency to give a fillip to the exports sector, despite officials' dismissing the report, USD/INR held above 67 yesterday.

"Such an attempt would run counter to recent efforts by the Reserve Bank of India and the government to establish macro-stability, transparency and policy predictability to attract and retain investors," DBS said in a research note.12:15 pm Order win: Energy solution provider Suzlon Group today announced that it has won its maiden order from Oil India Ltd(OIL) for 52.50 MW project capacity.

The project is capable of providing power to over 28,000 households and offsetting 0.11 million tonnes of CO2 emissions per annum, it said.

Suzlon will provide a comprehensive range of services and dedicated life cycle asset management services for an initial period of 10 years. The projects will be located in Madhya Pradesh and Gujarat and are scheduled to be completed by June 2017.

The order comprises Suzlon's latest product offerings- the S111 90m tubular tower and S97 120m hybrid tower with a rated capacity of 2.1 MW each, the company said in a statement.

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The market continued to rally in noon trade with the benchmark indices rising over a percent, supported by banks, auto, oil and FMCG stocks.

The 30-share BSE Sensex surged 351.50 points or 1.24 percent to 28764.39 and the 50-share NSE Nifty jumped 99.90 points or 1.14 percent to 8842.45.

Experts remained bullish on emerging markets, saying the FII inflow will continue on account of likely further delay in Fed rate hike.

Sunil Garg, Head of International Equity Research, JP Morgan, said he expects earnings growth for EMs to be at 13 percent from 7 percent next year. He said the market is on a much stronger footing at this point in time and even the Reserve Bank of India has been very accommodative in its stance.

The broader markets also climbed over a percent as about 1668 shares advanced against 794 declining shares on the BSE.

Reliance Industries was the biggest contributor to Sensex's rally, up more than 2 percent to trade at 27-month high. HDF Bank, ITC, Axis Bank, ICICI Bank, Maruti, L&T, SBI and Adani Ports gained 1-3 percent whereas HDFC and TCS were flat with a negative bias.