Sensex up over 200 points, Nifty holds 7,900; metal shares gain

The top gainers from the Sensex pack are NTPC, Tata Steel, Axis Bank, Wipro and GAIL

Benchmark indices continue to trade firm led by buying demand among metal and pharma shares.

By 10:30 am, the Sensex was higher by 250 points at 26,029 and the Nifty has gained 66 points at 7,909.

The top gainers from the Sensex pack are Tata Steel, Hindalco, Tata Motors, Bharti Airtel, Coal India, HUL and Dr Reddy’s Labs.


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Updated at 10 am

After a robust start, markets have trimmed gains with Nifty slipping below the 7,999 mark as banking stocks and oil shares come under pressure amid drop in the crude oil prices and ongoing crisis in China. Meanwhile, RBI surprise repo rate cut of 50 bps along with strength in the Asian peers have capped the downside.

By 10:05 AM, the Sensex was higher by 178 points at 25,957 and the Nifty has gained 43 points at 7,888.

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(updated at 10:05 AM)

Markets have commenced the session on a higher note tracking positive global cues.

Further, markets have extended yesterday's gains triggered by the Reserve Bank of India (RBI) announcing a steeper-than-expected cut in the policy repo rate under the liquidity adjustment facility by 50 basis points to 6.75% at its fourth bi-monthly monetary policy review for the year 2015-16 yesterday.

By 9:30, the Sensex was higher by 202 points at 25,981 and the Nifty has gained 57 points at 7,900.

The broader markers are performing in line with the benchmark indices- BSE Midcap and Smallcap indices are up almost 1% each. Market breadth is positive on the BSE with 738 advances and 159 declines.

On Tuesday, benchmark shares indices recouped early losses to end higher on expectations that higher-than-expected rate cut by the Reserve Bank of India would boost growth.

Meanwhile, foreign portfolio investors (FPIs) sold shares worth a net Rs 1112.59 crore yesterday, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 876.20 crore yesterday, as per provisional data.

KEY ANNOUNCEMENTS
The Foreign Investment Promotion Board (FIPB), on Tuesday, cleared 18 foreign investment proposals, including that of Aegon Religare Life Insurance and Aditya Birla Nuvo, worth about Rs 5,000 crore.

The FIPB, which is headed by Economic Affairs Secretary Shaktikanta Das, discussed a total of 31 FDI proposals. The proposal of Aegon Religare Life Insurance, worth about Rs 560 crore for increasing foreign partner stake in the joint venture, was approved by the board, a source said.

The Reserve Bank of India (RBI) has allowed companies to raise up to $750 million from overseas markets under the automatic route, through rupee-denominated bonds. “Cases beyond this limit will require prior approval of the Reserve Bank,” the central bank said on Tuesday.

India saw the highest foreign direct investment (FDI) inflow for new projects among all nations in the first half of calendar year 2015, beating America and China, British newspaper Financial Times said.

In January-June, this country attracted $31 billion (Rs 2.05 lakh crore) in capital expenditure (capex) from foreign companies, China, the largest economy in Asia, attracted $28 bn and the US got $27 bn in the period.

GLOBAL MARKETS

Most Asian stock markets steadied on Wednesday after sliding to 3-year lows but a weak outlook for commodities and persistent concerns about China's economy discouraged most buyers.

MSCI's broadest index of Asia-Pacific shares outside Japan was little changed in early trade after plumbing its lowest since June 2012 on Tuesday on fears that China's slowdown would curb its huge appetite for commodities and resources.

The index was on track for a 19% loss for the quarter, its worst loss in four years.

SECTORS & STOCKS

Shares of interest rate-sensitive sectors such as banking, real estate and autos have moved higher after the Reserve Bank of India (RBI) surprisingly cut interest rates by 50 bps against the expectation of 25 bps.

BSE Metal and Realty indices are up over 2%. All other sectoral indices have gained by 1% each.

The top gainers from the Sensex pack are Tata Steel, Hindalco, Coal India, Vedanta, Sun Pharma, Maruti Suzuki, Dr Reddy’s Labs and ITC.

Tata Steel, the country's oldest steel producer, will be allowed to lift its mined ore from Noamundi in Jharkhand following payment of its first tranche to the state government over the weekend, a top official with Directorate of Mines and Geology, Jharkhand, told  Business Standard today. The stock is up around 3%.

Maruti Suzuki is expected to sign a re-worked state support agreement with the Gujarat government after an awaited nod from its minority shareholders that will allow Japanese parent Suzuki Motor Corporation to run the upcoming plant in Hansalpur. Maruti Suzuki is up almost 2%.

Sun Pharmaceutical Industries (Sun Pharma) announced that it has commenced a tender offer through its indirect wholly owned subsidiary, Thea Acquisition Corporation, for all of the outstanding shares of common stock of InSite Vision Incorporated for $0.35 per share in cash, without interest and less any required withholding taxes.

Shares of Tata Motors are up over 1%. Standard & Poor's Ratings (S&P) today revised outlook on India-based automaker Tata Motors Ltd (TML) from "positive" to "stable".

Hero MotoCorp has unveiled two scooter models, developed on its own, as it aims to consolidate its position in the fast growing segment. Shares of Hero Moto have gained 0.5%.


With Reuters, Capital Market & BS Reporter input