Nifty opens above 8750, Sensex climbs over 100 pts; Adani gains

Moneycontrol Bureau9:55 am Interview: Power demand is slowing down says Kulamani Biswal, Director-Finance at NTPC who believes it will take some time before the benefits of the government’s Ujwal DISCOM Assurance Yojana (UDAY) scheme starts bearing fruit.

In an interview to CNBC-TV18 Biswal says available capacity is 91 percent but current plant load factor (PLF) is around 78 percent.

NTPC was able to raise Green Masala Bonds at reasonable yield of 7.84 percent, he says.

9:45 am High valuation: Hindustan Zinc's market valuation crossed record Rs 1 lakh crore mark, helped by a sharp rally in its stock price.

The market capitalisation (m-cap) of the Vedanta Group firm rose to Rs 1,07,640 crore.

TCS is the most valued Indian company with a market capitalisation of Rs 4,75,227.81 crore, followed by RIL (Rs 3,53,628.14 crore), HDFC Bank (Rs 3,27,584.87 crore), ITC (Rs 2,92,947.29 crore) and Infosys (Rs 2,38,388.40 crore).

There are at least 25 companies with over Rs 1 lakh crore market valuation.

In the broader market, the Sensex today jumped over 377 points -- its biggest single-day gain in about a month -- to end at 28,243.29.

9:30 am Market outlook: Midcaps continue to do well, outperforming the market by nearly 15 percent over the past year, says Surendra Goyal of Citi, adding while domestic fund flows have indeed helped, even FII ownership continues to rise in midcaps.

Bottom-up opportunities always exist in midcaps, but valuations on aggregate are getting expensive, with the one-year forward P/E close to that for large-caps, he feels.

With valuations converging and return on equity differential still wide, large caps appear better placed in the near term, Goyal says.

Citi India's top large cap picks are Aurobindo Pharma, Axis Bank, HDFC Bank, M&M and L&T.

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The market has opened higher for another day Tuesday. The Sensex is up 130.46 points or 0.5 percent at 28373.75 and the Nifty is up 32.50 points or 0.4 percent at 8770.60. About 408 shares have advanced, 69 shares declined, and 29 shares are unchanged.

Adani Ports, Hero MotoCorp, Tata Motors, Cipla and BHEL are top gainers while Bharti Airtel is loser in the Sensex. Electrical equipment manufacturer HPL Electric & Power will list its equity shares on October 4. It has fixed issue price at Rs 202, the higher end of price band.

The Indian rupee opened with marginal gains at 66.55 per dollar on Tuesday versus 66.59 Monday.

Ashutosh Raina of HDFC Bank said, "The 2-day MPC meeting concludes today, with markets expecting Reserve Bank of India (RBI) to maintain a status quo. However, a surprise cut can pleasantly surprise the markets. The USD-INR pair after briefly approaching 67/dollar levels is back to 66.50/dollar." "We expect the pair to trade in the 66.30-66.80/dollar range in the near term, with strong FII and FDI inflows to continue," he added.

Among global markets, Asian shares wobbled after fading hopes for a reduced Deutsche Bank fine and rising expectations of a US interest rate hike pressured Wall Street.

MSCI's broadest index of Asia-Pacific shares outside Japan was slightly higher in early trading, while Japan's Nikkei stock index gained 0.6 percent as the dollar rose against the yen.

US shares slumped overnight, with shares of Deutsche Bank resuming their slide as hopes faded that Germany's largest lender would reach a swift deal with the US Department of Justice over a fine of up to USD 14 billion for mis-selling mortgage-backed securities.