Nifty ends above 8200, Sensex gains 216 points; ITC down 1%

3:30 pm Market closing: The market has ended with strong gains ahead of June Future & Options (F&O) expiry. The Sensex closed up 215.84 points or 0.8 percent at 26740.39, and the Nifty was up 76.15 points or 0.9 percent at 8204. About 1833 shares have advanced, 773 shares declined, and 183 shares are unchanged.

Hero MotoCorp, NTPC, Wipro, BHEL and GAIL were top gainers while Lupin, Coal India, ITC, Bharti Airtel, and Adani Ports were losers in the Sensex.

3:10 pm Fund raising: Country's largest lender SBI today said it will raise long-term capital of up to USD 1.5 billion (over Rs 10,000 crore) by issuing bonds in US dollar or other convertible currency.

SBI said in a BSE filing that the decision is the outcome of the executive committee meeting of the Board today.

The Executive Committee of the Central Board in its meeting held on June 29, 2016, has approved "to raise long term funds up to USD 1,500 million in single/multiple tranches", SBI said in the filing.

It said the fund raising will take place through a public offer and/or private placement of senior unsecured notes in US dollar or any other convertible currency during the current financial year 2016-17.

2:58 pm Interview: The 7th Pay Commission and Model Shop & Establishment Act are both great consumption boosters, says Shoppers Stop MD Govind Shrikhande in an interview to CNBC-TV18.

However, for Shoppers Stop, keeping stores open 24 hours is not an immediate option as a lot of factors like the Mall environment and cost-benefit ratio needs to be assessed, he says.

He says the last time pay revisions were announced, the company had seen almost a 20 percent jump in sales, particularly in cities like Delhi where concentration of central government employees is higher, he says. This is despite retail sales already doing quite well at that time, he adds.

He believes the two policies cleared by the government will help boost sales and the company could clock double-digit revenue growth in FY17 as against 8 percent like-to-like sales growth targeted earlier.

2:45 pm Religare on KEC: Religare Institutional Research has maintained buy rating on KEC International with target price of Rs 150, citing likely improvement in cash flows & margins in FY17 and pick up in orders from state electricity boards (SEB). The stock rallied 5 percent intraday Wednesday.

After meeting with the company's management, the brokerage says it remains sanguine on power transmission company's growth prospects as margins and cash flows improve with an increase in order size and a pick-up in execution.

On the broader market, the management expects flat orders of Rs 22,000-25,000 crore annually from the Power Grid Corporation of India over FY17-FY18. However, an increase in activity from State Electricity Boards (SEBs) should lead to order inflow growth for the company.

2:25 pm Nifty hits 8200: Equity benchmarks extended rally in afternoon trade, tracking further upside in European markets that gained 1.5-2 percent.

The Sensex rose 193.88 points to 26718.43 and the Nifty jumped 67.35 points to 8195.20. About 1786 shares advanced against 721 declining shares on BSE.

2:20 pm Interview: Keki Mistry, CEO of HDFC said that Seventh Pay Commission will put more money into people's pockets. There will be a demand for white goods, cars, houses as consumption will increase.

Mistry believes that the urban economy is doing well. "Occupancy rates in hotes, car sales have all gone up," he said.

He cautions that the rural economy is facing headwinds. But he is hopeful that a good monsoon this year coupled with the government's focus on spending and the 7th Pay Commission hikes will result in an increase in demand and consumption.

Currently, capacity utilisation among companies is about 72 percent, he said, adding that it will go up to 80 percent on back of strong tailwinds.

2:00 pm Market Check
Equity benchmarks and broader markets remained strong in afternoon trade with the Nifty inching towards 8200 following positive global cues.

The Sensex rose 173.98 points or 0.66 percent to 26698.53 and the Nifty climbed 59.80 points or 0.74 percent to 8187.65. About 1786 shares advanced against 703 declining shares on the Bombay Stock Exchange.

European stocks continued their rally today as global markets realise that any change to the status quo in the European Union (EU) after the Brexit vote is unlikely to change in the short-term. London's FTSE index, Germany's DAX and France's CAC were up 1.2-1.7 percent.

Oil rose as financial traders poured money back into commodities following the initial shock of Britain's vote to leave the European Union, and as a potential strike in Norway and crisis in Venezuela threatened to cut supply. Brent crude futures were trading at USD 49.10 per barrel, up 52 cents from their last settlement. US crude was up 58 cents at USD 48.42 a barrel.

1:55 pm SBI reaction on 7th Pay: The Union Cabinet today approved the 7th Pay Commission recommendations that would hike the salaries of government employees between 23-24 percent.

The impact of Pay Commission will be 72 percent on the Finance Budget and 28 percent on the Railway Budget. The annual outgo on back of this is expected to be Rs 1.02 lakh crore.

Some additional provisions have been made for the defence personnel. The recommendations, submitted by a special panel, comprised 15 percent hike in basic salary, 63 percent in allowances and 24 percent increase in pension.

1:45 pm Earnings: In spite of falling commodity prices, Vedanta, formerly known as Sesa Sterlite, has come out with robust results in a volatile market helped by cost control and higher productivity, the company said today.

"Vedanta has produced robust results in a volatile market with relentless focus on cost discipline and improved productivity, leading to strong earnings and record cash flow," Chairman Navin Agarwal said while addressing 51st annual general meeting of Vedanta in Goa.

"This year was challenging for the sector with falling commodity prices. However... the company continued to build upon its core strengths of low cost, scalable operations, development projects and superior growth options."

1:30 pm Interview: Keki Mistry, CEO of HDFC said that Seventh Pay Commission will put more money into people's pockets. There will be a demand for white goods, cars, houses as consumption will increase.

Mistry believes that the urban economy is doing well. "Occupancy rates in hotes, car sales have all gone up," he said.

He cautions that the rural economy is facing headwinds. But he is hopeful that a good monsoon this year coupled with the government's focus on spending and the 7th Pay Commission hikes will result in an increase in demand and consumption.

Currently, capacity utilisation among companies is about 72 percent, he said, adding that it will go up to 80 percent on back of strong tailwinds.

The market continues to gain but the Nifty is yet to reach 8200 even after three positive cabinet nods. The Sensex is up 123.08 points or 0.5 percent at 26647.63, and the Nifty is up 45.75 points or 0.6 percent at 8173.60. About 1779 shares have advanced, 646 shares declined, and 147 shares are unchanged.

Hero, BHEL, NTPC, Asian Paints and Tata Steel are top gainers while HUL, Lupin, Coal India, ITC and HDFC Bank are losers in the Sensex.

Crude oil futures were up 1.55 percent at Rs 3,276 per barrel today as speculators created positions amid positive Asian cues.

Marketmen said the rise in crude oil futures was largely in tune with the firming trend in Asian trade where it extended gains, tracking a recovery in equity markets as leaders look to temper fears over the effects of Britain's decision to exit the European Union.

12:58 pm Market Update: The Sensex advanced 123.82 points at 26648.37, and the Nifty rose 45.10 points to 8172.95.

About three shares gained for every share falling on the Bombay Stock Exchange.

12:40 pm Europe opens: European stocks opened higher as global market volatility caused by the Brexit vote eases.

The pan-European STOXX 600 was up 1.05 percent. London's FTSE index was up 1.5 percent.

European markets continued to rally despite uncertainty over the UK and European Union's future relationship after a majority of the British public voted last Thursday to leave the bloc.

12:20 pm Suven Life in news: Drug firm Suven Life Sciences has been granted a patent from Europe and two product patents from Eurasia for a drug used in the treatment of neuro-degenerative diseases.

In a BSE filing today, Suven Life said it has been granted "one product patent from Europe and two product patents from Eurasia corresponding to New Chemical Entities (NCEs) for treatment of disorders associated with neuro-degenerative diseases".

The patents are valid through 2029, 2030 and 2031, respectively, the company added.

Suven Life CEO Venkat Jasti said: "We are very pleased by the grant of these patents to Suven for our pipeline of molecules in the CNS arena, which are being developed for cognitive disorders with high unmet medical need with a huge market potential globally."

12:00 pm Market Check
The market continued to hold its morning gains on the back of support from auto, pharma, IT and select banking & financial stocks.

The 30-share BSE Sensex rose 123.63 points to 26648.18 and the Nifty advanced 45.10 points to 8172.95. The market breadth remained strong as about three shares advanced for every share falling on the Bombay Stock Exchange.

The broader markets continued to outperform benchmarks as the BSE Midcap and Smallcap indices gained 0.9 percent and 1.1 percent, respectively.

The Cabinet in its today's meeting has cleared mineral exploration policy and recommendations related to 7th pay commission.

11:55 am Cabinet meet: The cabinet has also given a go-ahead to the National Mineral policy.

11:45 am Cabinet nod: The cabinet has approved 7th Pay Commission for over 1 crore government employees and pensioners.

In November, last year the pay panel had  recommended 14.27 percent hike in basic pay at junior levels, the lowest in 70 years. The previous 6th Pay Commission had recommended a 20% hike which the government doubled while implementing it in 2008.

11:30 am Buy back: Drug major Dr Reddy's Laboratories said it has bought back nearly 51 lakh shares for Rs 1,569.41 crore as part of a 'share buyback' offer launched earlier this year. The company has bought back 50,77,504 equity shares at an average price of Rs 3,090.92 per share. The company has thus deployed Rs 1,569.41 crore against the maximum buyback size, Dr Reddy's Laboratories said in a regulatory filing. "Consequently, the company announces the closure of its buyback," it added.

The market continues to rise as the Sensex is up 133.55 points or 0.5 percent at 26658.10. The Nifty is up 42.75 points or 0.5 percent at 8170.60. About 1628 shares have advanced, 509 shares declined, and 96 shares are unchanged.

Hero MotoCorp, NTPC, Tata Motors, BHEL and Asian Paints are top gainers while ITC, HUL, GAIL and Coal India are losers in the Sensex.

Gold rebounded from its losses in the previous session on investor demands for safety as uncertainty because of Britain's vote to exit the European Union continued to pressure financial markets. Spot gold was at its highest relative to platinum on record this week as institutional and retail investors have piled into bullion following the shock referendum verdict.

Oil rose as financial traders poured money back into commodities following the initial shock of Britain's vote to leave the European Union, and as a potential strike in Norway and crisis in Venezuela threatened to cut supply.

In crisis-struck Venezuela, oil producers and refiners were struggling to keep output up due to power outages and equipment shortages also supported prices, traders said.

10:59 am Market Update: The Sensex rose 120.57 points or 0.45 percent to 26645.12 and the Nifty climbed 42.95 points or 0.53 percent to 8170.80.

About 1605 shares advanced against 501 declining shares on Bombay Stock Exchange.

10:35 am Buzzing: Larsen & Toubro and Thomas Cook shares gained 1.5 percent and 3 percent, respectively on IPOs of its subsidiaries.

L&T Infotech, the subsidiary of engineering and construction major L&T, has decided to launch its 1.75 crore shares initial public offer on July 11. The issue, which will close on July 13, is an offer for sale by promoter L&T that holds 94.96 percent stake in the IT company. Hence, the company will not receive any proceeds from the offer.

Meanwhile, the Rs 400-crore IPO of staffing firm Quess Corp, the subsidiary of travel company Thomas Cook, has opened for subscription today. The price band of the issue, which will close on July 1, is fixed at Rs 310-317 per share.

Bengaluru-based company, promoted by Ajit Isaac and Thomas Cook, intends to use funds towards incremental working capital, acquisitions and other strategic initiatives, debt repayment and other general corporate purposes. It offers comprehensive solutions, including recruitment, temporary and technology staffing, and IT products and solutions, among others.

10:20 am Market Expert: Vibhav Kapoor of IL&FS said the Brexit was a vote against immigration. Next up, the US elections will be the key event to watch out for.

"If you have the Republican party winning the presidential elections this year, the impact can be severe," he said.

He is upbeat on cyclical and consumption story. FMCG and all other sectors related to rural consumption will do well, he said.

The IT sector has been an underperformer as it has been impacted by the Brexit issue. "We have to see how severe that impact is," he said, adding that a lot of these companies which have businesses coming form the UK and EU are likely to face a slowdown in that part of the business.

10:00 am Market Check
The market extended gains in morning trade with the Sensex rising over 150 points, tracking rally in global peers after absorbing shocks of Brexit.

The 30-share BSE Sensex rose 161.27 points or 0.61 percent to 26685.82 and the 50-share NSE Nifty climbed 51.25 points or 0.63 percent to 8179.10. The BSE Midcap and Smallcap indices gained 0.6 percent and 1 percent, respectively.

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

HDFC, Asian Paints, Tata Motors, ICICI Bank and L&T gained over a percent while ITC, HDFC Bank, GAIL and HUL fell on profit booking.

9:55 am IPO: L&T Infotech IPO is set to open on July 11 and close on July 13. The company contributes about 8 percent of the consolidated revenue of the entire L&T business. CNBC-TV18's Kritika Saxena learns that this IPO kicks of a series of consolidations that the L&T group is looking at doing.

The compay has spoken about Project Lakshya which is a five-year debt reduction plan of the government. As part the plan, the group wants to list both their IT arms.

L&T Infotech IPO wil have an offer price of around Rs 90 a share. Roughly the amount the company would be looking to raise from the IPO would be USD 125-150 million. On the heels of this IPO will be L&T Technology Services' Draft Red Herring Prospectus.

It is believed both the IPOs would bring down the group's debt by USD 400 million.

9:45 am Banks financial stability report: Foreseeing worsening situation of bad loans in the country, Reserve Bank said the gross non- performing assets of the banks can rise to as high as 9.3 percent in 2016-17 after hitting 7.6 percent in March 2016.

Banks' gross NPA had stood at 5.1 percent in September 2015, a report released by RBI said.

"Gross NPAs of banks' sharply increased to 7.6 percent of gross advances from 5.1 percent between September 2015 and March 2016 after asset quality review," according to the Financial Stability Report (FSR) released by RBI.

Net non-performing advances as a percentage of the total net advances increased to 4.6 percent in March 2016 from 2.8 percent in September 2015.

9:30 am FII view: While the global markets are facing uncertainty over Brexit, it is not a systematic shock for the world economy, says Geoff Lewis of Manulife Asset Management.

The current rally in the market is because of investors bouncing back after the initial shock.

The US Fed postponing the rate hike on back of volatility is good news for the global markets especially emerging markets (EMs), he says. While the fall in sterling is positive for UK, a further decline is not likely. Any recession in UK will be mild, Lewis says.

The market has opened on a strong note supported by strong global cues. The Sensex is up 138.86 points or 0.5 percent at 26663.41 and the Nifty  is up 40.50 points or 0.5 percent at 8168.35. About 660 shares have advanced, 98 shares declined, and 39 shares are unchanged.

Tata Motors, ICICI Bank, Dr Reddy's Labs, L&T and Sun Pharma are top gainers while GAIL and HDFC Bank are losers in the Sensex.

The Indian rupee opened higher by 17 paise at 67.78 per dollar on Wednesday versus previous close 67.95. The pound was little changed at USD 1.33 versus the dollar after gaining 0.9 percent last session, halting a two-day selloff.

Pramit Brahmbhatt of Veracity said, "Positive cues from global equity market will govern today's move in the rupee and it is likely to appreciate for the day."

Asian share markets joined a global rally on Wednesday as the immediate impact of Britain's vote to leave began to wane and investors wagered central banks would have to ride to the rescue with more stimulus measures. In Japan, the Nikkei 225 added 1.06 percent, while across the Korean Strait, the Kospi was up 0.4 percent. Australia's ASX 200 added 1.04 percent in early trade.

In the US, Dow Jones industrial average closed up 269.48 points, or 1.57 percent, at 17,409.72; the S&P 500 index added 35.55 points, or 1.78 percent, to 2,036.09 and the Nasdaq composite gained 97.42 points, or 2.12 percent, to 4,691.87.

Oil rose early as financial traders poured money back into commodities following the initial shock of Britain's vote to leave the European Union, and as a potential strike in Norway and crisis in Venezuela threatened to cut supply.

Gold slipped below USD 1320 an ounce as buyers cashed in gains from the biggest two-day rally in the metal since late 2008 made last week.