BSE Sensex ends 64 pts down; Tata Power, ICICI Bank tank 2%

3:40 pm Market closing: After a lot of struggle, the market ended the day on a negative down. The Sensex ended down 64.03 points at 20787.30 and the Nifty closed at 6191.45, down 19.70 points.  About 1465 shares have advanced, 1019 shares declined, and 531 shares are unchanged. Tata Power , ICICI Bank , SBI ,  Hero Motocorp and Infosys were top losers in the Sensex. Among the gainers were ONGC , Sun Pharma , Tata Motors , TCS and HDFC .

3:30 pm Investment strategy: Pritesh Mehta of IIFL is bullish on the IT space from the short, medium and long-term horizon. The index has outperformed tremendously in last couple of months so it is just a phase of distribution taking place in today's session particularly in Infosys but Wipro is holding on well. ''Tata Consultancy Services (TCS) is looking stronger. It is not a selling opportunity, in fact any kind of decline from current levels say 2-3 percent should be used as a buying opportunity,'' he said. He thinks Infosys may touch Rs 3700 going forward.

3:20 pm Exclusive interview: UCO Bank is planning to sell bad loans worth Rs 1,900 crore from 100 more accounts to clean its balance sheet. The bank has already sold NPAs worth Rs 300 crore in the last quarter. ''The bank is likely to maintain operating profit trend seen in Q1 & Q2 and is comfortable with current CASA range of 31-32%,'' said Kaul. On the financial restructuring package (FRP) for electricity distribution companies (discoms), UCO Bank Chairman Arun Kaul said the bank's exposure to state electricity boards stands at Rs 10,000 crore. The bank's exposure to Haryana state electricity board (SEB) is less than Rs 1,000 crore (Haryana is giving Rs 200 rebate on power bill), but has no exposure to Jharkhand & Bihar SEBs.

3:10 pm Stock in news: Infrastructure firm IL&FS Engineering and Construction has won a contract worth Rs. 84.30 crore to build stations for Phase-II of the Rapid Metro Rail Project (RMRG) in Gurgaon. "IL&FS Engineering and Construction Company has received a letter of award (LoA) for construction of elevated stations for the RMRG Phase-II," the company said in a filing with the BSE. The contract involves works for construction of stations at DLF Phase-1, Sushant Lok, Sector 53-54, AIT Chowk and Sectors 55-56 in Gurgaon.

3:00 pm Interview: Amitabh Kant, CEO & MD, Delhi Mumbai Industrial Corridor Development Corporation (DMIC) is hopeful that this infrastructure programme will bring a paradigm shift in India's infrastructure development and process of urbanisation. However, he adds that there is need for large industrial projects to be well-structured and the government should obtain requisite approvals for big ticket projects before bidding them. Speaking to CNBC-TV18, Kant said, by May 2014, two large townships and two multi- modal axles are likely to begin by May. The DMICDC Trust has approved a substantial number of projects and would b working on projects in Dhulera in Gujarat for the first 24 sq kilometer, Maharashtra, Uttar Pradesh (UP) and Madhya Pradesh (MP). Meanwhile, he added that getting clearances is the key hurdle faced by large infrastructure projects.

2:50 pm The Reserve Bank of India on Monday allowed Indian companies to issue non-convertible, redeemable bonus preference shares and debentures to non-residents from its reserves. The RBI added that the permission was not applicable for non-convertible preference shares.

2:40 pm Divestment: After all the speculations and conjectures, Indian Oil Corporation ( IOC ) offer for sale (OFS) is likely to be out this week. Sources say IOC divestment is likely to be carried out on Thursday (January 9) The oil ministry has tried to convene an inter-ministerial group tomorrow and they will meet on Wednesday to perhaps decide the pricing of the OFS. The oil ministry has raised concerns regarding the valuation and timing of the issue. Sources say that ministry has not even responded to any of those concerns yet. The Department of Disinvestment has also reached an arrangement with LIC. LIC, in all likelihood, is going to be a large strategic investor in the OFS.

The market is sliding further pressurised by weakness in banks. The Sensex is down 80.67 points at 20770.66, and the Nifty is down 26.80 points at 6184.35. About 1353 shares have advanced, 1006 shares declined, and 547 shares are unchanged. ICICI Bank, Tata Power, SBI, Infosys and Hero Motocorp are top losers in the Sensex. Among the gainers are ONGC, Sun Pharma, Tata Motors, TCS and NTPC . Shares of Multi Commodity Exchange of India rally 7 percent intraday on Monday as the board has given an in-principle approval for a 1:1 rights issue to the existing shareholders under the SEC regulations. In addition, Sebi has given a final approval for the appointment of Saurabh Sarkar as the new MD and CEO of MCX -SX. Through the rights issue, MCX will be raising around Rs 500-1000 crore. The board has further announced appointment of E&Y, which will be conducting a comprehensive audit of the exchange since inception.  Gold rallied for a fifth day to its highest level in nearly three weeks, as softer equity markets prompted investors to tap the asset's safe-haven qualities, reports Reuters. The metal's rally comes despite a stronger dollar and bullish comments from the Federal Reserve on the US economy, but follows a near 30 percent loss last year. The upswing in prices failed to dent physical purchases in China, the world's biggest bullion consumer, where demand has picked up ahead of the Lunar New Year and trading volumes on the Shanghai Gold Exchange hit an eight-month high on Monday.

1:40 pm Buzzing: Shares of Multi Commodity Exchange of India rallied 7 percent intraday on Monday as the board has given an in-principle approval for a 1:1 rights issue to the existing shareholders under the SEC regulations. In addition, Sebi has given a final approval for the appointment of Saurabh Sarkar as the new MD and CEO of MCX -SX. Through the rights issue, MCX will be raising around Rs 500-1000 crore. The board has further announced appointment of E&Y, which will be conducting a comprehensive audit of the exchange since inception.

1:30 pm Interview: Garment manufacturer Arvind has revised its FY14 revenue guidance from 20 percent to 24 percent. The company is expecting the H1FY14 sales growth at 29.3 percent. According to Sanjay Lalbhai, CMD, Arvind , the European and American markets, which were slow, have started growing well and Indian exports should start growing in double-digits soon. Apparels segment is growing by 8 percent in America and Europe. Bangladesh's exports have grown by 22 percent. India has 4.5 percent, whereas China has 33 percent market share in the world textile market. Lalbhai is hopeful that the garment exports could improve on the back of Bangladesh's labour issues.

The market refuses to budge ahead as the Nifty is down 14.85 points at 6196.30. The Sensex is down 42.30 points at 20809.03. About 1318 shares have advanced, 845 shares declined, and 546 shares are unchanged. Asian markets sell-off on profit taking and weak china servives PMI data. Oil marketing stocks gain ground in trade today. Petrol prices have been hiked by 75 paise per litre and diesel by 50 paise/litre effective last week. IOC says FY14 revenue loss of subsidised fuel sale is seen at nearly Rs 75,000 crore. ONGC is the biggest gainer on the Nifty today as the price hike will aid in cutting the subsidy burden. Meanwhile, asserting that India remains a bankable investment destination, Union Minister Sachin Pilot has said that maintaining faith of Indian corporates in our economy should be given more importance than being obsessed with ways to boost foreign investments, reports PTI. Foreign investors would automatically come in if faith of Indian corporates is maintained, as India remains a bankable and favourable destination for investments despite all that "has been written and talked about" the business climate here, the Corporate Affairs Minister said. "Fundamentals are strong and there is a longevity. There is a deep market, jurisprudence, political stability and good economic fundamentals," Pilot told.

12:50 pm Oil & gas: India will offer at least 56 oil and gas blocks in its next round of auction of exploration blocks that will be launched next week, oil secretary Vivek Rae said on Monday. The oil ministry, which has already moved a cabinet note for the next exploration licensing round, plans to invite bids for the blocks in February, reports Reuters. The oil ministry has recommended revenue sharing between the companies and the government in place of the current production sharing mechanism, he said.

12:40 pm HC ruling: In a significant ruling, the Delhi High Court on Monday held that the Comptroller and Auditor General of India (CAG) can audit the accounts of private telecom operators under the relevant provisions of the law, reports PTI. A bench of justices Pradeep Nandrajog and V Kameswar Rao permitted the top accounting body to conduct audit of private telecom companies under the Telecom Regulatory Authority of India (TRAI) Act. It rejected the separate petitions of Association of Unified Telecom Service Providers (AUSPI) and Cellular Operators Association of India (COAI) filed against the decision of Telecom tribunal TDSAT on the issue in 2010.

12:30 pm Buzzing: Infosys is in focus today as the company overhauls its management structure. The software company has disbanded its executive council just a few months after it was put in place. Bg Srinivas and Pravin Rao are elevated as president to streamline operations. After hitting 52-week high intraday, the stock is down 1.2 percent on the BSE.

Journey towards the south continues as trading fumbles. The Sensex is down 64.52 points at 20786.81, and the Nifty is down 19.10 points at 6192.05.  About 1208 shares have advanced, 809 shares declined, and 523 shares are unchanged. Banking stocks are under pressure. Index heavyweights reliance industries and Infosys drag. Power companies are in focus as reports indicate that a Group of Ministers has recommended a 10 to 15 percent power tariff cut for Maharashtra. The cut will only be for farmers, domestic consumers and small businesses, consuming less than 500 units a month. In a CNBC TV18 exclusive, Power Minister Jyotiraditya Scindia says power tariff subsidies announced by states will be met by state government treasuries and electricity regulators. The banks who signed bailout packages will ensure the financial health of distribution companies are not affected, he added.

11:50 am Market outlook: The market willlargely remain volatile in 2014, a pre-election rally is in the offing, says Manish Chokhani of Enam Holdings. Donning the hat of guest editor on CNBC-TV18, Chokhani said equity market is not expensive at current level even after the rally seen in the last days of 2013. IT and Pharma will see a pick-up in the coming days. Infrastructure and exports are two vehicles that will lead India in the coming years, believes Chokhani. While the former is already showing a lot of promise, exports as a percentage of world trade has been miniscule, he said.

11:40 am Big bull: Brokerage house Goldman Sachs has retained its 'market weight' rating on India, and its year-end target of 6900 for the Nifty, citing earnings growth as the key driver. The brokerage is bullish on oil & gas companies and exporters,a nd continues to see opportunities in inexpensive midcaps. It sees inflationary pressures persisting and the RBI sticking to a tight monetary policy. Goldman is bullish on Tech Mahindra , TCS , and Reliance Industries , and neutral on L&T , Tata Motors . It is bearish on banks, NBFCs, real estate and FMCG companies.

11:30 am Buzzing: Shares of Heidelberg Cement jumps 4 percent intraday as it completes sale and transfer of its cement grinding facility at Raigad to JSW Steel . JSW Steel had entered into a business transfer agreement on Ocotber 5, 2013 with Heidelberg Cement India Ltd for acquisition of its cement grinding facility at Raigad, Maharashtra, as a going concern on a slump sale basis.

The market continues to reel under selling pressure. The Sensex is down 51.04 points at 20800.29, and the Nifty is down 17.90 points at 6193.25. About 1153 shares have advanced, 633 shares declined, and 511 shares are unchanged. ONGC , Sun Pharma , Tata Motors, GAIL and Wipro are top gainers in the Sensex. On the losing side are Tata Power , ICICI Bank , Reliance and SBI . The rupee is slipping taking cues from the euro and most Asian currencies that weakened against the US dollar post Fed comments. Government bond prices were up on positive sentiment following strong demand at Friday's auction, and as comfortable liquidity also supported prices, dealers said. Dollar index held steady today close to two week highs it hit last week. Euro traded at 1.35 with the yen at 105. The US 10 year treasury traded at 3 percent on Friday. Brent crude remained largely at the same level of USD 107 per barrel. Libya restarted oil production at its key field ending a two-month blockade. Asia is lower today as the Nikkei reopens after a weeklong holiday sharply lower on profit taking and a strong yen. Shanghai slips post disappointing December HSBC services PMI data.

10:50 am Crisis call: Employees of crisis-hit Kingfisher Airlines are threatening a hunger strike from Monday demanding a stringent action against the defaulting company. According to media reports, the employees, who have not been paid for the past 17 months, had warned that they would go on a hunger strike from January 6. They also sought disqualification of corporate leaders from the membership of Parliament on charges of such default.

10:40 am  Macro data: Activity in India's services sector shrank at a faster pace last month as new orders dwindled, but firms hired at their fastest in five months, a survey showed on Monday. The HSBC Services Purchasing Managers' Index (PMI), compiled by Markit, fell to 46.7 in December from 47.2 in November. The December reading is the lowest in three months, and the index has now stayed below the 50 mark that divides growth and contraction for the sixth straight month. "The service sector continues to face headwinds, with weakening new business dragging down activity," said Leif Eskesen, chief economist for India at survey sponsor HSBC.

10:30 am Market outlook: Kunj Bansal, ED & CIO, Centrum Wealth Management feels the market has overbuilt its expectations for the uptrend and stock valuations. ''We might see some correction, which possibly could be led by the result season, mainly wherein, we could have some disappointments. If not disappointments, some of the sectors wherein the prices or the valuations have moved ahead of the expectations-mainly the cyclical sectors of infrastructure, capital goods etc, " he told CNBC-TV18 in an interview.

10:20 am Rupee expert: Ananth Narayan, Standard Chartered Bank expects rupee to remain in the range of 61.50-63.50 a dollar. He, however, thinks there is going to be a huge volatility with the election results later this year. "We don't expect rates to be hiked in this particular round at least. If the RBI desisted that the last time around with more than 11 percent print on the CPI, it should desist on 10 percent print on the CPI. Likewise, wholesale price index (WPI) will probably come below 7 percent. Anything outside of that would be a shock to the system," he said in an interview to CNBC-TV18.

The market is struggling to hold firm as the Nifty hovers around 6200. The Nifty is down 17.90 points at 6193.25. The Sensex is down 57.81 points at 20793.52. About 740 shares have advanced, 468 shares declined, and 494 shares are unchanged. Banking stocks are under pressure with ICICI Bank and SBI as major losers in the Sensex. Other stocks that are losing are Tata Power , Reliance and Sesa Sterlite. ONGC , Tata Motors , L&T, BHEL and GAIL are top gainers in the Sensex. Brent crude edged up over USD 107 a barrel on Monday, bouncing back from its biggest weekly fall in six months, but the restart of a key Libyan oil field could limit further gains, reports Reuters. Crude supply from Libya is set to more than double from current levels after production at the El Sharara field resumed over the weekend as protesters ended a two-month blockade. Gold is holding near a 2.5 week high supported by weaker equities, but a stronger dollar and bullish comments from Federal Reserve Chairman Ben Bernanke on the U.S. economy kept gains in check.

9:50 am FII views: Neelkanth Mishra, Credit Suisse continues to believe that the investment cycle is unlikely to recover for a few years, and this rally in industrials, financials and metals provides an opportunity to trim. He is overweight on IT, energy, staples and healthcare. We have a buy on HCL Tech , Wipro , Reliance and ITC . "December quarter results are likely to be the reverse from September quarter with several indicators disappointing," he said. Nandan Chakraborty, Axis Capital feels the market is likely to be rangebound to the elections, driven by growth & electoral anxiety. "Our portfolio stance up to elections will be largely defensive & stock-specific, with calibrated allocation across the risk spectrum from rural & export themes, stable growth companies, and sectors that can benefit the most & earliest from any improvement in sentiment," he said.

9:40 am Buzzing: Investors are lapping up shares of oil market companies (OMCs) on the back of petrol and diesel price hike. Shares of BPCL , HPCL , IOC and ONGC jumped around 2 percent each in early trade on Monday. Petrol price was hiked by 75 paise and diesel by 50 paise a litre as rise in global oil rates and fall in rupee value increased the cost of production.  Post the increase, petrol now costs Rs 72.43 a litre in Delhi, up 91 paise from Rs 71.52. The price of diesel in Delhi is be hiked to Rs 54.34 per litre, while it will cost Rs 61.42 a litre in Mumbai as against Rs 60.80 currently.

9:30 am Growth concern: Growth in China's services sector slowed sharply in December to its lowest point since August 2011, a private sector survey showed on Monday, adding to signs of slowing momentum in the world's second-largest economy. The HSBC/Markit services sector Purchasing Managers' Index (PMI) dropped to 50.9 in December from 52.5 in November, with new business expansion the slowest in six months.

Soon after opening in the positive terrain, the market slips into red. The Sensex is down 59.04 points at 20792.29, and the Nifty is down 21.65 points at 6189.50. About 447 shares have advanced, 267 shares declined, and 491 shares are unchanged.  ONGC, Tata Motors , Infosys , Sun Pharma and Wipro are top gainers in the Sensex. Tata Power , M&M, L&T, NTPC and Bajaj Auto are major losers in the Sensex. The Indian rupee opened lower by 19 paise at 62.35 per dollar against 62.16 Friday. The dollar holds steady in early Asian trading supported by an upbeat outlook on the US economy by outgoing Federal Reserve Chairman Ben Bernanke. Agam Gupta, Standard Chartered said, "Expect dollar-rupee to open around 62.30-62.35/USD levels. The pair will open higher from Friday's close due to a strong bid to dollar against emerging market currencies. Expect rupee to trade between 62.15 - 62.55/USD." US Oil futures rebounded in early Asian trade today after the contract settled lower in the four previous sessions and posted its biggest weekly drop since September 2012. From precious metals space, gold held near a two-and- a half week high today morning supported by weaker equities, but a stronger dollar and bullish comments from Bernanke kept gains in check. US markets ended mixed on Friday after Bernanke reiterated the Fed's commitment to keep interest rates low. European markets though moved higher on the back of strength in retailers. Meanwhile, Asian markets turned lower in morning trade today and Nikkei resumed trade over 250 points lower.