Live Market Commentary
3:50 pm Index gainers:
BSE Capital Goods (up 1.1 percent), BSE Auto (up 1.9 percent) are top index gainers in today's trading session.
3:40 pm Macro outlook: The Reserve Bank of India's inaction today was widely anticipated with concerns around the rupee getting highlighted. Anant Narayan, Co-Head of wholesale banking, South Asia, Standard Chartered Bank does not see the fall in rupee abating and points out that foreign investors may now start pulling out of equities.
From the point of view of market, he see FOMC meet as the next trigger. On the other hand, S Narayan, former finance secretary sees RBI's status quo on rates as a message to the government to urgently address rising food inflation and stem currency fall.
Speaking about the complex statements of RBI's caution, S Narayan said food inflation's persistence presence signals that the government and policymakers are not addressing the reason of its rise. He fears unless the core issue is addressed, food inflation will continue to rise. "Is it an issue of supply? Is it an issue of distribution? Is it an issue of urbanization? Is it an issue of market pricing? I think because we have large stocks of cereals in our food grains, it is purely a distribution issue," he told CNBC-TV18. ( Read full interview )
3:35 pm Update: JSW Steel has recorded 40 percent month-on-month jump in crude steel production in May on improved demand.
The firm produced 10.13 lakh tonne of steel during the month when compared with 7.24 lakh tonne in April. The company said, flat rolled products production was up 57 percent to 8.06 lakh tonne year-on-year, while rolled products-long was 1.68 lakh tonne, reflecting a 13 percent growth YoY.
3:31 pm Gainers: M&M (up 4.3 percent), BHEL (up 3.7 percent), Bajaj Auto (up 2.3 percent), Bharti Airtel and Sun Pharma are key gainers in the Sensex.
3:30 pm Market update: The Sensex closes up 141.45 points at 19319.38, and the Nifty ends at 5851.50, up 43.10 points 5851.50 (provisional).
3:25 pm Buzzing: Telecom major Bharti Airtel on Monday announced completion of 5 percent stake sales to Qatar Foundation Endowment for Rs. 6,796 crore.
Airtel has allocated 199,870,006 new equity shares at price of Rs. 340 each share, representing 5 percent equity stake in the company to QFE.
"This is a landmark transaction for India and its telecom sector and a vote of confidence from one of the most respected investors in the world. We look forward to a long and fruitful partnership with Qatar Foundation Endowment," Bharti Airtel Chairman Sunil Bharti Mittal said in a statement.
3:20 pm Gold update: Government has cut gold base import price to USD 450/10gm from USD 459/10gm. The government has also reduced silver base import price to USD 709/kg from USD 737/kg.
3:17 pm Market update: The Sensex is up 151.04 points at 19328.97, and the Nifty up 42.20 points or 0.73% at 5850.60.
Expert take: Rupee weakness good way of economic readjustment, says Vetri Subramaniam
The market has gathered momentum in afternoon trade. The Nifty is inching closer to 5850 levels led by capital goods, autos and select heavies. The Sensex is up 119.01 points at 19296.94, and the Nifty is up 36.55 points at 5844.95. About 1049 shares have advanced, 1038 shares declined, and 247 shares are unchanged.
Reliance Communication surges around 4 percent on the BSE. Bharti Airtel has also gained around 3 percent. Among other gainers in the Sensex are M&M, Bhel, Bajaj Auto, Bharti Airtel and Sun Pharma.