Sensex, Nifty continue to rise; Tata Motors up 5%, HUL dips

Moneycontrol Bureau11:55 am Interview: Maruti Suzuki is all set to export a `Made in India' vehicle, the premium compact 'Baleno' to Japan, to be sold by its parent Suzuki. The car will make a debut on October 26. RS Kalsi, Executive Director-Marketing & Sales, Maruti is happy with the response Baleno is drawing but said it would not be appropriate to talk on the sales in number terms yet. When asked if he saw uptick in the market share from the current 47.6 percent that the company holds, he said market shares are basically determined by what the competition does; adding that introduction of this premium hatchback could add to the momentum and may enhance the market share.11:45 am Brokerage view on HUL: Shares of Hindustan Unilever slumped 3 percent intraday. There was not much to cheer in the FMCG major’s September quarter results.

CLSA retains sell rating on the stock with a target price of Rs 740 per share. It has revised FY16-18 earnings per share by 6 percent and tweaked revenue growth assumptions and also lower margins, particularly in soap and detergents. It is also concerned that the risk of a further slowdown in rural markets persists while an urban recovery may take time.

UBS maintains neutral rating on the stock with a target price of Rs 925 per share. It believes HUL's strategy to place appropriate market-leading products across different formats and improve its product quality through innovation will drive revenue growth and sees personal products to be the company's next growth driver.11:30 am Market call: The recent resistance witnessed by the market could be the result of profit taking from traders who expect some resistance at the 8,250-8,280 levels but the bias in the October series remains on the upside, says Vineet Bhatnagar, MD of PhillipCapital. In an interview with CNBC-TV18, Bhatnagar delved into derivatives data and said FIIs, who have recently been dabbling on the call side, have added to their long positions. For traders, he recommends a 'bull call spread' strategy, constructed using the 8,200 (long) call and 8,400 (short) call.Don't miss: Australia clears way for Adani's $7 bn coal and rail proj

The market is holding up its gains as the Sensex is up 209.42 points or 0.7 percent at 26989.08. The Nifty up 65.95 points or 0.8 percent at 8173.85. About 1419 shares have advanced, 708 shares declined, and 112 shares are unchanged.

Tata Motors, GAIL, Maruti, Lupin and Hero MotoCorp are top gainers in the Sensex. Among the losers are HUL, Hindalco, Wipro, Cipla and Infosys.

Oil prices diverged in Asia as a report showing increased production by the OPEC cartel bolstered expectations a supply glut will persist well into next year.

Weak economic data from the United States and China further confirmed the global economic slowdown this year and next projected by the World Bank and International Monetary Fund, likely denting oil demand.

Traders are also awaiting the release later today of data on US commercial crude inventories in the week ending October 9 to gauge demand in the world's top oil consumer.