Sensex, Nifty rally ahead of RBI policy; Zee, Jubliant Life gain

Moneycontrol Bureau1:55 pm Buzzing: Jubilant Life Sciences shares touched a record high of Rs 676.10, up 10 percent intraday Monday after approval from the US health regulator for Ruby-Fill.

"Wholly own subsidiary Jubilant Pharma, through one of its units Jubilant DraxImage Inc, Montreal Canada, has received US Food and Drug Administration approval for Ruby-Fill, for its new drug application (NDA)," the Noida-based healthcare company said in its filing.

This approved new drug application provides for the use of Ruby-Fill for positron emission tomography (PET) imaging of the myocardium under rest or pharmacologic stress conditions to evaluate regional myocardial perfusion in adult patients with suspected or existing coronary artery disease.

1:45 pm ARC sale: Axis Bank has sold its entire exposure to Essar Steel, worth about Rs 1,000 crore, to Edelweiss ARC, according to people privy to the development. With this, the bank joins ICICI Bank and HDFC Bank to sell exposure in Essar Steel.

Essar Steel has a debt book of about Rs 40,000 crore and with the Axis Bank’s sale of exposure, Edelweiss ARC has about 7 percent of Essar Steel’s total debt.

1:30 pm Market outlook: The recent correction in the stock market has opened up a buying opportunity for investors, according to Manishi Raychaudhuri of BNP Paribas, who expects earnings and returns to broadly pick up for emerging markets. In an interview with CNBC-TV18, Raychaudhuri said the house had a target for 29,000 by 2016 end, and said investors should consider seeking exposure to four themes. "We are bullish on the consumption theme, especially that on the rural side. We also like well-diversified, de-leveraged capex plays. We are positive on private sector banks, especially those focused on retail lending," he said. "Finally, we like the largecap IT space." On IT, which has undergone a correction recently, Raychaudhuri said the street's pessimism has been factored in into valuations.Don't miss: Spectrum auction: Top stock bets as telcos battle it outThe market continues to rally ahead of Reserve Bank of India's monetary policy review. The Sensex is up 307.92 points or 1.1 percent at 28173.88 and the Nifty is up 104.20 points or 1.2 percent at 8715.35. About 2052 shares have advanced, 586 shares declined, and 97 shares are unchanged.

Zee Entertainment, Maruti, IndusInd Bank, Adani Ports and M&M are top gainers while Bharti Infratel, TCS, HUL, Wipro and Infosys are losers in the Sensex.

In a major deal for India's private defence industry, Anil Ambani-led Reliance Group and Rafale maker Dassault Aviation today announced a joint venture (JV) that will be a "key player" in execution of offset contract worth about Rs 22,000 crore as part of the fighter jet deal.

The announcement of the JV, Dassault Reliance Aerospace, comes within days of India and France on September 23 signing an agreement for 36 Rafale fighter jets at a value of euro 7.87 billion, or about Rs 59,000 crore.

The agreement includes a 50 percent offset obligation, the largest-ever offset contract in the history of India.