Sensex, Nifty roar with gains; Tata Motors up 4%, ICICI gains

Moneycontrol Bureau1:55 pm PSU bank: The government is likely to announce a bank recapitalisation plan this month, sources have told CNBC-TV18.The budget allocated is about Rs 25,000 crore. The expected infusion is said to be around Rs 22,000-23,000 crore for now, while the rest may be kept aside for further capitalisation as per need.The move underlines the government's confidence and support in helping NPA-saddled public sector banks (PSBs) get back on their feet. The initiative will also help the PSBs meet Basel III norms and maintain capital adequacy ratio above minimum threshold levels. 1:45 pm Auto sales: Private companies in India remain optimistic about growth prospects in the year ahead, but the level of confidence has taken a beating on concerns over challenging conditions in India and abroad, says a survey.

Amid subdued confidence, net balance for business activity among Indian companies is down from 16 per cent in February to 15 percent in June -- its lowest in the survey history and the weakest of all four BRIC economies.

"June outlook figures show that Indian private sector firms maintain an optimistic view about business prospects over coming 12 months. However, confidence levels have slipped slightly, with sentiment for activity, business revenues and profitability all dropping to new survey lows," Pollyanna De Lima, Economist, Markit, said.

1:30 pm Auto sales: Domestic passenger vehicle sales grew 2.68 percent to 2,23,454 units in June from 2,17,620 units in the same month last year.