Sensex snaps 6-day fall, up 150 points; Nifty ends above 7800

The market closed higher for first time in last seven consecutive sessions led by relief rally in beaten down stocks like banks, infra, metals, oil and select FMCG. It started off on a negative note on weak global cues post Paris attacks but managed to rebound in afternoon trade to take Nifty above 7800-mark and helped Sensex gain 256 points intraday. The 30-share BSE Sensex climbed 149.57 points or 0.58 percent to 25760.10 and the 50-share NSE Nifty rose 44.35 points or 0.57 percent to 7806.60. The broader markets also gained strength as the BSE Midcap index was up 0.2 percent and Smallcap gained 0.5 percent.

The recent healthy correction is an opportunity for investors to buy quality stocks, feel analysts who remained bullish on market for long term.

Mahesh Nandurkar of CLSA expects the recovery to be slow, though the initial signs are visible. Over two years, market will deliver 15 percent compounded growth and will give 30 percent returns, he says adding that the key factor in growth will be capex recovery, which is expected to be slow. He expects further earning downgrades in the near-term.

On the global front, Asian stocks barring China ended in red as sentiment was badly dented by Friday's brutal terrorist attacks in Paris. Nikkei lost 1 percent and Hang Seng declined 1.7 percent while Shanghai gained 0.7 percent. European markets were trading marginally higher despite terror attacks.

Back home, WPI inflation for October came in at negative 3.82 percent, which was in line with forecast (negative 3.82 percent) against negative 4.54 percent in September.

ITC was the leading contributor to Nifty's gains, up 2.6 percent while Hindustan Unilever lost 1.6 percent.

Bank Nifty gained 1.5 percent, helping the Nifty 50 to reclaim 7800-mark. State Bank of India rallied 3.35 percent and ICICI Bank gained 2.1 percent. HDFC Bank was up 0.9 percent but Axis Bank lost 0.7 percent.

Among others, L&T, M&M, Dr Reddy's Labs, GAIL, Tata Steel, Vedanta and Hindalco Industries were up 2-4.5 percent. The sell-off in TCS (down 1 percent), Infosys (down 1.9 percent) and Tata Motors (down 0.9 percent) limited upside.

Coal India was down 2 percent after its September quarter earnings missed analysts' expectations due to lower e-auction realisations. Profit increased 16 percent and revenue rose 8 percent year-on-year. Brokerages remained bullish on stock despite lower-than-expected earnings. Citi has a buy rating on inexpensive valuations with a target price of Rs 455 per share. It is bullish due to higher volume trajectory up, auction of non-power linkages-pricing upside going forward and 6 percent dividend yield.

In broader space, Cadila Healthcare dropped nearly 4 percent after the company missed launch date for its anti-inflammatory drug Asacol HD generic.

Reliance Infrastructure gained 6 percent on signing agreement with Canadian pension fund to sell 49 percent stake in Reliance Energy.

Apollo Tyres rose 1.7 percent as India's second-largest tyre manufacturer will buy German-based tyre retail and distribution company Reifencom GmbH for 45.6 million euro in all cash deal.

The market breadth remained positive as about 1372 shares advanced against 1260 declining shares on the Bombay Stock Exchange.

3:30 pm Market close: Snapping six days of weakness, the market has ended in green. The Sensex ended up 149.57 points or 0.6 percent at 25760.10, and the Nifty was up 44.35 points or 0.6 percent at 7806.60. About 1372 shares advanced, 1261 shares declined, and 166 shares were unchanged.

GAIL, Dr Reddy's Labs, Vedanta, Tata Steel and SBI were top gainers while HUL, Coal India, Infosys, TCS and Axis Bank.

3:15 Market off day's high: The market has fallen off day's high dragged by IT stocks. The Nifty is up 36.70 points or 0.5 percent at 7798.95 and the Sensex is up 131.93 points or 0.5 percent at 25742.46. GAIL, Tata Steel, Dr Redddy's Labs, SBI and ITC are top gainers while Infosys, Coal India, HUL, TCS and Tata Motors are among losers in the Sensex.

2:59 pm Market Update: Equity benchmarks remained strong in last hour of trade. The Sensex rose 213.02 points or 0.83 percent to 25823.55 and the Nifty climbed 61.25 points or 0.79 percent to 7823.50.

About 1344 shares have advanced, 1227 shares declined, and 154 shares are unchanged on the BSE.

2:50 pm Apollo's expansion: Healthcare major Apollo Hospitals Enterprise is looking to add 1,370 beds at six locations with a total estimated project cost of Rs 1,554.9 crore by 2018-19 as part of its expansion plan in the country.

The total capex estimated for this expansion plan is Rs 1,555 crore, of which an investment of Rs 724 crore has already been made, Apollo Hospitals said during an investor presentation.

"The balance will be invested by a mix of internal accruals and the proposed rights issue," it added. 2:40 pm IOC in news: The upcoming refinery of state-run Indian Oil Corporation (IOC) at Paradip would be a major producer of feedstock for the downstream petrochemicals industry, a top official of the company said.

"IOC will branch out into manufacturing of petrochemicals feedstock and the Paradip plant will be a major producer," the official told PTI. The 15-million tonne Paradip refinery will be commissioned very shortly, he said.

According to the official, the plant will house a Rs 3,150-crore polypropylene plant expected to go on stream by 2017.

2:20 pm Market Expert: Manish Prasad, MD and Head of Institutional Equities at JM Financial believes that market is in consolidation and says that bottom-up is the best strategy is the current scenario. Prasad is positive on the market with a three-year perspective.

Speaking to CNBC-TV18, he says that companies need to work on productivity to improve corporate earnings, which have been low since last eight quarters. The government has done its bit to ensure that there is ease in doing business in the country, he says.

However, he believes that the global scenario is not very conducive for market currently. It will take another two to three quarters for economy to show any signs of recovery, he adds.

2:00 pm Market Check
The market rallied further in afternoon trade, supported by banks, metals, infra, select FMCG and pharma stocks. The Sensex rose 182.99 points or 0.71 percent to 25793.52 and the Nifty rose 59.65 points or 0.77 percent to 7821.90.

The marketh breadth was positive as about 1307 shares advanced against 1203 declining shares on the BSE.

ITC, ICICI Bank, L&T, SBI, Lupin, Mahindra & Mahindra, Dr Reddy's Labs, Tata Steel and GAIL rallied 2-3.5 percent. Infosys, TCS, Tata Motors, HUL, Axis Bank and Coal India declined 0.4-1.5 percent.

1:50 pm Interview: Menthol business weighed on overall revenue of the company, Dinesh Dua, CEO of Nectar Lifesciences told CNBC-TV18. The company's earnings before interest, tax, depreciation and amortizatiNectar Lifesciences,EBITDA,profit,US FDAn (EBITDA) grew 1.8 percent to Rs 83.6 crore and profit rose 5.5 percent to Rs 17.32 crore in the second quarter of FY16. The company is hopeful of receiving US FDA approval for its formulation facility in Baddi in current year.

1:30 pm Market outlook: Despite good macro indicators, corporate earnings have not improved in recent times, says Mahesh Nandurkar, Indian strategist at CLSA. He says low inflation has hurt property and rural market due to which positive macros haven't transmitted to earning numbers.

He expects the recovery to be slow, though the initial signs are visible. Over two years, market will deliver 15 percent compounded growth and will give 30 percent returns, he says adding that the key factor in growth will be capex recovery, which is expected to be slow. He expects further earning downgrades in the near-term.

Nandurkar is bullish on sectors like IT, financial service and automobile, where earnings are visible. On the other hand, he is overweight on sectors like pharmaceutical, energy and stables. 

The market is making strong moves after the weakness around Diwali. The Sensex is up 134.05 points or 0.5 percent at 25744.58 and the Nifty is up 36.20 points or 0.5 percent at 7798.45. About 1258 shares have advanced, 1149 shares declined, and 136 shares are unchanged. Tata Steel is up 3 percent while ITC, Dr Reddy's Labs, M&M and Lupin are top gainers in the Sensex. Among the losers are HUL, Coal India, TCS, Infosys and Tata Motors.

Meanwhile, wholesale prices dropped for a 12th straight month in October, falling an annual 3.81 percent mainly due to easing fuel prices, government data showed on Monday.

The fall was almost in line with the forecast made by economists in a Reuters poll of 3.83 percent. In September, the index fell a provisional 4.54 percent.

The wholesale fuel prices fell 16.32 percent from a year ago in October, while prices of manufactured goods declined 1.67 percent year on year. Food prices in October, however, rose 2.44 percent year-on-year.

12:55 pm Market Update: Equity benchmarks extended rally in noon trade with the Sensex rising 134.05 points to 25744.58 and the Nifty climbing 36.60 points to 7798.85.

12:45 pm Buzzing: Shares of Apollo Tyres climbed 3.4 percent intraday as India's second-largest tyre manufacturer will buy German-based tyre retail and distribution company.

The company said its wholly owned subsidiary will acquire Reifencom GmbH for 45.6 million euro in all cash deal, adding this deal is likely to be completed in 1-3 months. Reifencom has turnover of 147 million euro in 2014 and has presence in Germany, Austria, Switzerland, Italy, France & Denmark.

12:30 pm FII View: Despite good macro indicators, corporate earnings have not improved in recent times, says Mahesh Nandurkar, Indian strategist at CLSA. He says low inflation has hurt property and rural market due to which positive macros haven't transmitted to earning numbers.

He expects the recovery to be slow, though the initial signs are visible. Over two years, market will deliver 15 percent compounded growth and will give 30 percent returns, he says adding that the key factor in growth will be capex recovery, which is expected to be slow. He expects further earning downgrades in the near-term.

12:15 pm Shasun's USFDA nod: Shasun Pharmaceuticals said it has received US health regulator's nod to market pain relief drug Carisoprodol in the US market.

In a BSE filing, Shasun Pharmaceuticals said, "It has received approval from the United States Food and Drug Administration (US FDA) for Carisoprodol tablets." The approval is for the 250 mg and 350 mg strengths. Shasun Pharma said Carisoprodol tablets of 250 mg and 350 mg have sales of approximately USD 38 million.

"While the 350 mg has a few generic players, Shasun expects to be the first marketed generic player in the USD 16 million Carisoprodol tablets of 250 mg opportunity," it added. Shasun Pharmaceuticals said the product will be manufactured at its Puducherry plant and distributed through a partner. It's expected to be launched shortly.

12:00 pm Market Check
The market gained strength in afternoon trade with the Nifty eyeing 7800 led by banking, metals, infra and FMCG stocks. However, technology stocks remained under pressure.

The Sensex rose 71.98 points to 25682.51 and the Nifty was up 24.95 points at 7787.20. The broader markets also rebounded as the BSE Midcap and Smallcap indices gained 0.2 percent.

WPI inflation came in at negative 3.81 percent for October against negative 4.54 percent in previous month. October core inflation stood at negative 2 percent against negative 1.93 percent in September.

11:55 am FM says: Finance Minister Arun Jaitley will meet heads of PSU banks on November 23 to discuss various issues, including bad loans and credit flow to productive sectors of the economy. The performance review meeting of public sector banks (PSBs) on November 23 will also take stock of the credit flow to productive sectors to spur economy and review of 'Indradhanush' plan, the seven-point agenda to revive the fortunes of PSBs, sources said. The government in August announced seven-point agenda, including Rs 70,000 crore capital infusion in PSBs in four-year period starting with Rs 25,000 crore in the current fiscal and measures to de-stress the banks of NPAs by introducing governance reforms.

11:45 am New listing: Shares of Fragrance maker SH Kelkar & Company have seen strong buying interest on listing day. The stock has opened at Rs 216 on the National Stock Exchange, up 20 percent over its issue price of Rs 180. Its price stood at Rs 223.70 in pre-opening session. It touched an intraday high of Rs 225.05 (up 25 percent over issue price) and low of Rs 203. On the BSE, the stock has opened at Rs 222, up 23.3 percent. It has touched an intraday high of Rs 222.70 and low of Rs 202.80. The Rs 508-crore initial public issue, which oversubscribed 27.08 times, was opened for subscription during October 28-30.

11:30 am Market outlook: Manish Prasad, MD and Head of Institutional Equities at JM Financial believes that market is in consolidation and says that bottom-up is the best strategy is the current scenario. Prasad is positive on the market with a three-year perspective. Speaking to CNBC-TV18, he says that companies need to work on productivity to improve corporate earnings, which have been low since last eight quarters. The government has done its bit to ensure that there is ease in doing business in the country, he says. However, he believes that the global scenario is not very conducive for market currently. It will take another two to three quarters for economy to show any signs of recovery, he adds.

The Sensex is up 4.51 points at 25615.04, and the Nifty is down 0.90 points at 7761.35. About 1065 shares have advanced, 1090 shares declined, and 128 shares are unchanged. Dr Reddy's Labs, ICICI Bank, ITC, Bharti Airtel and SBI are top gainers in the Sensex. Among the losers are Infosys, ONGC, Tata Motors, TCS and Bajaj Auto.

Crude oil futures edged up following the deadly attacks on Paris, but prices remained near August lows and oil and other commodities are expected to continue under broad pressure in nervous trading. Both crude benchmarks, which lost 8 percent last week, saw high levels of activity in early trading as commodity traders looked nervously for direction following the deadly attacks in Paris on Friday.

10:59 am Market Update: Equity benchmarks recouped early losses led by banks, infra and FMCG stocks.

The Sensex rose 21.99 points to 25632.52 and the Nifty gained 3.90 points at 7766.15. About 1043 shares have advanced, 1065 shares declined, and 120 shares are unchanged on the BSE.

10:50 am Buzzing: Shares of Cadila Healthcare fell 3 percent intraday after the company missed launch date for its anti-inflammatory drug Asacol HD generic.

It missed launch date due to unresolved observations at its Moraiya facility. Cadila was expected to launch this drug under six-month exclusivity on November 15, 2015 but it has not yet received approval from US Food and Drug Administration for drug.

Analysts expect this drug to be a key launch as it is estimated to be around 7 percent of FY16 earnings per share.

The drug Asacol HD (mesalamine), which is used to treat ulcerative colitis, proctitis, and proctosigmoiditis, has size of USD 250 million.

10:40 am Oil update: Oil prices climbed in Asia today on geopolitical tensions sparked by the deadly terror attacks in Paris but analysts said a global crude supply glut is likely to restrict any gains.

French warplanes pounded the Islamic State group's de facto capital in Syria yesterday in retaliation for the carnage in the French capital claimed by the jihadists, sparking fears of escalating tensions in the oil-producing but politically volatile Middle East.

US benchmark West Texas Intermediate for delivery in December was up 27 cents to USD 41.01 and Brent crude for January -- a new contract -- was trading 50 cents higher at USD 44.97 a barrel.

10:20 am FII View: Mahesh Nandurkar, CLSA says over past 12 months, a combination of efficient governance and favourable global conditions has allayed several macro concerns on India but corporate performance remains weak.

According to him, the economy is in a consolidation phase and collateral damage from the same is weak rural demand and a softer property market. But this is a healthy correction, laying a solid foundation for growth, he feels.

10:00 am Market Check
The market remained under pressure in morning trade with the benchmark indices falling half a percent. The broader markets also declined with the BSE Midcap and Smallcap indices down 0.3-0.4 percent. The market breadth too was weak as about 1079 shares declined against 789 advancing shares on the BSE.

The 30-share BSE Sensex fell 116.46 points to 25494.07 and the 50-share NSE Nifty declined 38.60 points to 7723.65.

Shares of Fragrance maker SH Kelkar & Company have seen strong buying interest on listing day. The stock has opened at Rs 216 on the National Stock Exchange, up 20 percent over its issue price of Rs 180. It touched an intraday high of Rs 225.05, up 25 percent.

Infosys topped selling list on Sensex, down 2.6 percent followed by TCS, HDFC, Tata Motors, Axis Bank, ONGC, Bajaj Auto and Coal India with 1-1.5 percent loss.

Dr Reddy's Labs gained 2 percent. ITC, ICICI Bank, L&T, SBI and Bharti Airtel advanced 0.5-1 percent.