Sensex soars over 400 pts; Maruti & Infosys laggards

Moneycontrol Bureau 11:55 am View on market: Chris Wood, CLSA says RBI's move last week to cut rates was long overdue given the surge in real interest rates in recent months.
According to him, it is also positive that the government bond market has been further opened up to foreigners and that the statutory liquidity ratio (SLR) will be gradually reduced for banks.

He says foreigners will want to buy more Indian bonds given RBI Governor Raghuram Rajan's new inflation targeting regime, based on CPI, while the relaxation in the SLR should create more room for banks to lend.

The final positive is that the rupee did not weaken on the 50 bps cut, says Wood.11:45 am FII view: In the surge seen globally, India is the 'only significant' player among all emerging markets, says Xavier Denis, Societe Generale Securities.With a base rate cut of 50 basis points from Reserve Bank of India, Indian economy reflects a slowing inflation among Asian countries, he tells CNBC-TV18.Denis believes the market is "over-pessimistic" of global problems, not only specific to China but all throughout emerging Asia and recommends equity investors to be more cautious of EMs.11:30 am Home loan rate: SBI may have cut its base lending rate by 40 basis points to 9.3 percent following RBI's latest policy rate cut, but home loan customers of the top lender will have to pay up to 0.7 percent above the base rate, and interest of as much as 10 percent for their loans.

Accordingly, the actual reduction in home loan rate will be a maximum of only 20 basis points, while a higher margin above the base rate will mean that customers will have to pay the same rate of interest for home loans above Rs 1 crore.

The rate for Maxgain home loans above Rs 1 crore - at 9.75 percent for women - would come down by only 20 basis points, while for other customers it would actually remain unchanged at 10 percent with effect from today despite a reduction of 40 basis points in base rate.

11:20 am Interview: S Ravikumar, President - Business Development, Bajaj Auto expects no great fireworks during the festival of Diwali, but expects its market share to rise by 1 percent to 20 percent. Speaking to CNBC-TV18, Ravikumar says the company expects total sales in October to be in the range of 4-4.25 lakh units and exports to be slightly lower than September's 1.74 lakh units to 1.5 lakh units. On the road ahead, he says the company plans to launch three new Avengers this month.Don't miss: Maruti falls 2%; Jefferies downgrades, slashes targetThe market is surging ahead with major support from banks, auto and capital goods. The Sensex is up 402.99 points or 1.5 percent at 26623.94 and the Nifty gains 115.30 points or 1.4 percent at 8066.20. About 1687 shares have advanced, 539 shares declined, and 78 shares are unchanged.Tata Motors, HDFC, ICICI Bank, L&T and TCS are top gainers in the Sensex. Among the losers are Maruti, Dr Reddy's Labs, Lupin, Coal India and Infosys.Oil extended gains in Asia as a decline in US drilling pointed to a slowdown in production, but concerns over demand remain after a disappointing US jobs report. Gold retained gains from its biggest daily jump in nearly nine months as weak US jobs data eased fears the Federal Reserve will hike rates this year. Gold, which had been weighed down all year by expectations the US central bank could soon rise rates, rallied as the dollar fell. The metal is still down nearly 4 percent this year.