BSE Sensex up 140 points; HDFC twins, SBI, BHEL gainers

3:45 pm Market outlook: The Indian equity market is likely to remain bipolar going ahead given the way things are panning out globally and locally, says Nilesh Shah, MD & CEO, Envision Capital. In an interview to CNBC-TV18, he said that issue relating to US debt ceiling will be a overhang for our market. Also, India Inc's second quarter earnings on an overall basis will be weak.

''We might see couple of more quarters which could continue to be challenging. Rather than just saying that Q2 could be the low point of the earnings, I believe that FY14 as a full year could be the low point of earnings for corporate India,'' he added. Shah still finds valuations of IT companies attractive and is positive on the sector. From the FMCG pack, he prefers midcaps over large caps.

3:30 pm Buzzer: Future Lifestyle Fashion lost nearly 10 percent on its debut day on the bourses. The arm of Future Retail was created in November 2012 when both ventures, Future Retail and Future Ventures, demerged all branded and fashion businesses of the Future group into one single entity. Brands like Central, Brand Factory, Planet Sports, ALL etc. come under this umbrella.

Buying continued even in the last hour of trading as the Sensex is up 141.45 points or 0.73 percent at 19521.22. The Nifty is up 37.70 points or 0.66 percent at 5773.00. About 1299 shares have advanced, 985 shares declined, and 161 shares are unchanged. HDFC Bank , BHEL , HDFC, ICICI Bank and SBI are top gainers in the Sensex while on the losing side are Tata Power , Sesa Goa , NTPC , ONGC and HUL .

September auto sales numbers point to some cheer. Maruti's sales rise 11.7 percent year-on-year to over 1 lakh units, beating expectations. TVS Motor's sales also rise about 16 percent Y-o-Y with a big boost coming in from exports. M&M, though bucked the trend, as total sales fell 10.5 percent but are better-than-expected. Globally, the US government shuts down for the first time in 17 years as the Congress fails to resolve a budget stand-off over the heathcare law. Asian markets come off marginally from highs though most experts believe that the news was on expected lines.

02:59pm Stocks In News Maruti Suzuki shares gained 1.4 percent after its auto sales for September increased 11.7 percent year-on-year to 1.04 lakh units. Export sales jumped 180 percent to 14,565 units. M&M rebounded after reporting strong tractor sales in September. Tractor sales grew by 33 percent Y-o-Y at 26,637 units, buts its auto sales are weak, falling 10.5 percent Y-o-Y to to 43,289 units, though they are better-than-expected.

TVS Motor stock surged more than 8 percent as its September sales accelerated by 15.8 percent on yearly basis to 1.97 lakh units. BPCL , HPCL and IOC lost 0.5-1.5 percent after these companies cut petrol price by Rs 3.05 per litre. They hiked diesel price by 50 paise per litre. Meanwhile, oil minister Moily said 50 paise per litre hike would take care of under-recovery. Future Lifestyle Fashion lost nearly 10 percent on its debut.

The arm of Future Retail was created in November 2012 when both ventures, Future Retail and Future Ventures, demerged all branded and fashion businesses of the Future group into one single entity. Brands like Central, Brand Factory, Planet Sports, ALL etc. come under this umbrella. The Sensex is up 136.68 points or 0.71 percent at 19516.45, and the Nifty is up 37.70 points or 0.66 percent at 5773.

02:55pm US government shutdown impacts only dollar The first US government shutdown in 17 years weakened the dollar on Tuesday, sending it to an eight-month low against the euro, but met a subdued response from investors in equity and fixed income markets. US Federal government agencies have been directed to cut back services after lawmakers failed to pass a temporary spending bill before a midnight deadline, threatening the salaries of over a million workers. The dollar has borne the brunt of the response so far, falling to a 1-1/2 year low against the safe-haven Swiss franc and hitting an 8-month low against a basket of six major currencies. The weakness lifted the euro to an eight-month high of USD 1.3589, reported Reuters.

02:50pm Gold Imports Pick Up Gold imports into India, the world's biggest buyer of the metal, rose to 7.24 tonnes in over three weeks in September, up from 3.38 tonnes in August, the finance ministry said in a statement on Tuesday. The September figure was way below the record 162 tonnes in May, which prompted the federal government to raise import taxes to 10 percent and tie exports to domestic consumption, under the so called 80/20 import rule. India, battling with a record high trade deficit and a weak currency, is trying to curb imports of the dollar-denominated gold, the most expensive non-essential item in its import bill, reported Reuters.

02:45pm Gainers & Losers Financials are the leaders in trade today with the BSE Bankex rising more than 2.3 percent. India's largest private sector lenders ICICI Bank and HDFC Bank gained 2.7 percent each while their rival state-run lender State Bank of India advanced 1.6 percent. Other rate sensitives, which beaten down badly earlier, saw some short covering today. L&T and BHEL rallied 1.4 percent and 3.4 percent, respectively. BSE Realty Index jumped 2.5 percent.

Among others, TCS , Reliance Industries , ITC , Bharti Airtel and Tata Motors gained 0.5-1 percent. However, Tata Power and NTPC topped the selling list, falling 3.4 percent and 2.4 percent, respectively. ONGC lost 1.8 percent. Hindustan Unilever declined 1.6 percent after its parent company Unilever warned that the slowdown in emerging markets accelerated. Unilever has reduced its sales guidance and expects underlying sales growth of just 3-3.5 percent in Q3 as against a weaker-than-expected 5 percent growth in Q2CY13.

02:35pm October for market? Kotak Institutional Equities does not expect much volatility in the market in October given the absence of key triggers. Senior executive, director and co-head, Sanjeev Prasad feels that lack of external pressures and no real catalyst domestically will keep the market calm this month. Political rhetoric will continue to be high and there will be no real policy initiative from the government, he tells CNBC-TV18 in an interview. He further added that government expenditure may not be cut severely due to the polls. He sees more pain for banks and expects them to report losses going ahead. Information technology (IT) and oil and gas stocks like ONGC, Oil India , RIL are expected to will deliver better results this time.

02:27pm The market remained firm in afternoon trade with the equity benchmarks rising 0.7 percent, ignoring the shutdown of US government.  The Sensex is up 129.60 points at 19509.37, and the Nifty is up 37.70 points at 5773. Advancing shares outnumbered declining ones by 1203 to 943 on the Bombay Stock Exchange. The US government shut down - the first time since 1995-96 - as the Republican and the Democrats failed to reach an agreement on spending and budget mainly due to their differences over the healthcare reforms, which is popular as Obamacare.

Bruce Kasman, Chief Economist and Managing Director of Global Research, JPMorgan feels the global equities already responded to this. "The issue here is not the shutdown per se, but how the shutdown prepares for debt ceiling debate coming up. Markets have become cautious, but they are not really going to respond negatively to get close to the debt ceiling debate. If we feel that is actually potentially going to go bad then we have a much more significant negative to hit in the equity market," Kasman explained.

1:45 pm Macro update: The economy will grow at more than 5 percent in the current financial year ending in March 2014, Economic Affairs Secretary Arvind Mayaram said, reports Reuters. "It will be more than 5 percent. It cannot be less than 5 percent," Mayaram said. Mayaram also said as of now, a shutdown of the US government is not likely to have a major impact on the Indian economy. "As of today, I don't see any major impact on the Indian economy on that account."

1:30 pm Buzzer: Shares in Tata Communications gained 4.3 percent after South Africa's Vodacom Group said it was in exclusive talks to buy the company's unlisted local unit, Neotel, in a potential USD 590 million deal, reports Reuters. Acquiring Neotel would be a major boost to Vodacom's ambitions to grow its data business in Africa's largest economy. "Every USD 100 million of deal equity value adds Rs 15/share to fair value. However, we add a conservative Rs 30/share and raise our target price to Rs 250 and reiterate BUY," Kotak said in a report on Tuesday.

1:20 pm Outlook: Bank of America Merrill Lynch (BofA-ML) lowered its current account deficit (CAD) target for India for the current financial year to 3.2 percent of the GDP from 4 percent earlier. "We have cut down the FY14 current account deficit (CAD) forecast to 3.2 per cent of GDP (from 4.0 per cent earlier) by pulling down the net gold import bill by USD 7 billion to USD 30 billion," BofA-ML said in a research note today. According to the global financial services major, though CAD at 3.2 percent of GDP is significantly lower than the 4.8 percent it registered in fiscal year 2012-13 ", it still remains higher than the 2.4 percent of GDP that we estimate as the optimal current account deficit".

The market is firm boosted by banks, capital goods and pharma companies. The Sensex is up 101.31 points at 19481.08, and the Nifty is at 5773, up 37.70 points. About 1118 shares have advanced, 817 shares declined, and 130 shares are unchanged. September auto sales numbers point to some cheer. Maruti's sales rise 11.7 percent percent year-on-year to over 1 lakh units, beating expectations. TVS Motor's sales also rise about 16 percent Y-o-Y with a big boost coming in from exports.

M&M, though bucked the trend, as total sales fell 10.5 percent but are better-than-expected. Globally, the US government shuts down for the first time in 17 years as the Congress fails to resolve a budget stand-off over the heathcare law. Asian markets come off marginally from highs though most experts believe that the news was on expected lines.

12:55pm Movers and Shakers Country's largest private sector lenders ICICI Bank and HDFC Bank rallied 1.5 percent each while their rival State Bank of India rose 1.4 percent. Housing finance major HDFC too gained 1.4 percent. State-run capital goods major BHEL remained top gainer in the Sensex, rising 4 percent while its rival Larsen & Toubro advanced 1 percent. However, shares of ONGC , Sesa Goa , NTPC and Tata Power lost 2-3 percent.

Hindustan Unilever dropped 2 percent as its parent company Unilever on Monday warned that the slowdown in emerging markets including India, accelerated. Hence, Unilever has reduced its sales guidance; it expects underlying sales growth of just 3-3.5 percent in Q3CY13 as against a weaker-than-expected 5 percent growth in second quarter.

12:45pm M&M in focus Utility vehicle maker Mahindra and Mahindra's September total sales grew by 14 percent month-on-month (down 10.5 percent year-on-year) to 43,289 units, supported by passenger vehicle (PV) sales. PV sales jumped 19.56 percent to 18,916 units in September from 15,821 units in previous month. Meanwhile, Tata Motors gained 2 percent ahead of its auto sales data today.

12:35pm Stocks In News Auto sales numbers are better-than-expected in September. Maruti Suzuki sales rose 11.7 percent year-on-year to over 1 lakh units, beating expectations. TVS Motor's sales also jumped about 16 percent year-on-year to around 2 lakh units with a big boost coming in from exports. Oil marketing companies saw some profit taking after gaining in the last 2 sessions. The companies cut petrol prices by just over Rs 3 per litre after seven successive price hikes. Meanwhile, diesel prices hiked by 50 paise per litre. HPCL , IOC and BPCL lost 1-2 percent.

12:26pm The market continues to trade higher with the Sensex gaining 100 points in noon trade, unperturbed by the US government shutdown. Banks, auto and capital goods stocks gained ground. The Sensex gained 109.93 points or 0.57 percent at 19,489.70 and the Nifty rose 32.45 points or 0.57 percent to 5,767.75. Ridham Desai of Morgan Stanley says that the market is currently overvalued, but the time to buy market might come ahead of elections, he adds.

Meanwhile, the rupee is higher by 33 paise to 62.26 against the dollar, in-line with a strengthening euro. Bbetter-than-expected current account deficit data aided sentiment. The US government shuts down for the first time in 17 years as the congress failed to resolve a budget stand-off over Obamacare. Asian markets come off marginally from highs though most experts believe that the news was on expected lines.

12:00 pm Update: State-run power producer NHPC is likely to hit the market with its maiden tax-free bonds issue worth Rs 1,000 crore on October 15. For the issue, the company filed the Draft Red Herring Prospectus (DRHP) with capital market regulator Sebi on Monday. "We are expecting to come out with Rs 1,000 crore tax-free bonds issue on October 15," NHPC Director (Finance) A B L Srivastava said. The company would come out with the issue in a single tranche, he told reporters late on Monday. For this fiscal, NHPC's construction budget is Rs 3,450 crore. Out of that amount, around Rs 1,831 crore is planned to be garnered by way of debt.

11:45 FII view: Richard Gibbs, Macquarie Securities believes the debt ceiling (the deadline date is October 17) is a more significant negative trigger in relation to the fixed income market because of its impact on other risk asset markets, like equity markets around the world. The shutdown of US government could be a based on the news that they are getting from Washington, says Gibbs. However, the shutdown if it takes the shape of the one that happened in 1995-96 then economic data will suffer the most.

11:30 am Buzzer: Shares of Hindustan Unilever fell 3 percent after its parent company Unilever warned that a slowdown in its emerging market, including Indiaaccelerated in the third quarter. The consumer goods company now expects organic growth at 3-3.5 percent in the third quarter of calendar year as against its earlier forecast of 6 percent. Developed markets remained flat to down in the third quarter, it said. However, overall it was on track to meet its 2013 priorities. It attributed the emerging markets slowdown to a significant currency weakening.

The market is volatile in late morning trade. The Nifty is down 27.40 points at 5707.90 while the Sensex is up 74.92 points at 19454.69. About 1006 shares have advanced, 736 shares declined, and 104 shares are unchanged. BHEL , Maruti, L&T, HDFC Bank and M&M are top gainers in the Sensex. Maruti Suzuki sold 1.05 lakh units in September, a growth of 20 percent from previous month and 11.7 percent from a year ago period. Its exports also improved quite significantly, growing 29 percent MoM and 181 percent Y-o-Y to 14,565 units in September while domestic sales grew marginally to 90,399 units from 88,801 units Y-o-Y. The stock rallied nearly 4 percent.

In the global markets front, Asian markets recouped earlier losses. The White House has ordered the government agencies to begin shutting down as the Congress has failed to agree on government spending. This will be the first shutdown since 1996. History has seen 17 US government shutdowns with the longest in 1995 that lasted for three weeks. Currencies saw the yen going to levels of 98.12 against the dollar intraday while the euro went to levels of 1.35. Nymex futures are off 0.4 percent after news of the government shutdown.

Besides that japanese markets are also reacting to the Prime Minister Abe saying today that sales tax will rise from next April by 3 percent to 8 percent. Back home, rupee is trading with strength tracking strength in the euro. Sentiment, however, is cautious as the US government shutdown looms and bond prices have softened today to levels of 8.69 percent vs a closing of 8.76 percent yesterday as the RBI will buy bonds via OMO on Monday.

10:55am Unilever says slowdown accelerated Hindustan Unilever shares plunged 3 percent after Unilever warned that emerging markets slowdown has accelerated. "We see accelerated slowdown in emerging markets Including India and expect Q3CY13 organic growth at 3-3.5 percent as against estimates of 6 percent," Unilever said. Also Read - China September official PMI rises, but below forecast

10:45am HSBC PMI HSBC India Manufacturing Purchasing Managers' Index increased to  49.6 in September from 48.5 in August, indicated a marginal and slower deterioration of business conditions in India. "Operating conditions across the Indian manufacturing sector deteriorated for the second consecutive month in September. However, both output and new orders contracted at slower rates. Still, faced with fewer projects, companies reduced their workforce numbers for the first time since February 2012," the HSBC India report said.

10:35am TVS Motor Sales data Shares of TVS Motor Company , country's third largest two-wheeler maker, gained nearly 7 percent after total sales in September increased 27 percent to 1.97 lakh units M-o-M. Two-wheeler sales jumped 27.7 percent M-o-M to 1.89 lakh units in September while export sales rose marginally to 27,577 units from 27,425 units M-o-M.

10:25am Maruti Sales data Maruti Suzuki sold 1.05 lakh units in September, a growth of 20 percent from previous month and 11.7 percent from a year ago period. Its exports also improved quite significantly, growing 29 percent MoM and 181 percent Y-o-Y to 14,565 units in September while domestic sales grew marginally to 90,399 units from 88,801 units Y-o-Y. The stock rallied nearly 4 percent.

10:19am Equity benchmarks are marginally trading higher in morning trade Tuesday, supported largely by financials, auto, technology and capital goods stocks. The Sensex rose 54.58 points to 19,434.35 and the Nifty gained 15.65 points to 5,750.95. BHEL recouped previous day's losses, gaining 4.5 percent on short covering while its rival L&T rose just 0.6 percent. Auto stocks are in focus today ahead of September sales data. Maruti Suzuki surged 3 percent. Bajaj Auto , Hero Motocorp , Tata Motors and M&M gained 0.4-0.7 percent. Banks shares, which beaten down quite badly in previous session, are on buyers' radar. BSE Bankex rose 1 percent. State Bank of India and HDFC Bank rallied 1 percent each while their rival ICICI Bank advanced 0.7 percent.

However, HUL , GAIL , Hindalco , Jindal Steel , NTPC , Tata Power , ONGC and Sesa Goa fell 1-2.6 percent. Meanwhile, the White House ordered government agencies to begin shutting down late on Monday after Congress failed to find a compromise on a government spending bill before a midnight deadline. "We urge Congress to act quickly to pass a continuing resolution to provide a short-term bridge that ensures sufficient time to pass a budget for the remainder of the fiscal year, and to restore the operation of critical public services and programs that will be impacted by a lapse in appropriations," said Sylvia Burwell, director of the White House Office of Management and Budget, in a statement, reported Reuters. Richard Gibbs of Macquarie Securities believes the debt ceiling (the deadline date is October 17) is a more significant negative trigger in relation to the fixed income market because of its impact on other risk asset markets, like equity markets around the world.

10:00 am Market opinion: Ridham Desai, Managing Director, Morgan Stanley feels that the ferocity of the market moves has been surprising.  In an interview to CNBC-TV18, he said that the market is overvalued and global macros are benign. He, however, feels that it is time to buy ahead of elections.

9:50 am Buzzer: Shares of Apollo Tyres fell more than 8 percent in early trade Tuesday after the shareholders of Cooper Tire approved merger with the Indian tyre manufacturer. Cooper Tire & Rubber Company on Monday announced that its stockholders voted to approve its pending merger with a wholly-owned subsidiary of Apollo Tyres with more than 74 percent of Cooper's outstanding common shares voted in favour of the transaction. "Approximately 78 percent of Cooper's outstanding common shares were voted, with more than 48 million shares voted in favour of the merger, representing approximately 96 percent of Cooper's voted shares," Cooper Tire said in its release.

9:45 am Market check: The Sensex is at 19350.32, down 40 points, while the Nifty is at 5727.45, down 12 points. 9:40 am US govt shuts down: US government shuts down for first time since 1996. White House has notified federal agencies to implement shutdown plans. It has also ordered government agencies to begin shutting down. "We urge Congress to act quickly to pass a continuing resolution to provide a short-term bridge that ensures sufficient time to pass a budget for the remainder of the fiscal year, and to restore the operation of critical public services and programs that will be impacted by a lapse in appropriations," said Sylvia Burwell, director of the White House Office of Management and Budget, in a statement, reports Reuters.

After tepid sessions, the market is in green terrain today. The Sensex is at 19452.05, up 73  points while Nifty is  up 17 points at 5751.92. The Indian rupee opened with a marginal gain of 11 paise at 62.49 per dollar versus 62.60 yesterday. Tirthankar Patnaik, Religare said, "We expect overall CAD for the fiscal at a much lower USD 55 billion or 3.2 percent of GDP, thanks to a narrowing trade deficit.

Concerns on the capital account have also faded after the RBI's recent steps. However, with lower growth and the Fed's 'taper' still remaining key risks for India, we maintain our 58-62/USD band for the rupee for now." Meanwhile, current account deficit (CAD) widens to USD 21.8 billion in the first quarter of the fiscal. Imports surge at a 4.7 percent pace during the quarter, while exports decline by 1.5 percent.

Oil marketing companies are under selling pressure on price cut. After seven successive petrol price hikes, oil marketing companies cut petrol prices by Rs 3 but hike diesel prices by 50/paise a litre. BPCL loses 3 percent, HPCL is down 2 percent and IOC falls 2.3 percent on the BSE. US markets finished sharply lower as the budget impasse in Washington threatens the first government shutdown in nearly 17 years, but major indices still capped a rocky month and quarter with robust gains.

The Dow Jones lost nearly 130 points to close lower for the seventh session in the last 8 days. The yield on the 10-year treasury remains almost unchanged at 2.6%. The CBOE volatility index jumped to near 17 levels. For the month, the Dow rallied 2.16 percent, the S&P 500 jumped 2.97 percent, and the Nasdaq soared 5.06 percent. Equity markets in Asian enjoyed a modest rebound on Tuesday but investors remained on tenterhooks on the back of a likley US government shutdown. Japan's Nikkei and South Korea's Kospi were both rallying while Australia's S&P ASX 200 traded flat.