Sensex roars ahead of Q2 GDP data release; Bank Nifty up 2%

Moneycontrol Bureau
Live Market Commentary

11:50 am Stock in news: Reliance Power shares are on buyers' radar after the company announced that pre commissioning activities began for its concentrated solar power (CSP) project in Rajasthan's Jaisalmer district. The stock gained 2.6 percent in intraday trade on Friday.

The 100 MW solar power project, which is being built at a cost of Rs 2,100 crore, is set to be commissioned during March 2014.

11:40 am Market outlook: Analyst Sandip Sabharwal is confident that the market will touch a new high in December. In an interview to CNBC-TV18, he said, historically, December has been a positive month for equities and most of the events are likely to be positive, so the bulls will play for an upside. "In case things go contrary to expectations, then bulls will just leave the market subsequently," he added.

Investors will be closely watching key data like the US jobs report due next week, which will decide US Fed’s future action on its stimulus plan. Back home, results of state assembly elections in Madhya Pradesh, Rajasthan, Chhattisgarh, Mizoram and Delhi will be declared on December 8.

11:30 am Buzzer: Shares of NHPC gained more than 2 percent in early trade on Friday as the offer for buyback of up to 1,23,00,74,277 fully paid up equity shares opened today.

The buyback offer will close on December 12. The buyback will be on a proportionate basis from all the equity shareholders of the company through the tender offer process, the company said in its release.

The state-owned hydroelectric power company has fixed buyback offer price at Rs 19.25 apiece and the maximum offer size is approximately Rs Rs 2,367.9 crore. That represents 8.89 percent of total paid-up equity share capital and free reserves as of June 30, 2013.

 Don't miss: Don't see marked improvement in Q2 GDP, says Montek

The market seems to be roaring just ahead of gross domestic product (GDP) data due later in the day. The Sensex is up 260.68 points or 1.27 percent at 20795.59, and the Nifty is up 80.40 points or 1.32 percent at 6172.25.

About 1222 shares have advanced, 515 shares declined, and 88 shares are unchanged.

With a gain of 3.5 percent Sesa Sterlite is the top stock in Sensex. GAIL, SBI, ICICI Bank and HDFC Bank are other major gainers. Tata Motors is the only loser in the Sensex.

Caution rules the roost in the currency markets ahead of GDP data. The rupee racks up modest gains as global dollar weakness offsets month-end dollar demand from importers.

The momentum in the bond markets continues as prices rise on continued buying by PSU banks. Dealers shore up positions on hopes that second quarter GDP numbers could surprise on the positive side.

Asian equity markets trade mixed on profit-booking in the absence of a lead from Wall Street and to square off positions towards the end of the month. US markets were shut for the Thanksgiving holiday yesterday and will observe a half-day session today.

Crude prices trade mostly unchanged in holiday-thinned trade but prices were set to post their third straight monthly drop amid rising stockpiles in the world's top oil consumer. Gold, meanwhile, has eased a tad and is headed for its biggest monthly drop since June.