Nifty ends above 7800, Sensex surges 402 points; Hindalco up 7%

3:30 pm Market check: Supported majorly by banks and auto, the market ended with gains. The Sensex was up 401.71 points or 1.6 percent at 25719.58 and the Nifty gained 130.35 points or 1.7 percent at 7818.60. About 1975 shares advanced, 718 shares declined and 108 shares were unchanged.

Hindalco, Vedanta, NTPC, Tata Steel and Tata Motors were top gainers in the Sensex. Among the losers were Sun Pharma and GAIL.

3:20 pm GST: Good & Services Tax (GST) Bill is essential because there are a lot of leakages in terms of access for manufacturing in India, Pratibha Jain of Nishith Desai Associates said.

In an interview with CNBC-TV18, Jain said that Prime Minister's Make in India campaign will face implementation issues if the GST, its backbone, is not implemented soon.

Jain said that the biggest concern is the reluctance on part of the Opposition. The Center and states need to resolve their issues before any rollout of GST can happen, she added.

3:10 pm Bihar Assembly elections to be held in 5 phases, voting on October 12, 16, 28, November 1, 5; results on November 8.

2:55 pm Gold price: Gold prices declined further by Rs 25 to Rs 26,675 per ten grams at the bullion market today owing to slackened demand from jewellers and retailers even as the metal strengthened overseas. However, silver recovered by Rs 130 to Rs 35,330 per kg on scattered buying by industrial units and coin makers. Bullion traders said easing demand from jewellers and retailers at prevailing levels mainly kept pressure on gold prices.

They said, however, firm global trend where gold gained on weakness in the dollar, capped the fall. Globally, gold climbed 0.4 percent to USD 1,125.48 an ounce and silver rose 0.1 percent to USD 14.80 an ounce after advancing 2 percent yesterday in Singapore. The rupee strengthening against the dollar, making imports cheaper, also influenced gold prices, they added.

2:45 pm China GDP: China's statistics bureau said it has changed the way quarterly gross domestic product data is calculated, a move it calls a step to adopt international standards and improve the accuracy of Chinese numbers.

There has long been widespread scepticism about the reliability of Chinese data, especially as the government has sought to tamp market expectations of a protracted slowdown in the world's second-largest economy.

The move by the National Bureau of Statistics (NBS) comes after China said in July its annual growth rate in the second quarter was 7.0 percent, the same as in January-March. Many economists believe the April-June pace was lower.

2:30 pm Tamil Nadu investor focus: Inviting global investors to take advantage of industry-friendly policies of Tamil Nadu, Chief Minister Jayalalithaa on Wednesday said the state had set an investment target of USD 250 billion in the infrastructure sector in the coming years.

"Investment in Tamil Nadu is a sound investment", she said while inaugurating the 'Global Investors Meet' and an exhibition showcasing, among other things, the achievements of the state.

Jayalalithaa noted that Tamil Nadu was amongst the early states to capitalise on economic reforms launched in India in the early 1990s.

She said that under the 'Vision 2023' initiated by the state government, the per capita income of the state will be raised to the levels of higher income countries.

The market continues to rally as government approved few key policies. The Sensex is up 375.09 points or 1.5 percent at 25692.96, and the Nifty up 121.85 points or 1.56 percent at 7810.10. About 1877 shares have advanced, 647 shares declined, and 88 shares are unchanged.

Vedanta, Hindalco, NTPC, Tata Motors and Tata Steel are top gainers. GAIL, HUL and Dr Reddy's Labs are marginally in red.

The Cabinet approved telecom spectrum trading norms, allowing telcos to buy or sell airwaves from each other. The telecom companies will now be able to trade un-utilised spectrum, in all bands, thereby consolidating the sector.

The government also gave its nod to the gold monetisation scheme that would allow gold depositors to earn interest on their metal accounts. Individuals can buy gold bonds instead of physical gold. Gold company stocks rallied.

Midcap stocks are outperform benchmark indices.

1:50 pm FII viiew: UBS downgraded India's GDP forecast for FY16 and FY17. Discussing the underlying reasons for the cut, Edward Teather, Senior Economist-ASEAN & India at UBS Investment Bank pointed at longer-than-expected time to reap benefits of low oil price, weak agriculture and poor pick up in manufacture.

He said GDP numbers in the last few quarters depict a slow down despite a collapse in commodity prices making one wonder "where the benefit from low oil prices actually went?"  He clarified that benefits from lower oil prices are being used to repair balance sheets and with time it will help in building a solid base.

Teather sees the RBI cutting rates by 0.75 percent in remaining part of the fiscal. 

1:30 pm Aviation deal: Aerojet Rocketdyne Holdings Inc submitted a USD 2 cash billion offer to buy United Launch Alliance (ULA), a satellite launch provider jointly held by Lockheed Martin Corp and Boeing Co, sources familiar with the matter said Tuesday, a deal that would further consolidate the space business. Aerojet Rocketdyne board member Warren Lichtenstein, the chairman and chief executive of Steel Partners LLC, approached ULA President Tory Bruno and senior Lockheed and Boeing executives about the bid in early August, the sources said.

1:15 pm Details: The Cabinet approved of the telecom spectrum trading norms, allowing telcos to buy or sell airwaves from each other. The telecom companies will now be able to trade un-utilised spectrum thereby consolidating the sector. The government will also garner additional revenue from the spectrum trading as levies on incomes.

The government also have its nod to the gold monetisation scheme that would allow gold depositors to earn interest on their metal accounts. Once the gold is deposited in metal account, it will start earning interest on the same. The scheme was announced by Finance Minister Arun Jaitley in his Budget 2015-16.

1:05 pm Flash: Cabinet has approves gold monetisation and gold bond schemes.

The market surges ahead. The Sensex is up 483.16 points or 1.9 percent at 25801.03 and the Nifty is up 150.95 points or 1.9 percent at 7839.20. About 1861 shares have advanced, 582 shares declined, and 83 shares are unchanged.

Vedanta, Hindalco, Tata Steel, NTPC and Tata Motors are top gainers in the Sensex. Telecom stocks like Bharti Airtel, Idea and Reliance Communications are up as the government has approved spectrum trading norms.

At a time when volatility-hit street is hinting at jettisoning equities in favour of fixed income, JP Morgan believes equities will beat all other asset classes in 3-5 years.

JP Morgan Chief India Economist Sajid Chinoy suggest that collapsing commodity will keep emerging market wobbly but is good for global growth on the whole. India specifically will be a beneficiary.

Meanwhile, the government is seeking to resolve pending tax disputes with investors and hopes to resolve "legacy" issues in short order, Finance Minister Arun Jaitley said.

Arun Jaitley was speaking after the finance ministry decided last week not to press claims for a Minimum Alternate Tax (MAT) against foreign portfolio investors. India remains locked in major back-tax disputes with telecoms group Vodafone and Cairn Energy.

12:59 pm Market extends rally: The Sensex gained 455.41 points or 1.80 percent at 25773.28 and the Nifty rallied 144.35 points or 1.88 percent to 7832.60.

About 1860 shares have advanced, 570 shares declined, and 82 shares are unchanged on the BSE.

12:55 pm Cabinet has approved a 6 percent hike in dearness allowance for central government employees.

12:45 pm China changes GDP method: China's statistics bureau said today it has changed the way quarterly gross domestic product data is calculated, a move it calls a step to adopt international standards and improve the accuracy of Chinese numbers.

There has long been widespread scepticism about the reliability of Chinese data, especially as the government has sought to tamp market expectations of a protracted slowdown in the world's second-largest economy.

The move by the National Bureau of Statistics (NBS) comes after China said in July its annual growth rate in the second quarter was 7.0 percent, the same as in January-March. Many economists believe the April-June pace was lower.

The combined economic output of China's provinces has long exceeded that of the national level compiled by the bureau, raising suspicion that some growth-obsessed local officials have cooked the books.

Now, China is calculating GDP based on economic activity of each quarter to make the data "more accurate in measuring the seasonal economic activity and more sensitive in capturing information on short-term fluctuations", the NBS said.

Previously, China's quarterly GDP data, in terms of value and growth rates, was derived from cumulated figures rather than economic activity of that particular quarter, the bureau said.

12:30 pm FM on tax disputes: India is seeking to resolve pending tax disputes with investors and hopes to resolve "legacy" issues in short order, Finance Minister Arun Jaitley said on Wednesday.

Arun Jaitley was speaking after the finance ministry decided last week not to press claims for a Minimum Alternate Tax (MAT) against foreign portfolio investors. India remains locked in major back-tax disputes with telecoms group Vodafone and Cairn Energy.

Without referring to individual disputes, Jaitley said the government was trying to resolve pending tax disputes, many of them outside the courts, and said that these legacy issues would be resolved "in not much time".

12:15 pm Market Expert: At a time when volatility-hit street is hinting at jettisoning equities in favour of fixed income, JP Morgan believes equities will beat all other asset classes in 3-5 years.

Chief India Economist Sajid Chinoy, Head Of Currency Research suggested that collapsing commodity will keep emerging market wobbly but is good for global growth on the whole. India specifically will be a beneficiary.

Speaking of possibilities in Indian equities, Bharat Iyer (Head of Equity Research) said 2015 will be a year of consolidation but one can expect returns of 15-18 percent over next 3-4 years. He is constructive on IT  and Healthcare.

On Fed rate hike, Brijen Puri (Head Of Currency Research) said a rate hike is imminent. He said Fed will raise rates by December, if not September.

12:00 pm Market Check
The market has maintained its strong momentum in noon trade with the Sensex rising 430.14 points or 1.70 percent to 25748.01 and the Nifty climbing 136.05 points or 1.77 percent to 7824.30. Technology, banking & financials, metals and auto stocks drove the rally.

The broader markets outperformed benchmarks with the BSE Midcap and Smallcap indices gaining 2 percent each. About 1803 shares have advanced against 534 shares declined on the Bombay Stock Exchange.

Asian stocks were on a roll Wednesday, with Japan's Nikkei 225 index at the epicenter of the monstrous rally, as investor confidence got a boost from the strong rally in offshore markets.

The Nikkei index at the Tokyo Stock Exchange staged a spectacular comeback, a day after crashing 2.4 percent to erase all gains made this year, thanks to hopes for more growth-supportive policies in the Asian economic giant. Earlier in the day, Prime Minister Shinzo Abe told a meeting of investors that he would seek to lower the corporate tax rate by at least 3.3 percentage points next financial year, Reuters reported. Analysts say Abe's comments bode well for the outlook for Japan Inc and helped to improve trading sentiment.

11:50 am Market outlook: While it may be a little too early to take a call on whether the worst is behind us, the India story continues to remain intact, is the word coming in from Nilesh Shah, MD and CEO of Envision Capital. Though the course of the market over the next 2-3 months will be decided by global events, he says. On the domestic front, issues such as reforms impasse and poor monsoon can play spoilsport with earnings recovery, he adds. To that extent, the rural consumption story may not kick in post monsoon.

However, Shah believes that over the next 3-5 years, the Indian market will give more than 100 percent returns. "Today we are at 7,500-7,800, is there a chance that we could be at 13,000-15,000 Nifty in the next three-four years? The answer is yes. So what are we saying is that there is a downside of maybe 500 points on the downside but maybe there is an upside of 3,000-4,000 points on the Nifty," he told CNBC-TV18.

11:40 am Flash: Nikkei closes up 7.7 percent at 18770, marks biggest intra-day gain since October 2008.

11:30 am FM speaks: Finance Minister Arun Jaitley still wants to implement a new goods and services tax (GST) by next April 1, although the opposition Congress party could delay its passage through the legislature. Addressing a business conference, Jaitley said it was important to stay on the path of reform and build momentum to achieve higher economic growth. The current global economic situation presented an opportunity for India, he said.
 
The GST, which economists estimate could add 2 percentage points to India's gross domestic product, has failed to clear parliament due to a blockade of the upper house by the Congress party.

The market has cooled off from early gains but is still holding firm. The Sensex is up 308.03 points or 1.2 percent at 25625.90, and the Nifty is up 98.10 points or 1.3 percent at 7786.35. Asian shares surged , with Japan's benchmark Nikkei index reaping monstrous gains, following the positive finish in offshore markets and as investors bet on China to step on the stimulus pedal soon. Nikkei is up over 1000 points.

About 1646 shares have advanced, 444 shares declined, and 69 shares are unchanged.

Vedanta, Hindalco, Tata Steel, Infosys and Maruti are top gainers while GAIL and HUL are down around 1 percent each.

Crude oil prices rose on as Asian stock markets caught a tailwind from a strong performance in the United States and Europe, although fuel markets remained generally dogged by oversupply.

Asian shares gained after upbeat German economic data powered rising US and European markets, and traders said the more upbeat sentiment in Asia had flowed through to oil markets.

However, concerns remained that high global production was being met with a growing slowdown in demand, especially in the United States where the end of the summer driving season means slowing consumption.

10:55 am Market Update: The Sensex gained 252.73 points or 1 percent 25570.60 and the Nifty rose 82.50 points or 1.07 percent to 7770.75, though indices saw some profit booking.

About 1628 shares have advanced, 454 shares declined, and 65 shares are unchanged on the BSE.

10:45 am Oil update: Crude oil prices rose today as Asian stock markets caught a tailwind from a strong performance in the United States and Europe, although fuel markets remained generally dogged by oversupply.

Asian shares gained after upbeat German economic data powered rising US and European markets, and traders said the more upbeat sentiment in Asia had flowed through to oil markets.

The Brent global crude benchmark was trading at USD 49.75 per barrel, 23 cents up from its last settlement after jumping 4 percent in the previous session. US West Texas Intermediate crude gained 19 cents to USD 46.13 a barrel after falling in the previous session.

In Japan, weekly crude and refined products statistics showed stable utilisation rates and stock levels.

10:30 am Buzzing: Shares of IL&FS Transportation Networks surged 5 percent.

The company said the concession agreement for development of 4-laning of Amravati-Chikhli (package-I) section of NH-6 in Maharashtra from has been signed by Amravati Chikli Expressway, a wholly owned subsidiary of the company with NHAI on build operate transfer (BOT) basis on September 08, 2015.

The project is on toll basis with a concession Period of 19 years including construction period of 910 days and the estimated cost of the project is Rs 2,288.18 crore. The company had quoted a grant of Rs. 183.05 crore for project.

IL&FS Transportation said concession agreement for development of 4-laning of Fagne - Gujarat/Maharashtra Border (package-III) section of NH-6 in Maharashtra is signed by Fagne Songadh Expressway, a wholly owned subsidiary of the company with NHAI on BOT basis.

The project is on toll basis with a concession period of 19 years including construction period of 910 days and the estimated cost of the project is Rs 1,885.74 crore. The company had quoted a grant of Rs 245.14 crore for the project.

10:15 am Market Expert: While it may be a little too early to take a call on whether the worst is behind us, the India story continues to remain intact, is the word coming in from Nilesh Shah, MD and CEO of Envision Capital. Though the course of the market over the next 2-3 months will be decided by global events, he says.

On the domestic front, issues such as reforms impasse and poor monsoon can play spoilsport with earnings recovery, he adds. To that extent, the rural consumption story may not kick in post monsoon. However, Shah believes that over the next 3-5 years, the Indian market will give more than 100 percent returns.

According to him, the only asset class that can outperform equities is fixed income in the next 3-6 months, more so in India if the Reserve Bank lowers rates.

He says the next leg of leadership will come from exporters, who will gain from rupee depreciation, and the domestic consumption theme. The rate sensitives and the cyclical companies with good, strong balance sheet may also provide a good buying opportunity. He also adds that the delta may be with technology stocks over the next 12-18 months.

10:00 am Market Check
The market remained strong in morning trade, supported by technology, banking & financials and auto stocks. The 30-share BSE Sensex rose 320.90 points or 1.27 percent to 25638.77 and the 50-share NSE Nifty climbed 101.80 points or 1.32 percent to 7790.05.

The broader markets outperformed benchmarks with the BSE Midcap and Smallcap indices rising more than 1.5 percent. About five shares advanced for every 1 share declining on the Bombay Stock Exchange.

Navkar Corporation listed at Rs 152, down 2 percent compared to issue price of Rs 155 apiece on the National Stock Exchange.

9:50 am Market check: The Sensex is up 349.84 points or 1.4 percent at 25667.71 and the Nifty is up 109.75 points or 1.4 percent at 7798.00. About 1440 shares have advanced, 243 shares declined, and 29 shares are unchanged. 

Vedanta, Hindalco, Infosys, HDFC and ICICI Bank are top gainers. GAIL is down 1 percent.

9:45 am FII view: For the first time in 25 years, the outlook for India is stronger than China atleast for the next two years, says James Glassman, senior economist at JPMorgan. Despite the myriad challenges facing the Chinese economy, the global economy is in good shape, he told CNBC-TV18. According to him, the market bounce back is as puzzling as the fall. He does not think there is any need to worry about the correction in equity markets as global fundamentals remain unchanged.

He also believes that with the US economy moving forward, a possible September rate hike is on the cards. He says it is not so much about the kind of data coming out of the United States, but about bringing the Fed policy back to normal. "The longer the Federal Reserve delays hiking rates, the quicker it will have to move. This may be more destructive," he adds.

9:30 am Target cut: Global brokerage firm UBS has trimmed its Nifty target for December-end by nearly 5 percent to 8,200 from 8,600 earlier on account of slower-than-expected recovery in India's economic growth. Further, UBS has lowered its top-down earnings growth for Nifty at 8 percent from 10 per cent for the current financial year. It has also cut the earnings growth estimates to 15 percent from 18 per cent for the next fiscal (2016-17). "Growth recovery will be slow, likely disappointing versus street expectations," UBS Head of India Research Gautam Chhaochharia said in a note.

After a smart rally yesterday, the market has kick-started Wednesday with a bang. The Nifty has opened above 7800. The 50-share index is up 117.85 points or 1.5 percent at 7806.10. The Sensex is up 413.96 points or 1.6 percent at 25731.83. About 468 shares have advanced, 64 shares declined, and 11 shares are unchanged.

Metal stocks continue to rally with leaders like Hindalco, Tata Steel and Vedanta. Infosys and ICICI Bank are other top gainers in the Sensex. There are no red stocks in the Sensex.

The Indian rupee advanced further in early trade today. It has opened higher by 17 paise at 66.38 per dollar against previous close of 66.55.

NS Venkatesh of IDBI Bank said, "The rupee strengthened against the USD after touching an intra-day high of 66.80/dollar yesterday. We saw selling by custodial banks and some buying from PSBs to meet the oil demand."

"The rupee will take cues from the equity market today and is expected to trade in a range of 66.40-66.72/dollar," he added.

Globally, Wall Street traded after a three-day long weekend and with a bang. Major US indices rallied over 2 percent for their second-best day of the year.

Asian shares surged, inspired by the positive finish in offshore markets and as investors bet on China to step on the stimulus pedal soon. Nikkei rallied 5.7 percent followed by Shanghai (up 1.7 percent) and Hang Seng (up 2.7 percent). And in Europe, equities closed more than 1 percent higher, buoyed by positive data.

In other asset classes, the renewed risk appetite helped the dollar gain against the safe-haven yen, but the greenback still inched lower against the euro. The dollar index was trading below USD 96 mark.

Brent crude rose almost 4 percent to USD 49 per barrel overnight as rally in equity markets helped the global oil benchmark recover substantially. 

Precious metal gold traded steady around USD 1120 an ounce, but it remained close to three-week lows as uncertainty over a looming US interest rate hike persisted.