Sensex loses 105 points, Nifty ends below 8850; SBI & Axis fall

23 Sep 2016

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3:30 pm Market close: The market ended in red as the Sensex is down 104.91 points or 0.4 percent at 28668.22. The Nifty was down 35.90 points or 0.4 percent at 8831.55. About 1164 shares have advanced, 1496 shares declined, and 252 shares are unchanged.

Reliance, Dr Reddy's Labs, TCS, HDFC and Coal India were top gainers while Axis Bank, Lupin, Infosys, ICICI Bank and SBI were losers in the Sensex.

3:10 pm Interview: Run-up to the festive season has been good for TVS Motor, says the company's Marketing VP, Arun Siddarth.

Good monsoon, implementation of 7th Pay Commission will lead industry growth to 10-12 percent this year.

TVS is hoping to outpace the industry growth, Siddarth says while reiterating the company's guidance of double-digit margin growth by FY18-end.

TVS will launch new products in collaboration with BMW by end of the current fiscal, says Siddarth. The company, which has presence in mopeds, scooters and the bike segment is expecting growth to come in from all verticals.

3:00 pm Market Update: Equity benchmarks traded at day's low with the Nifty falling below 8850 level.

The Sensex was down 94.28 points at 28678.85 and the Nifty down 31.15 points at 8836.30. The market breadth also turned negative as about 1440 shares declined against 1152 advancing shares on the BSE.

2:45 pm Mineral production: The total value of India's mineral production, which excludes atomic as well as minor, was Rs 17,339 crore in July.

Of this, the contribution from coal was the highest at Rs 6,238 crore (36 percent), the Mines Ministry said.

That was followed by petroleum (crude) at Rs 5,593 crore, natural gas (utilised) at Rs 2,165 crore, iron ore at Rs 1,347 crore, limestone at Rs 554 crore and Lignite at Rs 535 crore, it added.

"These six minerals together contributed about 95 percent of the total value of mineral production in July 2016," the ministry said.

The index of mineral production of mining and quarrying sector for July 2016 (based on the new Series 2004-05 =100) stood at 118.7, which was 0.8 percent higher as compared to July 2015.

2:31 pm Order win: Renewable energy solutions provider Suzlon group today said it has bagged orders for a combined capacity of 111.30 mw from corporate and SME customers between August and September.

This combined capacity includes orders from reputed corporate houses such as Serum Institute of India, Rajasthan Gum Group and an assortment of SME customers, the company said in a BSE filing.

The corporate and SME orders have been received from a mixed bag of customers across diverse industry segments, including chemical, infrastructure, manufacturing, textiles, power and entertainment, it said.

"These orders include Suzlon's latest product offerings the S111 90m tubular tower and S97 120m hybrid tower and also the time-tested S97 90m and S95 90m tubular tower models all with a rated capacity of 2.1 mw each," the statement said.

2:20 pm GST: The Goods and Services Tax Council, in its second day of meeting, has struck political consensus on the GST threshold limit.

Finance Minister Arun Jaitley addressing the media after the meet said the threshold limit has been set at Rs 20 lakh.

For North-Eastern and other small states, the limit is Rs 10 Lakh.

If a trader's turnover is less than the threshold limit per annum, he won't be covered under the indirect tax reform.

The financial year ending March 31, 2016 will be the base year for making revenue projection.

The Council will meet again on September 30 to finalise draft rules on exemptions. It will meet between October 17-19 to discuss rates.

2:00 pm Market Check
The volatility continued in afternoon trade as the benchmark indices remained in a tight range after rising nearly a percent in previous session.

The 30-share BSE Sensex was down 13.56 points at 28759.57 and the 50-share NSE Nifty declined 1.90 points to 8865.55 while the outperformance of broader markets continued. The BSE Midcap and Smallcap indices gained 0.6 percent each.

L&T Technology Services traded at Rs 885.95, up 3 percent over its issue price of Rs 860.

Reliance Industries, TCS, Bharat Financial, Axis Bank and Reliance Capital were the most active shares on exchanges.

1:30 pm Exclusive: Real Estate Company DLF is on its final stages to sell off its Rs 10,000 crore rental business - DLF Cyber City Developers, sources have told CNBC-TV18. Brookfield, Blackstone and GIC are the frontrunners for the deal and could also make a joint bid for the 40 percent stake in the rental business. Sources say that all bidders are in final stages of due diligence. Cyber City Developers has leased commercial assets in NCR and Kolkata. The promoters of DLF will sell their 40 percent stake in the rental business post which ownership will be transferred to a third party. The funds will be used by DLF to reduce its Rs 22,500 crore debt of which Cyber City's consolidated debt is Rs 12,325 crore.

The market is flat with the Sensex down 25.65 points at 28747.48. The Nifty is down 5.15 points at 8862.30. About 1275 shares have advanced, 1202 shares declined, and 227 shares are unchanged.

ONGC, Reliance, Cipla, TCS and M&M are top gainers while Axis Bank, Lupin, Tata Motors, ITC and ICICI Bank are losers in the Sensex.

A catch-up trade is happening now on back of liquidity, believes Sridhar Sivaram, Investment Director at Enam Holdings. But, he adds that this liquidity will not continue forever and earnings will have to come through.

Enam expects earnings growth to be around 10 percent for FY17 unlike other brokerages that are estimating growth of mid double-digit growth. Any dip in the market with expectations of earnings following through will be a buying opportunity.

Speaking to CNBC-TV18, Sivaram said that a 25 basis point hike by the US Federal Reserve in December is already priced in by markets.

12:40 pm Europe: European stocks opened lower as investors awaited the latest data on manufacturing and services activity in the euro zone.

European markets will be keeping a close eye on the flash manufacturing and services purchasing manager's index (PMI) for the euro zone in September for the latest indicator on the region's heath.

In Asia, markets were mixed. Japanese stocks were trading lower after returning from a one-day holiday on Thursday, having rallied on Wednesday when the Bank of Japan (BOJ) announced an overhaul of its monetary policy framework.

12:35 pm Interview: The impact of Brexit will be temporary on Tech Mahindra, says the company's Chief Executive Officer CP Gurnani. In the long run, it is going to be beneficial.

Tech Mahindra's communication services business is showing recovery and growth, says Gurnani. He adds that he continues to remain bullish on the vertical.

12:20 pm Exports: The country's largest carmaker Maruti Suzuki today announced crossing the milestone of 15 lakh vehicles in its cumulative exports.

"These vehicles have been exported to over 100 countries including Europe, Latin America and Africa. Early this year, the company's premium hatchback Baleno, manufactured exclusively in India, became the first car to be exported from India to Japan," the company said in a statement.

MSI had started exports to Europe in 1987-88, when a small number of cars were sent to Hungary.

"Thereafter, exports have grown at a steady pace, as new models and markets were added from time to time. Although exports business is inherently subject to economic and policy changes in the destination countries, the company has been able to maintain an upward trend in exports over the years," it said.

12:00 pm Market check: Equity benchmarks remained volatile in noon trade while the broader markets outperformed with the BSE Midcap and Smallcap indices rising 0.7 percent each.

The 30-share BSE Sensex was down 8.48 points at 28764.65 and the 50-share NSE Nifty declined 1.10 points to 8866.35.

Axis Bank was the biggest loser, down nearly 4 percent followed by ITC, Lupin, ICICI Bank, HUL and Tata Motors whereas BHEL gained the most, up 2 percent. Reliance Industries, HDFC Bank, TCS, ONGC and HDFC were other gainers.

Oil prices eased, pulled down by a technical sell-off following two sessions of strong rises and on caution ahead of a gathering of OPEC ministers next week in Algeria to discuss possible production cooperation to rein in global oversupply.

US West Texas Intermediate (WTI) crude oil futures were trading at USD 45.97 per barrel, down 0.76 percent, from their previous close. International Brent crude oil futures were down 0.52 percent at USD 47.40 a barrel.

11:30 am Macro economy: Credit Suisse continues to retain its expectation of a 25-basis-points cut by Reserve Bank of India (RBI) in December, said Asia Economist Deepali Bhargava. She was clarifying on a report by the firm's equity team saying rates could be down even 100 basis points. On a structural basis there are still pressures on a lot of categories except cereals, she says in an interview to CNBC-TV18, adding, while inflation trend below 5 percent on sustainable basis is unlikely there could be a "touch-and-go" dip to about 4 percent for some time. From first quarter next year, though, inflation is likely to move back higher closer to 5 percent. If they (RBI) is really serious about 4 percent target then they should look to sustain it, she says.

The market is still in negative terrain as the Sensex is down 26.31 points at 28746.82. The Nifty down 5.60 points at 8861.85. About 1191 shares have advanced, 968 shares declined, and 173 shares are unchanged.

BHEL, ONGC. M&M, Reliance and Bajaj Auto are top gainers while Axis Bank, Lupin, HUL, ICICI Bank and Tata Motors are losers in the Sensex.

Oil prices eased in Asian trade on profit-taking following two days of solid gains as traders turned their attention to next week's planned meeting of key producers.

Russia and members of the OPEC oil cartel led by Saudi Arabia will gather in Algeria for three days from Monday and are expected to discuss a stubborn supply glut that has depressed prices since 2014.

Traders are uncertain that a deal can be reached on freezing or cutting output, but reports that Saudi Arabia, Iran and Qatar met at the OPEC headquarters in Vienna has fuelled optimism.

10:40 am Listing: GNA Axles, the rear axle shafts manufacturer, will make its stock market debut on September 26. The issue price is fixed at Rs 207 per share, the higher end of price band.

The 63 lakh equity shares public issue was oversubscribed 54.88 times.

The reserved portion of qualified institutional investors oversubscribed 17.18 times and non-institutional investors 217.47 times. The reserved category of retail investors also oversubscribed 11.84 times.

The Rs 130-crore public issue was opened for subscription during September 14-16 with a price band of Rs 205-207 per share.

10:20 am Market Expert: A catch-up trade is happening now on back of liquidity, believes Sridhar Sivaram, Investment Director at Enam Holdings. But, he adds that this liquidity will not continue forever and earnings will have to come through.

Enam expects earnings growth to be around 10 percent for FY17 unlike other brokerages that are estimating growth of mid double-digit growth. Any dip in the market with expectations of earnings following through will be a buying opportunity.

Speaking to CNBC-TV18, Sivaram said that a 25 basis point hike by the US Federal Reserve in December is already priced in by markets.

Sivaram expects the Reserve Bank to cut 50 basis points by October this year on back of positive inflation numbers last month.

10:00 am Market Check
Equity benchmarks continued to consolidate with the Nifty hovering in 20 points range while the broader markets outperformed. The BSE Midcap and Smallcap indices gained 0.4 percent each.

The 30-share BSE Sensex was down 27.98 points at 28745.15 and the 50-share NSE Nifty fell 4.65 points to 8862.80 after rising more than 200 points in previous session.

The market breadth was positive as about 1105 shares advanced against 842 declining shares on the BSE.

L&T Technology Services, the subsidiary of engineering & construction giant Larsen and Toubro, has made its stock debut at Rs 920 per share, up 7 percent over its issue price of Rs 860.

9:55 am Budget preparation: With Centre deciding to advance Budget 2017-18 presentation by about a month, the Finance Ministry has come out with comprehensive instructions for different ministries for completion of the exercise.

The instructions were issued following the Cabinet decision to merge rail and general budgets, do away with distinction between plan and non-plan expenditure, and advance date of budget presentation with a view to complete the entire exercise before March 31, the fiscal year end.

"Several structural reforms being undertaken this year, including, removal of distinction between plan and non-plan expenditure, advancement of budget presentation by about an month and merger of demands of Railways.

9:45 am Fund raising: Bharat Financial Inclusion today said the company will raise Rs 750 crore via qualified institutional placement (QIP) offer.

The Capital Raising Committee of the board of the company at a meeting held today passed the resolutions to authorise the opening of the offer today i.e., September 22, 2016, the company said in a regulatory filing.

"The company will raise Rs 750 crore through the QIP launch," a company spokesperson said.

Bharat Financial said it has filed the preliminary placement document with the exchanges today. The floor price of the QIP offer has been set at Rs 769.95 per equity share.

9:30 am Macro economy: The country's current account deficit is likely to be at 0.4 percent of GDP this fiscal and balance of payment will continue to remain surplus despite FCNR (B) redemptions, according to a report. "We expect the current account deficit to remain benign at 0.4 percent of GDP in financial year 2016-17 and an overall balance of payment surplus to continue, despite the FCNR(B) redemptions," Japanese brokerage Nomura said in a note here today. Lower commodity prices amid weak demand from investment and for gold should keep imports subdued, more than offsetting weaker global demand, it said. Nomura expects a net outflows of around USD 20 billion on account of FCNR(B) redemptions.

The market has opened flat. The Sensex is down 21.82 points at 28751.31, and the Nifty down 11.15 points at 8856.30. About 763 shares have advanced, 466 shares declined, and 88 shares are unchanged.

L&T, Reliance, M&M, Dr Reddy's and Sun Pharma are top gainers while Axis Bank, Infosys, Bharti, Tata Motors and Hero MotoCorp are losers in the Sensex.

The Indian rupee opened lower by 30 paise at 66.96 per dollar on Friday against previous close of 66.66.

Bhaskar Panda of HDFC Bank said, "US Fed announcement of no hike in funds rates, followed by Janet Yellen's statement had a negative impact on the dollar Index."

The dollar fell to its lowest in a week against the euro but recovered some ground against the yen after Fed hinted at a rise in interest rates this year with cuts in the longer term outlook.

Among global peers, Asian shares edged closer to 14-month highs while the dollar was on the defensive as investors grew more convinced that the Federal Reserve is settling into a phase of very gradual interest rate hikes.

MSCI's broadest index of Asia-Pacific shares outside Japan was steady and within sight of its highest levels since July 2015 that it hit in early September. Japan's Nikkei dipped 0.2 percent, reflecting the yen's gains during Japan's market holiday on Thursday.

On Wall Street, S&P 500 Index gained 0.65 percent, led by 1.9-percent gain for the real estate sector.

The S&P 500 capped its best two-day performance in more than two months, while the Nasdaq closed at a record high.

The rallies began after the Fed on Wednesday maintained the low-interest rate environment that has helped underpin the bull market for stocks since the global financial crisis in 2008.

Crude oil has pared gains as rival OPEC members Saudi Arabia and Iran met in Vienna for a second day before the wider group gathers in Algeria to discuss action to stabilize the market. Earlier in the session, crude oil prices rose about 2 percent after a surprise US crude inventory drop.

Gold prices hit their highest level in 12 days on back of fed's moves but experts believe that this rally may well be the last in the short-term. Gold prices have surged 25 percent this year.

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