Sensex spikes for 3rd day; BHEL, Coal India, NTPC up 10-17%

Follow-up buying on Monday after landslide win by BJP-led NDA in 16th Lok Sabha election pushed the equity benchmarks as well as CNX Midcap Index at another record closing high. PSU, infrastructure, banking & financials and commodity stocks saw hefty buying while major selling pressure was seen in technology, healthcare and FMCG stocks.

The market gained for the third consecutive session. The Sensex advanced 241.31 points or 1 percent to close at 24363.05 and the Nifty rose 60.55 points or 0.84 percent to 7263.55 while the broader markets beat benchmarks. The CNX Midcap Index climbed 4.25 percent to 9,908.40 and BSE Smallcap was up 5.82 percent to 8344.70.

Most of brokerage houses raised benchmarks' target for the calendar year after Lok Sabha election results. They feel the market may not see major correction from here on and in fact it may double in next four-five years.

Goldman Sachs has raised its 12-month target for the Nifty to 8,300 from 7,600 earlier and retained its 'overweight' stance on India. In its strategy note to clients today, the brokerage said it sees increased FII flows and retail participation in the coming days.

Meanwhile, Arvind Sanger, managing partner, Geosphere Capital Management says at the moment the market is in a multi-year bull run. He advises investors to buy on every dip. He sees the Nifty doubling in the next four-five years .

According to him, the only downside risks would be any macro event that can cause global risk off and India specific events - the government disappointing in terms of its economic policies and rising inflation.

Shares of public sector undertaking (PSU) companies were completely on buyers' radar with the BSE PSU index rising 9 percent. Power and Capital Goods indices gained 10 percent and 9 percent, respectively. Realty, Metal and Oil & Gas were up 5-7 percent.

Bank Nifty closed above the 15000 level for the first time ever, up 2.5 percent to 15222. However, BSE IT, FMCG and Healthcare indices were down 4-5 percent.

State-run power equipment maker BHEL topped the buying list, rising 17 percent followed by Coal India with 13 percent. NTPC, ONGC, Tata Power and Punjab National Bank rallied 8-10 percent.

However, the fall in technology shares was attributed to rupee appreciation and profit booking. TCS, Infosys, Wipro and HCL Technologies plunged 4-6 percent.Among others, ITC, Dr Reddy's Labs, Sun Pharma and Hindustan Unilever were down 4-5 percent.

Among midcaps, Jaiprakash Power Ventures shot up 30 percent despite March quarter losses widened to Rs 172 crore from Rs 122.3 crore year-on-year.

KSK Energy Ventures, MMTC, Edelweiss Financial (board hiked FII investment limit in company to 40 percent from 28 percent) and JK Cement (after 36 percent rise in net profit to Rs 76.4 crore Y-o-Y) spiked 20 percent each.

In the smallcap space, IFB Industries, Indian Metals, Ansal Properties, Dalmia Bharat and Apar Industries were up 20 percent each.

Meanwhile, the Indian rupee closed at 58.59 a dollar (11-month high), up 20 paise compared to previous day's value.

Advancing shares outnumbered declining ones by a ratio of 2155 to 717 on the Bombay Stock Exchange.

03:50 pm Realty check: In a report by realty consultant JLL, Rohan Sharma, Senior Manager - Research & REIS, says vacancy rates have risen to new market highs in almost all cities barring Pune and Hyderabad. High vacancy rates or the number of vacant or unoccupied unit in a rental property, suggests a particular property isn't being met by good demand. However, not all is down in the dumps for the sector. The report highlights a slowing demand in Delhi-NCR, but stability in other cities on the back of new launches in emerging residential corridors attracting buyers. Properties' capital values too have steadily risen across cities.

03:37 pm Market closing: After a tussle with the bears, the market managed to close at higher levels. The Sensex was up 241.31 points or 1 percent at 24363.05, and the Nifty was up 60.55 points or 0.84 percent at 7263.55.  About 2162 shares have advanced, 710 shares declined, and 100 shares are unchanged.

Midcaps and small caps saw a super rally with indices gaining 4 and 5 percent respectively. Banks, too, enjoyed investors attention with Bank Nifty up 2 percent. The stars of today's day were PSU, capital goods, oil and gas, metals and realty stocks.

BHEL was up 15 percent, Coal India gained 13 percent, NTPC rallied 12 percent while Tata Power and ONGC were other gainers in the Sensex.

However, IT and pharma stocks fell prey to selling pressure as rupee jumped to 11-month high. TCS and Infosys lost 5-6 percent each. Dr Reddy's Labs, ITC and Sun Pharma were down 5-6 percent each.

03:30 pm Mining ban impact
The Supreme Court's decision ban mining in some 26 mines in Odisha - due to non renewal of leases - will reduce domestic availability of iron ore by about 40 million tonne, RK Goyal, managing director of Kalyani Steel, told CNBC-TV18 in an interview.

Odisha, the top producing state in the country, last year produced a total of 70 million tonne (out of the country's total output of 130 million tonne) from 56 mines and the scarcity in availability is likely to spike iron-ore prices.

''Margins of ferrous companies will likely get compressed,'' Goyal said.

Companies such as Tata Steel and SAIL may try to source iron-ore from international sources, Giriraj Daga of Nirmal Bang Securities said, adding that NMDC will be a key beneficiary of the scarcity of iron ore.

03:20 pm Data
Overseas direct investments by Indian corporates rose to USD 5.58 billion in April from USD 5.23 billion in the previous month, according to data released by the Reserve Bank of India on Monday.

The investments include equity, loans and bank guarantee issued.

Total overseas direct investments from India in April included USD 1.15 billion in equity, USD 268.16 million in loans and USD 4.16 billion in guarantees, the RBI said.

In April 2013, the total overseas financial commitment was much higher at USD 15.24 billion, the RBI data showed.

03:10 pm Macro outlook
Samiran Chakraborty, head - research, Standard Chartered Bank says though the sentiment has changed for the good, the economy continues to face strong cyclical and structural headwinds. At the moment, he has a GDP growth target of 5-5.5 percent and around 1 percent higher for the next fiscal.

"Our traders are suggesting that RBI has been continuously intervening over the past two weeks and we do expect that may be close to USD 5-10 billion of more inflows can come to the market over the next few weeks if the policy framework is in line with market expectations. So in that kind of a situation we will not be surprised if there is still some leg left in the currency market rally. We are looking for the currency to move into 57-58/USD band going forward," he said in an interview.

02:55pm HDFC Bank to raise funds
The board of directors of the bank have decided to seek an enabling approval of the shareholders at the ensuing Annual General Meeting to raise the equity share capital of the bank up to an aggregate sum of Rs 10,000 crore including share premium amount.

The issue of capital is subject to the applicable laws, SEBI regulations and approvals of Reserve Bank of India and other regulatory authorities.

The issue is proposed to be completed within a period of one year from the date of shareholders approval, the bank says.

02:50pm JK Cement soars 20%
JK Cement has reported a 36 percent growth in its net profit to Rs 76.4 crore in the quarter ended March 2014 as against Rs 56.2 crore in corresponding quarter of last fiscal, partially supported by other income.

Net sales grew 9 percent to Rs 827.4 crore during January-March quarter from Rs 760 crore in same quarter last year while other income shot up 68.4 percent to Rs 14.43 crore during the same period.

02:40pm DLF in news
In a setback to DLF, the Competition Appellate Tribunal today upheld the CCI order
imposing Rs 630 crore penalty on the realty major for unfair business practices.

In August 2011, the Competition Commission of India had found DLF violating fair trade norms and imposed a fine of Rs 630 crore on it following a complaint by a Belaire Owners'
Association in Gurgaon.

During the hearing today, the tribunal upheld CCI decision to impose Rs 630 crore fine on DLF. It had challenged the fair trade watchdog's order at the tribunal, Compat. In its order, CCI had asked DLF to cease and desist from formulating and imposing unfair conditions in its agreements with buyers in Gurgaon. The realty firm was also directed to suitably modify unfair conditions imposed on its buyers. It was in May 2010 that the buyer's association had complained against DLF, reports PTI.

02:30pm Jubilant Foodworks slips 2.5%
Jubilant Foodworks disappointed the street with the fourth quarter (Januarh-March) net profit falling 23.54 percent year-on-year to Rs 25 crore on contraction in discretionary spends and higher tax expenses.

According to CNBC-TV18 poll estimates, analysts had expected the company to report net profit of Rs 32.2 crore on total income of Rs 454 crore for the quarter.

Total income from operations grew 18.5 percent to Rs 433.7 crore in the quarter ended March 2014, mainly driven by network expansion, promotional activity and new product introductions.

02:20pm Losers
Software services exporters TCS and HCL Technologies plunged more than 7 percent followed by Infosys, Sun Pharma, Wipro and Dr Reddy's Labs with 5 percent loss. FMCG majors ITC and Hindustan Unilever lost 3-4 percent.

02:10pm FII View
Brokerage house Goldman Sachs has raised its 12-month target for the Nifty to 8,300 from 7,600 earlier and retained its 'overweight' stance on India. Goldman Sachs is bullish on banks, energy and capital goods stocks.

In its strategy note to clients today, the brokerage said it sees increased FII flows and retail participation in the coming days.

''Global funds have very low India allocations and overall positions look less stretched (130 basis point Overweight),'' said the Goldman note, adding that most foreign funds had high exposure to defensive sectors like IT, pharma nd FMCG. Goldman sees these funds increasing exposure to defensive stocks.

''Available FII limits also suggest plenty of room for further inflows. Domestic fund redemptions are moderating and could turn supportive,'' said the Goldman note.

02:00pm The market extended rally in afternoon trade with the Nifty climbing above 7250 level supported by banking & financials, capital goods, metals and oil & gas stocks. However, technology, healthcare and FMCG stocks remained under pressure.

The Sensex rose 265.80 points or 1.10 percent to 24387.54 and the Nifty advanced 67.75 points or 0.94 percent to 7270.75. Advancers beat decliners by a ratio of 1959 to 753 on the BSE.

BSE PSU and Power indices shot up 8 percent each while Capital Goods, Realty, Metal and Oil & Gas gained 5-7 percent. Bankex surged 2.6 percent whereas IT crashed 5.5 percent. Healthcare declined 4 percent and FMCG slipped 3 percent.

India's largest coal mining company Coal India and state-owned power equipment maker BHEL topped the buying list, rising 11-12 percent followed by ONGC, Tata Power and NTPC with 8 percent upmove.

Shares of L&T, HDFC, State Bank of India, Axis Bank, GAIL, Sesa Sterlite, Hindalco, Maruti, HDFC Bank and Reliance Industries spiked 3-6 percent.

2:00 pm DLF: The Competition Appellate Tribunal (COMPAT) today dismissed DLF's appeal against the Rs 630 crore penalty levied on the company by the Competition Commission of India (CCI).

Reiterating the Resident Welfare Association's (RWA) view, COMPAT has said that the realty major abused its dominant position in the Gurgaon market.

The DLF buyers association has hailed the move. It said that it will now seek compensation from DLF separately, while adding that there is no question of any settlement with the realty major.

The association further added that it will now file a class action suit against the company as per the new Companies Act. If this actually happens, it would be India's first action suit under the new act.

A few years ago, the RWA of DLF's The Belaire project approached the CCI, saying the company misused its dominant position in the market by building more floors than it originally planned. This led to the CCI imposing a fine of Rs 630 crore on DLF that the company challenged but was today upheld by the COMPAT.

1:50 pm FII view: Ridham Desai of Morgan Stanley says this is the beginning of a new bull market, but sees the market consolidating for a while. The Nifty is unlikely to hit 8000 in the next two-three months at least, he says in an interview to CNBC-TV18's Sonia Shenoy and Latha Venkatesh.

At the same time, Morgan Stanley now sees a 40 percent probability (20 percent earlier) of the Sensex hitting 31,000 in a year's time because of the overwhelming mandate for the new government. Desai says the outgoing government's measures to curb inflation are slowly bearing fruit and expects real interest rates to turn positive as inflation recedes. He sees consumer inflation slipping back to 6-7 percent by the end of this year.

1:40 pm Buzzing: Shares of Tata  Buzzing: Communications rose over 7 percent intraday as it is selling its South African telecom unit Neotel. Vodafone-owned Vodacom has agreed to buy South Africa's internet-provider Neotel for ZAR 7 billion (South African rand).

The company says that Neotel will now focus on ensuring compliance with the regulatory approvals processes and the engagement with the competition authorities.

Sunil Joshi, MD and CEO of Neotel said, ''Neotel continues to grow in the South African market and with this, when approved, will enable a greater choice of products and services for our customers and increased competition, while Neotel continues to deliver improved services and grows its customer base.''

Vinod Kumar, MD and CEO, Tata Communications feels that deal is in line with the financial objectives while paving the way for Neotel to improve its value proposition in the South African market.

1:30 pm Results: Jaiprakash Power Ventures which has operating capacity of 2200 MW, posted a net loss of Rs 172 crore in the quarter ended January-March 2014 as against loss of Rs 122.3 crore in same quarter last year.

"The operational results have been impacted due to non realisation of revenue in Vishnuprayag HEP, interest cost, long term open access charges in respect of 1000 MW Jaypee Karcham Wangtoo HE Plant and lower market realisations for power sold on merchant basis due to prevailing market conditions," says the company in its filing.

Total income from operations grew 14.7 percent to Rs 429.6 crore during the quarter from Rs 374.4 crore in corresponding quarter of last fiscal.

Other income shot up 180 percent year-on-year to Rs 29.4 crore while finance cost increased 24.6 percent to Rs 367.2 crore in the quarter gone by.

The market is seeing volatile swings as the Sensex is up 252.42 points or 1.05 percent at 24374.16. The Nifty is up 67.95 points or 0.94 percent at 7270.95.

About 1836 shares have advanced, 748 shares declined, and 111 shares are unchanged.

Coal India, ONGC, Tata Power, NTPC and GAIL are top gainers in the Sensex. Among the losers are IT and pharma stocks as rupee gains. TCS, Sun Pharma, Infosys and Wipro are major losers in the Sensex.

The rupee is at 11-month high against the US dollar on positive market sentiment. However, likely dollar buys by RBI may limit gains.

Meanwhile, Japan's Nikkei share average dropped, extending losses from Friday as a stronger yen made investors risk averse, while sentiment was also hurt by weak China shares on concerns about slower growth in the world's second-biggest economy. The Nikkei ended 0.6 percent lower at 14,006.44.

The broader Topix declined 0.8 percent to 1,150.07, while the new JPX-Nikkei Index 400 slipped 0.7 percent to 10,491.39.

12:59pm IDFC ups Sensex target
As Indian gets a stable Narendra Modi-led government after 30 years, experts and broking houses have raised their Sensex and Nifty target as they believe it's just the start of a Bull Run market. Anish Damania, Head-Institutional Equities, IDFC Securities expects Sensex levels to be around 27500 by next year.

According to him, a strong cabinet, slew of reforms enforced by the new government can lead to a secular Bull Run going forward.

Damania expects the upmove to continue in energy stocks with power being the key beneficiary of the new government's reform agenda.

12:50pm Interview
Sanjay Lalbhai, CMD, Arvind, expects a conservative 22-24 percent revenue growth for FY15. ''If things turn out to be positive for brands and retail, then the company might be able to beat this forecast,'' he says.

In the textile business, Arvind suffered a one-time forex loss of Rs 10 crore in the fourth quarter. In brands and retail, Megamart is the only large retail format dragging margins down, says Lalbhai.

However, he expects to maintain 14-14.5 percent margins in FY15. Infact, he sees 18 percent plus margin for the textile business in FY15.

He expects Megamart to breakeven by FY15 end. He believes branded-retail segment will grow at 30 percent in FY15.

12:40pm Tata Communications on buyers' radar
Shares of Tata Communications rose over 3.5 percent as it is selling its South African telecom unit Neotel. Vodafone-owned Vodacom has agreed to buy South Africa's internet-provider Neotel for ZAR 7 billion (South African rand).

Vinod Kumar, MD and CEO, Tata Communications feels that deal is in line with the financial objectives while paving the way for Neotel to improve its value proposition in the South African market.

12:30pm Nikkei closes lower
Japan's Nikkei share average dropped on Monday, extending losses from Friday as a stronger yen made investors risk averse, while sentiment was also hurt by weak China shares on concerns about slower growth in the world's second-biggest economy.

The Nikkei ended 0.6 percent lower at 14,006.44, reports Reuters.

12:20pm Market Expert
Investors should start investing in the market right away, advises Akash Prakash, MD & CEO of Amansa Capital.

Speaking to CNBC-TV18, Prakash says while the market is likely to consolidate, any significant correction, about 10-15 percent fall that will mark a good entry point, is unlikely to happen.

Prakash further adds the micro market and macro-economic situation is poised for better days for the next three to four years.

12:10pm Gainers & Losers
Coal India is the biggest gainer, rising 9 percent followed by Tata Power, ONGC and NTPC with over 6 percent gains. Capital goods majors Larsen & Toubro and BHEL shot up over 5.5 percent.

Among banking and financials, State Bank of India, HDFC, HDFC Bank and Axis Bank climbed 2.5-4 percent but ICICI Bank fell. Index heavyweight and petrochemical major Reliance Industries spiked 2.5 percent.

However, TCS fell more than 6 percent on account of rupee appreciation. Infosys and Wipro plunged over 4 percent. The rupee gained 35 paise to 58.43 a dollar. ITC, Sun Pharma, Dr Reddy's Labs and Hindustan Unilever tumbled 3-4 percent.

12:00pm Equity benchmarks strenghtened amid volatility with the Sensex rising over 150 points but the broader markets outperformed benchmarks with the BSE Midcap and Smallcap indices rising 2.5 percent and 4 percent, respectively.

The Sensex climbed 185.69 points to 24307.43 and the Nifty rose 49.55 points to 7252.55. About 1724 shares have advanced, 710 shares declined, and 112 shares are unchanged.

BSE PSU Index topped the buying list, rising over 6 percent followed by Power, Metal and Capital Goods with over 5 percent gains. Oil & Gas Index surged nearly 4 percent and Bankex climbed 2 percent but IT tanked 5 percent and FMCG & Healthcare lost 3 percent each.

12:00 pm Result poll: Anil Dhirubhai Ambani Group-owned Reliance Power will announce its fourth quarter (January-March) earnings today. Analysts expect consolidated profit after tax to fall 4.3 percent year-on-year to Rs 255 crore during the quarter, according to CNBC-TV18 poll estimates.

Net sales may increase 11.2 percent to Rs 1,387 crore in the quarter ended March 2014 from Rs 1,248 crore in same quarter last year.

Operating profit is likely to jump 10.6 percent Y-o-Y to Rs 512 crore but margin may decline 20 basis points to 36.9 percent in the quarter gone by.

Analysts say Reliance Power has been showing steady execution now with the Rosa and Butobori plants being operational and commencement of coal production and the commissioning date of first 3 units at Sasan UMPP.

11:50 am Stock in focus: Shares of Tata Communications rose over 7 percent intraday as it is selling its South African telecom unit Neotel. Vodafone-owned Vodacom has agreed to buy South Africa's internet-provider Neotel for ZAR 7 billion (South African rand).

The company says that Neotel will now focus on ensuring compliance with the regulatory approvals processes and the engagement with the competition authorities.

Sunil Joshi, MD and CEO of Neotel said, ''Neotel continues to grow in the South African market and with this, when approved, will enable a greater choice of products and services for our customers and increased competition, while Neotel continues to deliver improved services and grows its customer base.''

Vinod Kumar, MD and CEO, Tata Communications feels that deal is in line with the financial objectives while paving the way for Neotel to improve its value proposition in the South African market.

11:40 am Buzzing: Shares of SpiceJet slumped 6 percent intraday as its March quarter result (announced on Saturday) was disappointing. The low cost carrier posted a net loss of Rs 321.5 crore in the quarter ended March 2014 due to high aircraft fuel cost, depreciation in currency, pricing pressures from competition and general economic slowdown.

This loss was higher compared to Rs 185.7 crore in the year-ago period and Rs 172.8 crore in October-December quarter 2013.

"The company is implementing various measures to optimise aircraft utilisation, improving operational efficiencies, renegotiation of contracts and other cost control measures to improve the company's operating results and cash flows," said the company in its filing.

The company, however, is continuing to explore various options to raise finance in order to meet its short term and long term obligations.

11:30 am FII view:  Ridham Desai of Morgan Stanley says this is the beginning of a new bull market, but sees the market consolidating for a while. The Nifty is unlikely to hit 8000 in the next two-three months at least, he says in an interview to CNBC-TV18.

At the same time, Morgan Stanley sees a 40 percent probability (20 percent earlier) of the Sensex hitting 31,000 in a year's time because of the overwhelming mandate for the new government.

Desai says the outgoing government's measures to curb inflation are slowly bearing fruit and expects real interest rates to turn positive as inflation recedes. He sees consumer inflation slipping back to 6-7 percent by the end of this year.

The market has become volatile, unable to sustain profit booking blows. After the initial gains, now the Sensex is up 66.13 points at 24187.87, and the Nifty is up 18.95 points at 7221.95.

About 1501 shares have advanced, 664 shares declined, and 89 shares are unchanged.

Coal India, Sesa Sterlite, Tata Power, Hindalco and GAIL are top gainers in the Sensex. Among the laggards are Sun Pharma, TCS, Dr Reddy's Labs, Wipro and Infosys.

Rupee is at 11-month high on strong equity market sentiment and gilts trade slightly higher on value buying. The euro is steady to marginally lower after weaker-than-expected euro zone GDP. Currencies such as the Malaysian ringgit also traded with strength against the dollar.

Crude futures saw Nymex jump on expectations of increased demand. Brent was at USD 109 per barrel while gold was at sub USD1300 per ounce.

Asian markets trade mixed as regional issues dominate. Concerns about a slowdown in China's real estate market and tensions from Vietnam & China soured sentiment. Japan, however, managed to stay afloat on better-than-expected machinery data.

10:59am Goldman Sachs on market
Brokerage house Goldman Sachs has raised its 12-month target for the Nifty to 8,300 from 7,600 earlier and retained its 'overweight' stance on India. Goldman Sachs is bullish on banks, energy and capital goods stocks.

In its strategy note to clients today, the brokerage said it sees increased FII flows and retail participation in the coming days.

''Global funds have very low India allocations and overall positions look less stretched (130 basis point Overweight),'' said the Goldman note, adding that most foreign funds had high exposure to defensive sectors like IT, pharma nd FMCG. Goldman sees these funds increasing exposure to defensive stocks.

''Available FII limits also suggest plenty of room for further inflows. Domestic fund redemptions are moderating and could turn supportive,'' said the Goldman note.

10:50am Jubilant Foodworks to announce Q4 numbers
According to CNBC-TV18 poll estimates, analysts expect profit after tax of the company to fall 1.6 percent year-on-year to Rs 32.2 crore during the quarter.

Total income is seen going up 24.2 percent to Rs 454 crore in the quarter ended March 2014 from Rs 366 crore in the year-ago period. Analysts feel revenue growth will be partially driven by price hikes and new store additions.

Analysts say continuing demand challenges will keep same-store-sales (SSS) growth under pressure. They expect SSS growth to be flat-to-marginally negative during the quarter.

Operating profit is expected to go up 8.1 percent year-on-year to Rs 66.2 crore but margin may decline 220 basis points to 14.6 percent in the quarter due to weak SSS growth, higher overheads (Dunkin Donuts expansion) and input inflation.

10:40am Market Update
The market erased further gains in morning trade with the Nifty breaking 7200 level weighed down by technology, FMCG and healthcare stocks.

Top software services exporter TCS plunged 6 percent followed by Wipro and Dr Reddy's Labs with 5.5 percent. Infosys and Sun Pharma lost 4.5 percent.

ITC, Mahindra & Mahindra and Hindustan Unilever shed nearly 3 percent followed by Cipla and Tata Motors with percent.

10:30am Dena Bank eyes 20% growth in bottomline
State-run Dena Bank is targeting a 20 percent growth in post-tax profit this fiscal, over the Rs 551.6 crore in the previous fiscal.

"As the economy improves, we are expecting to increase the credit growth to 18-20 percent and on the back of it, a growth of 20 percent in the bottomline," executive director R A Takkar told PTI.

In FY14, the bank had registered a 15 percent growth in advances and 13 percent jump in deposits.

Takkar added that the bank is also targeting expansion of the Net Interest Margin (NIM) to 2.7 per cent level by concentrating more on the retail deposits.

The city-based lender reported NIM of 2.32 per cent for the March quarter, down from the 2.66 percent it had reported in the year-ago period.

10:20am Asia weak
Chinese shares led Asia markets down on Monday, as concerns about slower growth in the world's second-biggest economy checked risk appetite and took a large slice off Australian equities.

MSCI's broadest index of Asia-Pacific shares outside Japan ticked down 0.3 percent, led by Australian shares falling 1.0 percent.

Japan's Nikkei average was flat, reflecting sluggishness in much of Asia though mainland Chinese shares fell to two-month lows on news that Beijing is tightening its grip on interbank lending to defuse risks in shadow banks.

Earlier in the session, Chinese iron ore futures price slumped more than two percent, briefly falling below their lows hit in March.

"A sense of fragility has reappeared on the markets," Credit Agricole said in a note to clients.

"US data is definitely on the weak side, except for non-farm payrolls. The situation is quite similar in China, with demand indicators for April (fixed-asset investment and retail sales) signalling more downward pressures," it added.

10:10am Will Nifty double?
Arvind Sanger, managing partner, Geosphere Capital Management says at the moment the market is in a multi-year bull run. He advises investors to buy on every dip. He sees the Nifty doubling in the next four-five years.

He says from hereon the only downside risks would be any macro event that can cause global risk off and India specific events - the government disappointing in terms of its economic policies and high or rising inflation. According to Sanger, inflation is the single biggest near-term concern.

He believes if any of these concerns play out, Nifty can go down to 6800-6900 levels.

10:00am Equity benchmarks shed more than half of gains due to weakness in technology, healthcare and FMCG stocks. However, the consistent buying in banks, oil & gas, capital goods and power stocks helped the market trade higher.

The Sensex rose 163.95 points or 0.68 percent to 24285.69 and the Nifty advanced 43.35 points or 0.60 percent to 7246.35. Advancing shares outnumbered declining ones by a ratio of 1266 to 467 on the BSE.

Coal India and Tata Power topped the buying list, rising nearly 8 percent and 6 percent, respectively followed by HDFC, L&T, ONGC, State Bank of India, Maruti Suzuki, Sesa Sterlite, GAIL and BHEL with 3-4 percent.

Shares of Reliance Industries, HDFC Bank, ICICI Bank, Axis Bank, Bharti Airtel, NTPC, Hero Motocorp and Hindalco Industries gained 1-2.5 percent.

However, technology shares saw heavy selling pressure as the rupee touched fresh 11-month high. Infosys, TCS and Wipro fell 4 percent each. The rupee appreciated by 38 paise to 58.41 a dollar.

Shares of ITC, Tata Motors, Dr Reddy's Labs, Sun Pharma, HUL and M&M slipped 1-2.6 percent.

10:00 am Upgrades: Aditya Narain, Citigroup says the NDA victory should offer India five years of decisive governance, more market-based and friendly economics and a focus on growth, jobs & investment.

''The market run has more legs. We raise the December 2014 Sensex target to 26,300, an upside of 9 percent. A majority generally means major gains,'' he adds.

Meanwhile, Neelkanth Mishra, Credit Suisse says the near 2/3rd majority for the NDA indicates that both legislative and administrative reforms are now likely.

He expects PSU Bank recapitalisation, the reform of Coal India & power distribution to be initial focus areas. ''The gov't would also focus on Agriculture to bring down food inflation. Buy Reliance Industries, NTPC, Axis Bank, Maruti Suzuki, Bank of Baroda, BPCL, Shriram Transport and sell BHEL, Tata Steel and Bank of India,'' he adds.

9:50 am Market check: The market loses some momentum as the Sensex is up 153.55 points  at 24275.29, and the Nifty is up 40.20 points at 7243.20. About 1202 shares have advanced, 454 shares declined, and 66 shares are unchanged. Coal India is up 7 percent while Tata Power rises 6 percent.

9:40 am FII view: Arvind Sanger, managing partner, Geosphere Capital Management says at the moment the market is in a multi-year bull run. He advises investors to buy on every dip. He sees the Nifty doubling in the next four-five years.

"My sense is 8000 is just pit stop along the way of what should be in the next four-five years the doubling of the market and for the near term dynamics of the market what we need to see is we need to see clarity on the fact that the government does follow through in terms of cabinet formation and policy pronouncements," he said.

He says from hereon the only downside risks would be any macro event that can cause global risk off and India specific events - the government disappointing in terms of its economic policies and high or rising inflation. According to Sanger, inflation is the single biggest near-term concern.

He believes if any of these concerns play out, Nifty can go down to 6800-6900 levels.

9:30 am FII data: Foreign investors have pumped in over Rs one lakh crore in the Indian securities market since Narendra Modi was announced as the prime ministerial candidate by Bhartiya Janta Party (BJP) in September last year.

As per latest data compiled by capital markets regulator Sebi, the net investments by FIIs into Indian equity markets stood at Rs 88,772 crore since the announcement. The same for debt markets was at Rs 13,399 crore -- taking the total to Rs 1,02,171 crore.

Modi was anointed as PM-candidate by BJP on September 13 last year.

Market analysts believe that FIIs have been betting on the Indian market mainly on hopes of a stable and reforms-oriented government. The inflows are expected to surge further as the verdict met overseas investors' expectations in the Lok Sabha Polls.

The market continues its rally as sentiment is still upbeat with Narendra Modi-led NDA winning the 16th Lok Sabha elections. The Sensex is up 287.56 points or 1.19 percent at 24409.30 and the Nifty is up 86.20 points or 1.20 percent at 7289.20.

About 619 shares have advanced, 109 shares declined, and 27 shares are unchanged.

Sesa Sterlite and Maruti are up 4 percent each, while SBI, Tata Power and HDFC are early gainers in the Sensex. Among the losers are TCS, HUL , Wipro, ITC and Dr Reddy's Labs.

The Indian rupee has touched fresh 11-month high in early trade on Monday. It opened at 58.55 a dollar - the highest level since June 18, 2013 - up 24 paise compared to Friday's closing value of 58.79 a dollar.

Agam Gupta, Standard Chartered says nationalised banks are likely to buy below 58.50 per dollar while exporter led selling should come in at 58.75 per dollar level.

According to him, the range for the day is seen at 58.25-58.75 per dollar.

In Asia, Japanese shares are trading in the green as machinery orders surged an annual 16.1 percent in March, blowing past estimates for a gain of 4.2 percent. This could be a sign that the stimulus-led demand so far is now turning into private demand growth which is a good sign.

South Korean shares are lower as steelmaker Posco is under some pressure ahead of its restructuring plan scheduled later today.
 
Escalating tensions between China and Vietnam will also remain in focus.

China's Shanghai Composite was down 19.37 points or 0.96 percent to 2,007.13 and Hang Seng declined 106.59 points or 0.47 percent to 22,606.32 in morning trade on Monday. South Korea's Seoul Composite slipped 3.70 points to 2,009.74 and Taiwan Weighted lost 1.85 points to 8,886.60.

However, Japanese Nikkei 225 Average rose 14.40 points to 14,110.99 and Singapore's Straits Times was up 0.29 point to 3,262.88.

US markets halted a two-day losing streak to end higher on Friday. US stocks staged a final-hour comeback to close in positive territory in choppy trading, putting an end to two days of sharp declines, but the DowJones and S&P 500 still ended lower for the week. The CBOE volatility index slid below 13.

In commodities, crude oil prices rose as investors were worried about Libya after a recovery in the OPEC country's oil supply proved short-lived.

From the precious metals space, gold prices fell as US jobs and factory data indicated brighter prospects for the economy, hurting the metal's appeal as an investment hedge.