Sensex, Nifty gain over 1%; bank, infra & auto lead

3:50 pm Update:  State-run oil companies have received around USD14 billion through the special dollar swap window provided by the central bank since late August, an official familiar with the details said on Thursday, reports Reuters.

The state-run oil companies will need to pay back those dollars to the Reserve Bank of India (RBI) once the swaps mature between February and April of next year.

The maturity dates were picked on expectations the US Federal Reserve would have started its tapering either at the end of the year or early in 2014, the source added.

3:40 pm Market closing: The market snapped a 7-day losing streak as bank stocks lead the way. The Sensex added 205.02 points or 1.02 percent to end at 20399.42. The Nifty closed at at 6056.15, up 66.55 points.

About 1404 shares have advanced, 1058 shares declined, and 152 shares are unchanged.

The rupee also gained strength against the dollar.

Bank, auto, capital goods and realty stocks lend supoort to the market, while IT stocks were laggards.  Both Tata Motors and Tata Steel gained 5 percent each while ICICI Bank and M&M added around 4 percent each.

Coal India remained under selling pressure with a loss of 4 percent. Cipla, Sun Pharma, TCS and GAIL were other top losers in the Sensex.

3:30 pm Market outlook: Deven Choksey, MD of KR Choksey Securities says 6000-6300-6350 is the trading range for the Nifty and anything closer to the support buying level would be inviting the attention of people to go long.

"Maybe expectations were low and there was the effect of rupee deprecation coming through this time in full measure, but by and large, we had an excellent earnings season, something that has not been witnessed for the last several quarters," says Dipan Mehta, Member, BSE & NSE.

This in turn has led to upbeat investor sentiment and several new investment ideas and themes are being pursued now, Mehta adds.

3:20 pm Boardroom: Uday Baldota, Senior Vice President-Finance & Accounts of Sun Pharna cautioned that the jump in operating margin to 44 percent seen during the quarter may not be sustained.

"There are some high margin products that we have been selling in US on account of either shortage or approvals that we have received," Baldota said in an interview to CNBC-TV18.

"Also the exchange rate the movement that it has shown, it has benefited us. So, all of these factors together contributed to relatively high margins that we are showing at the moment compared to our historical trend where our EBITDA used to close to 30 percent," he said.

Upmove in the market continues in the last trading hour session. The Sensex is up 227.72 points or 1.13 percent at 20422.12, and the Nifty up 69.55 points or 1.16 percent at 6059.15.  About 1350 shares have advanced, 1016 shares declined, and 142 shares are unchanged.

October wholesale prices inflation hit 7 percent as expected while August inflation data was revised sharply higher to 6.99 percent from 6.10 earlier. Core inflation in October rose to 2.6 percent from 2.1 percent in September.

Auto major Tata Motors' global sales of vehicles declined by 11.70 per cent to 88,881 units in October, compared to the year-ago period.

The company had sold 1,00,660 units in the corresponding period of 2012. However, global sales of all passenger vehicles in October stood at 50,814 units, up 3.1 per cent, from 49,264 in October 2012, Tata Motors said in a statement.

02:50pm Cox & Kings Boardroom
Peter Kerkar, Director, Cox & Kings is confident of maintaining the current improved and high level of margins the travel company managed in its second quarter earnings. Cox & Kings impressed the street with the second quarter consolidated net profit growing by a whopping 79 percent year-on-year to Rs 264 crore on forex gain.

Going forward as well, Kerkar expects to continue with similar level of forex gains if the rupee continues to hover at the current levels.

02:40pm Tata Power gains 1%
Tata group-owned Tata Power missed analysts' expectations with the second quarter consolidated net profit reporting at Rs 75 crore as against CNBC-TV18 poll of Rs 123 crore, impacted by widened forex loss.

It had reported a loss of Rs 83.8 crore in a year ago period.

Forex loss of the power company increased to Rs 354.5 crore in the quarter gone by from Rs 31.6 crore in a year ago period while there was no provision for impairment during September quarter as against Rs 250 crore in corresponding quarter of last fiscal.

02:10pm Market Update
The market maintained its strong momentum in afternoon trade, led by sharp upmove in banks, capital goods and auto stocks.

The Sensex is up 243.99 points or 1.21 percent at 20438.39, and the Nifty is up 75.50 points or 1.26 percent at 6065.10. Advancing shares outnumbered declining ones by a ratio of 1366 to 986 on the BSE.

2:00 pm Result: Travel company Cox & Kings impressed the street with the second quarter consolidated net profit growing by a whopping 79 percent year-on-year to Rs 264 crore on forex gain.

Consolidated net sales rose 19 percent on a yearly basis to Rs 819 crore in three-month period ended September 2013.

"We have benefitted from strong resurgence in UK & Irish Markets," Director Peter Kerkar said.

1:50 pm Gold update: Gold demand fell 21 percent in the third quarter as outflows from physical bullion funds and a drop in buying from major consumer India offset firmer jewellery, coin and bar sales, an industry report showed.

Gold consumption fell to 868.5 tonnes in the last quarter, a four-year low, from 1,101.4 tonnes in the same period of the previous year, according to the World Gold Council's latest Gold Demand Trends report, prepared in association with Thomson Reuters GFMS.

1:40 pm Rupee outlook: Dominic Bunning, Associate - FX Strategy, HSBC pegs near-term target for rupee at 64/USD, which he says is a psychological level that will offer resistance on the way up.

"We still think that the dollar will continue to broadly strengthen over the current months versus the majority of emerging market currencies  and it will be very difficult still for the likes of the Indian rupee to post any meaningful gains," says Bunning in an interview to CNBC-TV18.

1:30 pm Result: Mumbai-based real estate developer Housing Development and Infrastructure's ( HDIL ) second quarter consolidated net profit fell 69.4 percent year-on-year (up 163.8 percent sequentially) to Rs 43 crore on higher expenses and finance cost.

Total expenses for the quarter stood at Rs 186.63 crore as against negative expenses of Rs 38.75 crore in Q2 and Rs 52.05 crore in a year ago period.

Projects specific finance cost jumped 20.2 percent Y-o-Y (up 11.4 percent Q-o-Q) to Rs 155.63 crore in the quarter gone by.

The market ends seven days of slide. Bank Nifty propels the market today with key private sector banks like Axis Bank , ICICI and IndusInd Bank leading from the front.

The Sensex is up 265.39 points or 1.31 percent at 20459.79, and the Nifty up 79.35 points or 1.32 percent at 6068.95. About 1308 shares have advanced, 855 shares declined, and 122 shares are unchanged.

October wholesale prices inflation hit 7 percent as expected while August inflation data was revised sharply higher to 6.99 percent from 6.10 earlier. Core inflation in October rose to 2.6 percent from 2.1 percent in September.

Rupee gives up some gains post the WPI data. Dealers say foreign banks are on the sell side now as the dollar index has weakened and equities are also up.

01:00pm Market update
The market erased some morning gains on profit booking. The Sensex is up 273.04 points or 1.35 percent at 20467.44, and the Nifty is up 83.45 points or 1.39 percent at 6073.05.

12:50pm Suven Life Boardroom
Suven Life Sciences reported a 600 percent rise in profitability year-on-year in the second quarter ended September 2013. However, Venkat Jasti, CEO of the company does not expect the second half of this fiscal year to be as robust as the first half.

He says the first half saw additional revenue of Rs 100 crore on the back of the company supplying intermediates to innovators, which have finished phase three and are in the launch mode. Though he expects to see revenue growth of 35-40 percent and net profit margin close to 25 percent, which is at 28.6 percent now, in H2.

The company plans to spend around Rs 60-65 crore on R&D next year. It also plans to raise funds in the first half of FY15 for SUVN-502, which will be entering phase 2a for which the company needs to spend about USD 20 million next year.

12:43pm Tata Motors rallies
Tata Motors gained 5 percent in afternoon trade on consistent growth in Jaguar Land Rover monthly sales numbers.

Group global wholesales rose 1.8 percent month-on-month to 88,881 units and JLR wholesales increased 0.8 percent M-o-M to 36,157 units during October.

12:27pm The 30-share BSE benchmark continued to hold a 300-point rally in noon trade despite inflation for October increased to 7 percent (in-line) from 6.46 percent in September.

Core inflation, too, rose to 2.6 percent from 2.1 percent during the same period.

The market is unmoved by higher inflation because it may have already discounted. The Sensex is up 314.71 points or 1.56 percent at 20509.11, and the Nifty is up 93.90 points or 1.57 percent at 6083.50.

At a time when most analysts are betting on a March tapering, Arvind Sanger of Geosphere Capital Management said he perceives Fed to begin the process in December. Sanger said a taper in January or March will cause short-term volatility.

Unlike other experts, Sanger believes a strong data from US economy will be beneficial to domestic and emerging markets. He sees Nifty scaling above the record highs of 6350 and believes a new government will be a big positive for equities, which seem to favour a BJP led rule. He forsees next leg of market rally to come from domestic sectors.

Shares of Tata Steel jumped around 2.6 percent after second quarter earnings. The world's sixth largest steel maker's second quarter (July-September) consolidated net profit stood at Rs 917 crore as against loss of Rs 364 crore in a year ago period, driven by steady ramp-up of Indian operations and improved performance of European and South East Asian operations and tax write back.

11:50 am FII view: Arvind Sanger of Geosphere Capital Management sees Nifty scaling above the record highs of 6350 and believes a new government will be a big positive for equities, which seem to favour a BJP led rule. He forsees next leg of market rally to come from domestic sectors.

Unlike other experts, he believes a strong data from US economy will be beneficial to domestic and emerging markets.

11:40 am Boardroom: State Bank of India chairperson Arundhati Bhattacharya says good monsoon will help reduce NPAs in the agriculture sector, and stresses the bank was doing its best to keep slippages.

The government-owned bank's fresh slippages declined to Rs 8365 crore from Rs 13,766 crore quarter-on-quarter. But restructured loans rose sharply to Rs 8585 crore and recovery of bad loans fell to Rs 1414 crore, compared to Rs 4064 crore the previous year.

Bhattacharya adds she would not resort to 'kitchen sinking', term being described by analysts to purge the book of bad loans at loan.

11:30 am Buzzer: Jai Prakash Associates surges 5 percent ahead of its second quarter results today despite subdued expectations from the company this quarter. CNBC TV18 poll expects a 2-2.5 percent increase in sales to Rs 3050 crore and a 87 percent decline in profits to Rs 16.8 crore.

Equity benchmarks are on strong wicket today with the Nifty hitting 6100 level and the Sensex gaining 370 points after seeing a 5 percent loss in last seven sessions.

The Sensex is up 367.07 points or 1.82 percent at 20561.47, and the Nifty is up 110.50 points or 1.84 percent at 6100.10. More than two shares advanced for every share declining on the BSE.

Both Tata Motors and ICICI Bank are up 4 percent each.  L&T, Bharti Airtel and Hero Motocorp are other major gainers in the Sensex.

Coal India is still under pressure with a loss of over 2 percent. Cipla , TCS and Sun Pharma drag.

Rupee strengthened for the second day after the dollar weakened to sub 81 levels and post RBI Governor's comments yesterday. All eyes are on the wholesale price index data expected today. Dealers say foreign banks are on the sell side now as the dollar index has weakened and equities are also up.

Indian bond prices rose on short covering and tracking the strength in the rupee against the US dollar. Post market hours yesterday, RBI said it will buy up to Rs 8000 crore via auctions.

Asian markets gain ground. Japan surged over a 1 percent as the third quarter gross domestic product at 1.9 percent beats estimates.

10:50 am Stock view: Gopi Suvanam, Founder of InvestWorks told CNBC-TV18, " Cipla is trading at a slightly lower premium, so I would go for those stocks. If you look at Dr Reddys, although it is trading at slightly higher premium compared to other stocks, I think there is still some more way to go."

"There are some stocks that are trading at 34 P/E as well. So I don't think P/E should be a constraint at the moment. Sun Pharmaceuticals is still a good buy but there are other stocks like Cipla which are better buys, he added.

10:40 am Boardroom: Buckled under heavy subsidy burden, Oil and Natural Gas Corp on Wednesday reported modest profit growth in the second quarter. In an interview to CNBC-TV18, ONGC chaiman Sudhir Vasudeva said going forward gross realisations would depend on oil prices and subsidy burden although the latter is expected to show a year-on-year decline in FY14.

Vasudeva had said yesterday that realisations (earnings per barrel) were much less than what is needed to maintain production and indicated that if the current situation continues, the company may have to draw down reserves.

10:30 am Rupee check: The rupee gained past 63 per dollar on after comments from the Reserve Bank of India chief about dollar demand from oil companies being smoothly absorbed by the forex market and easing fears of near-term tapering by the US Federal Reserve helped the currency.

The rupee rose to 62.9525 to a dollar versus its Wednesday close of 63.30.

10:20 am FII view: Jyotivardhan Jaipuria of Bank of America Merrill Lynch feels in the second quarter, FIIs were overweight on financials. "They upped underweight on staples and lowered underweight on utilities. They also lowered overweight on autos," he adds. Key stocks bought by the FIIs include Infosys , Wipro , TCS , HCL Technologies . On the other hand key stocks sold include HUL , ICICI Bank , Yes Bank , HDFC Bank and SBI .

Mahesh Nandurkar of CLSA says while the long-term outlook is slowly improving, near-term pressures cannot be ignored. Over the last five trading sessions, the market is down 4 percent since the peak and more near-term pressure is likely. "After the smart beginning, the results season has turned out to be inline or disappointing except autos and IT. Of the others, 40 percent companies have disappointed and 27 percent seen earnings downgrade.  We are overweight on IT and underweight on staples and financials"he said.

After correction seen this week, the market has managed to hold firm. The Sensex is up 287.84 points or 1.43 percent at 20482.24. The Nifty is up 87.40 points or 1.46 percent at 6077.00.  About 891 shares have advanced, 268 shares declined, and 37 shares are unchanged.

Tata Motors , ICICI Bank, L&T, Bharti Airtel and Hero Motocorp are top gainers in the Sensex.

Coal India is reacting negtaively (down over 2 percent) as it reported a marginal drop in consolidated net profit at Rs 3,052.36 crore for the July-September quarter as expenses rose. The world's largest coal miner posted a profit of Rs 3,078.08 crore in the second quarter a year earlier.

Net sales rose 5.75 percent to Rs 15,411.49 crore from  Rs 14,572.54 crore.

Among other laggards in the Sensex are Cipla, TCS and Sun Pharma .

10:00am Market Update
The market extended gains in morning trade as the Sensex is up 308.48 points or 1.53 percent at 20502.88, and the Nifty is up 92.90 points or 1.55 percent at 6082.50.

About three shares advanced for every share declining on the BSE.

Axis Bank is the leader among Nifty 50 gainers, rallying nearly 6 percent followed by ICICI Bank and IndusInd Bank with 3.7 percent gains.

However, Coal India plunged 2.5 percent post second quarter earnings. Consolidated net profit of the state-run coal mining company fell marginally to Rs 3,052.36 crore for the July-September quarter from Rs 3,078.08 crore in a year ago period, impacted by higher expenses.

9:55am Rate sensitives on fire
BSE Bankex and Capital Goods indices gained 2.6 percent each followed by Realty with 2 percent upmove on short covering.

Rate hike fears after rise in CPI inflation and uncertainty over Fed tapering spooked the market in last seven sessions. WPI inflation for October will be announced today, which is expected to be around 7 percent compared to 6.46 percent in September, according to a CNBC-TV18 poll.

9:46am Tata Motors on buyers' radar
Tata Motors is the biggest gainer in the Sensex with 4 percent upmove on short covering and value buying, continuing recovery for the second consecutive session today.

Shares lost more than 6 percent in first two sessions of the current week as brokerage houses like CLSA and Nomura downgraded the stock after second quarter earnings.

9:36am Tata Steel shines
Shares of Tata Steel gained more than 2.5 percent on better-than-expected performance during September quarter. It reported second quarter (July-September) consolidated net profit at Rs 917 crore as against loss of Rs 364 crore in a year ago period, driven by steady ramp-up of Indian operations and improved performance of European and South East Asian operations and tax write back.

Consolidated net sales grew 7.4 percent year-on-year to Rs 36,369 crore in three-month period ended September 2013.

According to a CNBC-TV18 poll, analysts had expected the steel maker to report net profit of Rs 339 crore on revenues of Rs 34,904 crore for the quarter.

9:15am The Sensex rallied rallied more than 250 points in early trade on Thursday, snapping seven-day losing streak on positive global cues and short covering.

The Sensex is up 265.43 points or 1.31 percent at 20459.83, and the Nifty is up 78.95 points or 1.32 percent at 6068.55.

Nandan Chakraborty of Axis Capital remains optimistic about the market situation despite steep cuts seen post Diwali. He advises investors to stay with defensive sectors like IT and Pharma and prefers export related rural themes for the short term.

He sees 15 percent returns from market if rupee stabilises and sees unique business models in media and beverages to outperform in long term.

ICICI Bank, Tata Motors, HDFC , SBI and ONGC are the major gainers in the Sensex, rising 2-3 percent while the laggards are only Coal India, ITC , HUL and Cipla .

Meanwhile, Indian rupee gained 16 paise in early trade today at 63.14 per dollar as against previous day's closing of 63.30 per dollar.

Pramit Brahmbhatt, CEO of Alpari India feels RBI Governor's recent comments on CAD and its intervention in the market to aid rupee might help strengthen the currency. "However, a weak equity, strong dollar in the international market and high dollar demand by OMCs, FII and other importers will keep the rupee under pressure," he adds.

On the global front, Asian markets gained between 0.5-1 percent as investors cheered stimulus-supportive remarks from Federal Reserve Vice Chairman Janet Yellen, released after the close of US markets.