Sensex up over 100 points; SBI, PNB surge 4%

PSU banks were the top gainers on capital infusion plans by the government and rate cut hopes

Benchmark share indices continued to trade firm with state-owned banks leading the gains after the government proposed capital infusion to the tune of nearly Rs 20,000 crore in the next two months to boost their capital base. Further, hopes of a rate cut by the cental bank at its policy meet tomorrow also boosted sentiment.

At 11:45AM, the Sensex was up 113 points at 28,227 and Nifty was up 29 points at 8,562.

The broader market outperformed the benchmark indices, the BSE Mid-cap and Small-cap indices were up over 1% each. Market breadth was strong with 1,669 gainers and 752 losers on the BSE.

Among the major companies, Hero MotoCorp and Berger Paints will announce their April-June earnings later today.

RBI POLICY

The Reserve Bank of India third bi-monthly monetary policy review meeting is scheduled for tomorrow, August 4. According to a PTI report, research firm Moody's Analytics said that the RBI is likely to cut the benchmark rate by 0.25% in its monetary policy review tomorrow as inflation is likely to remain subdued on the back of average rainfall and lower commodity prices.


SECTORS & STOCKS

Auto stocks were reacting to their July sales numbers. Maruti Suzuki India was up 2.2% after its total vehicle sales rose 20.1% to 1.21 lakh units in July 2015 over July 2014.

Mahindra & Mahindra (M&M) was down 1.2% after its total tractor sales dropped 11% to 15,460 units in July 2015 over July 2014.

Hero MotoCorp slipped 2% after its total two-wheeler sales dropped 7.93% to 4.87 lakh units in July 2015 over July 2014.  Hero Motocorp is due to post its quarterly results today.

TVS Motor recorded a marginal increase in sales in July to 2,18,321 units. The stock wsa down 1%.

Bajaj Auto announced a rise of 3% in sales to 3,30,231 units in July compared to 3,19,292 units sold in last year period. The stock is trading flat.

Among other sectors, Bankex was the top gainer up 1.4% followed by Auto, Realty and Power indices among others.

PSU banks were among the top gainers with SBI, PNB up over 4% while Bank of Baroda gained 6%.

ICICI Bank was up 2.3%. The bank's first quarter net profit grew by 12 percent year-on-year to Rs 2,976 crore and net interest income rose by 13.9 percent to Rs 5,115 crore. Asset quality improved on sequential basis.

L&T dipped 1.5% after it reported 37.3% fall in consolidated net profit to Rs 606.19 crore on 6.53% increase in total income to Rs 20509.53 crore in Q1 June 2015 over Q1 June 2014.

Reliance Industries was up 0.6% after the company said that Viacom Inc has acquired a 50% interest in Prism TV for Rs 940 crore (approximately $153 million).

Shares of HCL Technologies were down nearly 5% after the company's net profit dipped sequentially by 5.9% to Rs 1,783 crore for the quarter ended June 30, 2015. Further, EBIT margin at 20.1% was below estimates and lower than 21.33% recorded in the previous quarter.

Among other shares, Bharat Forge was up nearly 3% at Rs 1,175 after the auto component maker Bharat Forge today reported a 34.73% in standalone net profit at Rs 195.32 crore for the first quarter ended June 30, 2015.

Sun TV Network jumped 14% after the company reported a 19% year-on-year (YoY) increase in net profit at Rs 197 crore for the first quarter ended June 30, 2015 (Q1). The company had reported a net profit of Rs 166 crore for the April-June quarter of the last year.

Suzlon Energy surged nearly 17% after the company registered best quarterly results after three years on the back of improving profit margin and lower debt costs.The wind turbine manufacturer registered a consolidated net profit of Rs 1,047 crore for the quarter ended June 30, 2015 on the back of an exceptional gain of Rs 1,314 crore, compared to a loss of Rs 750 crore in the quarter ended June 30, 2014. Operating margin for the quarter under review stood at 15.3%.