Sensex ends 1% higher two-day in a row on reform hopes

Indian equity benchmarks rallied 1% for the second consecutive session on Tuesday as traders continued to add long positions ahead of monsoon parliament session.

The market's rally was also on account of stability in global peers. The 30-share BSE Sensex rose 188.82 points or 1.08% to close at 17,601.78 led by banks, technology, FMCG and auto stocks. Meanwhile, the 50-share NSE Nifty went up 54.15 points to 5,336.70.

Traders have opted to buy risky assets on hopes for some action on reforms by the government after Finance Minister Palaniappan Chidambaram said he plans to reduce the fiscal deficit and address tax concerns of overseas investors.

Anant Narayan of Standard Chartered Bank feels that finance minister P Chidambaram's statements about reducing the widening fiscal deficit is encouraging for the markets. The market is building up hopes and is focusing too narrowly on diesel price hike, he added.

Liquidity may be another factor that led the uptrend as foreign institutional investors bought more than Rs 4,000 crore worth of shares in previous four sessions while the Sensex rallied nearly 6% during the same period.

Country's largest lenders State Bank of India and ICICI Bank rose 2% each while housing finance company HDFC went up 1.5%.

Top commercial vehicle maker Tata Motors topped the buying list with 4.42% gains on value buying. Shares of IDFC, GAIL and Ambuja Cements rallied 3%-4%.

TCS, India's largest software services exporter surged 2.86% and its rival Infosys was up 1.9%. FMCG majors ITC and HUL were up 1% and 0.8%, respectively.

Engineering and construction major Larsen & Toubro rose 0.75% and state-owned power equipment manufacturer BHEL moved up 1.4%.

Shares of Bajaj Auto, Jindal Steel, Tata Power, NTPC and Maruti Suzuki climbed 1-2%.

Two-wheeler major Hero Motocorp fell 1.4% due to adjustment for dividend of Rs 45 a share. Top telecom operator Bharti Airtel declined 0.8%.

Index heavyweight Reliance Industries was down 0.7% in morning trade, then rebounded in second half of trade to 0.7%. But it failed to hold gains and closed with marginal losses.

The broader markets gained 0.35% as advancing shares outnumbered declining by 1495 to 1277 on the BSE.

In the second line shares, Lakshmi Machine, KPIT Cummins, BF Utilities, Dewan Housing and Bajaj Finserv gained 4.5%-9%. However, Standard Chartered IDR tanked 20%. IRB Infra, Shree Global, Glodyne Tech and Strides Arcolab declined 4-7%.

Global markets have been stabilised on good US payrolls data and hopes of some solutions to Eurozone debt crisis. Asian markets closed higher as yesterday Germany officially indicated support for European Central Bank's bond buying plan. France's CAC and Germany's DAX rose 0.4% each while Britain's FTSE fell 0.17%.

The 30-share BSE Sensex gained more than 200 points due to buying interest in Infosys and ICICI Bank. Tata Motors, TCS, ITC, SBI and Reliance Industries too were quite supportive.

The BSE benchmark rose 213.14 points or 1.22% to 17626.10 and the NSE benchmark gained 62.40 points or 1.18% to 5,344.95, but the broader markets went up around 0.5%.

Inflow of foreign money too aided the rally as foreign institutional investors have bought more than Rs 4,000 crore worth of India equities in previous seven sessions. The Indian rupee too appreciated by 25 paise to 55.26 against the US dollar today.

Country's largest lenders State Bank of India and ICICI Bank surged more than 2%. Even technology majors TCS and Infosys gained more than 2%.

Cigarette major ITC, housing finance company and state-owned power equipment producer BHEL were up over 1%.

Top commercial vehicle maker Tata Motors continued to trade with more than 4% gains and India's second largest two-wheeler maker Bajaj Auto rallied 3%.

Oil & gas producers Reliance Industries and ONGC moved up over 0.6%. Engineering and construction major Larsen & Toubro went up 0.8%.

Among others, shares of Jindal Steel, Tata Steel, Wipro, Maruti Suzuki and Hindalco Industries climbed 1%-2%.

Two-wheeler major Hero Motocorp was down 1.4% due to adjustment for dividend of Rs 45 a share. Telecom operator Bharti Airtel declined 0.4%.

Risk on rally continued in crude; Brent crude gained 0.5% at USD 110.14 a barrel and NYMEX crude rose 0.17% to USD 92.36 a barrel.

The BSE Sensex and NSE Nifty extended gains to 1% in afternoon trade led by further upmove in European markets and rebound in index heavyweight Reliance Industries to nearly 1%.

The BSE benchmark rallied 172 points to 17,584.62 and the NSE benchmark surged 51.25 points to 5,333.80. France's CAC and Germany's DAX gained 0.6% while Britain's FTSE was up just 0.10%.

Top commercial vehicle maker Tata Motors and IDFC (lender to infrastructure projects) shot up 4% each while Bajaj Auto, India's second largest two-wheeler maker jumped 2.7%.

Country's largest lenders State Bank of India and ICICI Bank were up 1.9% and 1.5%, respectively. FMCG majors ITC and HUL gained 0.3% and 1%, respectively.

Technology majors TCS and Infosys climbed nearly 2%. Engineering and construction major Larsen & Toubro was up 0.7% and state-owned power equipment maker BHEL rose 1.5%.

Hero Motocorp, India's largest two-wheeler manufacturer declined 1.5% as it is quoting ex-dividend (of Rs 45 a share).

NHPC rose over 1% on better than expected sales in first quarter of FY13.

Indian shares remained strong since morning trade on hopes of some strong action on reforms by the government after Finance Minister Palaniappan Chidambaram said he plans to reduce the fiscal deficit and address tax concerns of overseas investors.

The 30-share BSE Sensex climbed 126.58 points to 17,539.54 and the 50-share NSE Nifty went up 38.10 points to 5,320.65.

State Bank of India and ICICI Bank, India's largest lenders were up 1.4% each. Housing finance company HDFC gained 0.6%.

Technology majors TCS and Infosys moved up over 1.5%. FMCG major Hindustan Unilever rose more than 1%.

Top commercial vehicle producer Tata Motors remained top gainer among largecaps with gains of 3.35% on the Sensex while IDFC topped the buying list with 3.5% gains on the Nifty.

Shares of Jindal Steel, Bajaj Auto, DLF, Jaiprakash Associates and Axis Bank rallied 2% each.

State-run oil retailer BPCL was the major loser for the second consecutive session, falling 1.7% due to increase in crude oil prices.

Power Grid Corporation, Hero Motocorp, Cairn India and Reliance Industries (it had gained nearly 6% yesterday) were down 0.7-1.5%.

Advancing shares outnumbered declining by 1366 to 1057 on the BSE.

On the global front, European markets opened flat as they were consolidating after rising in previous two sessions.

The 30-share BSE Sensex gained more than 100 points led by support from 25 out of 30 stocks. Top commercial vehicle maker Tata Motors topped the buying list with gains of more than 3%; the same has been rising nearly 7% since yesterday.

Today's rally may be on account of hopes of some action on reforms in monsoon parliament session (that will start on Wednesday) after new finance minister P Chidambaram yesterday unveiled roadmap to revive sluggish economy.

The BSE benchmark rallied 119.68 points to 17,532.64 and the NSE benchmark was up 35 points to 5,317.35.

Country's largest lenders State Bank of India and ICICI Bank gained more than 1.5%. Housing finance company HDFC went up nearly 1%.

Infosys, India's No. 2 software services exporter jumped 1.56% after good guidance by Cognizant for full year while its rival TCS was up 1.25%.

State-owned power equipment manufacturer BHEL rose 1.4% and engineering and construction major Larsen & Toubro moved up 0.6%.

Power and steel producer Jindal Steel surged 2.5%. Oil & gas producer ONGC climbed just 0.9%.

Index heavyweights Reliance Industries and ITC remained under pressure with marginal losses. Two-wheeler major Hero Motocorp dropped 1.5% due to adjustment of dividend of Rs 45 a share.

The NSE Nifty surpassed the 5300 level quite nicely in morning trade led by buying interest in banks, technology, capital goods, healthcare and auto (barring Hero Motocorp) stocks. However, index heavyweight Reliance Industries dropped 0.6% due to profit booking, which had surged more than 5% yesterday.

The BSE benchmark gained 92 points to 17,504.96 and the NSE benchmark rose 26.75 points to 5,309.30. The broader markets too gained around 0.5% as advancers outnumbered decliners by 1159 to 602 on the BSE.

Top commercial vehicle maker Tata Motors has been rising quite strongly on value buying; today the stock surged over 3%.

Technology majors TCS and Infosys were up 1-1.6% as its unlisted peer Cognizant raised earnings per share guidance for full year to USD 3.38/share from USD 3.36/share.

Country's largest lenders State Bank of India and ICICI Bank gained 1.25% and 1.6%, respectively. IDFC and Axis Bank were up 2.5-3%.

Engineering and construction major Larsen & Toubro was up 0.8% while state-owned power equipment manufacturer BHEL went up 1.5%.

Among metals stocks like Tata Steel, Sterlite Industries, Jindal Steel and Hindalco Industries moved up 0.7%-1%.

Top two-wheeler maker Hero Motocorp declined 1.4% as it was quoting ex-dividend for Rs 45 a share.

In the second line shares, KPIT Cummins, Bajaj Finserv, Thermax, FDC and GSFC jumped 3-5.5% while StanChart IDR, Glodyne Tech, Shree Global, S Mobility and Tube Investment lost 2-8%.

The BSE Sensex and NSE Nifty opened marginally higher amid volatility on Tuesday, as they were reacting to the positive global markets. US and European markets closed higher yesterday after Germany officially indicated support for European Central Bank's bond buying plan. Asian markets too were flat to positive in morning trade.

Overall the market was consolidating at around previous closing values, as they need a trigger, which could be in the form of some action on reforms in the monsoon parliament session that will start on Wednsday or some developments on Eurozone.

The BSE benchmark went up just 25 points to 17,438.19 and the NSE benchmark was up 5 points at 5,287.65.

Sun Pharma gained 1.6% after its subsidiary Taro posted strong numbers in June quarter. Profit increased to USD 62.9 million from USD 35.7 million YoY.

Infosys rallied 1.5% while TCS and Wipro were up over 0.5% after Cognizant raised full year EPS guidance to USD 3.38/share from USD 3.36/share.

Tata Motors, Hindalco, JSPL, Tata Steel, GAIL, Cipla, DLF, GAIL, Dr Reddy's Labs, Bharti Airtel, ACC and Sesa Goa were trading higher in early trade.

However, Hero Motocorp fell 1.5% as it was trading ex-dividend (of Rs 45 a share).

Coal India, Maruti, ITC, BHEL, ONGC and State Bank of India were under pressure.

The CNX Midcap Index rose 21 points to 7308 as about two shares advanced for every share declining on the National Stock Exchange.

In the second line shares, Escorts shot up 6% after the company doubled its net profit to Rs 27 crore year-on-year in Q1FY13.

BEML lost 2.5% as it reported a net loss of Rs 39.44 crore in June quarter as against net profit of Rs 15.87 crore YoY.

Other results reactions: Royal Orchid Hotels surged 3.5%. TBZ was up 1.5% and Financial Tech rose 1%.

Seamac surged 4.6% as the company received USD 18 million contract from Leighton Welspun Contractors.

Sun TV, Punj Lloyd (ahead of Q1 results), UB Holdings, Aurobindo Pharma (ahead of June quarter numbers), OnMobile Global,  Lanco Infratech, GMR Infra, GVK Power, IVRCL and PFC gained 0.4%-2%.

GATI went up over 3%. However, Essar Shipping fell on profit booking as it had rallied 20% yesterday.

Deccan Chronicle was down 2.5% and Kingfisher declined over 2%.

Balrampur Chini fell 0.8% ahead of Q1 numbers today.