Sensex gains 100 pts, Nifty ends at 8047; auto, banks aid

Moneycontrol Bureau

03:30 pm  Market close: After a lot of struggle, a late surge helped market to end with some smart gains. The Sensex ended up 99.96 points or 0.4 percent at 26686.51, and the Nifty was up 33.40 points or 0.4 percent at 8047.30. About 1289 shares have advanced, 1336 shares declined, and 176 shares are unchanged.

Bajaj Auto, Tata Power, SBI, HUL and NTPC were lead gainers while Vedanta, Dr Reddy's, Tata Steel, HDFC and GAIL were laggards.

03:13 pm Market check: The Sensex is up 117.28 points or 0.4 percent at 26703.83, and the Nifty is up 37.80 points or 0.5 percent at 8051.70. About 1193 shares have advanced, 1378 shares declined, and 162 shares are unchanged.

Tata Power, Bajaj Auto, Hero MotoCorp, NTPC and SBI are top gainers in the Sensex. Among the losers are Vedanta, HDFC, Dr Reddy''s Labs, BHEL and Tata Steel.

03:10 pm Market outlook: Technical analyst, Shubham Agarwal of Motilal Oswal Securities says, "If you look at the overall development on Nifty, on the larger scale we believe that Nifty is placed at a make or break point where we are expecting a fierce move up beyond 1,000 point to happen and this breakout should take place in a very less span of time. So, we see maximum 15-20 days of more consolidation."

02:50pm Market recovers: The Sensex declined 29.60 points to 26556.95 and the Nifty fell 5.80 points to 8008.10. About 1009 shares have advanced, 1517 shares declined, and 167 shares are unchanged on the BSE.

Banks gained strength in last hour of trade with the SBI rising 1 percent. ICICI Bank and HDFC Bank rebounded with marginal gains. ITC and L&T also recovered. 

02:40pm Trade data: India's trade deficit narrowed to a three-month low in May, helped by lower gold imports, bolstering the outlook for its current account balance.

But in a worrying sign, weak global demand as well as persistent domestic bottlenecks led to a sixth straight annual fall in merchandise exports. Exports account for about a fifth of India's USD 2 trillion economy.

The trade deficit shrank to USD 10.41 billion last month, its lowest since February, from USD 10.99 billion in April, data released by the trade ministry showed on Tuesday.

The data comes days after India's current account deficit, the broadest measure of its trade with the rest of the world, narrowed to a one-year-low of 0.2 percent of gross domestic product in the January-March quarter.

02:25pm Interview: Unity Infra has joined hands with Deepak Fertilizers to build an agriculture produce market committee (APMC) on a 90 acre land in Kalyan, Mumbai.

The financing will be divided as 75 percent debt, which is about Rs 320 crore, and 25 percent from equity, Unity Infra COO Nilesh Jamdar told CNBC-TV18. In January 2015 the company had received a corporate debt restructuring (CDR) approval to aid cash flow.

The company has got a lease of 35 years for the land from Maharashtra State Agriculture Marketing Board. 

Jamdar said that the company will hold 60 percent stake in the special purpose utility (SPV) whereas Deepak Fertilizer will have 40 percent share. He is anticipating 9000 metric tonne of fruits and vegetables to be handled at APMC on daily basis. Sixty percent of the state-of-the-art terminal market will be utilised for payable facilities like cold storage, warehouse while the rest will be used for commercial activities, he said. The company is expecting a 22 percent internal rate of return from the project, he said adding they are also looking to expand the business in overseas market.

02:00pm Market Check

The market continued to reel under selling pressure, dented by private banking & financials, capital goods, oil, auto and metals stocks. The Sensex declined 162.10 points to 26424.45 and the Nifty fell 48.30 points to 7965.60.

The BSE Midcap and Smallcap indices dropped 0.5 percent each. The market breadth remained weak as nearly two shares declined for every share advancing on the Bombay Stock Exchange.

HDFC and Vedanta extended losses, down 2.5 percent followed by Axis Bank, Dr Reddy's Labs, BHEL and Tata Steel with 1.4-1.8 percent loss. Reliance Industries, ICICI Bank, HDFC Bank, L&T, ITC and Tata Motors slipped more than 0.5 percent. However, Tata Power bucked the trend, up 1.5 percent.

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