Nifty ends lower; RIL hits 5-month high on Goldman report

A dull close for the Nifty after market resumed trade following the national holiday. The excitement was only seen in the broader markets, where renowned midcap IT and NBFC companies made smart gains for traders.

Goldman Sachs says Reliance Industries can potentially become a USD 100 billion stock by fiscal 2017 from its current market capitalisation of around USD 46.6 billion. The stock closed at 5-month high and above psychological mark of 800.

Rate cut? Not yet

The Reserve Bank today said it will assess if the declining trend in inflation is sustainable and accordingly take decision on reducing interest rate.

RBI Deputy Governor K C Chakrabarty said 5% inflation is India's comfort zone. The Reserve Bank is scheduled to review its monetary policy on September 17. Bank Nifty sheds 1% in trade today.

The Sensex closed at 17657.21, down 70.99 points or 0.40% at 17657.21 and the Nifty ended at 5362.95 down 17.40 points or 0.32%. The breadth of the market was negative. About 1261 shares advanced, 1505 shares declined, and 678 shares remain unchanged.

Top news of the day

ITC lost over 3% on fears about regulatory action at home after Australia called on the world to match its tough new anti-tobacco marketing laws that will ban logos on cigarette packs.

Maruti Suzuki will lift the lock out at its Manesar plant on August 21,  R C Bhargava, the chairman of India's largest passenger car maker said on Thursday. Maruti had shut the Manesar plant last month, following a workers unrest that left a general manager dead and 96 supervisors and managers injured.

Shares in India's software exporters Infosys and Tata Consultancy Services fall after MSCI's decision to lower their weighting in the MSCI India index.

MSCI also increased the weightage of HDFC's in its MSCI India Index by 120 basis points to 7.4%. The changes of MSCI index review would be effective after close of market hours on August 31.

Coal India (CIL) has agreed to certain changes in the fuel supply pact to be entered with state-nominated agencies. The development comes ahead of company board meeting early next month to approve model fuel supply agreement (FSA) which the coal major would sign with power companies.

Jet fuel or ATF price was today hiked by over 3.2%, the third straight increase since July, adding to the cost burden of cash-strapped airlines.

The price of aviation turbine fuel (ATF), or jet fuel, in Delhi was hiked by Rs 2,130.17 per kilolitre (kl), or 3.27%, to Rs 67,135.76 per kl, according to Indian Oil Corp, the nation's largest oil firm. The rate hike comes on back of a steep 4.5% increase in rates effected from August 1 and has wiped off all of the reduction in prices done in May and June.

TCS to buy Computational Research Laboratories (CRL), a start-up group company, for Rs 188 crore. The move would boost its cloud computing services.

European markets weak

European stocks and the euro were lower on Thursday after global growth engine China warned its trade outlook was worsening and stronger US data tempered expectations of additional stimulus from the Federal Reserve.

Gold demand at 2-year low

Gold demand fell to its lowest level in more than two years in the second quarter, the World Gold Council said on Thursday, as a drop in buying in major consumers India and China outweighed a record quarter for central bank purchases.

Overall gold consumption fell 7% or nearly 76 tonnes to 990 tonnes in the three months to June, its lowest quarterly level since the first three months of 2010, the WGC said in its quarterly Gold Demand Trends report.

The BSE Sensex and NSE Nifty continued to trade in a range around their previous closing values as the rally in Reliance Industries, L&T and auto stocks counter balanced a fall in ITC, banks, metals and technology stocks.

The BSE benchmark fell 26.50 points to 17,701.70 and the NSE benchmark was down 6 points to 5,374.50, the BSE Midcap and Smallcap indices gain 0.4% each.

Index heavyweight Reliance Industries shot up 2.6% to Rs 820 as PTI reported that the company proposed to drill exploration well in KG-D6 block at own cost. Foreign research firm Goldman Sachs has raised the target price from Rs 870 to Rs 936 a share.

Housing finance company HDFC, engineering and construction major Larsen & Toubro, commercial vehicle maker Tata Motors and drug producer Dr Reddy's Labs gained more than 1%.

Utility vehicle manufacturer Mahindra & Mahindra jumped 2% while two-wheeler major Hero Motocorp surged 3%.

ITC, which has highest market share in cigarette business, tanked 3% after the news that Australian court has approved logo ban on cigarette packs.

Shares of metals companies extended losses as the CAG report may be tabled in parliament soon. The leaked Comptroller and Auditor General report suggested that the private companies could have got windfall gain of up to Rs 1.86 lakh crore.

Sterlite Industries plunged 3% while Hindalco was down over 2% and Tata Steel declined 1.7%.

Private sector lenders ICICI Bank and HDFC Bank were down 1.4% and 0.5%, respectively.

Indian equity benchmarks remained listless since early trade as global markets also were mixed. European markets too opened flat, but only Nikkei (among global markets) gained nearly 2% due to fall in Yen against the US dollar and Euro after stronger than expected retail sales data and German economic growth.

The 30-share BSE benchmark went down 18.26 points to 17,709.94 and the 50-share NSE Nifty slipped 3 points to 5,377.30. The Indian rupee declined 31 paise to 55.97 against the US dollar.

Private oil & gas producer Reliance Industries and housing finance company HDFC climbed 1.5%. Engineering and construction major Larsen & Toubro went up over 1%.

Two-wheeler major Hero Motocorp and drug producer Cipla topped the buying list with 3% gains. Commercial vehicle maker Tata Motors and utility vehicle manufacturer M&M gained 1.6% and 1.9%, respectively.

Cigarette major ITC plunged 3% on sentiment effect after the news that the Australian Court has approved logo ban on tobacco products.

Software services exporter Wipro and private steel producer Sterlite Industries tanked 2% each.

Shares of HDFC Bank, Infosys, TCS, HUL, NTPC and ONGC were down 0.4-0.9%. Metals stocks like Jindal Steel, Hindalco and Tata Steel fell over 1% after the leaked CAG report on coal.

The broader markets too were flat as the market breadth was neutral.

Reuters Mareket Eye - The BSE Sensex falls 0.17 percent, while the 50-share Nifty loses 0.12 percent. ITC falls 2.2 percent on fears about regulatory action at home after Australia called on the world to match its tough new anti-tobacco marketing laws that will ban logos on cigarette packs.

Shares in India's software exporters Infosys and Tata Consultancy Services fall after MSCI's decision to lower their weighting in the MSCI India index.

TCS falls 0.5 percent, while Infosys loses 0.4 percent.

The BSE Sensex and NSE Nifty were completely lacklustre in trade as the fall in metals, FMCG and technology stocks cancelled out gains in auto, capital goods, HDFC and L&T. The Indian rupee was hovering around the 56 against the US dollar, with a loss of 34 paise.

The BSE benchmark declined 39 points to 17,689.53 and the NSE benchmark slipped 8.5 points to 5,371.90.

Cigarette major ITC extended losses to 3% on sentiment effect after the news that the Australian court has approved logo ban on cigarette packs.

Metals stocks like Jindal Steel, Hindalco Industries, Sterlite Industries and Tata Steel dropped 1-2% ahead of CAG (Comptroller and Auditor General) report that will be tabled in parliament today.

Technology majors TCS and Infosys fell 0.5-0.7% while their rival Wipro tumbled 1.76%. State-owned oil & gas producer ONGC and FMCG major Hindustan Unilever were down 0.9% each.

Private sector lender HDFC Bank went down 1% while its rival State Bank of India was down 0.3%. Housing finance company HDFC rallied 1.8%.

Country's largest two-wheeler maker Hero Motocorp gained 3% while commercial vehicle manufacturer Tata Motors and utility vehicle major M&M moved down over 1%.

In the second line shares, Amara Raja Batteries surged more than 9% today after rising 16% on Tuesday due to strong numbers in the first quarter.

Manappuram Finance, Standard Chartered IDR, Bajaj Corp and Sadbhav Engg gained 4-7% whereas Jain Irrigation crashed 6% as it has reported a loss of Rs 16.8 crore in the first quarter of FY13 as against profit of Rs 82.4 crore in a year ago period.

Shree Global, Glodyne Tech, Indiabulls Financial and Amtek India were down 3-5%.

Among smallcaps, Geodesic shot up 20% as the board members approved the proposal to buy-back of 25% of the equity shares of the company through open offer through stock exchanges.
 
Reliance Mediaworks, Ahmednagar Forgings, Parekh Aluminex and Money Matters were up 7-12%. However, Kemrock Industries, Butterfly, Kesoram, Oriental Hotels and SPML Infra lost 5-10%.

The BSE Sensex and NSE Nifty were completely lacklustre in trade as the fall in metals, FMCG and technology stocks cancelled out gains in auto, capital goods, HDFC and L&T. The Indian rupee was hovering around the 56 against the US dollar, with a loss of 34 paise.

The BSE benchmark declined 39 points to 17,689.53 and the NSE benchmark slipped 8.5 points to 5,371.90.

Cigarette major ITC extended losses to 3% on sentiment effect after the news that the Australian court has approved logo ban on cigarette packs.

Metals stocks like Jindal Steel, Hindalco Industries, Sterlite Industries and Tata Steel dropped 1-2% ahead of CAG (Comptroller and Auditor General) report that will be tabled in parliament today.

Technology majors TCS and Infosys fell 0.5-0.7% while their rival Wipro tumbled 1.76%. State-owned oil & gas producer ONGC and FMCG major Hindustan Unilever were down 0.9% each.

Private sector lender HDFC Bank went down 1% while its rival State Bank of India was down 0.3%. Housing finance company HDFC rallied 1.8%.

Country's largest two-wheeler maker Hero Motocorp gained 3% while commercial vehicle manufacturer Tata Motors and utility vehicle major M&M moved down over 1%.

In the second line shares, Amara Raja Batteries surged more than 9% today after rising 16% on Tuesday due to strong numbers in the first quarter.

Manappuram Finance, Standard Chartered IDR, Bajaj Corp and Sadbhav Engg gained 4-7% whereas Jain Irrigation crashed 6% as it has reported a loss of Rs 16.8 crore in the first quarter of FY13 as against profit of Rs 82.4 crore in a year ago period.

Shree Global, Glodyne Tech, Indiabulls Financial and Amtek India were down 3-5%.

Among smallcaps, Geodesic shot up 20% as the board members approved the proposal to buy-back of 25% of the equity shares of the company through open offer through stock exchanges.
 
Reliance Mediaworks, Ahmednagar Forgings, Parekh Aluminex and Money Matters were up 7-12%. However, Kemrock Industries, Butterfly, Kesoram, Oriental Hotels and SPML Infra lost 5-10%.

The BSE Sensex and NSE Nifty opened volatile on Thursday due to lack of global and local cues. Fall in inflation below 7%, which was below RBI's comfort level, already priced in by the market. Now the market is looking for some trigger to get direction on either side.

Today three CAG (Comptroller and Auditor General) reports will be tabled in parliament. In one of the report on coal mines, the CAG said private companies could have got windfall gain of up to Rs 1.86 lakh crore. "15 blocks given to private companies did not see production till March 2011," according to the report. That resulted fall in metal stocks in early trade.

The BSE benchmark rose 7.5 points to 17,735.65 and the NSE benchmark gained 5 points at 5,385.15. Asian markets were mixed; Nikkei jumped 1.5% and Straits Times was up 0.6% whereas Shanghai, Hang Seng and Kospi were flat.

IDFC was up over 2% as its consolidated net profit jumped to Rs 379.78 crore in Q1 of FY13 from Rs 313.7 crore in a year ago period.

Hero Motocorp and M&M gained more than 1.5%. HDFC, PNB, Axis Bank, State Bank of India, Bank of Baroda, Grasim, ACC, Tata Steel, Reliance Industries, Cairn India, Ranbaxy Labs and Cipla too were witnessing positive trend.

Wipro, Sun Pharma, TCS, Infosys, Sterlite, JSPL, HDFC Bank, HUL and Tata Motors were under pressure.

Hindalco fell 1% due to disappointing numbers in the quarter ended June 2012.

The CNX Midcap Index was up just 4 points at 7,307. The market breadth was in favour of advances.

In the second line shares, Opto Circuits and Jain Irrigation (reported a loss of Rs 16.8 crore in Q1 of FY13 as against profit of Rs 82.4 crore) tanked 6% each.

Shree Renuka and Bajaj Hindusthan were down 2% on weak numbers in June quarter.

Tulip Telecom was up 3.7% due to a big jump in net profit of first quarter of FY13; actually YoY numbers are not comparable due to change in accounting policy.

Amtek Auto was up 5% as it posted a profit of Rs 115.6 crore in first quarter of FY13 as against loss of Rs 90 crore YoY.

Amara Raja Batteries went up 5% on strong numbers in Q1. It had rallied 16% on Tuesday.

Dishman Pharma and Wockhardt were up nearly 2%.

GVK Power, HDIL, GMR Infrastructure and DLF were down marginally.

Indiabulls Power was up 0.4%.