Sensex sheds 157 points, Nifty ends below 6150; banks fall

4:00 pm Results: India's largest commercial vehicle manufacturer Tata Motors surprised Dalal Street on every parameter with the second quarter (July-September) consolidated net profit surging nearly 71 percent year-on-year on Jaguar Land Rover boost, but standalone business continued posting losses amid weak economic environment.

Consolidated net profit increased to Rs 3,542 crore during September quarter from Rs 2,074 crore in a year ago period.

Revenues increased 31 percent year-on-year to Rs 56,882 crore in three-month period ended September 2013.

3:50 pm Results: Indian Oil Corporation ( IOC ) has reported 82.5 percent drop in net profit for the July- September quarter after the government did not compensate it fully for losses on diesel and cooking fuel sales.

Net profit for the second quarter of 2013-14 fell to Rs 1,683.92 crore, from Rs 9,611 crore in the same period of last year.

IOC sales rose to Rs 109,859.49 crore in Q2 from Rs 105,791.29 crore in the same period of 2012-13, the company said in a filing to the stock exchanges.

3:40 pm Market closing: After a weak trading session, the market closed at lower levels. The Sensex sheds 156.62 points to close at 20666.15 while the Nifty ended at 6140.75, down 46.50 points. About 1108 shares have advanced, 1312 shares declined, and 154 shares are unchanged.

HDFC ended with a loss of 4 percent while its twin HDFC Bank fell 2 percent. Among other losers in the Sensex were Maruti Suzuki, ONGC and Bajaj Auto .

Ahead of announcing September quarter results, Tata Motors ended over 1 percent on the BSE. Other gainers in the Sensex included Tata Steel , L&T, BHEL and Sesa Sterlite.

3:30 pm Bond market: The government plans to launch bonds linked to consumer price inflation for retail investors in the next 7-10 days, a senior finance ministry official said, reports Reuters.

"They are (inflation-indexed bonds) going to be introduced in a week or 10 days," Arvind Mayaram, the economic affairs secretary at the finance ministry, told reporters on the sidelines of an event.

The Reserve Bank of India said in its policy statement last month that inflation-indexed securities for retail investors of 10-year tenor would be linked to the new (combined) consumer price index.

3:20 pm results: Public sector lender Indian Bank's second quarter (July-September) net profit slipped 38.4 percent year-on-year to Rs 306 crore, impacted by fall in net interest income (NII) and lower other income, despite dip in provisions.

NII declined 2.4 percent on yearly basis to Rs 1,093.6 crore.

The market continues to drag on selling pressure. The Sensex is down 128.20 points at 20694.57, and the Nifty slips 37.20 points at 6150.05.

About 1013 shares have advanced, 1286 shares declined, and 160 shares are unchanged.

Bank Nifty is down over 1 percent while capital goods and realty stocks are outperformers.

HDFC twins, ONGC, Maruti Suzuki and Bajaj Auto are top losers in the Sensex. Among the gainers are Tata Steel, L&T, Sesa Sterlite, Tata Motors and BHEL.

Andrew Holland of Ambit Capital Advisors expects the Nifty to find support at 6000. He believes that most of the pre-election rally has already played out.

The rupee is lower tracking dollar strength globally. Also dollar purchases by a large state-owned bank are adding to the pressure. Bond yields surge ahead of the Rs 15,000 crore auction today.

Leif Eskesen, Chief Economist for India and ASEAN at HSBC says to a great extent it is on the back of data coming out of the US, which has been stronger than expected. Even GDP numbers that came out yesterday from the US was better than expected. Though the data was not very strong, but the markets took the cue that the Fed might begin its taper, he says. It is this fear that has spilled over. As far as the situation in India is concerned, Eskesen feels that though the macros have bottomed out, but recovery from hereon will be quite slow.

02:40pm Results Reaction
Shares of Indian Bank slipped 5 percent after the public sector lender reported degrowth of 38 percent year-on-year in net profit at Rs 306 crore and net interest income declined 2.35 percent Y-o-Y to Rs 1,093.6 crore in the quarter gone by.

02:30pm Market update
The market is heading towards weak closing for the current truncated week. The Sensex is down 162.66 points at 20660.11, and the Nifty is down 50.35 points to 6136.90, continuing downward journey for the fourth consecutive session today.

Declining shares outnumbered advancing ones by a ratio of 1310 to 970 on the BSE.

Bank Nifty lost more than 150 points in afternoon trade as HDFC Bank fell over 2 percent and PNB dropped 4 percent.

Housing finance company HDFC was the top loser, falling over 3 percent while Tata Motors (ahead of Q2 numbers today) and L&T gained 1 percent. Tata Steel , which will announce numbers next week, rallied nearly 3 percent.

02:20pm Result Impact
Sun TV Network shares fell more than 5 percent after the south-based company's operating profit margin declined 360 basis points year-on-year to 72.4 percent during second quarter.

During the same period, net profit rose to Rs 169 crore from Rs 151.7 crore due to other income of Rs 37.8 crore (Rs 9.6 crore in a year ago quarter) year-on-year.

1:50 pm Update: The Reserve Bank of India's (RBI) recent steps aimed at subsidiarisation of domestic foreign banks recognises the need for greater foreign participation in a growing Indian economy, says Fitch Ratings. These rules are unlikely to alter the banking sector's competitive landscape by itself, but does signal the prospect of further reforms.

1:40 pm Buzzer: Shares of SpiceJet tanked 6 percent in intraday trade on Friday on its worst quarterly loss. It posted a record loss of Rs 559 crore in September quarter, hit by high fuel prices and depreciating rupee.

The low-cost carrier had reported a loss of Rs 164 crore in the year-ago period. The airline's previous biggest loss was Rs 327 crore in the September quarter of FY 2007-08.

1:30 pm Market outlook: After the recent run-up seen in Indian equities in Diwali, most market participants are now worried if the market is poised for correction given the uncertainty on Federal Reserve tapering and the upcoming general elections at home. Andrew Holland, CEO, Ambit Investment Advisors Private is cautious on the Indian market with a short-term perspective, but believes that market will not fall significantly from hereon.

He expects the Nifty to find support at 6000 level. He further added that most of the pre-election rally has already played out. ''The Modi factor has already played out for the state elections and for the general elections; it is a different ball game. So, I wouldn't be banking only on this factor,'' he added.

However, he hopes for a stable government post 2014 general elections. On specific stocks, Holland is betting on export-linked companies like Bharat Forge and is bullish on Tata Steel , Hindalco and Hindustan Zinc . On the flipside, he recommends moving away from defensives into cyclicals now.

The market loses ground on the back of weak global cues and extended profit booking.

The Sensex is down 110.88 points at 20711.89, and the Nifty is down 36.75 points at 6150.50. About 903 shares have advanced, 1281 shares declined, and 155 shares are unchanged.

Banks, oil and gas and auto stocks are weak while IT and metal stocks extend gains.

The rupee is lower tracking dollar strength globally. Also dollar purchases by a large state-owned bank are adding to the pressure. Bond yields surge ahead of the Rs 15,000 crore auction today.

01:05pm Market Update
The market extended losses in afternoon trade as the Sensex is down 156.41 points at 20666.36, and the Nifty is down 49.05 points at 6138.20.

HDFC and Maruti Suzuki are the biggest losers in the Sensex, falling 3 percent each followed by HDFC Bank , TCS , Reliance Industries , ONGC and M&M with 1-2 percent loss.

However, Tata Motors and Tata Steel remained on buyers' radar with 1-2 percent gains. Former will announce its second quarter earnings today and latter will declare earnings next week.

12:59pm ING Vysya Bank Boardroom
Private sector lender ING Vysya Bank hopes for a stable performance going forward.  It's MD and CEO, Shailendra Bhandari, expects net interest margins (NIMs) to improve from its current three percent levels.  The bank reported a 17 percent rise in its net profits at Rs 176 crore for the July-September quarter.

However, Bhandari also feels that strain on asset quality may continue for a few more quarters. Overall, investment scenario remains muted and signs of economy bottoming out are premature, he says. Till the general elections, one must be prepared for uncertainty, he tells CNBC-TV18. He also doesn't see credit growth crossing 13 percent in FY14.

Bhandari anticipates a status quo from the Reserve Bank's monetary policy meet in December.

12:39pm PNB crashes 5%
India's third largest public sector lender Punjab National Bank (PNB) disappointed the Dalal Street with second quarter (July-September) falling 52.6 percent year-on-year to Rs 505.5 crore, dented by higher provisions on depreciation in investment.

Net interest income - the difference between interest earned and interest expended - grew 10 percent Y-o-Y to Rs 4,015.5 crore in three-month period ended September 2013, supported by higher revenues from treasury and retail banking operations.

Provisions and contingencies jumped 78 percent on a sequential basis (up 77 percent on yearly basis) to Rs 1,899 crore in the quarter gone by.

12:19pm Equity benchmarks are heading towards weak closing for the week as indices continued downward journey for the fourth consecutive session today.

The Sensex is down 103.27 points at 20719.50, and the Nifty is down 30.75 points at 6156.50, weighed down by private financials and oil & gas stocks.

Andrew Holland, CEO, Ambit Investment Advisors Private is cautious on the Indian market with a short-term perspective, but believes that market will not fall significantly from hereon. He expects the Nifty to find support at 6000 level.

He further added that most of the pre-election rally has already played out. ''The Modi factor has already played out for the state elections and for the general elections; it is a different ball game. So, I wouldn't be banking only on this factor,'' he added. However, he hopes for a stable government post 2014 general elections.

Public sector lender UCO Bank surprised the street with second quarter net profit rising a whopping 3.85 times year-on-year to Rs 400 crore, driven by strong retail banking operations and MAT credit, despite higher provisions.

Net interest income of the bank grew 55 percent to Rs 1,569.4 crore in three-month period ended September 2013 from Rs 1,013 crore in a year-ago quarter.

11:50 am Interview: A credit boom in countries such as China means that the world is in a worse position than it was in 2008 when a global financial crisis tipped the world into recession, Marc Faber, editor and publisher of The Gloom, Boom & Doom Report, told CNBC Asia's "Squawk Box."

"If I am telling you that we had a credit crisis in 2008 because we had too much credit in the economy, then there is that much more credit as a percent of the economy now," Faber told.

11:40 am Market outlook: Nifty is seeing a correction and Deven Choksey, managing director of KR Choksey Shares and Securities feels it could last this whole month.

He says that post the state elections, the market can perhaps once again resume further upside. There are two reasons behind it; one, the election factor for which most of the traders would remain cautious and another aspect is about the currency.

"We are likely to see the rupee depreciating to 63.5-64.5/USD and given that possibility the buying from foreign institutional investors (FIIs) side is likely to remain muted into the market and at the same time some amount of sector rotation might take place given the kind of weight adjustment that they do on the trading portfolio. So, from that point of view market would struggle," Choksey adds.

11:30 am Buzzer: Enthused investors' aggressive buying took shares of Aurobindo Pharma to 34-month high in intraday trade on Friday on better September quarter results. The stock jumped 10 percent in morning trade on the BSE.

The drug company's consolidated net profit rose 5.7 percent to Rs 235 crore for the second quarter ended September 30, 2013 from Rs 222.4 crore year-on-year.

The market is trending lower with the Sensex at 20754.16, down 68.61 points. The Nifty is down 21.60 points at 6165.65. About 837 shares have advanced, 858 shares declined, and 93 shares are unchanged.

HDFC , GAIL , ONGC , Maruti Suzuki and Coal India are top losers in the Sensex. On the gaining side are Tata Steel , Tata Motors , Sesa Sterlite, BHEL and Bharti Airtel . Both small cap and midcap stocks are still on buyers' radar today.

Asian stocks are trading lower today taking their cues from Wall Street's losses overnight and focusing on the unexpected cut in interest rates by the European Central Bank. Chinese trade surplus was better than expectations though.

From commodities gold is set for its second weekly loss while oil saw Brent traded at the lowest level it has seen in July.

Back home, the rupee is lower tracking the broad strength in the dollar. Gilts are down ahead of Rs 15000 crore gilt auction today, retail and wholesale inflation data for October next week.
 
11:00am Market Update
The market is trading lower on account of weak global cues. The Sensex is down 85.55 points at 20737.22, and the Nifty is down 26.75 points at 6160.50.

10:55am Stocks In News
Prestige Estates shares fell nearly 3 percent due to a 500 basis points fall in second quarter operating profit margin to 25 percent, though net profit jumped 70 percent Y-o-Y to Rs 77.6 crore.

SpiceJet slipped 3 percent after the aviation company posted a net loss at Rs 559.5 crore in three-month period ended September 2013 as against loss of Rs 163.5 crore in a year-ago period.

Eicher Motors , too, surged over 3 percent as consolidated net profit soared 63 percent Y-o-Y to Rs 107.4 crore and operating profit margin expanded 460 basis points Y-o-Y to 12.1 percent in the quarter gone by.

10:45am Gold Update
Gold was trading near three-week lows on Friday and heading for a second straight weekly loss after strong US economic growth sparked fears the US Federal Reserve may scale back its bullion-friendly bond purchases this year.

US gross domestic product grew at a 2.8 percent annual rate in the third quarter, the quickest pace in a year, after expanding 2.5 percent in the second quarter.

Investors are now waiting for US nonfarm payroll data later in the day for further direction and clues on the timing of the "tapering" of the Fed's economic stimulus, reports Reuters.

10:35am Tech Mahindra on fire post Q2 nos

Shares of Tech Mahindra jumped 6 percent intraday on Friday, touching a 6.9-year high as it showed good performance in September quarter results . Its consolidated net profit grew 4.7 percent sequentially (up 57.6 percent on yearly basis) to Rs 718 crore, impacted by forex loss and lower other income.

Consolidated revenue jumped 16.3 percent quarter-on-quarter (up 35.4 percent year-on-year) to Rs 4,771 crore in three-month period ended September 2013, which was higher compared to its peers.

10:25am Asian markets weak
Asian shares slumped to a three-week low on Friday after Wall Street suffered its biggest fall in more than two months, while a surprise interest rate cut by the European Central Bank underscored the fragility of the global economy.

The euro was under the cosh after slipping to seven-week lows of USD 1.3295 on Thursday after the ECB cut borrowing costs to a record low of 0.25 percent in response to a sharp drop in inflation, reports Reuters.

The euro was last changing hands at USD 1.3415.

10:15am The market remained under pressure with the Nifty trading way below the 6200 level, weighed down by financials and FMCG stocks.

The Sensex is down 67.04 points at 20755.73, and the Nifty is down 21.75 points at 6165.50.

Aditya Narain of Citigroup says he remains cautious on the market at current levels and maintains 18,900 Sensex target for December 2013.

"Indian markets have seen the second largest upswing into Diwali over the last eight years. Our takeaways of Diwali demand suggest a slow economy and an equity market running ahead of the underlying," he added.

HDFC is the biggest loser among frontliners, falling nearly 2 percent followed by TCS , ONGC , Maruti and GAIL with 1 percent loss.

However, Tata Motors gained more than 2 percent ahead of its second quarter earnings. According to a CNBC-TV18 poll, analysts expect strong results on a consolidated basis led by a drastic improvement in Jaguar Land Rover (JLR) operational performance. However, they feel standalone business (domestic business) will continue to report huge losses and a big crack in margins during second quarter.

9:50 am Gold update: Gold was trading near three-week lows on Friday and heading for a second straight weekly loss after strong US economic growth sparked fears the US Federal Reserve may scale back its bullion-friendly bond purchases this year, reports Reuters.

US gross domestic product grew at a 2.8 percent annual rate in the third quarter, the quickest pace in a year, after expanding 2.5 percent in the second quarter.

9:40 am Results poll: United Spirits (USL), the world's second-largest spirits company by volume, will announce its second quarter (July-September) results today. According to a CNBC-TV18 poll, analysts expect profit after tax to grow 64 percent year-on-year to Rs 110 crore.

Revenues are seen going up by 8 percent to Rs 2,420 crore in three-month period ended September 2013 from Rs 2,236.8 crore in a year ago period, led by volume growth of 4 percent Y-o-Y.

9:30 am FII view: Aditya Narain of Citigroup feels Indian market has seen the second largest upswing into Diwali over the last eight years. "Our takeaways of Diwali demand suggest a slow economy and an equity market running ahead of the underlying," he said. Narain remains cautious on the market at current levels and maintains 18,900 Sensex target for December 2013.

9:20 am Buzzer: Tech Mahindra is up 3 percent on the back of good performance in the September quarter results . Its consolidated net profit grew 4.7 percent sequentially (up 57.6 percent on yearly basis) to Rs 718 crore, impacted by forex loss and lower other income.

Consolidated revenue jumped 16.3 percent quarter-on-quarter (up 35.4 percent year-on-year) to Rs 4,771 crore in three-month period ended September 2013, which was higher compared to its peers.

The market has opened on a negative note. The Sensex is down 30.47 points at 20792.30. The Nifty slips 17.10 points to 6170.15. About 158 shares have advanced, 166 shares declined, and 23 shares are unchanged.

Tata Motors is down 2 percent ahead of announcing its September quarter results today. According to a CNBC-TV18 poll, analysts expect strong results on a consolidated basis led by a drastic improvement in Jaguar Land Rover (JLR) operational performance.

However, they feel standalone business (domestic business) will continue to report huge losses and a big crack in margins during second quarter. Consolidated profit after tax is expected to register 49 percent growth year-on-year to Rs 3,100 crore and revenues may grow 26 percent Y-o-Y to Rs 54,960 crore in the quarter gone by.

Tata Steel , Cipla , Wipro , NTPC and ITC are top gainers in the Sensex. 

Meanwhile, the Indian rupee opened lower by 28 paise at 62.69 per dollar against 62.41 Thursday.

The euro struggles in early Asian trade after the European Central Bank's surprise interest rate cut sent the single currency plunging to near eight-week lows, but the dollar's gains were tempered ahead of the key US payrolls report due later today.

Pramit Brahmbhatt, Alpari India said, "ECB's surprise move to cut interest rates to 0.25 percent forced euro to trade weak against the dollar. This coupled with weak domestic fundamentals and weak equity markets will keep the rupee weak. The range for the day is seen between Rs 62.12-63.10/USD."

The US markets fell sharply with the Dow halting its record advance and Twitter's market debut drawing the spotlight, as investors reacted to an unexpected rate cut by the European Central Bank and a read on third-quarter US economic growth. After closing at record highs on Tuesday, the S&P 500 fell over 1 percent marking its worst session since August 27. The CBOE volatility index rose to within reach of 14.

The US economy expanded faster than forecast in the third quarter. Advance GDP rose by 2.8 percent year on year compared with a 2.5 percent growth in the second quarter. The number of jobless claims fell by 9,000 in the week ended November 2.

Asian stocks follow US sell-off. Japan and Korea are trading at 1-month lows. The yen hit a near seven-week low against the greenback at 99.4 per dollar. Japan is weighed down by blue-chip exporter stocks such as Suzuki Motor and camera maker Nikon. They skidded over 3 percent each while sharp lost 2 percent.

In commodities, Brent slips closer to USD 103/bbl levels and Nymex futures rise in early Asian trade as faster than expected economic growth in the world's top oil consumer revived hopes of increased demand.

From precious metals space, gold inches towards the 1300 mark and is trading near three-week lows and heading for a second straight weekly loss, after strong US economic growth sparked fears the US Federal Reserve may scale back its bullion-friendly bond purchases this year.