Sensex, Nifty continue to rally; FMCG stocks party poopers

Moneycontrol Bureau11:55 am Kerosene price hike: Retail prices of kerosene have been increased by 25 paise per litre as of now and J Ramaswamy, Director Finance of HPCL is hopeful the government will take the right pricing action in future as well.

While oil marketing companies have pricing freedom on petrol, diesel, aviation turbine fuel and non-subsidised LPG, so far they require government’s permission to take any pricing action on kerosene and subsidized LPG.

The under-recoveries on kerosene for the month of July 2016 is expected around Rs 13.12 per litre (Rs 11.73 per litre in last month), of which roughly Rs 12 is compensated for by the government.

11:45 am Interview:  S Ravikumar of Bajaj Auto said while the industry grew 7  percent in the motorcycle segment, the company's grew 9 percent.

He is hopeful that new launches like the V15 and the Avenger portfolio will clock better sales figures once the monsoon is over.

In August, he expects sales for the company to be in the range of 3.5 lakh in August. In July, he predicts domestic sales and exports put together will be around 3.25 lakh units.

Nigeria had recently said that it would let its currency naira float and weaken next week.

11:30 am Macro-economy: Speaking to CNBC-TV18 Chetan Ahya of Morgan Stanley said that Brexit will be a long-drawn affair in Europe. "This could drag on," he said, adding that the impact could be on global trades. 

Admitting that there is less systemic risk from Brexit, he believes that the US Fed won't probably be hiking rates in the current scenario.As for the economic triggers for India, the monsoon looks good, he said. He is focussing on private capital expenditure which is connected to the capacity utilisation in the manufacturing sector. "It will be around 12 months before we see private capex recovery."

Don't miss: With crude firming up, HPCL likely to see higher margins 

The market continues to gain with strong support from index heavyweight while FMCG stocks are playing party poopers. The Sensex is up 212.31 points or 0.8 percent at 27357.22, and the Nifty is up 61.50 points or 0.7 percent at 8389.85. About 1677 shares have advanced, 602 shares declined, and 99 shares are unchanged.

ONGC, Tata Motors, ICICI Bank, BHEL and SBI are gainers in the Sensex while ITC, HUL, Hero MotoCorp, Bajaj Auto and NTPC are losers in the Sensex.

Crude prices edged up in Asia, building on recent gains with Brent holding above USD 50 after Nigerian militants claimed fresh attacks on the country's oil infrastructure.

Prices see-sawed last week, plunging in the immediate aftermath of Britain's shock decision to leave the European Union but rallying after central banks worldwide vowed support to financial markets.

The commodity rallied at the end of last week as news filtered through of an attack on a restaurant in Dhaka, which compounded worries about terrorism days after suicide bombers launched an attack on Istanbul airport.