Sensex ends nearly 400 points higher

Market rally image via Shutterstock
Benchmark indices closed the day with nearly 1.5% of gains, amid firm global cues, helped by the strong buying in metal, financials and auto stocks among others. The second straigth day of gains comes on back of positive US jobs data, goverment's softening stance on the MAT issue and easing of crude oil prices.

Provisionally, the 30-share Sensex ended up 393 points at 27,499 and the 50-share Nifty closed up 133 points at 8,324.

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(updated at 3:30PM)

Benchmark indices have extended gains and are trading near day’s high led by strong rally among metal, auto and financial shares.

At 15:15pm, the Sensex was at 27,521, higher by 416 points or 0.7% and the Nifty was at 8,328, up 136 points.

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Updated at 14:35 PM

Benchmark indices continue to hold on to their gains, tracking firm global cues,  with metal, auto and financial shares witnessing significant buying.

A rate cut by China and uplifting US jobs data has kept the momentum going for the markets. The government's decision to ease its combative stance on MAT demand along with a decline in global crude oil prices and hopes of a rate cut by Reserve Bank of India have further boosted investor sentiment.

At 14:35pm, the Sensex was at 27,417, higher by 312 points or 0.7% and the Nifty was at 8,294, up 103 points.

Further, the broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices are up 1-2% each. The market breadth is strong, with 1,692 advances and 907 declines.

On the macro-economic front, data on inflation based on consumer price index (CPI) for April will be unveiled on Tuesday. On the same day, industrial production (IIP) data for March will also be released.

Moreover, wholesale price index (WPI) data for April will be announced on Thursday.

Ashok Leyland, Dr Reddy's, Lupin, Cadila Healthcare and JSW Steel will announce their results this week.

RUPEE

Tracking the smart rally in local equities in noon deals, the rupee appreciated further by 16 paise to quote at 63.89 against the American unit at 1423 hours.

Sustained dollar selling by exporters and some banks, too, had a positive impact on the rupee, a forex dealer said.

SECTORS & STOCKS

BSE Metal index has surged by 3% followed by counters like Auto, Banks, Healthcare, Realty, Capital Goods and Consumer Durables, all gaining by 2% each. Barring FMCG, all the major BSE sectoral indices are trading in positive zone.

Metal and mining stocks gained after China cut interest rates for the third time in six months on Sunday, 10 May 2015 to stimulate growth. China is the world's largest consumer of steel, copper and aluminum.

Vedanta, Hindalco, Tata Steel and Coal India have gained 2-6% each.

Financial shares are also leading the gains in today’s session on hopes of a rate cut by Reserve Bank of India as retail inflation is expected to remain below 6% i.e. within the comfort zone of the central bank. SBI, HDFC, Axis Bank and ICICI Bank have gained 2-5% each.

Mortgage lender Housing Development Finance Corporation (HDFC) has emerged as the only Indian company among the world's 10 biggest consumer financial services firms, after giants like American Express, Visa and Mastercard.

State-owned lenders remain dominant players in India's banking system with SBI group alone accounting for about a quarter of the market share both in the credits as well as the deposits arena.

Public sector banks (PSBs) had 73.25 and 73.9% market share in credits and deposits respectively as of end March 2014, as per the latest report by the Reserve Bank.

From the autos space, Hero Moto, Tata Motors, Bajaj Auto and M&M have gained between 1-4%.

Domestic passenger car sales grew 18.14% to 1,59,548 units in April this year compared with 1,35,054 in the same month of 2014.

According to the data released by the Society of Indian Automobile Manufacturers (SIAM), motorcycle sales last month were down 2.77% at 8,81,751 units from 9,06,909 in the same month of the previous year.

Other notable gainers are Sun Pharma, Cipla, BHEL, L&T and NTPC.

On the losing side, FMCG major HUL has slipped by over 3%. ITC is down nearly 1%.

Among other shares, Hyderabad-based infrastructure major, IVRCL Limited, has bagged an EPC (execution, procurement and construction) project valued at Rs 3,624 crore from the ministry of interior, Saudi Arabia.

Banking shares, mainly public sector undertakings (PSU), are trading higher with the CNX PSU Bank index surging by nearly 5% on the National Stock Exchange (NSE).

State Bank of India (SBI), Bank of India (BOI), Oriental Bank of Commerce (OBC) and Union Bank of India have gained 4% each, while Canara Bank, IDBI Bank, Indian Overseas Bank (IOB) and Allahabad Bank are up 3% each on the NSE.

Bank of Baroda (BOB), the largest gainer in the PSU banks pack, soared 14% to Rs 165 on the NSE, after the state-owned bank said that the bank's assets quality improved during the quarter ended March 2015 on a sequential basis.

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