Stock market update: Sensex, Nifty up as Tata Motors, ICICI Bank shares gain

Stock market
At 14: 14 p.m.: * The 30-share BSE index Sensex is up 0.17 percent while the 50-share NSE Nifty index rises 0.1 percent.

* Tata Motors Ltd gains 4.8 percent after briefly plunging as much as 10 percent on Friday because of a technology trading glitch from brokerage Religare Capital Markets.

* Power Finance Corp Ltd and Rural Electrification Corp Ltd shares gain over 4 percent each on speculation the government is preparing to offer new incentives to revive stalled power projects.

* ICICI Bank adds 1.8 percent after falling 3.4 percent in the previous two sessions.

* Bank of Baroda shares fall 6.5 percent after the bank's October-December earnings disappointed investors.

* Shares in IDFC fell 4.5 percent after the lender and consultant for infrastructure projects registered a weak loan growth in the December quarter.

Sensex trims initial gains, Tata Motors, UltraTech Cement, ICICI Bank shares top gainers

At 11 a.m.: The BSE benchmark Sensex trimmed its initial gains but was still quoted higher by 95 points in the late morning trade on the back of fresh buying mainly in Auto, Realty, Consumer Durable and Banking sectors amid firm global cues.

Sustained capital inflows from foreign funds also boosted the market sentiment as foreign institutional investors (FIIs) bought shares worth a net Rs 763.28 crore last Friday, as as per provisional data from the stock exchanges.

The BSE benchmark Sensex resumed higher at 19,860.97 and shot up further to a high of 19,902.60. But fell afterwards to a low of 19,847.81 before quoting at 19,876.38 a 1025hrs, still showing a gain of 95.19 points or 0.48 per cent from its last weekend's level.

The NSE 50-share Nifty also firmed up by 28.60 points or 0.48 pct to 6,027.50 at 1025 hrs.

Major gainers were Tata Motors ((3.16 pct), ICICI Bank (2.05 pct), HDFC (1.50 pct), TCS (1.39 pct) and Jindal Steel (1.38 pct).

Asian stocks rose in their early trade as US jobs and manufacturing data boosted optimism in the world's biggest economy. Key benchmark indices in China, Hong Kong, Japan, Singapore and Taiwan rose by 0.01 pct to 0.76 pct while South Korea's Kospi fell 0.06 pct.

Tata Motors shares gain 3.5 percent and UltraTech Cement Ltd advances 3.6 percent after briefly plunging as much as 10 percent each on Friday, because of a technology trading glitch from brokerage Religare Capital Markets.

Oil refiners gain on expectations they will announce a diesel price hike as early as this week after the government last month allowed companies to raise prices.

* Hindustan Petroleum Corp Ltd, Indian Oil Corp and Bharat Petroleum Corp Ltd shares gain over 0.7 percent each.

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Stocks to watch-Feb 4

GLOBAL MARKETS ROUND UP

Nifty futures on the Singapore Exchange was up 0.13 percent. The MSCI-Asia Pacific index, excluding Japan rose 0.48 percent.

Asian shares advanced on Monday, drawing momentum from U.S. data showing some promise of a credible recovery and supported by Federal Reserve's easing plans and solid manufacturing data from Europe and China.

U.S. stocks rose to five-year highs on Friday, with the Dow closing above 14,000 for the first time since October 2007, after jobs and manufacturing data showed the U.S. economy's recovery remains on track.

FACTORS TO WATCH

Earnings: Bank of Baroda, United Spirits Ltd , Kingfisher Airlines Ltd.

STOCKS TO WATCH

FINANCIAL/REGULATORY

Religare Capital Markets caused "unintended transactions", the brokerage said on Saturday, a day after deeply discounted sale of large blocks of shares in Tata Motors Ltd and UltraTech Cement Ltd hit the markets.

India's central bank is considering cutting the held-to-maturity (HTM) ratio for lenders starting in April, while also looking into bond purchases via open market operations in the next two months to improve liquidity, a top official said on Saturday.

Samsung Life Insurance Co Ltd is in talks with DLF-Pramerica to buy Pramerica's 26 percent stake in the insurance joint venture.

ENERGY/COMMODITIES

India's central bank plans to introduce three to four gold-linked products in the next few months, in an effort to bring 20,000 tonnes of gold held in households into the banking system, but the measure is unlikely to cut bullion imports sharply, a senior official said.

India raised $585 million through a share sale in state explorer Oil India Ltd on Friday, an encouraging sign for the government's efforts to divest stakes in other state firms to bridge its fiscal deficit.

UltraTech Cement has begun talks to purchase an incomplete 6.7-million-tonne cement plant in Gujarat owned by ABG Cement Ltd.

GAIL (India) Ltd is teaming up with a unit of French group EDF to jointly scout for natural gas assets in the United States as demand in India grows, its chairman said. Royal Dutch Shell Plc said its Indian unit has been in talks with local authorities over a tax dispute, making it the latest global company to have a run-in with tax officials in the country.

Adani Enterprises Ltd's October-December net profit fell 40.59 percent to 298.5 million rupees from a year ago.

INFRASTRUCTURE

The Aditya Birla Group is looking to set up container loading facilities for its own use by expanding a captive jetty at the Dahej port in Gujarat with an investment of about 6 billion rupees, at least two people familiar with the plan said.

Infrastructure Development Finance Co Ltd's October-December net profit rose 21.19 percent to 4.69 billion rupees.

AUTOS

Tata Motors January sales fell 29.5 percent to 61,660 units from a year ago. AIRLINES

Jet Airways India Ltd, which is in advanced talks with Etihad Airways to sell a 24 percent stake, will not cede management control to the United Arab Emirates firm, newspaper Mint reported, citing Jet chairman Naresh Goyal.

PHARMA

A group of U.S. consumers has approached a district court in New Jersey to consider a preliminary injunction for a complete recall of Ranbaxy Laboratories Ltd's generic version of Lipitor, The Economic Times reported.

PROPERTY

The Delhi Development Authority will renew the lease for the Taj Palace hotel in New Delhi's Chanakyapuri, owned by Indian Hotels Company Ltd.

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