Mumbai: Market showed spectacular upmove in the final hour of trade after consolidating for most part of the day, on hopes that the Reserve Bank of India may hike key rates for the last time in its credit policy meet on Friday. The 30-share BSE Sensex rose 166.94 points (up 1 per cent), to close at 16,876.54 and the 50-share NSE Nifty gained 63.15 points (up 1.26 per cent), to end at 5,075.70.
Considering the fact that inflation has risen to 9.78 per cent in August, most experts are of the view that tomorrow's hike (which is expected to be 25 basis points) would be the last one by RBI.
Samiran Chakrabarty of Standard Chartered Bank believes that the central bank will hike rates by 25 basis points tomorrow. The bank, he said, is left with very little option but to follow-through on what it had promised in the May and July policy; changing track is going to be difficult.
Tushar Poddar, vice president and chief India economist, Goldman Sachs, on the other hand feels that the RBI may take a decision to pause rate hike in its policy meet on Friday as it has done enough tightening already. "Global situation has changed since the last RBI meet. The central bank does not need to hike rates every six weeks. However, even if the bank doesn’t hike rates this time, it doesn't close the window for future hikes," cautions Poddar.
European markets too helped the market to rally; France's CAC, Germany's DAX and Britain's FTSE moved up 2 per cent each. The Dow Jones Futures rose 0.5 per cent.
Appreciation in Indian rupee too was quite supportive; it was trading at 47.59 per dollar on Thursday as against 47.64 on Wednesday.
Realty, technology, bank, auto and oil & gas sectors led the rally; respective indices rose 1-3 per cent. However, the sell-off in FMCG and capital goods sectors has limited the upside.
Rate sensitives were on buyers' radar. From the financial space, SBI surged 3.6 per cent and HDFC gained 2.6 per cent. ICICI Bank and HDFC Bank moved up 1 per cent. DLF from realty space shot up 4 per cent.
Heavyweight Reliance Industries rose 1 per cent while ONGC closed flat.
Tata Motors was the biggest gainer; the stock shot up 6 per cent. M&M gained 1 per cent. However, Maruti Suzuki fell 1 per cent due to workers' strike at Manesar plant.
Technology sector continued its uptrend for the second consecutive session due to depreciation in rupee. Infosys, TCS and Wipro closed 1.5-2 per cent higher.
Among other largecaps, Bharti Airtel, Sterlite, Jaiprakash Associates and JPSL were up 1.5-2 per cent.
However, L&T slipped over 1 per cent as it was the second lowest bidder for NTPC's 800 MW tender. However, BGR Energy, which was the lowest bidder for NTPC's 800 MW tender, shot up 14 per cent. BHEL slipped 1 per cent.
Tata Steel, HUL and Tata Power were down 0.5-1 per cent.
The market breadth too closed in favour of advances; about 802 shares gained as against 624 shares declined. Total traded turnover was more than Rs 1.44 lakh crore.
At 3:15 pm: Sensex gains over 150 pts; Tata Motors top gainer
Indian equities moved up further on the back of support from banks, technology, oil & gas, telecom, select metal and auto stocks. The 50-share NSE Nifty climbed 70 points to 5,073 and the 30-share BSE Sensex moved up 182 points to 16,892 ahead of RBI policy meet to be held tomorrow. On the global front, European markets were trading 1.5 to 2 per cent higher.
Biggest gainer was Tata Motors, which shot up 7 per cent. Among banks stocks, SBI crossed the Rs 1900 level, gained 4 per cent. ICICI Bank, HDFC Bank and HDFC were up 1 per cent each. Kotak Mahindra Bank and Axis Bank rose 3 per cent.
Technology stocks like TCS, Infosys and Wipro rallied 2-3 per cent. From the telecom space, Bharti Airtel and Reliance Communications jumped 3 per cent. DLF surged 4 per cent.
However, BHEL, L&T, HUL, Tata Steel, Maruti, Sun Pharma, Hindalco and Ranbaxy Labs were only losers; these stocks fell 0.5 to 1.2 per cent.
At 2:36 pm: Nifty hits 5050; Banks, tech, telecom support
Financial, realty, technology, telecom and cement stocks helped market rebound in the afternoon trade. European markets too were supportive; France's CAC, Germany's DAX and Britain's FTSE gained in the 1.5 to 2 per cent range. The 50-share NSE Nifty touched 5050 amid choppy trade. The index rose 33 points to 5,046 and the 30-share BSE Sensex gained 68 points at 16,778.
Reliance Industries was one of the most volatilie stocks, which was up 0.4 per cent. Technology stocks continued their positive momentum due to rupee depreciation; TCS, Infosys and Wipro moved up between 1.5 per cent and 2 per cent.
Rate sensitives like SBI and DLF rallied over 3 per cent ahead of RBI policy meet to be held on Friday. Almost all experts feel that there would be 25 basis points hike in key rates from RBI.
HDFC Bank, HDFC and ICICI Bank climbed 0.6 per cent each. PNB, IDFC and Kotak Mahindra Bank gained 1 to 3 per cent. Tata Motors surged 3.5 per cent.
Reliance Communications rose 2 per cent as sources claimed that the company will undertak massive restructuring exercise. Company is likely to lay off about 700 employees, say sources.
However, largecaps like L&T, ONGC, BHEL, ITC, HUL, NTPC, Hindalco and Maruti Suzuki were down 0.4 to 1.3 per cent. Tata Steel fell 1.4 per cent.
BGR Energy Systems shot up 8 per cent as company was the lower bidder for NTPC's 800 MW order.
About 762 shares advanced as against 639 shares slipped.
At 1:37 pm: Sensex listless despite positive European cues
Indian equities continued to trade listless, even as Europe saw a strong opening to trade. The 30-share BSE Sensex dropped 6 points, at 16,703, while the 50-share NSE Nifty rose 8 points to 5,021.
Technology, banking, realty and cement stocks were on buyers' radar.
European Commission President Barroso will present options for the introduction of common euro zone bonds, which would help ease the euro zone sovereign debt crisis. But president said the plan was not considered a permanent solution to the euro zone sovereign debt crisis. France's CAC, Germany's DAX and Britain's FTSE were up 1.7 to 2 per cent.
On the home turf, heavyweight Reliance Industries rebounded with moderate gains. From the banking space, SBI gained 1.7 per cent and Kotak Mahindra Bank rallied 3 per cent; HDFC Bank and HDFC were up over 0.5 per cent.
Technology stocks were leaders for second consecutive session; TCS, Infosys and Wipro jumped 1 to 2 per cent.
Tata Motors, DLF, Ambuja Cements, Reliance Communications and IDFC shot up 2.5-3 per cent.
However, Maruti, L&T, Tata Steel and Reliance Infrastructure were down 1-2 per cent. ONGC, ITC, HUL, NTPC and BHEL slipped 0.2-0.8 per cent.
At 12:56 pm: Nifty struggles at 5000; Oil & Gas, Capital Goods slide
The 50-share NSE Nifty continued to struggle at 5,000 mark amid extremely volatility. Sell-off continued in oil & gas, capital goods, private banks, FMCG and power stocks. The index fell five points to 5,007 and the 30-share BSE Sensex slipped 42 points to 16,667.
Heavyweight ONGC was down more than 1 per cent ahead of its follow-on public offer to be opened for subscription on Monday. Price band for the issue will be decided soon.
L&T extended the fall; the stock lost 2 per cent. FMCG players like ITC and HUL were down over 1 per cent.
Among other largecaps, Reliance Industries, NTPC, ICICI Bank, HDFC, HDFC Bank, BHEL, SAIL and Bharti Airtel declined 0.5 to 1 per cent.
Maruti Suzuki remained its top position in the selling list; tumbled nearly 3 per cent as Suzuki's power train, 2-wheeler, casting plant workers are on indefinite strike.
However, buying in SBI, TCS, Infosys, Wipro, DLF and Tata Motors, which gained 0.5-2 per cent, has capped the downside.
Most active shares on exchanges were SBI, Everonn Education, JSW Steel, L&T, Infosys, Reliance Industries and Tata Steel .
Market breadth has been mixed; about 701 shares advanced as against 673 shares declined.
At 12:00: Mkt choppy ahead of tomorrow's RBI policy; Maruti top loser
The market is hovering around its previous closing values. The 50-share NSE Nifty was trading at 5,012, down just 0.15 points and the 30-share BSE Sensex fell 21 points to 16,688. The benchmarks seemed to have priced in depreciation of rupee and are waiting for the RBI policy on Friday, which is expected to set the tone for the market.
Tomorrow is a big day for the market, says Ambareesh Baliga, chief operating officer of Way2Wealth Securities. "A positive surprise tomorrow will help us move towards 5,200. But if the RBI keeps the door open for further hikes, it will be difficult to cross that level," he said. In fact, a 50 basis point hike (instead of the expected 25bps) will push the market back to 4,800 levels, he adds.
Largecaps like L&T and NTPC were down 1-1.6 per cent. Among others, ITC, Reliance Industries, ONGC, ICICI Bank, Bharti Airtel, HUL, HDFC Bank, BHEL and HDFC fell 0.4-0.8 per cent.
However, buying continued in TCS, SBI, Infosys and Wipro, which gained 0.5-1 per cent. DLF was the biggest gainer; the stock rose nearly 3 per cent.
Kotak Mahindra Bank, Tata Motors, JSPL, Ambuja, BPCL, Jaiprakash Associates and Reliance Communications moved up 1-2 per cent.
The Indian rupee was trading at 47.85 per dollar, a fall of 0.21 a dollar from previous day's closing.
The broader indices were flat. About 1350 shares advanced while 1039 shares declined on BSE.
At 11:08 am: Sensex sheds 100 pts; capital goods, oil & gas, FMCG dip
Equity benchmarks extended losses amid volatility, led by fall in private banks, FMCG, capital goods, oil & gas and power stocks. The 30-share BSE Sensex fell 120 points to 16,589 and the 50-share NSE Nifty lost 35 points to 4,977.
Gautam Shah, chartered market technician and vice president- financial services at JM Financial said after a 1,000 point fall on the Nifty in August (since July), the bears are in breathing mode. He sees the market continuing to make lower bottoms and lower tops, and advises to sell on every rally as upside is capped.
Maruti Suzuki, L&T, HUL, Hindalco, Sesa Goa, ICICI Bank and ITC were top losers among largecaps; these stocks declined 1-2 per cent.
Top gainers were DLF, Jindal Steel, Jaiprakash Associates, Ambuja Cements and Kotak Mahindra Bank and GAIL, which gained 1-2.5 per cent. SBI and M&M were up over 0.6 per cent.
SBI, Everonn Education, ARSS Infra, Pipavav, Infosys, Reliance Industries and L&T were most active shares on the exchanges.
About 624 shares advanced as against 663 shares declined on the National Stock Exchange.
Midcaps like DB Realty, Sobha Developer, Gillette India, Indiabulls Real and GTL were up 3-8 per cent while Marico, SREI Infra, KGN Industries, Pipavav and TTK Prestige slipped 3-8 per cent.
At 10:15 am: Nifty goes below 5000, Re at 47.84/$ despite RBI step
Indian equity benchmarks slipped into red amid choppy trade. Sell-off in private banks, FMCG and select auto stocks weighed on the market while buying in ADAG, cement and select metal stocks capped the downside. The 30-share BSE Sensex was trading at 16,634, down 75 points and the 50-share NSE Nifty fell 17 points to 4,995.
Indian rupee, which appreciated sharply from day's low after the Resreve Bank intervened by selling dollar yesterday, depreciated to 47.84 per dollar (down 0.43 per cent ) again.
Largecaps like L&T, HUL, ICICI Bank, HDFC Bank and ITC were down 0.5-1.5 per cent. ONGC, HDFC, TCS and Bharti Airtel were marginally in the red.
Maruti Suzuki fell nearly 2 per cent as Suzuki's power train, 2-wheeler and casting plant workers are on indefinite strike.
However, SBI slipped from day's high, which had surged 1.8 per cent in early trade. The stock was up 0.8 per cent.
JSPL, Kotak Mahindra Bank, DLF, Ambuja, BPCL, ACC and Ranbaxy Labs gained 1-2 per cent. Wipro, Sterlite, JP Associates, Reliance Communications, HCL Tech and Reliance Power were up 0.5-1 per cent.
About 1120 shares advanced as against 786 shares declined on BSE.
At 9:18 am: Sensex turns volatile after initial spike in opening trade
Predictably, the benchmark Sensex opened more than 100 points up on Thursday following positive global cues only to lose more than half of the gains immediately. Reassuring comments from European ministers on Wednesday had played positively on global sentiments, which was expected to reflect on Indian market sentiment as well.
The 50-share NSE Nifty rose 20 points to 5,032 and the 30-share BSE Sensex gained 63 points at 16,772. The CNX Midcap went up 37 points to 7,300.
Among largecaps, BHEL, HCL Tech, Wipro, Infosys, BPCL, Jaiprakash Associates, SAIL, Sterlite, Tata Steel, Hindalco, SBI, IDFC, HDFC and Kotak Mahindra Bank were witnessing buying interest.
However, Maruti lost 1.5 per cent as labour unrest spread to 3 Suzuki units.
Sesa Goa and Hero Motocorp too were down.
Pipavav Shipyard plunged 4 per cent as other shipyards L&T, Bharti and ABG raise objections for Pipavav-Mazagon JV.
Kingfisher Airlines lost 3 per cent as auditor raised doubts over company's survival.
Tamil Nadu brought DTH under tax net and will levy 30 per cent entertainment tax. Sun TV fell 6 per cent.
Marico slipped 7 per cent as company said there would be possibility of PAT for next couple of quarters falling short of current expectations.
However, Everonn gained 4 per cent. Jaypee Infra, Indiabulls Real, Apollo Tyres, Jubilant Foodworks, Mahindra Satyam, Lovable Lingerie, Zee Learn and A2Z Maintenance up 2-3 per cent.
Global cues
Global markets gained on reassurance comments from European ministers on Wednesday.
The Dow Jones Industrial Average ended up 141 points at 11,246, after slipping 140 points from day's high of 11,386.
The NASDAQ Composite ended up 40 points at 2,572, which came off 29 points from day's high of 2,601.
The S&P 500 Index ended up 16 points at 1,189, which slipped 13 points from day's high of 1,202 ((S&P 500 is now up 3 per cent week to date – in race for second weekly gain in eight weeks)).
European Commission President Barroso to present options for the introduction of common euro zone bonds would help ease the euro zone sovereign debt crisis; said the plan was not considered a permanent solution to the euro zone sovereign debt crisis.
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