Sensex up over 200 pts, Nifty reclaims 8250; HDFC, Cipla up

Moneycontrol Bureau

9:50 am Buzzing: Shares of Cipla jumped over 2 percent intraday as Credit Suisse has upgraded it to outperform. The brokerage has also increased target price to Rs 750 per share and raised FY16E earnings per share (EPS) by 12 percent due to strong Nexium sales.

“Cipla's growth trajectory is expected to change from 10 percent EBITDA CAGR over the last three years to 24 percent EBITDA CAGR. Margins should expand with completion of investment phase and start of monetisation of respiratory portfolio,” it says in a report.

According to the brokerage, Nexium profits leading to strong earnings growth in H1FY16 and approval of generic Advair MDI in UK are strong near-term triggers of Cipla.

9:30 am Market check: The market is moving ahead with support from capital goods, metals, auto and pharma. The Sensex is up 212.30 points or 0.8 percent at 27317.69 and the Nifty is up 60.25 points or 0.7 perceny at 8251.75. About 1066 shares have advanced, 305 shares declined, and 89 shares are unchanged. 

Hindalco, Hero Motocorp, HDFC, Bajaj Auto and Cipla are top gainers in the Sensex. Among the losers are HUL, Wipro, HDFC Bank and ITC.

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The market has opened in positive terrain as the Sensex is up 77.46 points at 27182.85. The Nifty is up 51.70 points at 8243.20. About 424 shares have advanced, 83 shares declined, and 70 shares are unchanged.

Tata Steel, Tata Motors, Cipla, ICICI Bank and Vedanta are top gainers in the Sensex.

The Indian rupee opened with marginal gain of 9 paise at 63.85 per dollar versus 63.94 Friday.The dollar edges higher against the euro. The euro dips below 1.12 to the dollar. The dollar index is currently at 94.80.

Agam Gupta of Standard Chartered said, "We expect the USD-INR pair to trade in the range of Rs 63.65-64.05/dollar for the day as exporters will be looking to sell dollars on upticks to Rs 64/USD and the normal daily demand for dollar should kick in around Rs 63.60-63.65/dollar."Globally, US markets closed sharply higher on Friday as investors welcomed a "goldilocks" jobs report.

Asian markets rallied in morning trade as China rolls out its third interest rate cut since November. The people's bank of china cuts its benchmark lending rate and one-year deposit rates by 25 basis points.

Meanwhile, Brent crude prices traded around USD 65 per barrel while Nymex holds above 59 dollar mark. Gold gained as revisions to US payrolls data supported speculation that the Federal Reserve may hold off raising interest rates in the immediate future.