Sensex, Nifty up 1.7%; ITC, Tata Motors top gainers

The BSE Sensex and NSE Nifty extended gains to 1.7% each on further buying in index heavyweights. Broadbased rally may be on hopes that the Reserve Bank of India may surprise the street due to falling crude oil prices.

The BSE benchmark advanced 270.40 points to 16,291.04 and the NSE benchmark rose 82.65 points to 4,945.95.

Anil Manghnani of Modern Shares & Stock Brokers feels the market will stage a pullback rally before crashing to 4500 levels by Diwali this year.

His view is that the rupee will start to recover a little, which will trigger a rally in the stock market. “My belief is that the damage on the rupee has been done, at least for the short-term. So I think if the rupee does pullback to 53.5-54 levels that should allow the market to inch back up,” he explained.

The Indian rupee gained 17 paise to trade at 55.46 as against the US dollar.

Country's largest commercial vehicle maker Tata Motors shot up 4% after falling more than 20% in previous sessions. Top two-wheeler manufacturer Hero MotoCorp surged over 3% while Maruti, M&M and Bajaj Auto gained 1-1.6%.

India's largest lender State Bank of India and private sector lender HDFC Bank were up 2% each on hopes that the Reserve Bank of India may cut repo rate by 50 basis points. Meanwhile, their rival ICICI Bank was up 1.4%.

According to Saurabh Mukherjea of Ambit Capital, the minimum expectation the market has from the RBI on June 18th is 25 bps cut in rates. He feels there is a growing chance of 50 bps cut especially if Brent crude stays south of USD 100 a barrel between now and the policy announcement date.

The BSE Auto, FMCG, Power, Realty and Metal indices gained 2% each. Bank and Capital Goods indices were up 1.8% each.

Cigarette major ITC jumped over 3% and FMCG company HUL rose 2%. Capital goods majors Larsen & Toubro and BHEL were up 2% each ahead of meeting called by Finance Minister to discuss issues about infrastructure sector.

Index heavyweight Reliance Industries moved up 1% and top software services exporter TCS went up 1.75%.

The market breadth too strengthened; about four shares advanced for every share declining on the National Stock Exchange.

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At 10:16 hours IST: Sensex gains 200 pts on broadbased buying; ITC, HUL up 2%

The 30-share BSE Sensex gained more than 200 points led by consistent buying interest across the board. Asian markets stayed higher with 1-1.7% gains, but only Shanghai was marginally down.

Realty and Power indices outperformed others, rising 2% each. Metal, FMCG, Bank, Capital Goods, Auto, IT and TECk indices were up 1-1.7%.

The BSE benchmark climbed 213.27 points or 1.33% to 16,233.91 while the NSE benchmark moved up 65.10 points or 1.34% to 4,928.40. The broader markets too were following the same trend - BSE Midcap and Smallcap indices rose 1% each.

FMCG majors ITC and HUL jumped 2% each. Country's largest lender State Bank of India rallied 2% while its rivals ICICI Bank and HDFC Bank were up 1.3% and 1.6%, respectively.

Reliance Industries, India's most valued stock was up 0.8% and top telecom operator Bharti Airtel gained 1%.

Top software services exporters TCS and Infosys moved up 1.3% and 0.6%, respectively. Capital goods majors Larsen & Toubro and BHEL went up 1.5% each.

However, Dr Reddy's Labs and BPCL underperformed, falling 0.9% and 0.4%, respectively.

In the second line shares, S Mobility, Jai Corp, SREI Infra, AstraZeneca and Gujarat Pipavav gained 3.5-10% whereas Shree Global, Jubilant Foodworks, Wockhardt, Bombay Rayon and Edelweiss Capital lost 1-5%.

The Indian rupee appreciated by 18 paise to 55.46 a dollar.

About three shares gained for every share declining on the National Stock Exchange.

At 9:20 hours IST: Sensex, Nifty up 1% on positive Asian cues

The BSE Sensex and NSE Nifty started off trade with a 1% gap up following a rally in Asian markets (except Shanghai). Banks, FMCG, technology, capital goods and technology stocks were supportive.

Hang Seng, Nikkei, Straits Times, Kopsi and Taiwan Weighted gained 1-1.5% while Shanghai was flat.

The BSE benchmark rose 173.09 points to 16,193.73 and the NSE benchmark went up 50.50 points to 4,913.80.

Among the frontliners, ITC, ICICI Bank, HDFC Bank, Infosys, SBI, TCS, HUL, L&T, Reliance Infrastructure, Bharti Airtel, BHEL, JP Associates, Tata Motors, M&M, Wipro and Tata Steel were on the buyers' radar.

Oil & gas producers ONGC and Reliance Industries were up 0.6% each.

The CNX Midcap Index rose 55 points to 6,856. About three shares advanced for every share falling on the National Stock Exchange.

In the second line shares, Gujarat Pipavav was up 4.5% as the Board of Directors approved the project expansion plan for Pipavav Port at a total cost of Rs 1,097 crore.

Chambal Fertiliser and RCF gained 1.6-2% on reports that government may consider urea price hike of 10%.

Lanco Infratech jumped 4.5% as Morgan Stanley Infrastructure Partners is in early discussions with the company to buy its 401 km of highway projects.

Unity Infraprojects shot up 7%. Noida Toll, NCC, HDIL and Indiabulls Real were up 2-3%.

Educomp Solutions was up 0.5% and Edserv Softsystems surged 5%.

Essar Oil rose 3% as The Economic Times reported that promoters of company plan to dilute stake in the refinery to increase the liquidity of the company stock on the bourses.

Elder Pharma climbed 1.5% as it launched ‘Zalain’, a medicine used to treat fungal skin infections, in India in association with Spain-based drug firm Ferrer.

However, Future Capital Holdings went down over 1% on profit booking.