Sensex up 414 points, Nifty ends at 8353; banks rally

03:30 pm Market ending: The market ended with gains for seven consecutive day. The Sensex closed up 414.04 points or 1.5 percent at 27730.21 and the Nifty was up 128.15 points or 1.6 percent at 8353.10. About 1725 shares advanced, 984 shares declined, and 152 shares were unchanged.

Banks rallied on rate cut hopes driven by good monsoon. Axis Bank, ICICI Bank, Infosys, HDFC and SBI were top gainers in the Sensex.

Among the losers were Bharti Airtel, Lupin, Reliance, M&M and ONGC.

03:10 pm Big buzzing: Shares of Indiabulls Real Estate rose 29 percent intraday on Monday. Promoter Sameer Gehlaut is going to invest Rs 538 crore in the company and further hike promoter stake by 10 percent to 37 percent.

Maintaining a bullish rating, Macquarie has a target of Rs 50 per share on the stock. The brokerage believes that promoter infusion may lead to relief rally in the stock. It says that post promoter infusion debt will come down by 10 percent as FY15 net debt stands at Rs 5500 crore. There will be 5 percent reduction in net debt immediately on issue of shares, it adds.

02:55 pm Drug pricing scrutiny: After the focus on quality, there seems to be an increase in the scrutiny of drug prcing.

Sources told CNBC-TV18 that there could be some movement on the price monitoring resource units that both the National Pharmaceutical Pricing Authorities (NPPA) as well as the Department of Pharma have been pushing for.

In fact, the two departments have been planning to set up these units under the larger consumer awareness umbrella after the Budget did not independently allocate specific central funds to these units

02:40 pm GVK Power in Focus: AP Transco (erstwhile APSEB) wants to exercise its option to buy out its Jegurupadu unit in Andhra Pradesh.

"GVK Industries Limited has received a notice from the AP Transco stating that they have exercised their option to 'buy out' its 217 MW (Phase 1) Power Plant situated at Jegurupadu Village, Kadiam Mandal, Rajahmundry, East Godavari District, Andhra Pradesh in terms of the provisions specified under the Power Purchase Agreement (PPA)," the company said in statement.

GVK Power & Infrastructure and AP Transco's PPA expired on June 20, 2015 as it has completed its validity period of 18 years.

02:30 pm Monsoon forecst: Stating that about 80 percent of areas under cultivation in the country had seen normal to above-normal rains, GP Sharma, VP - Meteorology, Skymet, said that he expects the monsoon to be normal in July as well as August.

The private weather forecasting firm has reiterated its earlier prediction of this season's monsoon being at 107 percent of the long period average, he told CNBC-TV18.

Noting that the monsoon has started on a strong note despite being delayed, Sharma said he expects the spread of rainfall to improve over the next four-five days to cover regions such as Uttar Pradesh, which have witnessed slightly less rainfall.

02:00 pm Market Check

The market continued to see buying interest in afternoon trade following positive global cues. The Sensex rallied 389.99 points or 1.43 percent to 27706.16 and the Nifty rose 123.45 points or 1.50 percent to 8348.40.

The broader markets jumped too. The BSE Midcap and Smallcap indices climb 1.3 percent each. About 1629 shares have advanced, 960 shares declined, and 132 shares are unchanged on the Bombay Stock Exchange.

On the global front, European markets extended rally ahead of Greece talks. France's CAC and Germany's DAX spiked over 3 percent. Britain's FTSE gained 1.3 percent.

Banque International's Hans Goetti said he expects Greece to strike up a last-moment 'can-kicking' deal. He, however, warned that in case of a Greece default and exit from the Europe, the unintended consequences on the global financial system would be difficult to tell.

Shares of ICICI Bank, HDFC, HDFC Bank, Axis Bank, Tata Motors, SBI, BHEL and Tata Steel rose 2-4 percent. However, Bharti Airtel dropped 2 percent followed by Reliance Industries, Wipro, ONGC and M&M with marginal losses.

1:50 pm Monsoon update: Stating that about 80 percent of areas under cultivation in the country had seen normal to above-normal rains, GP Sharma, VP - Meteorology, Skymet, said that he expects the monsoon to be normal in July as well as August. The private weather forecasting firm has reiterated its earlier prediction of this season's monsoon being at 107 percent of the long period average, he told CNBC-TV18. Noting that the monsoon has started on a strong note despite being delayed, Sharma said he expects the spread of rainfall to improve over the next four-five days to cover regions such as Uttar Pradesh, which have witnessed slightly less rainfall.

1:30 pm IPO news: Over the next few quarters, V Jayasankar of Kotak Investment Banking is expecting small IPOs in the range of Rs 30-40 million, large ones within Rs 100 to 200 million and a few above Rs 200 million. He said FMCG and consumer names are most attractive for investors, and in last few years very few such companies have come. On government's divestment plans, Jayasankar said Coal India , ONGC , NTPC , Power Grid and BPCL are top candidates. He anticipates huge buzz in consolidation in road and cement sectors and action in merger & acquisitions (M&A) space in near future.

The market is surging ahead with major support from banks. The Sensex is up 346.67 points or 1.3 percent at 27662.84, and the Nifty is up 111.90 points or 1.4 percent at 8336.85. About 1547 shares have advanced, 875 shares declined, and 153 shares are unchanged.

Axis Bank, ICICI Bank, Tata Motors, SBI and HDFC Bank are top gainers in the Sensex. Among the losers are Bahrti Airtel, Wipro, Reliance and ONGC.

The market is taking comfort in a weaker dollar weakened, better monsoons and a more-than-expected hike in minimum support price (MSP), says Ananth Narayan, Standard Chartered Bank. This gives the Reserve Bank enough room to lower its January 2016 CPI estimates, effectively leading to yet another rate cut, he said.

Narayan says the the FDI limit is weighing on the rupee and believes there is a strong case for opening up the limit. Although the dollar has weakedn a bit, Narayan expects RBI intervention to protect dollar/rupee from going down too much. He remains "least bullish" on the rupee and advises against going mega long on the currency.

12:40 pm Europe check: European equities opened higher ahead of crucial meetings of euro zone leaders and finance ministers to discuss a new reforms offered by Greece to its creditors.

Britain's FTSE rallied more than 1 percent. France's CAC and Germany's DAX climbed 2.5 percent each.

12:25 pm Market Expert: The most important variable that the market is currently focused on is RBI rate cut, says Dipan Mehta, member BSE and NSE. Market is extremely sensitive on that count and is glued on to the interest rate movement.

The Reserve Bank of India (RBI) so far has cut interest rate three times this year but with the Governor Raghuram Rajan warning that he would not cut if poor monsoons drove the prices up and threatened inflation, the stock markets has been focused on weather forecasts.  However, now with monsoon coming back in earnest, market is hopeful of the one more rate cut by RBI.

12:00 pm Market Check

The market maintained its northward journey and is heading towards positive closing for the seventh consecutive session. The Nifty held the 8,300 mark led by banking, real estate and auto stocks. The broader markets underperformed benchmark indices, but still traded with more than half a percent gains.

The Sensex climbed 315.10 points or 1.15 percent to 27631.27 and the Nifty rose 105.35 points or 1.28 percent to 8330.30. About 1497 shares have advanced, 790 shares declined, and 150 shares are unchanged on the Bombay Stock Exchange.

Globally, Asian markets gained as investors are encouraged by signs of a compromise in Greece's debt talks with its creditors. In commodities, Brent crude rose above USD 63 per barrel mark.

Shares of ICICI Bank, HDFC, HDFC Bank, Axis Bank, SBI and Tata Motors topped the buying list on Sensex, up 2-3 percent.

Yes Bank rallied 3.5 percent. Chief executive Rana Kapoor said the bank's articles of association will be amended to ensure independence in appointment of chairman, MD and CEO; ensure board's rights in tandem with Banking Regulation Act, Companies Act and SEBI rules; as also to bring young manager to the board as wholetime directors.

Tata Steel shares rose over a percent. Sources told CNBC-TV18 that the UK labour unions will call for another poll before accepting Tata Steel's revised pension plan.

Heidelberg Cememt and Jaiprakash Associates gained around 3 percent as media reports indicated that Heidelberg is in talks to buy JP Associates' cement unit for Rs 500 crore.

11:50 am Market outlook: Prabodh Agarwal, IIFL feels going ahead, lower commodity prices, lower interest rates, and improving consumer sentiment should result in demand recovery. Earnings recovery is likely to be gradual and back-ended in FY16, he believes. He said forecast of 21.5 percent PAT growth for the universe in FY16 may seem optimistic from the current low level. "Envisage gradual EBITDA margin expansion in the consumer discretionary, energy, industrials, materials, and telecom sectors. Continue to favour private financials, consumer discretionary, industrials, IT and cement sectors," Agarwal added.

11:30 am Inflation & monsoon: Prices of many foodstuffs are surging in India, despite a good start to monsoon rains - an unexpected boon for wholesalers, but a major headache for the central bank and a government hoping for its help to reboot the economy.

Reserve Bank of India (RBI) Governor Raghuram Rajan has cut interest rates three times this year to boost growth, but he has since warned he will not cut again if poor rains drive up prices and threaten his inflation target.Bond and stock traders in Mumbai have been left compulsively checking weather forecasts.

A fall in inflation to well within those levels this year has allowed Rajan to cut interest rates by a total of 75 basis points, including a move this month. He has indicated he will now pause, projecting consumer inflation could rise to about 6 percent by next January, not too far from the 5 percent registered in May.

The market is holding up its early gains as the Sensex is up 266.73 points or 0.9 percent at 27582.90. The Nifty is up 85.95 points or 1 percent at 8310.90. About 1387 shares have advanced, 653 shares declined, and 140 shares are unchanged.

Axis Bank, Tata Motors, Coal India, HDFC Bank and ICICI Bank are top gainers in the Sensex. Among the top losers are Wipro, ONGC, Bharti Airtel, Reliance and M&M.

Gold prices fell marginally by 0.26 percent to Rs 27,010 per ten grams in futures trade on Monday as speculators trimmed their positions, taking weak cues from the global markets.

Analysts said the fall in the yellow metal's prices at futures trade was mostly in tandem with a weak trend overseas before an emergency European summit on Greece's debt crisis.

10:55 am Gold Update: Gold prices fell marginally by 0.26 percent to Rs 27,010 per ten grams in futures trade today as speculators trimmed their positions, taking weak cues from the global markets.

At the Multi Commodity Exchange, gold for delivery in August contracts shed Rs 71, or 0.26 per cent, to Rs 27,010 per ten grams in business turnover of 293 lots.

In a similar fashion, the metal for delivery in far-month October fell by Rs 58, or 0.20 per cent, to Rs 27,254 per ten grams in four lots.

Analysts said the fall in the yellow metal's prices at futures trade was mostly in tandem with a weak trend overseas before an emergency European summit on Greece's debt crisis. Globally, gold eased to USD 1,199.03 an ounce in Singapore from USD 1,200.27 on Friday.

10:40 am Interview: Mangalore Refinery and Petrochemicals (MRPL) has successfully commenced commercial production of polypropylene from its polypropylene (PP) plant. The plant, which is a part of its phase III refinery expansion and upgradation project, has capacity to produce 4,40,000 TPA polypropylene, said the company in its filing.

H Kumar, MD, MRPL told CNBC-TV18 that the plant will have capacity utilisation of only 60-65 percent in the second and third quarter and 100 percent from fourth quarter onwards.

For FY17 which will be the first full year of commercial operations of the above plant, the gross refining margins would be USD 7.5-8 per barrel.

Talking about the payment problems to Iran, he said 45 percent of payments are done in rupee terms and balance payments are done as and when the banking channels are open as per directions of government of India.

10:15 am Market Update: The Sensex added 238.31 points or 0.87 percent at 27554.48 and the Nifty jumped 74.80 points or 0.91 percent to 8299.75. About 1270 shares have advanced, 556 shares declined, and 130 shares are unchanged on the BSE.

10:12 am Market Expert: The conducive macro situation is still not translating into economic activity probably due to lack of government spending. But the government has indicated it will loosen up its purse strings leading to recovery of sorts, Bhuvnesh Singh  of Barclays Capital said in a CNBC-TV18 interview.

Demolishing ideas that corporate earnings are not going to see a meaningful pick up any time soon, Singh said green shoots will be visible in June quarter itself. But September and December quarter will see an accelerated earnings growth -between 15 and 20 percent from 5-10 percent kind of growth seen in the previous years.

He sees Nifty  hitting 10,200 in next 12 months riding on earnings recovery in industrial sector which would be the direct result of government spending. He likes select cement and consumer discretionary names and lists consumer durables among the difficult buys.

10:00 am Market Check

The market extended gains in morning trade, supported by banking & financials, FMCG, healthcare and auto stocks. The Sensex climbed 219.95 points or 0.81 percent to 27536.12 and the Nifty jumped 69.55 points or 0.85 percent to 8294.50.

The broader markets gained too. The BSE Midcap and Smallcap indices added 0.6-0.8 percent. More than two shares advanced for every share falling on the Bombay Stock Exchange.

Shares of HDFC Bank, HDFC, ICICI Bank, TCS, Axis Bank, Tata Motors, State Bank of India, Dr Reddy's Labs and Coal India jumped 1-2 percent. However, Wipro topped the selling list, falling 1.6 percent. ONGC, Reliance Industries and Bharti Airtel slipped 0.6-1 percent on profit booking.

9:50 am Buzzing: Shares of Lupin climbed nearly 2 percent in early trade Monday after it entered into 30-share BSE Sensex today. The Bombay Stock Exchange removed Tata Power from its benchmark.

The exchange announced this change on May 22, 2015. Since then the drug maker gained 4.6 percent and the private power generation company slipped 5 percent in one month period.

Additionally, Adani Power is dropped from the BSE 100 Index today while Aurobindo Pharma and Tata Motors DVR are added in the same index with effect from today.

9:30 am Monsoon update: Stating that the June rainfall is likely to end with a 16 percent surplus over the long-period average, the Indian Meteorological Department, however, is not yet reworking its original forecast that the full-year rainfall for the country is expected to be 88 percent below normal.

In an interview Met Additional Director General Bishwajit Mukhopadhyay said that since the quantum of June's rainfall is less, the 16 percent figure is likely to look inflated.

He added that the department will release its second forecast - a mid-monsoon update -- in mid July during which it will take a call on whether it should revise its full-year rainfall projection upward.

The market has opened bright and shiny on Monday morning. The Sensex is up 141.23 points or 0.5 percent at 27457.40, and the Nifty is up 40.35 points or 0.5 percent at 8265.30. About 511 shares have advanced, 136 shares declined, and 80 shares are unchanged.

Lupin, Hero, Tata Steel, TCS and Axis Bank are top gainers in the Sensex. Among the losers are Wipro, HDFC Bank and Hindalco.

The Indian rupee has opened flat at 63.55 per dollar and immediately inched up by 5 paise.

However, Himanshu Arora, Religare expects USD-INR to trade lower today amid across the board weakness in the dollar against major currencies after US Fed signaled gradual rate hike in its latest meeting held last week.

Asian markets were higher in the morning on hopes of a Greek debt deal going through as the Greek Prime Minister Alexis Tsipras has offered a new package of reforms to creditors. Greek Prime Minister Alexis Tsipras made a new offer on a reforms package to foreign creditors on Sunday, signaling eleventh-hour concessions to break a deadlock that has pushed Greece to the brink of bankruptcy.

Nikkei was higher helped by a weaker yen. Meanwhile the Kospi hit a six-day high on back of a rally among the blue chips like Samsung electronics and Hyundai motor. The Chinese markets are shut for the dragon boat festival.

Meanwhile in the US, stocks closed lower on Friday following the Nasdaq's record as investors eyed developments in the Greece debt negotiations amid quarterly Options expirations.

The major indices ended near their lows of the day. The Dow Jones Industrial Average extended losses to close about 100 points lower. Friday marked quadruple witching in which volatility often increases in the last hour of trade due to the expiration of options and futures contracts.

Crude prices fell more than 1 percent on Friday as worries over the Greek fiscal crisis, weaker oil products prices and pre-weekend profit taking undercut the market.

Brent crude currently trades below USD 63 per barrel. From the precious metal gold prices are little changed at around USD 1200 an ounce led by the US Federal Reserve's caution on an interest rate rise and worries over Greece.