Nifty ends at 7163, Sensex jumps 568 points; SBI up 8%, metals gain

After a tumultuous ride last week, the market gained strength on Monday with support from metals, auto, capital goods and oil & gas mostly. Posting its biggest rally in a month, the Sensex ended up 568 points or 2.5 percent at 23554.12, and the Nifty was up 182 points or 2.6 percent at 7162.95. About 1984 shares have advanced, 678 shares declined, and 115 shares are unchanged.

According to Ajay Srivastava, CEO, Dimensions Consulting, a key concern for the market is the lack of leadership from large caps. He says many midcaps are doing much better operationally, compared to the large caps, which are floundering at the moment. Such a trend is not sustainable and not conducive to an uptrend, he adds.

On the global front, Asian shares snapped a five-session losing streak today after China's central bank fixed the yuan sharply stronger, easing fears of depreciation, at least for now. Though a string of weak data from Japan and China suggests the bounce may be short-lived. At the close of trade the Japanese Nikkei was up 7 percent and the Shanghai composite was down half a percent. The Hang Seng in Hong Kong and the South Korean Kospi were sharply higher.

Global markets are currently in an oversold territory due to concerns regarding commodity prices, muted emerging markets economic growth, particularly due to a slowdown in China, says Ian Hui of JP Morgan AMC.

Hui believes that the Indian equity market would feel more pressure as there are signs of growing outflows from emerging markets. Metals were stars of the market come back today. Investors lapped up metal stocks as the European Union hit Chinese steel industrywith duties as the industry demanded action.

Tata Steel and Hindalco gained 9-13 percent at closing. Tata Steel is Britain's largest and Europe's second-largest steel maker. Earlier this month, the steel producer reported steep Q3 loss on cheap imports.

Other gainers in the Sensex were L&T, SBI and Adani Ports. Auto, Bankex, Capital Goods, Metals and Oil & Gas jumped 4-9 percent in today's trade.

Big gainer of the day was Bank of Baroda, which closed up 22 percent. The PSU posted dismal December quarter with massive bad loans but the market is quite pleased with the new MD's new clean up act. Managing Director, PS Jaykumar has cleaned up all the bad loan at one go and expects to return to FY14 profit levels next year. In an interview to CNBC-TV18, he says the bank needs no capital dilution for the next 18-24 months. Jaykumar is confident that with monetising non-core assets and gains in the foreign currency the bank may easily support a 20 percent growth next year without dilution of capital.

On the losing side were Bharti Airtel, HUL and HDFC twins.

3:30 pm Market closing: The Sensex closed up 568 points or 2.5 percent at 23554.12 and the Nifty was up 182 points or 2.6 percent at 7162.95.
About 1984 shares advanced, 678 shares declined, and 115 shares were unchanged.

Tata Steel, L&T, Hindalco, SBI, Adani Ports were top gainers while Bharti Airtel, HUL, HDFC twins were losers in the Sensex.

2:45 pm Rail Budget: Reeling under the impact of gross budgetray support cut and falling revenue collection, Railways is firming up plans to to slash operational cost and working expenses considerably to meet its financial requirement.

Expecting very little help from the exchequer to meet the additional expenditure due to implementation of Seventh Pay Commission recommendations, railways is in the process of undertaking a series of measures to raise the resources on its own as told by the Finance Ministry.

Railway Minister Suresh Prabhu, gearing up to present his second Rail Budget on Feb 25, will unveil a plan to cut expenses and at the same time increase non-tariff revenue substantially to wade through the difficult phase in the public behemoth.

2:30 pm RBI: Reserve Bank of India (RBI) Governor Raghuram Rajan said he was not in favour of devaluing exchange rates to boost economic growth, signalling India will not join other countries such as China or Japan in pushing down their currencies.

"I personally feel sustained devaluation is neither feasible nor a good strategy," Rajan said in a speech at a conference on medium scale enterprises in Trivandrum, in southern India.

"This (devaluation) is not the intent of RBI."

But Rajan reiterated the central bank would strive to curb excessive volatility.

Rupee has been one of the worst performers in Asia this year, falling by nearly 3 percent after strong foreign investment outflows from equity markets.

The market continues to rally as the Sensex is up 580.93 points or 2.5 percent at 23567.05 and the Nifty is up 182.60 points or 2.6 percent at 7163.55. About 1984 shares have advanced, 586 shares declined, and 110 shares are unchanged.

Capital Goods, Metals, Oil & Gas, Auto are among favourites today.

Tata Steel, Hindalco, L&T, SBI and Adani Ports are top gainers while Bharti Airtel, HUL and HDFC are losers in the Sensex.

Crude oil futures slipped 0.30 percent to Rs 2,000 per barrel today, in line with a weak trend in Asian trade, as traders cut down their exposure.

Analysts said the fall in crude oil futures is mostly in step with a weak trend in Asian trade after soaring at the end of last week as Iran prepared to ship its first consignment of the commodity since sanctions were lifted, reigniting worries over a global supply glut.

1:45 pm Interview: Make in India is a great initiative but there is need to do lot more at industry as well as government level to globalise India, said Pawan Goenka, executive director at Mahindra & Mahindra (M&M) in an interview to CNBC-TV18 on the sidelines of the ongoing Make in India event.

"Make in India is the most exciting initiative taken by the government of India," Goenka said, while also pointing out that companies' like M&M have already been making in India.

He pointed out that investment has never been a constraint for the company. Our investment depends a lot on market conditions, demand pull and exports,  he added.

1:30 pm Market outlook: Global markets are currently in an oversold territory due to concerns regarding commodity prices, muted emerging markets economic growth, particularly due to a slowdown in China, says Ian Hui of JP Morgan AMC.

Speaking to CNBC-TV18, Hui says he prefers developed markets over emerging markets. While Russia and Turkey look attractive in the emerging markets (EMs) space, India has moved lower among favored EMs due to policy deadlock, he says. This in turn is concerning foreign investors investing in India, he adds.

Hui believes that the Indian equity market would feel more pressure as there are signs of growing outflows from emerging markets.

The market is holding firm as the Sensex is up 599.19 points or 2.6 percent  at 23585.31, and the Nifty is up 190.30 points or 2.7 percent at 7171.25.About 1979 shares have advanced, 522 shares declined, and 103 shares are unchanged.

Tata Steel, Hindalco, L&T, SBI and Coal India are top gainers while Bharti Airtel, HUL and Dr Reddy's are losers in the Sensex.

Amid a weakening global trend, gold futures traded lower by Rs 416 at Rs 29,224 per 10 gm today as speculators trimmed their positions. Market analysts said the fall in gold futures was mostly in tune with a weak trend overseas where rally in the precious metal faltered as rising share markets and a firmer yuan eroded demand for the safe-haven as an alternative investment.

12:59 pm Market strong: The Sensex rose 545.09 points or 2.37 percent to 23531.21 and the Nifty climbed 174.40 points or 2.50 percent to 7155.35.

About 1949 shares advanced against 501 advancing shares on the BSE.

12:50 pm Oil Update: Brent and US crude futures edged lower as the dollar regained ground and as weak Chinese trade data stoked concerns about demand in the world's biggest energy consumer.

But the market held most of its gains of more than 10 percent from Friday that came amid renewed talk that the Organization of the Petroleum Exporting Countries (OPEC) might finally agree to cut output to reduce a world glut.

The mood inside OPEC is shifting from mistrust to a growing consensus that a decision must be reached on how to end the global oil price rout, Nigeria's oil minister said, adding he will have talks with his Saudi and Qatari counterparts.

12:40 pm Interview: We are hoping the government will soon extend duties like minimum import price (MIP) to other steel products as well, says RK Goyal, MD of Kalyani Steels  in an interview to CNBC-TV18.

Volumes for the third quarter were down 12-15 percent because of dumping from China, Korea and Japan and the impact will continue if no corrective action is taken, Goyal says.

Even though MIP is not available on products produced by Kalyani Steels, Goyal hopes that the duty imposed on certain products might dissuade importers from cutting down imports across categories.

''The government is still looking at other steel products that are being imported. So we hope that either it extends the MIP to other steel products or importers stay cautious while importing any product,'' he says.

12:20 pm OMCs rally post Q3: Shares of Indian Oil Corporation , Hindustan Petroleum Corporation and Bharat Petroleum Corporation rallied 5-10 percent intraday. Strong refining performance due to lower oil prices helped these oil marketing companies (OMCs) report strong earnings performance in October-December quarter.

Jefferies says India state-owned OMCs remain top picks in the oil & gas sector as it believes consensus and market is under-estimating earnings potential of these companies in a low crude price environment. Recently International benchmark Brent touched 12-year low at around USD 27 a barrel.

12:00 pm Market Check
The market continued to be strong with the Sensex rising over 500 points led by short covering in beaten down stocks like banks, oil, infra and auto stocks. The broader markets also gained strength, outperforming benchmarks.

The Sensex rallied 525.87 points or 2.29 percent to 23511.99 and the 50-share NSE Nifty climbed 168.65 points or 2.42 percent to 7149.60. The BSE Midcap and Smallcap indices gained more than 3 percent.

The market breadth was strong as about four shares advanced for every share declining on the Bombay Stock Exchange.

Reliance Industries, L&T, ICICI Bank, Tata Motors, SBI, Lupin and Axis Bank were top contributors' to Sensex gains, up 4-7 percent. Tata Steel topped the buying list on Sensex, up over 10 percent.

Bank of Baroda extended rally in noon trade, up more than 22 percent as brokerages maintained buy rating, though they cut target price and earnings per share estimates due to huge loss in Q3.

WPI inflation for January contracted further, came in at -0.9 percent against -0.73 percent in previous month.

Asian markets remained strong with the Nikkei rising 7.2 percent to close above 16,000 level. Hang Seng gained 3.1 percent while Shanghai recovered from day's low.

11:55 am Pharma: Biocon received its first generic formulation approval for making Rosuvastatin Calcium tablet in the European Union (EU). This will enable the company to address USD 1.2 billion market opportunity and it will launch the drug in FY17. In an interview to CNBC-TV18, Kiran Mazumdar-Shaw, Chairman of the company, says this is a very important milestone for Biocon as part of the company's change in strategy. This area means a big uptick in value creation, she adds. Further, she says the company will soon apply for Abbreviated New Drug Application (ANDA) for the same in the US as well. However, she says the company will not get a 6-month exclusivity for this particular product.

11:45 am Exclusive: Budget 2016 will focus on bank reforms that are likely to go beyond PSU bank recapitalisation plans, sources say. The finance ministry and the Reserve Bank of India are unhappy with public sector banks for not dealing with 'bad promoters' and have asked them to use corporate debt restructuring (CDR), strategic debt restructuring (SDR) and sell 'bad' promoters' assets to bring them to task. The RBI and finmin plan to ask PSBs for clear timelines on recovery from bad accounts. Additionally, the finmin and RBI governor Raghuram Rajan are likely to take PSBs to task in Gyan Sangam meet, which is scheduled in March first week.

11:30 am Market outlook: Investors should restrict the share of equities in their portfolio to 35 percent for the time being, Ajay Srivastava, CEO, Dimensions Consulting tells CNBC-TV18.

He advises investors to sell into a pre-Budget rally if it happens, as there are enough signs of weakness in the economy.

According to Srivastava, a key concern for the market is the lack of leadership from large caps. He says many midcaps are doing much better operationally, compared to the large caps, which are floundering at the moment. Such a trend is not sustainable and not conducive to an uptrend, he says.

Srivastava is bullish on midcap MNC companies, pharma and construction companies.

Bulls seem unstoppable after the weekend. The Sensex is up 508.75 points or 2.2 percent at 23494.87 and the Nifty is up 167.30 points or 2.4 percent at 7148.25. About 1798 shares have advanced, 392 shares declined, and 73 shares are unchanged.

Tata Steel, Adani Ports, Hindalco, SBI and L&T are top gainers while Bharti Airtel is still down over 1 percent.

Oil prices turned lower again after soaring at the end of last week as Iran prepared to ship its first consignment of the commodity since sanctions were lifted, reigniting worries over a global supply glut. Oil has lost about three-quarters of its value since mid-2014 owing to the supply woes, overproduction, weak demand and a slowing economy However, another of the issues hanging over prices returned this week as Iran gets set to re-enter the market, after Western-imposed sanctions over its nuclear programme were lifted.

10:59 am Market Update: The Sensex extended rally, up up 494.06 points or 2.15 percent to 23480.18 and the Nifty jumped 162.50 points or 2.33 percent to 7143.45.

More than four shares advanced for every share declining on the BSE.

10:40 am JLR launch: Jaguar showcased the F-Pace, a sporty crossover based on the XE platform, at the 2016 Auto Expo . Jaguar's foray into the SUV space is a departure from its tradition of premium sedans.

With an intention to push sales volumes and compete aggressively with the German counterparts, Jaguar will launch the F-Pace in India by the end of 2016.

10:30 am F&O: Bank of Baroda's open interest increased 18 percent while HDIL and Arvind open interest jumped over 10 percent.

Tata Steel February futures added 23 lakh shares in open interest. All these stocks have seen long build up.

10:20 am Market Expert: Investors should restrict the share of equities in their portfolio to 35 percent for the time being, Ajay Srivastava, CEO, Dimensions Consulting tells CNBC-TV18.

He advises investors to sell into a pre-Budget rally if it happens, as there are enough signs of weakness in the economy.

According to Srivastava, a key concern for the market is the lack of leadership from large caps. He says many midcaps are doing much better operationally, compared to the large caps, which are floundering at the moment. Such a trend is not sustainable and not conducive to an uptrend, he says.

10:00 am Market Check
The market is surging ahead on full support from beaten down stocks. The Sensex is up 426.96 points or 1.9 percent at 23413.08, and the Nifty is up 141.55 points or 2 percent at 7122.50. About 1575 shares have advanced, 324 shares declined, and 50 shares are unchanged.

Tata Steel, Adani Ports, Hindalco, SBI and LUpin are top gainers while Bharti is down 1 percent.

Rupee strengthened by 11 paise to 68.12 against the dollar in early trade at Interbank Foreign Exchange on increased selling of the US currency by exporters and banks amid higher opening in the domestic equity market. Forex dealers said besides selling of the American unit by exporters and banks, weakness in the dollar against some other currencies overseas, supported the rupee. Further, a higher opening in the domestic equity market influenced the rupee uptrend, they added.

On Friday, the rupee had recovered 7 paise to end at 68.23 per dollar on fresh selling of the American currency by banks and exporters in view of mild recovery in domestic equities.

9:55 am Nestle India interview: It has been a turbulent time for Nestle India, which is still trying to recover from the Maggi fiasco. The company reported a weak quarter with profit falling 44 percent to Rs 183 crore. However, the man who has been flown in to fire-fight in India, Suresh Narayana, new Managing Director of Nestle India , looks upon this situation as an opportunity for the fast moving consumer goods (FMCG) giant to stand up and reclaim its lost ground in a market which has only got more intense with new entrants like the Patanjali group, which seems to have made the most of Maggi noodle's absence. In an interview to CNBC-TV18, he says there is an urgent need to get Maggi sales back to the same levels.

9:45 am Market check: The market is taking right strides. The Sensex is up 371.12 points or 1.6 percent at 23357.24 and the Nifty is up 123.50 points or 1.8 percent at 7104.45. About 1420 shares have advanced, 300 shares declined, and 45 shares are unchanged.

Tata Steel, Adani Ports, Hindalco, Axis Bank and L&T are top gainers while BHEL and Bharti Airtel are losers in the Sensex.

9:35 am Market Expert: The mid-point of India's historical trading band (12.5-16.5 times 12-month rolling-forward price earning multiple) may be a good place for the market to find some footing, says Sanjeev Prasad, Senior Executive Director & Co Head (Strategy), Kotak Institutional Equities, in a note to clients.

He feels many stocks with reasonably visible earnings/book are trading at inexpensive valuations.

"Global conditions may result in overshoot in the short term, but we expect several stocks to be meaningfully higher versus current levels over the next 9-12 months," he writes.

According to Prasad, a 14.5 PE multiple on FY2017 estimated Nifty earnings per share of Rs 470 ''will put a floor at around 6,800, (on the Nifty)''.

9:15 am Market Check
The market rebounded on Monday after losing more than 6 percent in previous week. The 30-share BSE Sensex surged 296.17 points or 1.29 percent to 23282.29 and the 50-share NSE Nifty climbed 97.65 points or 1.40 percent to 7078.60.

The market breadth was strong as about 811 shares advanced against 168 declining shares on the BSE.

Bank of Baroda shot up 15.47 percent despite posting loss in Q3 due to higher provisions. Vedanta, Tata Steel, Adani Ports, PNB, Axis Bank, Hindalco and SBI gained 3-7 percent.

The Indian rupee has opened marginally higher at 68.19 a dollar today against Friday's close of 68.23 a dollar.

Agam Gupta of Standard Chartered feels USD-INR should open broadly unchanged from Friday's close.

He expects a rangebound day with importers picking up USD on any dips to Rs 68.00-68.05/USD and exporters are looking to hedge their receivables if it gets an intraday spike to Rs 68.35-68.40/USD.

Gupta says global equities ended Friday in the positive and that should keep local sentiment risk positive for the day. He expects the USD-INR to trade in a Rs 68.00-68.40/USD range for today.

Asian markets barring China traded higher. Nikkei surged over 5 percent and Hang Seng rose nearly 3 percent, tracking positive close on Wall Street. Shanghai fell 1.6 percent.