BSE Sensex, Nifty end with marginal gains; Wipro, TCS gain

3:50 pm Market closing: After a lacklustre trading session, the market managed to end in the green. The Sensex ended 61.56 points or 0.31 percent higher at 19804.03, and the Nifty closed at 5851.40 up 10.85 points or 0.19 percent. About 1103 shares have advanced, 1227 shares declined, and 140 shares are unchanged. The US Federal Reserve's two-day policy meeting starts today. Economists expect the Fed to reduce its asset purchase programme by USD 10 billion a month. Global markets turn cautious. Meanwhile, according to a Network18 exclusive the government is planning to hike import duty on gold. The Finance Minister gives his nod to hike gold import duty from 10 percent to 15 percent. 3:30 pm Buzzer: India Glycols shares lost 14 percent in afternoon trade Tuesday on concerns that the company through its subsidiary has significant exposure to NSEL. NSEL stopped trading from July-end on liquidity crisis. Rakesh Bhartia, CEO of India Glycols says the company through its subsidiary has expsoure to NSEL at Rs 125 crore. Total recovery from NSEL is only 3 percent, he adds. "We will consider action on NSEL matter based on government steps and we have not made any provision on NSEL exposure," Bhartia says in an interview with CNBC-TV18.

Finally the market made some movement in the last hour of trade. The Sensex is up 63.33 points or 0.32 percent at 19805.80, and the Nifty up 10.15 points or 0.17 percent at 5850.70.  About 991 shares have advanced, 1217 shares declined, and 141 shares are unchanged. Technology stocks are boosting the market with Wipro and TCS as lead gainers. Meanwhile, banking and capital goods are major laggards of the day. Dr Reddys Labs rallied 4 percent after it received approval from USFDA for generic Vizada injection, used to treat anaemia. Vizada had sales of around USD 378.5 million in the 12-month period ended July 2013, according to its filing. YES Bank raised USD 255 million thorugh a dual currency multi-tenure loan. Funds will use the proceeds for general corporate purposes and syndicated trade finance. The stock gained 3 percent.

The market has been consolidating from last Wednesday following more than 1700 points rally on the Sensex. Siddharth Bhamre of Angel Broking believes this market is in stronger hands, FIIs are putting money into this market. We are heading towards 6,150-6,200 levels probably in this expiry.

Dr Reddys Labs rallied 4 percent after it received approval from USFDA for generic Vizada injection, used to treat anaemia. Vizada had sales of around USD 378.5 million in the 12-month period ended July 2013, according to its filing. YES Bank raised USD 255 million thorugh a dual currency multi-tenure loan. Funds will use the proceeds for general corporate purposes and syndicated trade finance. The stock gained 3 percent. Gold loan financing companies like Manappuram and Muthoot Finance lost 4-6 percent on RBI's new norms. As per the norms, the companies require appopriate infrastructure for storage of gold ornaments and RBI's permission to open over 1000 braches. The central bank also clarified how the price of gold is to be ascertained while calculating the loan-to-value.

02:15pm The market is listless in afternoon trade today as caution prevails ahead of the two-day FOMC meeting that will start today. Economists expect Fed tapering in the range of USD 5-15 billion. Rohit Arora of Barclays expects Federal Reseve to reduce monthly bond purchases by USD 15 billion from Rs 85 billion, which could result into a weakness in emerging market assets. In such a scenario, he also expects the INR to weaken to an extent and hence does not see Reserve Bank of India scaling back their liquidity tightening measures, at least in the upcoming meeting (that is scheduled for September 20). "If RBI does not scale back their liquidity tightening measures and the MSF rate remains at 10.25 percent, we think there could be somewhat disappointment from the fixed income markets and we could see around 10-15 bps move higher in the bond yields," he adds. The guidance given by the new RBI governor would hold a lot more importance than any change in existing measures, believes Arora.

The Sensex is down 12.38 points at 19730.09, and the Nifty is down 8.95 points at 5831.60. Declining shares outnumbered advancing ones by 1202 to 899 on the Bombay Stock Exchange. Financials, power, capital goods and select oil & gas shares are under pressure while technology, FMCG and auto stocks gained. Meanwhile, the rupee depreciated by 26 paise to 63.09 against the US dollar.

1:50 pm Buzzer: YES Bank shares gained more than 2 percent in afternoon trade Tuesday, continuing its upward journey for the second consecutive session. The private sector lender today successfully closed its USD 255 million dual currency, multi-tenor syndicated loan facility. "The facility shall be utilised for general corporate purposes and trade finance," the bank in its filing to the exchange said. 1:30 pm Market outlook: Dipen Sheth of HDFC Securities is bearish on the market and sees no reason for long only funds to be interested in India. Speaking to CNBC-TV18, he said on the ground nothing much has changed as far as macros are concerned. He feels Indian equity market needs new set of triggers or structural reforms to attract investors. He expects the market to be more 'irrational', and said though Nifty may not fall below 5,200 or 5,000, but the current level is not sustainable either. Sheth extended his negativity to the macros too. "The market is in denial of the fact that a lot of purchases, imports on depreciated rupee are now going to enter the Indian economic system and a lot of this is going to translate into higher inflation as we move forward. ''The numbers were ugly and I can only see them getting uglier from here," he adds. Additonally, Sheth believes that the Indian equity market hasn't yet seen the worst of capital outflows.

The market is absolutely flat with investors in a wait-and-watch mode as crucial 2-day FOMC meet starts today and also ahead of RBI credit policy this Friday. The new RBI Governor Raghuram Rajan will be meeting the FM at 3 pm today. The Sensex is up 6.50 points or 0.03 percent at 19748.97, and the Nifty is down 2.95 points or 0.05 percent at 5837.60. About 879 shares have advanced, 1112 shares declined, and 120 shares are unchanged. Technology stocks are gaining investors' attraction while almost all stocks are either flat or in negative. Dr Reddys Labs , Wipro , Sesa Goa , Maruti Suzuki and Coal India are top gainers in the Sensex. On the losing side are Sun Pharma , NTPC , ONGC , HDFC and Hero Motocorp . Shares of gold loan financing companies like Manappuram and Muthoot Finance are under pressure after the Reserve Bank of India (RBI) notified new norms for these companies on September 16. As per the new norm , gold loan financing companies should have appropriate infrastructure for storage of gold ornaments. "It is important that a minimum level of physical infrastructure and facilities is available in each of the branches engaged in financing against gold jewellery including a safe deposit vault and appropriate security measures for operating the vault to ensure safety of the gold and borrower convenience. No business of grant of loans against the security of gold can be transacted at places where there are no proper facilities for storage/security," RBI in its notification said.

Shares of Denso India rallied 9.4 percent intraday to touch a 68 months' high of Rs 125.05 on Tuesday as the voluntary delisting offer from its parent company Denso Corporation has begun today. The parent company of Denso India has made a voluntary delisting offer to acquire the remaining 26.54 percent stake. Denso Corporation has 47.93 percent stake in the company as of June 2013. The floor price for the delisting offer, which will close on September 20, is at Rs 59.70, while the indicative price is set at Rs 95 per share. Meanwhile, Dr Reddys Labs and Wipro are the major gainers in the Sensex, surging 4 percent each. CLSA has an outperform rating on Dr Reddys with a target price of Rs 2,475. The brokerage house says that the company's US business is likely to exceed expectations and the weak rupee could take CAGR to 16 percent over FY13-16 with upside potential.

Sesa Goa gained more than 3 percent. The supreme court has begun the crucial hearing in the goa mining ban case. This is just the second hearing since the ban came into effect a year ago. Sesa Goa has a 3 million tonne of inventory. Gold loan companies like Manappuram and Muthoot Finance fell 4-6 percent on RBI's new norms. As per the norms the companies require appopriate infrastructure for storage of gold ornaments and RBI's permission to open over 1000 braches. The central bank also clarified how the price of gold is to be ascertained while calculating the loan to value.

12:13pm The market remained lacklustre in noon trade as it is waiting for direction from FOMC & RBI policy that will take place later this week. Today is the fifth day of consolidation for the market. The Sensex is down 12.27 points at 19730.20, and the Nifty is down 9.50 points at 5831.05. Dipen Sheth of HDFC Securities is bearish on the market and sees no reason for long only funds to be interested in India. Speaking to CNBC-TV18, he said on the ground nothing much has changed as far as macros are concerned. He feels Indian equity market needs new set of triggers or structural reforms to attract investors. He expects the market to be more 'irrational', and said though Nifty may not fall below 5,200 or 5,000, but the current level is not sustainable either.

Sheth extended his negativity to the macros too. "The market is in denial of the fact that a lot of purchases, imports on depreciated rupee are now going to enter the Indian economic system and a lot of this is going to translate into higher inflation as we move forward. ''The numbers were ugly and I can only see them getting uglier from here," he adds. Sun Pharma and NTPC are biggest losers in the Sensex, falling 2.5 percent each followed by HDFC, ONGC , Hero MotoCorp, Tata Steel and Tata Power with 1-2 percent loss. Meanwhile, the rupee is sharply lower in-line with other Asian currencies. Subdued equity markets and dollar demand from importers are also weighing on the currency. The currency fell 45 paise to 63.28 against the US dollar. Globally, the losses widened in Asia amid anticipation of QE tapering ahead of the FOMC meeting. Shanghai lost 1.6 percent and Nikkei was down 0.6 percent.

11:40 am Udayan Mukherjee says: Traders should remain long with stop losses unless the market starts trading below 5,800, Udayan Mukherjee of CNBC-TV18. He expects the Nifty to hit 6100 if global and local event in the next 72 hours turn out to be in market's favour. The market has now formed a very narrow range within which it has turned volatile given the slew of key local and global events lined up, says Udayan Mukherjee of CNBC-TV18. "We have seen volatility intraday, but the market has not taken out 6,000 on the way up and on the way down it has not collapsed below 5,800-5,850 levels," he added.

He elaborated that the bearish way to read the price action is that the breadth has been a bit disappointing over the last of days. "There are some distributive patterns because the market is stalling at the higher end of the intraday upmoves and is coming back repeatedly to 5,850. But it is a bit confusing and particularly compounded by the fact that there are a couple of important events which will lend direction to the market over the next couple of days," Mukherjee said.

11:20 am Buzzer: Shares of Sesa Goa rallied around 4 percent in early morning trade on Tuesday ahead of the crucial Supreme Court hearing on Goa mining case. The Goa mining ban has crippled the state for a year now. Sesa Goa, a Vedanta group company and country's largest producer and exporter of iron ore in the private sector, is sitting on inventory of 3 metric tonne and the market is looking for any clarity on inventory liquidation.

The market is moving directionless ahead of the FOMC meet that kicks off today. After a tepid opening, the Sensex is down 34.98 points or 0.18 percent at 19707.49, and the Nifty down 18.95 points or 0.32 percent at 5821.60. About 629 shares have advanced, 940 shares declined, and 91 shares are unchanged. Banks and capital goods stocks are dragging.

NTPC , Sun Pharma , BHEL , HDFC and Tata Power are top losers in the Sensex. Technology stocks, however, are holding up on weak rupee. Wipro , NTPC, Sun Pharma, BHEL, HDFC and Tata Power are top losers in the Sensex. Asian markets are mostly lower though Japanese stocks rose as they caught up with Monday's gains. Brent is below USD 110/bbl as the Syrian crisis cooled off while gold is hovering at a 5-week low. The dollar index bounces back but still hovering near 3-week lows.

Gold loan financing companies like Manappuram Finance and Muthoot Finance are under pressure on new RBI norms, which require appropriate infrastructure for storage of gold ornaments, prior approval of RBI for opening branches in excess of 1,000 in number. RBI has reiterated that the loan-to-value (LTV) ratio for loans against jewellery continues to be at 60 percent. Manappuram lost 3.5 percent and Muthoot tanked 6.5 percent.

United Breweries Holding and United Breweries are down 2-3 percent as Karnataka High Court will hear a winding-up petition today. Over 10 creditors had filed winding up petition against UBHL in April while creditors demand clearance of dues from UBHL. Reliance Broadcast is locked at 5 percent upper circuit as the company will consider delisting of shares on September 18 while Reliance Mediaworks fell 2.6 percent as it alloted 14.7 crore shares at Rs 40/share via rights issue which was a discount to current market price.

Technology stocks are in bull grip today as rupee fell by 71 paise to 63.54 against the US dollar. Wipro surged 3 percent while its rival TCS gained 1.3 percent and Infosys rose 0.3 percent. Among auto stocks, Tata Motors , M&M and Maruti Suzuki rallied more than one percent whereas Hero MotoCorp lost 1.5 percent. Sun Pharma shares tanked 2.5 percent. Financials like HDFC, HDFC Bank , ICICI Bank and State Bank of India slipped 0.3-1 percent. Index heavyweights Reliance Industries and ITC declined around 0.5 percent.

10:18am The market appears to be in a consolidation phase today with the equity benchmarks hovering around their previous closing values. The Sensex is down 19.40 points at 19723.07, and the Nifty is down 12.90 points at 5827.65. Declining shares outnumbered advancing ones by 661 to 458 on the Bombay Stock Exchange. The market is waiting for the outcome of FOMC meeting that will start today for two days and RBI policy on Friday.

In case of FOMC, economists expect the Fed to begin reducing monthly bond purchases by USD 5 billion from USD 85 billion while in case of RBI, analysts do not see any move on policy rates. The US Federal Reserve should gradually start to taper beginning September , says Wilbur Ross, Wilbur Ross & Co. According to him, reducing bond buying by USD 5 billion per month over 17 months would get them to zero net purchases at the end of the period. "Though it would still mean they would buy some USD 730 billion more securities, but that would be about half of what they would buy during that same period if they would not taper," he told CNBC-TV18 in an interview.

Dr Reddys Labs gained 2.5 percent. CLSA has an outperform rating on the stock with a target price of Rs 2,475. According to the brokerage house, US business growth of the pharma company is likely to exceed expectations. "We expect strong market share gains on recent launches and see 16 percent CAGR over FY13-16 with upside potential," CLSA report said.