Nifty ends Sept F&O series above 7900, Sensex tanks 276 points

03:30 pm Market closing
After a lot of struggle, the Nifty managed to end Sept F&O series above the 7900-level. The Sensex is down 276.33 points or 1 percent at 26468.36 and the Nifty is down 90.55 points or 1.1 percent at 7911.85. About 714 shares have advanced, 2261 shares declined and 83 shares are unchanged.

TCS, GAIL, Dr Reedy's Labs, Infosys and Cipla are top gainers while Axis Bank, Hindalco, SBI, BHEL and Reliance are major losers.

03:20 pm Market check
The market has recovered a bit.  The Sensex is down 256.82 points or 0.9 percent at 26487.87 and the Nifty is down 84.75 points or 1 percent at 7917.65. About 613 shares have advanced, 2334 shares declined, and 84 shares are unchanged.

3:05 pm Nifty has breached 7900 for the first time in one month. The Nifty is down 122.00 points or 1.5 percent at 7880.40 just ahead of the August F&O series and the Sensex is down 389.42 points or 1.46  at 26355.27. About 593 shares have advanced, 2312 shares declined, and 80 shares are unchanged.

03:00pm Market Check
The market turnover today crossed the Rs 7 lakh crore mark for the first time ever.

The Sensex fell 282.34 points or 1.06 percent to 26462.35, and the Nifty shed 85.20 points or 1.06 percent to 7917.20. About 622 shares have advanced, 2268 shares declined, and 86 shares are unchanged.

02:50pm Hindalco's clarification on coal verdict
After the Supreme Court cancelled 214 of 218 coal block allocations done from the period of 1993 to 2010, Hindalco Industries said the company had been allocated four coal blocks namely Mahan coal block jointly with Essar Power, Tubed coal block jointly with Tata Power, Talabira II & III coal blocks jointly with Mahanadi Coal Fields and Nayveli Lignite Corporation, and Talabira I coal block.

According to the company, Mahan, Tubed and Talabira II & III coal blocks are not yet in operation while Talabira I coal block feeds coal to the power plant which supplies power to Company's Hirakud Smelter.

02:40pm Interview
The Supreme Court ruling which proposed de-allocation of coal blocks has made the banking sector nervous, raising fears that this will add to their bad debt problem.

In an interview to CNBC-TV18, CVR Rajendran, CMD, Andhra Bank, says the bank has exposure worth Rs 4,346 crore to 14 companies impacted by the SC ruling.

He says the bank can look for restructuring of assets, if required. So far the court has given a 6-month breather. In case the government comes out with a coal allocation policy within that stipulated time, and if the coal blocks get re-allocated to these companies, then the move may not have a major impact on the bank's balance sheet, says Rajendran.

02:30pm FII view on gas price and coal issue
While the Supreme Court's verdict on coal block removes uncertainty, the negative aspect of the verdict is that coal block allocation will go back by 20 years , says Arvind Sanger of Geosphere Capital. In an interview with CNBC-TV18, he says that India is hurting from the data put out by the CAG which make no sense.

According to Sanger, India's power sector continues to be plagued by immense uncertainties and that the power sector is grappling with issues of coal linkage and broke discoms. He feels that the government's decision to defer gas price hike is a bigger negative than coal block de-allocation ruling.

02:00pm Equity benchmarks are headed towards week closing for the third consecutive session today. The Sensex fell 197.44 points to 26547.25 and the Nifty dropped 58.40 points to 7944 on expiry day.

The broader markets too declined further with the BSE Midcap and Smallcap indices losing 1.6 percent and 2.3 percent, respectively. About 678 shares have advanced while 2135 shares declined on the BSE.

Taher Badshah, Sr. VP & Fund Manager, Motilal Oswal AMC advises investing in stocks that have seen steep corrections. Furthermore, he sees opportunities in PSU banking stocks that have recently corrected.

Shares of Reliance Industries, ICICI Bank, ONGC, State Bank of India, Axis Bank, Hindalco Industries, Tata Steel, Sesa Sterlite and BHEL plummeted 3-6 percent.

However, FMCG, technology and pharma stocks (so called defensives) outperformed. TCS topped the buying list, up 2.6 percent followed by Cipla and Dr Reddy's Labs with 2 percent gains. Infosys, L&T, Bharti Airtel, HDFC Bank, Bajaj Auto and Maruti gained 0.3-1 percent.

1:45 pm Exclusive: The Supreme Court ruling which proposed de-allocation of coal blocks has made the banking sector nervous, raising fears that this will add to their bad debt problem.

In an interview to CNBC-TV18, CVR Rajendran, CMD, Andhra Bank, says the bank has exposure worth Rs 4,346 crore to 14 companies impacted by the SC ruling.

He says the bank can look for restructuring of assets, if required. So far the court has given a 6-month breather. In case the government comes out with a coal allocation policy within that stipulated time, and if the coal blocks get re-allocated to these companies, then the move may not have a major impact on the bank's balance sheet, says Rajendran.

1:30 pm Naranyan Murthy interview: Almost every developing country has to focus on export-oriented manufacturing to boost jobs, says NR Narayana Murthy, non-executive chairman of Infosys . And hence the government's top priority has to be to ease the process of investing in India. He says the government must determine what factors will aid ease of doing business here. At the moment, India ranks low in ease of doing business. He says the government must make it easier for foreign institutions to invest in the country.

Murthy says prime minister Narendra Modi's visit to the United States is very important. He adds that Modi must try and explain to the US how Indian companies are adding value to their companies, creating jobs for Americans and also participating in corporate-social responsibility. "He (Modi) has to convince them about how Indian companies have become desirable for the US economy," he adds.

The Nifty is still below 8000 on September F&O expiry day. The Nifty is down 34.20 points at 7968.20. The Sensex is down 120.98 points at 26623.71. About 659 shares have advanced, 2059 shares declined and 74 shares are unchanged.

Cipla, TCS, Dr Reddy's Labs, Bharti Airtel and GAIL are top gainers while Hindalco, Axis Bank, BHEL, Tata Steel and ICICI Bank are among the laggards.

Metal stocks continued to decline for the second straight session after the Supreme Court quashed allocation of 214 out of 218 coal blocks which were allotted to various firms since 1993.

Pramod Gubbi of Ambit Capital sees short-term consolidation phase for Indian market but remains positive and believes that India still remains a buy on dips market.

Exhorting Indian Inc to join his 'Make in India' mission, Prime Minister Narendra Modi on Thursday not only launched the ambitious campaign but also urged industrialists to set up establishments in their homeland instead of eyeing foreign lands and 'First Develop India' (FDI).

India Inc bigwigs including Mukesh Ambani, Kumar Mangalam Birla, Chanda Kochhar, Azim Premji and Kiran Majumdar Shaw attended the launch programme at New Delhi's Vigyan Bhawan.

"I want to see Indian companies shine like the MNCs," said Modi as he pressed for generating more employment in the country. "We do not want any industrialist being forced to leave India. I can say that we have been able to bring about a change in last few months," he added.

12:50pm Market Check
The Sensex extended losses in afternoon trade, down 188.01 points to 26556.68 and the Nifty broke the 7950 level, down 53.50 points to 7948.90.

About 631 shares have advanced, 2056 shares declined, and 69 shares are unchanged.

In the midcap space, P&G, Gujarat Pipavav, Bajaj Holdings, SKF India and Honeywell Automation gained 2-2.7 percent while Jaypee Infra, Cox & Kings, Aban Offshore,
IDBI Bank and Allahabad Bank tanked 7-11 percent.

Among smallcaps, Savita Oil Tech, PC Jeweller, Dishman Pharma, KSL and
AGC Networks climbed 4-9 percent whereas Usha Martin, Sarda Energy, Prakash Industries, Electrosteel and Monnet Ispat crashed 11-19 percent.

12:40pm Venus in News
Venus Remedies has entered Singapore's topical pain management market with a marketing authorisation and patent for its herbal nanotechnology based pain reliever Trois. The company is holding talks with various pharmaceutical firms for tieups to market Trois in Singapore.

A product for topical use, Trois provides quick and lasting relief to patients suffering from
rheumatic disorders, low back pain, osteoarthritis, rheumatoid arthritis, gout and knee pain, ankylosing spondylitis, fibromyalgia and pain originating from muscles and tendons.

12:30pm Experts remain positive on market
Pramod Gubbi, Director Institutional Sales, Ambit Capital remains bullish on the Indian market. He believes India is still a buy on dips though there is a possibility of a short-term consolidation phase for the market.

The deferral of the gas price hike decision  is a big disappointment as it highlights uncertainty from the government to take crucial decisions, says Gubbi. According to him, the move will be negative for the market, especially stocks like Oil and Natural Gas Corporation (ONGC).

Gubbi believes the de-allocation of 204 coal blocks by the Supreme Court on Wednesday is a positive as the overhang on coal block allocation is out of way. SC judgment on coal blocks will help in better capital allocation, he adds.

12:00pm Equity benchmarks remained under pressure amid volatility on expiry day. The Sensex declined 102.79 points to 26641.90 and the Nifty fell 32.05 points to 7970.35.

The broader markets extended losses in noon trade with the BSE Midcap and Smallcap indices falling 1.4 percent and 2.1 percent, respectively. Three shares declined for every share advancing on the Bombay Stock Exchange.

Hindalco Industries and Jindal Steel topped the selling list, down 6-7 percent followed by Axis Bank, ICICI Bank, State Bank of India, ONGC, Tata Steel and BHEL with 2-4 percent loss.

Power stocks CESC, Adani Power were in the red, down 4.7 percent on fears of higher input costs after Supreme Court on Wednesday cancelled allocation of 214 coal blocks. PSU banks such as PNB fell over 4 percent as the bank is expected to have the highest exposure to power and steel sectors.

However, TCS, Dr Reddy's Labs and Cipla bucked the trend, up 2 percent each followed by Gail and Coal India with 1.5 percent gains. Infosys, HDFC Bank, ITC, L&T, HUL, Sun Pharma and Bharti Airtel rose over 0.5 percent.

11:55 am Expert opinion: Prime Minister Modi is getting ready to hard-sell India to investors in the US, and IIFL says he won't have a tough job on his hands. IIFL is also confident that the Sensex could well hit 30,000 by the year end.

Speaking to CNBC-TV18  from the sidelines of India Investment Forum in New York, Prabodh Agarwal and R Venkataraman of India Infoline said that foreign investors continue to remain upbeat on India , but the pace at which reforms are being executed is a bit of worry.


"What is disappointing them is the pace of action on ground level. Some investors are asking questions about the actual steps taken by the government in contentious areas like land reforms, labour reforms, natural resource reform. Those are the questions that remain in the investors mind, but to summarise they are quite enthused about the India story," he said.

11:30 am Buzzing: Shares of Hindalco fell over 4 percent intraday. Macquaire cuts EPS by 1-4 percent and reduced target price to Rs 150 factoring payment of USD 100 million penalty and USD 100 milion in coal auction.

Barclays is overweight as it sees a relatively muted potential cash outflow impact for Hindalco at USD 100 million with regard to the currently operational Talabira-I coal mine.

Citi has a buy rating but lowered EBITDA by 7-10 percent for FY16/FY17, assuming Talabira I will be operated by Hindalco until end FY15, after which Hindalco would source coal via e-auction.

HSBC reduces target price to Rs 200 and remains overweight on the stock.

The market is still struggling to hold up its feet even though Prime Minister Narendra Modi's ambitious Make in India campaign launch is underway with India Inc delivering promise, aiming to turn the country into a global manufacturing hub.

The Sensex is down 164.75 points at 26579.94 and the Nifty slips 48.15 points at 7954.25. About 591 shares have advanced, 1815 shares declined, and 56 shares are unchanged.

TCS, GAIL, Cipla, Coal India and Dr Reddy's Labs are top gainers while Hindalco, Axis Bank, ICICI Bank, ONGC and SBI are losers in the Sensex.

Ramifications of the coal block de-allocation case dominates sentiment, JSPL loses another 9 percent, down 34 percent for the week. Power stocks CESC, Adani Power trade in the red on fears of higher input costs. PSU banks such as PNB are under pressure as the bank is expected to have the highest exposure to power and steel sectors.

Asian markets are in the green as markets are hopeful of stimulus from Europe & China.

11:00am Punjab Alkalies in demand
Shares of Punjab Alkalies and Chemicals (PAC) rallied 12 percent after the Punjab government approved divestment of entire 44.26 percent stake in company by promoter Punjab State Industrial Development Corporation (PSIDC).

"PAC have been informed by the Department of Industries and Commerce, Government of Punjab that the Cabinet Sub Committee on Disinvestment (CCD), Punjab, on September 02 decided disinvestment in PAC," said the company in its filing,

Four companies that qualified for buying stake in PAC are Aditya Birla Chemicals, Kudos Chemie, Derabassi and Consortium, and Nirma.

"Core Group considered the prequalification of expression of interests and approved the prequalification of Aditya Birla Chemicals (India) Private Limited, Kudos Chemie Limited, Derabassi and consortium of AI Shemail Garments & Perfumes Trading LLC (lead member 10 percent) and Avenue Chemicals Private Limited (other member 10 percent) and Nirma," said the Punjab government.

10:40am FII View on coal verdict
Neelkanth Mishra, Credit Suisse sees a bigger impact when coal blocks are auctioned. "Some functioning mines may attract an economically unjustified premium. If auctioned, we expect premiums could be as high as Rs 1,500-2,200/tonne, impacting EBITDA by Rs 7,500-10,000 crore. This could impact the economic viability of many projects and some heavily indebted companies," he adds.

"Coal imports are still pricier than e-auction and face logistical constraints. We highlight companies with cancelled blocks and high debt levels such as JSPL, Lanco Infratech, GMR Infrastructure, GVK Power and KSK Energy and their lenders like SBI, PNB, ICICI Bank and Union Bank," says Mishra.

10:20am Market Expert
Hemant Thukral of Aditya Birla money expects the October expiry to be stable and rangebound today as the volatility in the US markets has come down.

Speaking to CNBC-TV18, Thukral says foreign institutional investors (FIIs) sold index options in trade on Wednesday as they believe the panic in the market is now settling down.

Furthermore, he expects the Nifty to hold at 8000 and has a stop loss of Rs 7950.

The next series, Thukral believes will be positive as the sentiment is strong as the Nifty if it closes today in the green will be the seventh straight positive closing for the market.

10:00am Equity benchmarks continued to see consolidation with the Nifty struggling at 8000 on expiry session for September derivative contracts. Oil & gas, banks, metals and power stocks were under pressure.

The Sensex fell 52.05 points to 26692.64 and the Nifty declined 15.10 points to 7987.30. About 753 shares have advanced, 1191 shares declined, and 56 shares are unchanged.

ONGC fell 2.4 percent as Law Minister Ravi Shankar Prasad says cabinet deferred decision on gas pricing. "Decision on gas pricing will be taken before November 15," he adds. Oil India was down 1.3 percent.

Hindalco Industries topped the selling list, down nearly 4 percent. ICICI Bank, State Bank of India, Axis Bank, Mahindra and Mahindra, Tata Steel, Sesa Sterlite, NTPC, Tata Power and BHEL declined 1-2 percent.

However, shares of TCS, HDFC Bank, ITC, HDFC, Infosys, Dr Reddy's Labs, Wipro, Coal India, Gail and Cipla gained 0.5-1.6 percent.

9:50 am RBI speaks: India needs to have "clever and sensible" regulations to create a business-friendly environment which will lead to faster growth of the economy and create jobs, RBI Governor Raghuram Rajan today said. "We need the right kind...not too much, not too little, but clever and sensible regulations. Not just the regulations in the book, but also the enforcement to make sure that businesses have chance to succeed in away that promotes growth and create jobs," he said at the 58th annual general meeting of Indo-German Chamber of Commerc. Although the country has enough regulations, not all of them are of the right kind, he said. Rajan said the country's needs a vibrant financial system which will finance people who want to create jobs and also those who want to pursue higher education. "We need financial system that give access to all.

9:35 am Buzzing: Reliance Power 's talks to acquire Jaiprakash Power Ventures ' three hydro power projects have been called off following lack of clarity over capacity of the Karcham Wangtoo project. The two firms, who had been in talks for two months, announced the decision to call of the talks in separate press statements but did not give detailed reasons for it.

Industry sources, however, said talks collapsed after Central Electricity Authority (CEA) issued show cause notice for alleged violation of techno-economic clearance conditions of the Karcham Wangtoo project, which had an approved capacity of 1,000 MW but actual capacity was built to 1,200 MW. JP Power is down 5 percent.

The market has opened flat on September F&O expiry day. The Sensex is up 53.48 points at 26798.17 and the Nifty is up 10.80 points at 8013.20. About 415 shares have advanced, 173 shares declined, and 24 shares are unchanged.

Coal India, Cipla, SBI, M&M and BHEL are top gainers while ONGC, Hindalco, Axis Bank, ICICI Bank and Bharti Airtel are major laggards in the Sensex. Jaiprakash Power is down 5 percent.

The Indian rupee opened flat at 60.92 per dollar against previous day's closing of 60.96.

Mohan Shenoi of Kotak Mahindra Bank said, "Dollar strength continues against major currencies globally. The correction in Sensex due to SC ruling on coal block allocation might result in marginal rupee weakness. The rupee is expected to trade in a range of 60.85-61.25/dollar today.''

Meanwhile, the euro is languishing near a 14-month trough after slipping below 1.27 to the dollar. The dollar index breaks above 85 for the first time since July 2010.

Among global markets, US markets rebound after a three-day slump as new-home sales climbed to a six-year high. Europe too ends in the green. Shares closed up after wavering throughout the day, as weak economic data from Germany fueled European Central Bank stimulus hopes.