Nifty ends above 7800, Sensex surges 402pts; Hindalco up 7%

Moneycontrol Bureau3:30 pm Market check: Supported majorly by banks and auto, the market ended with gains. The Sensex was up 401.71 points or 1.6 percent at 25719.58 and the Nifty gained 130.35 points or 1.7 percent at 7818.60. About 1975 shares advanced, 718 shares declined and 108 shares were unchanged.

Hindalco, Vedanta, NTPC, Tata Steel and Tata Motors were top gainers in the Sensex. Among the losers were Sun Pharma and GAIL.

3:20 pm GST: Good & Services Tax (GST) Bill is essential because there are a lot of leakages in terms of access for manufacturing in India, Pratibha Jain of Nishith Desai Associates said.

In an interview with CNBC-TV18, Jain said that Prime Minister's Make in India campaign will face implementation issues if the GST, its backbone, is not implemented soon.

Jain said that the biggest concern is the reluctance on part of the Opposition. The Center and states need to resolve their issues before any rollout of GST can happen, she added.3:10 pm Bihar Assembly elections to be held in 5 phases, voting on October 12, 16, 28, November 1, 5; results on November 8.2:55 pm Gold price: Gold prices declined further by Rs 25 to Rs 26,675 per ten grams at the bullion market today owing to slackened demand from jewellers and retailers even as the metal strengthened overseas. However, silver recovered by Rs 130 to Rs 35,330 per kg on scattered buying by industrial units and coin makers. Bullion traders said easing demand from jewellers and retailers at prevailing levels mainly kept pressure on gold prices.

They said, however, firm global trend where gold gained on weakness in the dollar, capped the fall. Globally, gold climbed 0.4 percent to USD 1,125.48 an ounce and silver rose 0.1 percent to USD 14.80 an ounce after advancing 2 percent yesterday in Singapore. The rupee strengthening against the dollar, making imports cheaper, also influenced gold prices, they added.

2:45 pm China GDP: China's statistics bureau said it has changed the way quarterly gross domestic product data is calculated, a move it calls a step to adopt international standards and improve the accuracy of Chinese numbers.

There has long been widespread scepticism about the reliability of Chinese data, especially as the government has sought to tamp market expectations of a protracted slowdown in the world's second-largest economy.

The move by the National Bureau of Statistics (NBS) comes after China said in July its annual growth rate in the second quarter was 7.0 percent, the same as in January-March. Many economists believe the April-June pace was lower.

2:30 pm Tamil Nadu investor focus: Inviting global investors to take advantage of industry-friendly policies of Tamil Nadu, Chief Minister Jayalalithaa on Wednesday said the state had set an investment target of USD 250 billion in the infrastructure sector in the coming years. "Investment in Tamil Nadu is a sound investment", she said while inaugurating the 'Global Investors Meet' and an exhibition showcasing, among other things, the achievements of the state. Jayalalithaa noted that Tamil Nadu was amongst the early states to capitalise on economic reforms launched in India in the early 1990s.

She said that under the 'Vision 2023' initiated by the state government, the per capita income of the state will be raised to the levels of higher income countries.Don't miss: Bharti, Idea, RComm up 4-15% as telcos can trade spectrum

The market continues to rally as government approved few key policies. The Sensex is up 375.09 points or 1.5 percent at 25692.96, and the Nifty up 121.85 points or 1.56 percent at 7810.10. About 1877 shares have advanced, 647 shares declined, and 88 shares are unchanged.

Vedanta, Hindalco, NTPC, Tata Motors and Tata Steel are top gainers. GAIL, HUL and Dr Reddy's Labs are marginally in red.

The Cabinet approved telecom spectrum trading norms, allowing telcos to buy or sell airwaves from each other. The telecom companies will now be able to trade un-utilised spectrum, in all bands, thereby consolidating the sector.

The government also gave its nod to the gold monetisation scheme that would allow gold depositors to earn interest on their metal accounts. Individuals can buy gold bonds instead of physical gold. Gold company stocks rallied. Midcap stocks are outperform benchmark indices.