Sensex Surges 518 Points on Rate Cut Hopes

The Sensex surged 518 point to close at 28,519 and Nifty rallied 163 points to shut shop at 8,518 after the wholesale inflation fell to its lowest level in nearly 10 years and rupee recovered from two year lows after Chinese currency traded on a firmer note today.

Meanwhile, lower consumer and wholesale prices have bolstered a case for the Reserve Bank of India to cut rates, boosting sentiment on Dalal Street.

Buying was visible across the board. Gains on the benchmark indices were led by banking shares. The Bank Nifty advanced 3 per cent and the PSU bank index rallied 4.6 per cent. 

Realty index soared 7.6 per cent; Realty giant DLF ended 18.3 per cent higher at Rs 134.90 after it reported better-than-expected first quarter numbers.

HDIL, Oberoi Realty, Unitech, Indiabulls Real Estate and Prestige Estates were also among the gainers from the real estate space.

Auto, metal, healthcare and power indices also jumped 1.3-2 per cent each.

The broader markets also ended with a positive bias. The BSE mid-cap index advanced 2.4 per cent and small-cap index rose 1.7 per cent.

From the Nifty-50 basket of stocks, 47 stocks advanced while only three stocks declined.

Punjab National Bank, Zee Entertainment, Yes Bank, Bank of Baroda, Kotak Mahindra Bank, ICICI Bank, State Bank of India, Reliance Industries and HDFC were among the gainers, up 3.4-8.7 per cent each.

The overall breadth was positive as 1,791 stocks advanced while 1,054 stocks declined.

3:30 p.m.: Sensex ends 502 points higher to provisionally close at 28,051 and Nifty surged 164 points to end at 8,520.

3:25 p.m.: Banking shares surge, Bank Nifty advances 3.2 per cent and PSU Bank share index soars 4.76 per cent.

3:16 p.m.: Prashasta Seth of IIFL AMC told NDTV that one can buy metal stocks from an investment perspective of two-three years as lot of these counters are trading at very cheap valuations. However, Mr Seth adds that one should go for companies which have reasonable amount of balance sheet strength and avoid companies with highly leveraged balance sheets.

2:43 p.m.: SAIL Q1 loss at Rs 322 crore against estimate of Rs 62.6 crore. Stock falls 1.3 per cent to Rs 55.

2:20 p.m.: Unitech, Jindal Steel, Suzlon Energy, DLF, HDIL, J P Associates and Adani Ports were among the most actively traded stocks on the NSE.

2:15 p.m.: Punjab National Bank was the top Nifty gainer, up 7.85 per cent at Rs 164.85. Bank of Baroda, Yes Bank, Reliance Industries, Hindalco, Vedanta and IndusInd Bank were also up 3.6-5 per cent each.

2:05 p.m.: Nifty 8,400 put option was the most active options contract on the National Stock Exchange. The premium on the contract slumped 63 per cent to Rs 42.90. 1.7 million shares were added to the open interest.

1:30 p.m.: Realty index surges 6 per cent; DLF zooms 14 per cent to Rs 130. HDIL, Oberoi Realty, Indiabulls Real Estate and Unitech also advanced 5-10 per cent each.

1:26 p.m.: BPCL Q1 net profit at Rs 2,376 crore against estimate of Rs 1,570 crore. Stock jumps 1 per cent to Rs 894.

1:02 p.m.: The Sensex surged 480 points to 28,030 and Nifty zoomed 154 points to 8,509 as wholesale inflation fell to multi-year low levels. 

12:40 p.m.: The Sensex jumped 414 points to 27,963 and Nifty 145 points to revisit 8,500 levels. Sentiment on the Street was further boosted after the wholesale inflation fell to 4.05 per cent in the month of July.

12:30 p.m.: Bank Nifty was up 1.7 per cent; Bank of India, Punjab National Bank, Canara Bank, Yes Bank, IndusInd Bank, Bank of Baroda, Kotak Mahindra Bank and ICIC Bank were among the gainers, up 2.2-4.4 per cent each.

12:24 p.m.: ICRA shares fell over 7 per cent on Friday as the domestic rating agency reported weak earnings for the June quarter. ICRA's consolidated net profit declined 24 per cent year-on-year to Rs 16.5 crore in the June quarter because of higher tax expenses and exceptional items.

12:11 p.m.: Jindal Steel and Power shares rebounded after falling 9 per cent in morning deals. The stock was up 0.5 per cent at Rs 68.80.

12:06 p.m.: July WPI inflation falls to 4.05 per cent compared to 2.4 per cent durin June.

12:00 p.m.: Overall breadth was extremely positive as 1,564 stocks were advancing while 852 were declining.

11:53 a.m.: Shares of DLF rose as much as 8.5 per cent on Friday after the real estate developer reported strong sales growth in its June quarter. DLF reported a 29 per cent jump in its sales to Rs 2,231 crore for the quarter ended June 30.

DLF reported its quarterly earnings after market hours on Thursday.

11:42 a.m.: Nifty has support at 8,300 and resistance at 8,670 levels, says Anil Manghnani of Modern Shares and Stock Brokers.

11:41 a.m.: RIL is looking strong on charts and next leg of rally would be led by RIL, says Anil Manghnani of Modern Shares and Stock Brokers.

11:39 a.m.: Anil Manghnani of Modern Shares and Stock Brokers told NDTV that Nifty has important support around 8,300 levels. If Nifty falls below 8,300 then only markets could see sharp cuts.

11:32 a.m.: BSE mid-cap index surged nearly 2 per cent; Glenmark, JSW Energy, Shriram Transport Finance, GMR Infra, Indiabulls Housing Finance and Canara Bank advanced 4-6 per cent each from this space.

11:28 a.m.: BSE Realty index surged 4.2 per cent; DLF was the top gainer from this space. Its shares surges 9 per cent to Rs 124.30. HDIL, Indiabulls Real Estate, NBCC, Prestige Estates, D B Realty and Oberoi Realty also advanced 2-6 per cent each. 

11:25 a.m.: Idea Cellular was the top Nifty gainer, the stock advanced 2.72 per cent to Rs 163. Sun Pharma, Bank of Baroda, Vedanta, IndusInd Bank, Punjab National Bank, Bajaj Auto and Asian Paints were among the gainers on the Sensex.

11:10 a.m.: The Sensex rallied 400 points to 27,942 and Nifty surged 125 points to 8,480 on the back of broad-based buying.

Buying was visible across the sectors. Realty index was the top sectoral gainer, up 4 per cent. Healthcare, auto, power and capital goods indices also advanced over 1 per cent each.

From the Nifty-50 basket of stocks, 45 were advancing while 5 were declining.

11:04 a.m.: Nomura has maintained buy on Indian Oil for target of Rs 515. It says IOC reported an even stronger 1Q than HPCL. IOC is their preferred OMC, recent correction provides an opportunity to accumulate the stock. (Click here for more brokerage calls)

10:35 a.m.: Shares of Jubilant FoodWorks fell 4.2 per cent to hit intraday low of Rs 1,694; company on Thursday reported that its net profit came in at Rs 29.46 crore against Rs 27.72 crore during the same quarter last year. The same store sales grew lower-than-expected. (Read)

10.11 a.m.: Jindal Steel and Power shares, already under pressure because of fears of slowdown in China, fell another 9 per cent today. The trigger for the latest selloff is MSCI's announcement that the stock will no longer be a part of its India index with effect from August 31, 2015. (Read full story here)

9:55 a.m.: NBCC jumps 5 per cent to Rs 1048 after company reported better than expected first quarter numbers. Its net profit came in at Rs 44 crore compared to Rs 33.5 core (YoY).

9:51 a.m.: DLF shares jump 5 per cent to hit intraday high of Rs 199.90; company on Thursday said that its net profit jumped to Rs 122 crore compared to Rs 128 crore during the same quarter last year. Its sales came in 2,231 crore compared to Rs 1,725.17 crore (YoY).

9:43 a.m.: Select FMCG stocks were witnessing selling pressure. The BSE FMCG index slipped 0.25 per cent; Hindustan Uniliver, ITC and Nestle India were among the laggards.

9:40 a.m.: Overall breadth was positive as 1,015 stocks were advancing while 639 were declining.

9:35 a.m.: Piyush Jain of Morningstar India told NDTV that with low demand for steel and excess capacity across the globe, margins of steel producers are falling. Mr Jain adds with the earnings not expected to improve immediately one should avoid investing in metal stocks.

9:30 a.m.: From the mid-cap space, Glenmark, Indiabulls Housing Finance, Wockhardt Pharma, Canara Bank, Bank of India, GMR Infra, Motherson Sumi and Aurobindo Pharma were among the gainers from the mid-cap space, up 1.-7 per cent each.  

9:25 a.m.: From the Nifty-50 basket of stocks, 34 stocks were advancing while 16 were declining.

Sun Pharma, Cipla, Idea Cellular, Bharti Airtel, Asian Paints, Bank of Baroda and Lupin were among the gainers from the Nifty. While, Cairm India, NMDC, GAIL India, Vedanta, Tech Mahindra and Tata Steel were among the losers.

9:20 a.m.: The Sensex advanced 150 points to 27,700 and Nifty jumped 44 points to 8,400 levels on the back of buying visible across the sectors.

Pharma, realty, IT, banking and auto stocks were witnessing buying interest. While, selling was visible in metal and oil & gas stocks.

The broader markets opened higher. The BSE mid-cap and small-cap indices jumped 0.45 per cent each.

9:14 a.m.: Market expert Ambareesh Baliga says that there is not much to cheer about macro numbers and given washout of monsoon session the markets may move lower and in the near term Nifty can move down to 8,000 and that will be a good opportunity to buy.

9:08 a.m.: The Sensex advanced 118 points to 27,668 and Nifty jumps 47 points to 8,403 in the pre-market session. 

9:00 a.m.: Rupee opens lower at 65.25/dollar against Thursday's close of 65.10.

8:30 a.m.: Here's what the Street expects from companies declaring their Q1 numbers today:

Cipla: Cipla is expected to report net sales of Rs 3,350 crore compared to Rs 2,647 crore last year. Its net profit is likely to come in at Rs 459 crore against Rs 294 crore during the same period last year. Analysts expect better traction in export and India businesses and its export formulation business is expected to grow 28 per cent.

Hindalco: Hindalco is likely to post sales of Rs 8,968.5 crore against Rs 9,219 crore during the previous quarter. Net profit is expected at Rs 155 crore against Rs 159 crore( QoQ). Analysts expect aluminium sales volumes to rise by 31 per cent YoY and its copper volumes would be marginally higher YoY at 95,000 tonnes.

BPCL: BPCL is expected to report sales of Rs 55,750 crore compared to Rs 66,749 crore (YoY). Its PAT is expected to come in at Rs 1,598 crore against Rs 1,216 crore (YoY).

Higher gross refining margins (GRMs) will drive results and its overall profitability will be a function of subsidy sharing.

Q1FY16 gross under-recoveries have declined 68 per cent YoY.

8:15 a.m.: Below are the stocks which will be in focus today:

DLF: DLF reported sluggish sales in the first quarter of FY16. Its net sales jumped to Rs 2,231 crore from Rs 1,725 crore during the same quarter last year. The company's net profit came in at Rs 122 crore against Rs 111 crore (YoY). DLF's net debt increased by Rs 600 crore to Rs 21,600 crore. 

Ashoka Buildcon: The company has bagged order worth Rs 789 crore. 

Tata Motors: July JLR retail sales fell 3 per cent to 33,239 (YoY)

PC Jeweleers: Board has approved increase in FII Investment limit to 49 per cent from 24 per cent.

Tata Steel: Tata Steel shareholders have cleared proposal to raise Rs 10,000 crore.
 
GVK Power: GVK is likely to raise Rs 400 crore for the airport vertical.

Natco Pharma: FIPB has given nod to Natco's Rs 450 crore QIP.

8:00 a.m.: The foreign institutional investors sold shares worth Rs 625 crore on Thursday while the domestic institutional investors purchased shares worth Rs 545 crore. 

In the derivative segment, the FIIs sold index futures worth Rs 236 crore.

In the last three trading sessions, FIIs have sold shares worth Rs 3,050 crore.

7:50 a.m.: The Sensex and Nifty are likely to edge higher in trades today tracking gains on the Nifty traded on the Singapore Stock Exchange. The Nifty futures traded on the Singapore Exchange also known as the SGX Nifty was up 0.29 per cent or 24 points at 8,427.

Meanwhile, the Asian markets were trading on a mixed note. The Hang Seng advanced 0.25 per cent and Shanghai Composite was up 0.7 per cent. While, Nikkei and Taiwan Weighted slipped 0.1 per cent each.

Overnight, the US stocks ended marginally lower after U.S. retail sales rebounded in July as households boosted purchases of automobiles and a range of other goods, suggesting the economy was growing solidly early in the third quarter and bolstering the case for a Federal Reserve interest rate hike.

The Nasdaq fell 0.2 per cent, S&P 500 slipped 0.13 per cent and the Dow Jones ended flat at 17,408.