Nifty opens above 8150, Sensex gains over 150pts;HDFC, Maruti up

Moneycontrol Bureau9:55 am Market outlook: The Indian market does offer a positive risk-reward ratio for investors at current levels, says Gautam Chhaochharia, Head of India Research at UBS.In an interview with CNBC-TV18, Chhaochharia said the economy was seeing incipient signs of recovery but that had been priced into stocks following their recent rally."I would be a buyer of Nifty at 7,500, seller at 8,400," he said.Chhaochharia also weighed in on the delay in monsoon, saying that its positive impact is overestimated ("it directly impacts 3 percent of the GDP") but added that, on the flip side, a third straight year of weak rains would be a cause of worry, if forecasts of a strong monsoon do not play out.9:45 am Sugar gone sour: Sugar stocks are down with Bajaj Hindusthan,Balrampur Chini, Mawani Sugars, Sakthi Sugars and Shree Renuka falling 2-5 percent. Government today imposed 20 per cent customs duty on sugar exports to boost domestic supply and check prices which are ruling high at Rs 40/kg.

The move comes at a time when prices have surged sharply in various commodities including tomato, wheat and pulses. A decision has been notified by the Central Board of Excise and Customs (CBEC), it said.

9:30 am Will monsoon arrive? Despite expectations of an above-average monsoon, a delay of more than a week has already caused some concern over the future of the season. But N Chattopadhyay, Deputy Director General of the Agricultural Meteorology division at Indian Meteorological Department (IMD), today told CNBC-TV18 that rain showers will cover most regions of Goa and Maharashtra within two-three days. He, however, added that the worst drought-hit areas of Maharashtra may have to wait for another seven-eight days. "This time lag is because of the initial delay in the onset of season caused," he said. The Met is sticking to its forecast of 106 percent of long-period-average (LPA) rainfall in the country, indicating that it expects monsoons to make up for the shortfall seen so far.

The market opened in green riding high on positive global markets. The Sensex is up 140.51 points or 0.5 percent at 26665.97, and the Nifty up 35.90 points or 0.4 percent at 8176.65. About 393 shares have advanced, 82 shares declined, and 28 shares are unchanged.

Dr Reddy's Labs, Tata Motors, HDFC, Maruti and Tata Steel are top gainers in the Sensex.

The Indian rupee opened flat at 67.20 per dollar on Friday versus previous close of 67.21. The yen is headed for a 2.4 percent advance in the week after the Bank Of Japan standing pat on stimulus furthered a rally ignited by a tick-up in risk aversion. The dollar index rebounds to 94.4 levels

Pramit Brahmbhatt of Veracity said, "Rupee to trade with a positive bias for the day. A little recovery in domestic equity market will help the rupee to move higher." 

Asia markets opened higher on Friday marked by volatility amid concerns. Investor sentiment in Asia also received a boost after US stocks ended a five-day losing streak to close higher. Japanese shares received a boost from a relatively weaker yen, as the benchmark Nikkei 225 was up 1.54 percent. Across the Korean Strait, the Kospi was up 0.82 percent.

Wall Street closed higher as investors digested the implications of a British lawmaker's death on the country's impending referendum on whether to leave the European Union. The benchmark S&P 500 index snapped a five-day losing streak, after erasing sharp losses earlier in the session.

A British Member of Parliament was shot dead in the street in northern England, causing the temporary suspension of campaigning for next week's referendum on EU membership. The lawmaker, Jo Cox, had been a vocal supporter of Britain remaining in the European Union.