Sensex up 303 points, Nifty ends tad below 8600; banks rally

03:30pm Market Closing: The market staged spectacular performance on first day of the financial year 2015-16. The Sensex rallied 302.65 points or 1.08 percent to 28260.14 and the Nifty climbed 95.25 points or 1.12 percent to 8586.25. Banks led the market higher ahead of RBI policy next week. About 2006 shares have advanced, 697 shares declined, and 161 shares are unchanged on the BSE.

Sun Pharma, Tata Motors, SBI, ICICI Bank, Hindalco Industries, PNB, IndusInd Bank, Yes Bank and Kotak Mahindra Bank surged 2-5 percent.

Shares of Zuari Agro Chemicals, Madras Fertiliser, FACT, NFL, Pipavav Defence and SpiecJet rallied 4-12 percent.

03:20pm Market Update: The Sensex rose 317.78 points or 1.14 percent to 28275.27, and the Nifty climbed 102.75 points or 1.21 percent to 8593.75.

About 2000 shares have advanced, 697 shares declined, and 151 shares are unchanged on the BSE.

03:10pm IT cos in focus: With a fortnight to go for the fourth quarter earnings announcements, tech companies have already indicated that they may face headwinds due to cross currency moves, the latest being HCL Tech. So now the big question is whether the sector headed for a deeper consolidation?

Shashi Bhusan, IT analyst at Prabhudas Lilladher says constant currency growth in Q4FY15 will be better year-on-year. He says the dollar strength will impact profitability by 30-60 basis points for IT companies.

03:00pm Market Update: Equity benchmarks extended rally in last hour of trade. The Sensex spiked 245.02 points to 28202.51 and the Nifty jumped 72.45 points to 8563.45, supported by banks, FMCG and pharma stocks. Reliance Industries recouped its losses, up over 1 percent. Bank Nifty shot up 350 points led by further gains in ICICI Bank, SBI and Axis Bank.

The BSE Midcap gained 1.4 percent and Smallcap surged over 2 percent. About 1885 shares have advanced, 727 shares declined, and 159 shares are unchanged on the BSE. 

02:45pm IPOs in action: Catholic Syrian Bank has filed draft papers with capital markets regulator Sebi to raise up to Rs 400 crore through an initial public offer (IPO) to shore up its capital base.

"The bank will issue equity shares aggregating up to Rs 4,000 million," according to draft documents available with Securities and Exchange Board of India (Sebi).

Besides, the mid-sized private lender is considering to garner up to Rs 150 crore via pre-IPO placement.

The proceeds of the issue would be utilised towards augmenting the bank's capital base to meet its future capital requirements. The issue is being managed by ICICI Securities and Kotak Mahindra Capital Company. This is the eighth draft document filed with Sebi to float an IPO, since January.

Among the firms that have already filed IPO papers are Amar Ujala Publications, AGS Transact Technologies, S H Kelkar and Company, Shree Shubham Logistics, Precision Camshafts, Pennar Engineered Building Systems and SSIPL Retail. 

02:30pm Maruti March Sales: Maruti Suzuki Ltd, India's top selling car maker, expects car sales to grow at a faster pace than the forecast of 5-6 percent growth for the industry in the fiscal year that started on April 1, a company executive told Reuters.

Maruti Suzuki, which sells about one in every two cars in India, reported its best-ever annual sales in the year to end-March but is yet to see a strong recovery in the passenger car market, executive director, RS Kalsi said today.

Sales growth in the 2014/2015 fiscal year was mainly helped by new product launches, an expansion of its dealer network and discounts, Kalsi said.

Maruti Suzuki sold 1.29 million passenger vehicles in the fiscal year ended March 31 - a 12 percent increase from a year ago and higher than its previous peak of 1.27 million in the year 2010/2011.

02:00pm Market Check
The market extended rally in afternoon trade with the Sensex trading above 28000 and Nifty above 8500 led by banks, pharma and FMCG stocks. The BSE Midcap and Smallcap indices rallied 1.2 percent and 1.9 percent, respectively.

The Sensex rallied 163.51 points to 28121 and the Nifty jumped 49.60 points to 8540.60. About 1829 shares have advanced, 723 shares declined, and 159 shares are unchanged on the BSE.

Adrian Mowat of JP Morgan told CNBC-TV18 that he maintained an overweight stance on the market, foreign investors positioning in India is still very low.

Banks led the rally with the Bank Nifty rising 250 points. ICICI Bank surged 1.8 percent and its rival HDFC Bank, SBI and Axis Bank climbed nearly 1 percent.

Global markets too were upbeat today, Shanghai and Hang Seng closed with gains of 0.5 percent to 1.5 percent while European markets were also in the green after a solid round of manufacturing data, euro zone PMI for March was revised upwards to 52.2 versus a reading of 51 in February.

01:40pm Market Update: The Sensex gained 113.96 points at 28071.45, and the Nifty climbed 30.80 points to 8521.80. About 1774 shares have advanced, 719 shares declined, and 152 shares are unchanged on the BSE. 01:20pm Interview: Talking about the company’s overall sales performance RS Kalsi, ED-Mktg & Sales, Maruti Suzuki said the company despite adverse market condition has managed to achieve a double-digit growth of 11.1 percent. The overall annual figure stands at 11,70,000.

With regards to exports, which show a downtick in the March numbers, he said month-on-month the numbers could vary but one must look at the annual numbers where the growth trajectory is intact and have grown by more than 20 percent.

The export numbers for the month also get impacted if there is delay in shipments. The company is satisfied with the export growth and plan to further expand markets, said Kalsi.

SIAM has projected industry growth at 5-6 percent for FY16 but we aim to grow more than, Kalsi said.

01:00pm Market Check:
The market gained some strength amid consolidation in afternoon trade. The Sensex climbed 88.75 points to 28046.24 and the Nifty reclaimed 8500, up 21.90 points at 8512.90.

The broader markets extended rally with the BSE Midcap and Smallcap indices gaining 1-1.6 percent. The market breadth remained strong with the advance:decline ratio of 1727 to 718 on the BSE.

Sun Pharma and Ranbaxy Labs rallied 4 percent each as today is the last day of trading in shares of Ranbaxy before merger of both companies. Morgan Stanley raised target price on the stock to Rs 1,241 apiece from Rs 995 and estimated 24.6 percent CAGR for FY16-FY17 against 18.6 percent for the street.

Dr Reddy's Laboratories gained 1 percent on acquisition of select portfolio of the established products business of Belgium-based company in India for Rs 800 crore.

ITC, ICICI Bank, Bharti Airtel, HUL and Hindalco Industries were other gainers on Sensex, up 1-2 percent whereas HCL Technologies tanked 4 percent as the company warned of currency impact owing to the currency fluctuations. Adverse cross currency will impact dollar revenue by 280 basis points and EBIT margin by 80 basis points, said the company, adding it is now confident of achieving 21-22 percent EBIT margins which is lower than Q2FY15.

Infosys, TCS, Reliance Industries, BHEL and GAIL were down 0.5-1.5 percent. In auto space, Maruti Suzuki declined more than 1.5 percent on reporting weak sales for March. Total sales fell 1.6 percent and exports took a big knock, down 29 percent to 7836 units year-on-year.

Ashok Leyland gained 1 percent on reporting a 24 percent growth in March sales at 12,754 units year-on-year. Eicher Motors advanced 0.5 percent as its motorcycle sales grew 42 percent and exports jumped 58 percent. Mahindra & Mahindra gained 0.8 percent despite a 12 percent decline in sales but its exports jumped 28 percent.

Fertilser stocks gained 2-13 percent as cabinet approved gas pooling for the sector for 30 urea manufacturing units. Zuari Agro told CNBC-TV18 that its current gas cost will go down to USD 11-12 per mmbtu and will also reduce the working capital cycle.

12:30pm Crude oil update: Oil futures edged lower today amid speculation that a last-minute deal over Iran's nuclear programme would be reached that could allow more Iranian crude into world markets. Talks between Iran and six world powers to settle a dispute around Tehran's nuclear programme extended beyond a Tuesday deadline, as the parties edged towards a deal but failed to agree on crucial details such as the lifting of UN sanctions.

Efforts to reach a framework deal were scheduled to continue today morning in the Swiss city of Lausanne.

12:00pm Market Check:
The market continued to be directionless in noon trade with the Nifty struggling below 8,500. Technology and oil stocks dragged while healthcare, FMCG, banks and telecom stocks gained.

The Sensex rose 12.39 points to 27969.88 and the Nifty declined 5.20 points to 8485.80. The broader markets remained strong with the BSE Midcap and Smallcap indices rising 0.9 percent and 1.3 percent, respectively.

About 1610 shares have advanced, 694 shares declined, and 153 shares are unchanged on the Bombay Stock Exchange.

HCL Technologies topped the selling list on Nifty, down 4 percent as the company warned of currency impact owing to the currency fluctuations. Adverse cross currency will impact dollar revenue by 280 basis points and EBIT margin by 80 basis points, said the company, adding it is now confident of achieving 21-22 percent EBIT margins which is lower than Q2FY15.

Maruti Suzuki declined more than 2 percent on reporting weak sales for March. Total sales fell 1.6 percent and exports took a big knock, down 29 percent to 7836 units year-on-year.

Fertilser stocks gained 2-13 percent as cabinet approved gas pooling for the sector for 30 urea manufacturing units. Zuari Agro told CNBC-TV18 that its current gas cost will go down to USD 11-12 per mmbtu and will also reduce the working capital cycle.

Sun Pharma topped the buying list on Sensex, up 3 percent. Morgan Stanley raised target price on the stock to Rs 1,241 apiece from Rs 995 and estimated 24.6 percent CAGR for FY16-FY17 against 18.6 percent for the street.

11:30am FII View: The combination of a pick-up in economic and earnings growth as well as a fall in interest rate would help markets to stay strong going forward, believes Adrian Mowat of JPMorgan. In an interview with CNBC-TV18, Mowat said that he expected earnings growth to pick up in the latter part of the new financial year and advised investors to play the expected pick-up in infrastructure indirectly through building-materials companies.

The government is making progress in tackling issues. The passage of the insurance bill, as well as the progress in GST and on other technical issues [related to the power sector] will bode well, he said.

A careful stock-picking approach with focus on high-quality cyclical companies and banks should fetch investors about 20 percent returns ahead, Mowat added.

11:00am Market Check
The market remained lacklustre in morning trade with the Nifty hovering around 8480 level while the broader markets extended gains. The BSE Midcap and Smallcap indices climbed 0.8 percent and 1.2 percent, respectively.

The 30-share BSE Sensex rose 6.77 points to 27964.26 while the Nifty fell 2.35 points to 8488.65. About 1520 shares have advanced, 668 shares declined, and 149 shares are unchanged.

HCL Technologies plunged 4.4 percent as the company warned of a negative 280 basis points impact on dollar revenue and negative 80 basis points impact on EBIT margins due to adverse cross currency. They also guided for margins to be maintained between 21-22 percent. Nomura said the drop in margins to guided range seems to be happening in a quarter, which will likely lead to some cuts in street margin and earnings expectations and also some near-term moderation in the stock price.

Fertilsers stocks like Chambal Fertilisers, Zuari Agro gained ground as cabinet approved gas pooling for fertiliser sector for 30 urea manufacturing units. Zuari Agro told CNBC-TV18 in an interview that their current gas cost will go down to USD 11-12/mmbtu from USD 20/mmbtu and will also reduce the working capital cycle.

Maruti Suzuki declined 1.7 percent on account of auto sales. The company reported a 1.6 percent year-on-year decline in total sales with domestic sales up 1.4 percent but exports down 29.3 percent.

10:50am Fertiliser stocks in action: The Union Cabinet approved gas pooling for 30 urea manufacturing units in the country, communications minister Ravi Shankar Prasad today said. The move would allow sale of gas at a composite price arrived at by pooling gas from cheaper domestic and more expensive imported sources.

"This is a historic moment for farmers," Prasad said, while making the announcement.

The minister also announced the government would set up a 2000 km gas pipeline between Haldia (West Bengal) and Jagdishpur (Uttar Pradesh) at a cost of Rs 10,000 crore and said fertilizer plants in Gorakhpur (UP) and Barauni (Bihar) would be revived and connected to the above pipeline.

10:30am L&T bags order: L&T secured a turnkey order from NTPC for setting up a 2x660 MW greenfield ultra-supercritical thermal power plant in Khargone district of Madhya Pradesh on EPC basis.

Valued over Rs 5,580 crore, the project entails design, engineering, manufacture, supply, erection and commissioning of two coal-fired thermal units of 660 MW each with ultrasupercritical parameters, said the company in its filing to the exchange.

"While this EPC package order from a central utility like NTPC has brought prestige to L&T, it also comes with the added responsibility of executing the power project under stringent norms and timelines"; said Shailendra Roy, whole-time director (power, minerals and metals).

10:10am Clariant Chemicals in Focus: Clariant Chemicals (India) has acquired the carbon black business from Lanxess India Private Limited, comprising of the carbon black dispersion plant located at Nagda, India together with its respective assets, liabilities and employees as going concern on a slump sale basis for a lump sum consideration of Rs. 13.5 crores, effective from April 1, 2015.

10:00am Market Check
The market remained in a consolidation mode for the second consecutive session today. The Sensex declined 11.71 points to 27945.78 and the Nifty slipped 9.20 points to 8481.80 while the broader markets outperformed benchmarks.

The BSE Midcap and Smallcap indices gained more than 0.6 percent. More than two shares advanced for every share declining on the Bombay Stock Exchange.

Infosys lost 2 percent following weak Q3 forecast announced by its rival HCL Technologies. Country's fourth largest software services firm HCL yesterday said its dollar revenue for the March quarter will see an "adverse impact" of 2.8 percent on strengthening of the greenback against global rivals.

Shares of HDFC Bank, TCS, Reliance Industries, HDFC, Wipro, Coal India and Cipla were marginally lower. GAIL dropped 2 percent. However, Bharti Airtel, Dr Reddy's Labs, Maruti and NTPC topped the buying list, up 1-1.5 percent.

09:50am FII View: Ajay Kapur, Bank of America Merrill Lynch says over the past four years, analysts had started the year with optimistic earnings estimates and slashed them by half by the year end. "This year, consensus earnings estimates have started at a more reasonable level at 11 percent for Asia ex-Japan, but we believe downgrades are still likely to follow as the year progresses," he adds.

09:35am HCL Tech in News: Country's fourth largest software services firm HCL Technologies on Tuesday said its dollar revenue for the March quarter will see an "adverse impact" of 2.8 percent on strengthening of the greenback against global rivals.

The Noida-based firm said its EBIT (operating earnings) is also expected to be negatively affected by 80 basis points. During this quarter, the US dollar continued to strengthen against almost all global currencies, HCL Technologies said in a statement.

"Since the company's revenues are derived in multiple currencies and significant costs are incurred in Indian rupee, the revenue and EBIT for the quarter to be reported in dollar, would have adverse impact of about 280 bps and about 80 bps, respectively," it added. In spite of the adverse impact, the company said it is confident of achieving EBIT (earnings before interest and tax) in the range of 21-22 percent for the January-March quarter.

HCL Technologies expects to post foreign exchange loss of about USD 5.5 million, covering both cash flow hedges and mark-to-market of the foreign currency assets and liabilities.

09:15am Market Check
The market has opened on a flat note. The Sensex fell 37.28 points to 27920.21 and the Nifty declined 21 points to 8470. About 380 shares have advanced, 249 shares declined, and 79 shares are unchanged on the BSE.

SBI, Infosys, Hindalco Industries, Wipro, GAIL, HCL Technologies and NMDC fell 1-2.5 percent while Dr Reddy's Labs, TCS, ONGC, NTPC, Sesa Sterlite, Tech Mahindra and Kotak Mahindra gained 0.3-2 percent. 

The currency market is closed today on account of banks' holiday.

Among global markets, in the US equities closed lower, giving up most of Monday's gains, as investors eyed mixed economic data and the end of the first quarter.

In Asia, cautious sentiment also prevailed after a weaker-than-expected reading of sentiment among Japanese corporates.