Sensex jumps 400 pts, Nifty eyes 7850; ICICI, M&M soar 4-5%

Moneycontrol Bureau10:45 am CLSA on BHEL: CLSA retained outperform rating on the stock as the ABB-BHEL consortium has emerged as the lowest bidder for the Rs 6,000 crore order for PWGR's biggest HVDC line, the Raigarh-Pugalur transmission line."This will be the biggest T&D order in India for both players. The 1,840km long link will operate at 800kV and have a converter capacity of 6GW. BHEL is likely to get a more value added share of around 25 percent (Rs 1,500 crore) of the total order and ABB shall have the balance. This order crystallises around 24 percent of BHEL's industrial orders for FY17 and helps it to diversify its revenue mix in the higher-end power T&D segment," the brokerage explained.10:30 am Interview: For Zuari Agro Chemicals, a good monsoon will prove to be a god-send, says Kapil Mehan, MD & Group CEO. Mehan is not talking about Zuari alone. Rains, he said, will bring more business to the agri input and pesticides companies as well, he says. He is hopeful of two things: one, demand for fertilisers, which is the company's key product, will grow by 10-15 percent, thanks to rains; two, the company's inventory, which has remained piled up from last year owing to a fall in demand, will find a market now.

The company's topline and working capital will most definitely stand to gain from the rains, says Mehan.10:15 am Buzzing: Wipro shares gained more than 4 percent intraday ahead of board meeting for discussion of buyback proposal next week.

"Board of directors will consider a proposal for buyback of equity shares of the company on April 20," the IT major said in its filing.

Analysts expect the buyback of shares to be around 2.5 percent of total paid-up equity.

As of March 31, 2015, Wipro had shareholders equity of Rs 37,092 crore and cash on books of Rs 16,619 crore. Its current market capitalisation is more than Rs 1.4 lakh crore.

On April 20, the company will also announce its audited standalone financial results under Indian GAAP and consolidated financial results under IFRS for the fourth quarter and the year ending March 31, 2016.

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The market extended rally in morning with the Sensex climbing 400 points and the Nifty eyeing 7850 level. All sectoral indices continued to be positive, tracking good monsoon forecast, better-than-expected CPI & IIP data and positive global cues.

The 30-share BSE Sensex rallied 398.43 points or 1.58 percent to 25544.02. The 50-share NSE Nifty rose 121.45 points or 1.58 percent to 7830.40 that recovered 1000 points from February low of 6825.

The broader markets also participated in rally with the BSE Midcap and Smallcap indices rising more than 1 percent. About four shares advanced for every share declining on Bombay Stock Exchange.

ICICI Bank and Mahindra & Mahindra were top contributors to Sensex's rally, up 4-5 percent followed by HDFC, ITC, HDFC Bank, Tata Motors, L&T, SBI, Wipro, Bharti and Maruti Suzuki with 1-3.6 percent.