Live: Europe to the rescue, equities stay positive

3.30 p.m: A 3 percent jump in the European market led to a similar rally in Indian bourses. Sensex closed the day 472 points higher at 16,523, up nearly 2.95 percent. Nifty closed the day at 4,979, higher by 143 points.

Realty stocks ended 4.6 percent higher while IT rose 3.76 percent.

DLF was the top gainer with a 7.72 percent jump in its price at Rs 217 while Tata Motors moved up 6.75 percent to Rs 156.65.

In the commodity market, gold is up 3.46 percent, silver is higher 6.4 percent and brent crude is trading higher by 1.72 percent. The rupee, on the other hand, was at 49.07 against the dollar.

Citi has sharply reduced the target price of Jet Airways from Rs 696 to Rs 230 on account ofaggressivepricing by Air India. Citi says the company is expected to report a loss of Rs 940 crore for the current fiscal.

Kotak, in its report on JSW Steel , has said the company operates at 30 percent utilisation and going forward, will face headwinds as limited iron ore supply can lead to a further cut in earnings. It has maintained a ‘Sell’ rating on the company with a price target of Rs 660. JSW Steel closed the day at Rs 610, down 1.35 percent.

2.30 p.m: Strong European markets have seen heavy buying at Indian counters. The Sensex is trading nearly 500 points higher at 16,546 while the Nifty is ruling at 4,976, a jump of 140 points.

DLF is trading nearly 8 percent higher at Rs 218 while JP Associates is 6.50 percent higher at Rs 73.80 and Tata Motors at Rs 156, up 6.13 percent.

The realty sector is trading 4.50 percent higher while IT indices are up 3.64 percent.

1.30 p.m: The Sensex jumps 450 points over the previous day’s close and currently trades at 16,477. The Nifty, on the other hand, trades 125 points higher at 4,960.

Tata Motors, DLF and JP Associates continue to remain the leaders among the most liquid shares.

Sun TV is the biggest loser among frontline stocks, shedding 3.12 percent, to Rs 276. The stock has been battered on account of various issues related to the 2G scam.

Among the smaller shares, DEN rises 15 percent to Rs 71.60 while Batliboi is up 14 percent. Realty, consumer durables and IT stocks are the top performing sectors in the market.

Market breadth is positive, with one stock falling for every four stocks that are rising.

ABG Infra has announced that it has received an order for developing the fourth terminal at the Jawaharlal Nehru Port Trust.

Dabur has informed bourses that it is heading for Sri Lanka to set up a new beverage venture. The stock trades at Rs 103, higher by 1.33 percent.

Thanks to a Pakistani partnership with Multinet, Tata Communications has become the world’s largest Ethernet provider.

12.30 p.m: European markets got off to a strong start on Tuesday, up 2.55% across the spectrum. Indian markets continue to trade higher with the Sensex at 16,403, rising 351 points, while the Nifty is up 104 points at 4,940.

The realty sector is the biggest gainer, now over 3 percent higher, followed by consumer durables and banks.

Tata Motors continues to be the top scorer among frontline stocks, rising by over 6 percent, followed by JP Associates and DLF.

Morgan Stanley, in a report on Indian financial services sector, has said that though valuations of banking stocks look cheap, macro headwinds and questionable asset quality do not augur well for investment in the sector.

JSW Steel, meanwhile, has said that it might have to shut its plant if the iron ore issue is not resolved. Deutsche Bank, however, has maintained its ‘Buy’ call on the company and is waiting for the next e-auction of coal to revise its rating.

Strong growth due to a robust product pipeline and aggressive expansion plans have got Cipla a ‘Buy’ rating from UBS with a price target of Rs 870. The company currently trades at Rs 287.30, down 0.02 percent.

11.30 a.m: The equities here have zoomed to a new high, with the Sensex touching 16,397, up 345 points, while the Nifty trades at 4,941, a spike of 106 points.

Reliance Capital, which is weighing its options to unlock value by selling stakes in its insurance and asset management company followed through a bonus issue and a special dividend, is trading 4.5 percent higher at Rs 407.20. The company is also keen to explore opportunities in the fast-growing banking sector.

Tata Motors is firming up nearly 6 percent at Rs 155 and JP Associates is higher by 5.50 percent at Rs 73.

Areva T&D has said it has bagged a contract worth Rs 40 crore from Reliance Power for setting up India’s largest solar power plant. The stock is ticking up by 1.6 percent at Rs 223.50.

SBI has managed to touch the Rs 2,000 mark and currently trades 2.50 percent higher than its previous close.

Foreign institutional investor Nomura has maintained a buy on DLF with a price target of Rs 270. A series of asset sales are likely to bring down the debt of the company by 18 percent, says the report. DLF currently trades at Rs 208.40, an uptick of 3.5 percent.

UBS has maintained its ‘Buy’ rating on Reliance Communications, but has revised its target downwards to Rs 140. The reason: The stock, the report says, has underperformed the market more than its peers. The stock trades 3.80 percent higher at Rs 80.50.

The ‘Buy’ rating from UBS on Mahindra & Mahindra stays, but UBS has revised its target upwards to Rs 970 from Rs 840. M&M trades at Rs 784.40, higher by 1.7 percent. Strong growth across all product lines and renewed rural demand are the reasons for the price target revision.

UBS has also initiated a coverage on Eicher Motors with a ‘Buy’ report and a price target of Rs 2,000. The stock trades at Rs 1,630, up 1.35 percent. Its joint venture with Volvo and the resultant growth have prompted the ‘Buy’ recommendation in the stock.

Reliance Cap looks at bonus issue, to unlock value

11.00 a.m: Anil Ambani said that he is considering a bonus issue and special dividend in Reliance Capital and plans to unlock value in the insurance business by selling a stake in the venture.

GMR Infra notches up gains on big-ticket highway order

10.30 a.m: Markets continue to stay strong, with the Sensex trading at 16,332, a jump of 282 points, while the Nifty is ruling at 4,918, up 82 points. Asian markets have maintained their lead, trading nearly 2 percent above the previous day’s close.

Tata Motors is the biggest gainer among the top traded stocks. The stock is 4 percent higher at Rs 152.75. JP Associates, which announced a Rs 2,000-crore order on Monday, is up 3 percent at Rs 71.85. Reliance Industries is at Rs 778, up 2.54 percent.

GMR Infrastructure, meanwhile, has announced that the company has received the country’s first mega highway project - the 555 km Kishnagarh-Udaipur-Ahmedabad highway. The stock currently rules 2.79 percent higher at Rs 27.20. The company on Monday announced that it is selling 30 percent of its stake in its Singapore venture to Petronas.

Pipavav Shipyard is turning weaker by 4.18 percent on the news of the defence ministry staying its joint venture with Mazgaon Docks. The stock currently trades at Rs 77.75.

Redington just announced buying 49.4 percent stake in a Turkish company, Arena Bilgisayar Sanayi ve Ticaret A.S.

Consumer durables stocks that have been taking a beating over the last two days, are the top performers today. The index has gained 3 percent, followed by the realty sector which is trading 2.85 percent higher.

Meanwhile, gold trades 2.5 percent higher at $1,637 while oil is at $105.06, up 0.15 percent.

US, Asia revive optimism, Sensex builds on it

9.30 a.m: Indian markets reflected the buoyant mood in the US and Asian markets by opening higher. The Sensex opened 285 points higher at 16,340 while the NSE Nifty is trading 80 points higher at 4,915.Asian markets are ruling higher by nearly 2 percent while the US markets closed overnight, up 2.5 percent.

Gold in the international market is hovering at $1,643, up 1.2 percent. Brent oil is 0.6 percent higher while silver continues to remain low, trading 1.6 percent below the previous day’s close.

The news that can affect the market today is the government’s proposal to tweak the securities transaction tax (STT). Among the stocks that are likely to see some action are GMR Infra which will benefit from the sale of 30 percent in its Singapore energy unit to Petronas.

GAIL stands to benefit as it firms up its overseas expansion plans. The company is planning to acquire a stake in gas plants and eyeing a stake in Chevron’s Australian plant and Algerian Sonatrach.

The deal between Dr Reddy’s and JB Chemical to buy out part of the latter’s Russian business has been called off over valuation and other operational issues. JB Chemicals can see some selling on account of the deal being cancelled.

TCS can also see some buying activity as it is looking at acquisition possibilities in France, Germany, Japan and the US as it sees rising demand despite global economic uncertainty.