Sensex ends 90 points down as RBI measures fail to cheer mkt

The BSE Sensex reversed its gains in last hour of trade as less than expected measures announced by the Reserve Bank of India to curb rupee's slide have played a spoilsport on Monday. Even globally investors looked cautious ahead of a critical European Union summit later this week.

The BSE benchmark shed 249 points from day's high of 17,131.15, before closing at 16,882.16, down 90.35 points due to fall in banks, technology, auto and capital goods stocks. The NSE benchmark fell 31.40 points or 0.61% to 5,114.65.

The Indian rupee came off day's high to trade at 56.86 at 15:30 hour IST, a rise of 26 paise over previous closing value. It touched an intraday high of 56.42 a dollar as compared to a record closing low of (on Friday) 57.15 a dollar.

Finance ministry's measures (that were in consultation with RBI) to curb rupee's slide could not met street expectations today.

The Reserve Bank of India (RBI) hiked the limit of external commercial borrowing (ECB) to USD 10 billion. Moreover, the regulator also increased the limit of overseas investment in government bonds by USD 5 billion to USD 20 billion. These measures were not enough to give a boost to markets or curb rupee's fall as the street had expected some reduction in withholding tax, new NRI bond, rate cut by the RBI etc.

The BSE Bankex fell over 1% as banks stocks, which were strong in early trade on hopes of measures, turned lower. Country's largest lender State Bank of India tanked 2% while its rivals ICICI Bank and HDFC Bank were down 0.55% and 1.15%, respectively.

Top software services exporter TCS and Infosys slipped 1.5% and 0.65%, respectively. Telecom major Bharti Airtel too lost nearly 1%.

Engineering and construction major by sales Larsen & Toubro was down 0.5% and state-owned capital goods company BHEL fell 1.6%.

State-owned oil & gas producer ONGC tanked 2.3% whereas Reliance Industries rose 0.7%.

Among metals and mining stocks, Hindalco, Tata Steel and Jindal Steel slipped 1-2%; Coal India and Sterlite Industries were down 0.5% each.

However, housing finance company HDFC rose 0.5% and top car maker Maruti went up 1%.

The broader indices too erased all gains as the market breadth turned neutral.

European markets fell while Spanish borrowing costs rose today as persistent fears about Europe's debt crisis and fresh concerns about global economic growth soured investors' appetite for risk. France's CAC and Germany's DAX dropped 1.5% each while Britain's FTSE was down 81 points. Even the Dow Jones futures lost 88 points.

The euro weakened broadly on investor scepticism that a June 28-29 European Union summit would make any substantial progress towards tackling the debt crisis, now in its third year and buffeting Spain, the region's fourth largest economy.

Investors worry that Europe's debt problems are adding to the slowdown in world economic growth, especially after a flurry of data last Thursday showed weakness in global manufacturing.

At 14:41 hours IST; Sensex slips below 17000; HDFC Bank, TCS, ONGC down 1-2%

The BSE Sensex and NSE Nifty erased all early gains as measures announced by the government to boost economy played spoilsport. Even the Indian rupee came off day's high that was trading at 56.95, a rise of just 17 paise after hitting an intraday low of 56.42 a dollar.

Measures were not enough to give a boost to the market. The government of India hiked the limit of external commercial debt by USD 10 billion. The limit of FII investment in government bonds was also increased to USD 20 billion from USD 15 billion.

The BSE benchmark was down 26.55 points to 16,945.96 and the NSE benchmark fell 12.5 points to 5,133.55.

Country's largest software services exporter TCS and private sector lender HDFC Bank were down 1.5% each.

State-owned oil & gas producer ONGC lost over 2% whereas Reliance Industries rose 0.5%. Rating agency Moody's said RIL's long-term fundamentals were intact.

"Fundamentals are intact despite challenge in upstream operations. We are confident that company's proved reserves will eventually increase," agency said.

Top lender State Bank of India was down 0.75% while its rival ICICI Bank moved up just 0.16%.

State-owned capital goods company BHEL fell 1.6% and top two-wheeler major Hero Motocorp tanked 1.9%.

Shares of Infosys, Bharti Airtel, Tata Motors and HUL were marginally lower.

About two shares advanced for every share declining on the National Stock Exchange.

European markets remained under pressure. France's CAC and Germany's DAX fell 1.4% each while Britain's FTSE was down 0.8% as market experts do not expect any major announcement from European Union summit that will be scheduled for June 28-29.

At 13:33 hours IST: Sensex, Rupee off day's high; European markets decline

Indian equities shed half of gains in afternoon trade following downward journey in European markets. France's CAC and Germany's DAX were down over 1% while Britain's FTSE fell 0.5% ahead of EU summit. Even the Dow Jones futures slipped 79 points. Euro was down 0.4% to 1.2489 as against the US dollar.

The BSE benchmark rose 75.44 points to 17,047.95 and the NSE benchmark was up 22 points at 5,168.10. The broader markets too erased half of early trade gains.

Index heavyweight Reliance Industries and country's largest private sector lender ICICI Bank gained 1.3% each.

Cigarette major ITC, top lender State Bank of India, top commercial vehicle maker Tata Motors and engineering & construction major by sales Larsen & Toubro were up 0.5-0.9%.

Maruti Suzuki, India's largest car maker, shot up 2.6% and state-owned gas transportation services provider GAIL was up 2.2%.

However, technology stocks were under pressure following sharp recovery in Indian rupee. TCS fell over 1% while its rival Wipro and Infosys were marginally lower.

The Indian rupee too came off early highs, which appreciated by 46 paise to 56.66 as against the US dollar after hitting early high of 56.42 a dollar.

In the second line shares, Manappuram Finance, Jaypee Infra, Wyeth, SRF and HT Media gained 3.5-6.5% whereas Apollo Hospital, WABCO India, Prestige Estate, Prism Cement and India Infoline slipped 1-2%.

At 12:31 hours IST: Volatile Sensex trades higher; Maruti, GAIL gain over 2%

The BSE Sensex and NSE Nifty continued to hold early trade gains amid volatility, due to consistent buying interest in Reliance Industries and ICICI Bank. SBI, Larsen & Toubro and Tata Motors too were quite supportive.

The BSE benchmark rose 113 points or 0.67% to 17,085.48 and the NSE benchmark was up 34.05 points at 5,180.10.

The market is keenly waiting for the announcement of steps by the government to improve economy. Expressing concern over signs of weakness in the Indian economy, Finance Minister Pranab Mukherjee said the government is set to announce certain measures on Monday to improve market conditions in consultations with the Reserve Bank.

"GDP is at 6.5. There is inflationary pressure, there is depreciation of rupee. There are no doubt signs of weakness in Indian economy," the minister said, adding, "I am concerned but not depressed".

The Indian rupee showed strong recovery from record closing low of 57.15 (on Friday). It appreciated by 62 paise to 56.50 as against the US dollar.

Index heavyweight Reliance Industries and engineering & construction major by sales Larsen & Toubro gained 1% each.

Country's largest lenders State Bank of India and ICICI Bank climbed 1.5% each.

Top car maker Maruti Suzuki and state-owned gas transportation services provider GAIL topped the buying list, rising 2% each.

The broader markets too came off day's high as the BSE Midcap and Smallcap indices were up nearly 1%. Three shares advanced for every share declining on the National Stock Exchange.

At 11:22 hours IST: Sensex rises 150 pts; Midcap, Smallcap indices up over 1%

The BSE Sensex extended gains to 150 points ahead of likely announcement of measures to boost economy today. Rating agency Moody's has maintained stable outlook on India's sovereign rating.

CNBC-TV18 reported quoting NewsWire18 that the government is likely to announce steps to boost economy in one hour, according to economic affairs secretary.

The BSE benchmark moved up 152.53 points to 17125.04 and the NSE benchmark was up 45.55 points at 5,191.60. Even the Indian rupee gained further to 56.43 as against to the dollar, a rise of 69 paise over previous close of 57.15 a dollar.

Country's largest private sector lender ICICI Bank surged 2% while its rival State Bank of India was up 1.8%. HDFC Bank and HDFC were up 0.65% each.

Engineering and construction major by sales Larsen & Toubro and index heavyweight Reliance Industries gained 1% each. Top telecom operator Bharti Airtel and cigarette major ITC rose 0.7% each.

Among auto stocks, Tata Motors, Mahindra & Mahindra and Maruti Suzuki rallied 1-2% while two-wheeler majors Hero Motocorp and Bajaj Auto were up 0.4% each.

Metals and mining stocks like Coal India, Tata Steel and Jindal Steel moved up 1-2%.

However, software services exporters TCS and Wipro were marginally lower.

The BSE Midcap and Smallcap indices gained 1.2% each, outperforming benchmarks.

At 10:20 hours IST: Sensex stays 100 pts up; ICICI Bank, SBI gain nearly 2%

Indian equity benchmarks stayed positive since early trade due to sharp recovery in Indian rupee after the government said it would announce steps to check the rupee's slide.

Indian rupee rose by 1.10% or 63 paise to 56.49 as against the US dollar that was really a smart recovery from Friday's all-time low of 57.35 a dollar.

The BSE benchmark climbed 117 points to 17,089.71 and the NSE benchmark was up 35.60 points at 5,181.65.

Country's largest lenders State Bank of India and ICICI Bank gained 1.8% each while their rival HDFC Bank was up 0.7%.

Reliance Industries, India's most valued stock moved up 0.9% and engineering and construction major by sales Larsen & Toubro went up 1.1%.

Top commercial vehicle maker Tata Motors and top car maker Maruti Suzuki gained 1.26% and 2%, respectively.

Power stocks too charged up - Tata Power rallied 1.8% and NTPC moved up 1.2%.

The broader markets outperformed benchmarks as market breadth was strong. The BSE Midcap and Smallcap indices gained 1% each as about five shares advanced for every share falling on the National Stock Exchange.

In the second line shares, Manappuram Finance, HT Media, Jaypee Infra, Karnataka Bank and VIP Industries were up 4-6%.

At 9:20 hours IST: Sensex gains 100 pts; Rupee rises 65 paise to 56.45/$

The BSE Sensex and NSE Nifty opened 0.5% higher on Monday led by banks, metals, auto, capital goods and oil & gas stocks. However, technology stocks were under pressure following recovery in rupee.

The BSE benchmark rose 99 points to 17,071.5 and the NSE benchmark went up 31 points to 5,177.

The Indian rupee appreciated by 65 paise to 56.45 as against the US dollar after the government said it would announce steps to check the rupee's slide.

Finance Minister Pranab Mukherjee said on Saturday the government will unveil measures on Monday to arrest the slide of its currency, a day after the rupee hit a new record low of 57.35 against the dollar.

Among frontliners, JP Associates, Ambuja Cements, SBI, ICICI Bank, PNB, GAIL, DLF, L&T, Reliance Industries, Bharti, Tata Steel, SAIL, Tata Motors and Maruti Suzuki were supporting the market in early trade.

Coal India moved up over 1.5% as the company hiked prices in select Western blocks by 10-15%. Even there are talks over fuel supply agreements.

However, Infosys and ITC were marginally down.

The CNX Midcap Index climbed 48 points to 7,181. About four shares advanced for every share declining on the National Stock Exchange.

In the second line shares, Manappuram Finance shot up 5%.

HCC gained 4% after The Economic Times reports that bankers have agreed to give HCC additional loan of Rs 1500 crore if promoters infuse Rs 302 crore.

Sintex Industries, HOEC, WWIL, 3i Infotech, TV18 Broadcast (Note: Web18, which owns Moneycontrol.com and Indiaearnings.com, belongs to the Network 18 Group), GMR Infrastructure, NCC, DCB, Allahabad Bank, United Spirits and Dishman Pharma rallied 1-4%.

Suzlon Energy jumped over 3% as company sold China unit for Rs 340 crore.

Sugar stocks like Shree Renuka, Bajaj Hindusthan and Balrampur Chini were up 1-4%. Triveni Engg surged 10%.

However, Essar Oil was down 1% as Gujarat HC bench disqualified company's case. Company had filed petition seeking state government to allow repayment in instalments and waive interest in relation to its sales tax deferment liability.