Nifty ends above 7850; Tata Steel, Tata Power lead gainers

03:30pm Market Closing
The market rebounded on Monday after a big fall in Friday's session. The Sensex climbed 86.69 points to 26384.07 and the Nifty rose 24.30 points to 7884.25.

About 1459 shares have advanced, 1466 shares declined, and 111 shares are unchanged.

Tata Power, Tata Steel, Coal India, Axis Bank, TCS, NMDC and PNB topped the buying list, up 1.5-3 percent while M&M, Cipla, Sun Pharma, Dr Reddy's Labs, BHEL and DLF were top losers, down 1-4 percent.

Among midcaps, Sintex Industries, Page Industries, Federal Bank, MTNL, Voltas, Motherson Sumi, OBC, Den Networks, SAIL, Jain Irrigation, LIC Housing and Union Bank rallied 3-20 percent.

However, Unitech, Marksans Pharma, Rico Auto, HDIL, Snowman Logistics, Tata Global, Amtek Auto and Godrej Consumer fell 1.5-4 percent.

03:20pm Brent crude near 4-year low
Brent crude oil fell below USD 88 a barrel, its lowest in almost four years, after key Middle East producers signalled they would keep output high to defend market share even if that meant lower prices.

Saudi Arabia has privately told oil market participants it can accept oil prices between USD 80 and USD 90 a barrel, sources briefed by OPEC's biggest producer have told Reuters.

Kuwait's oil minister said on Sunday OPEC was unlikely to cut production to support prices.

The Organization of the Petroleum Exporting countries is due to discuss output at next month's meeting, and some analysts had expected the group to reduce oil supply before then.

Brent crude touched its lowest since December 2010 at USD 87.74 in early trade on Monday, but recovered slightly to around USD 88.10 a barrel by 0830 GMT, down USD 2.11 on the day. US crude was down USD 1.60 at USD 84.22, reports Reuters.

03:10pm Market Check
The market remained positive with the Sensex rising 93.73 points to 26391.11 and the Nifty gaining 25.05 points at 7885.

About 1387 shares have advanced, 1472 shares declined, and 107 shares are unchanged.

02:55pm Crude oil demand
Crude has been facing pressures with global supplies rising. The prices have fallen around 15 percent this year. Discussing the current trend and outlook, Miswin Mahesh, Energy Analyst at Barclays, said the Indian oil demand is poised to grow faster than Chinese demand this year, which is going to become a significant market changer for balances.

According to him, the Indian oil demand has been sustaining strong growth rates on the back of gasoline demand. Even the diesel price deregulation will ''sort of help refineries as well, given that they can get more of their under-recoveries before the quarter ends''. 

02:35pm Sintex on buyers' radar
Plastic products manufacturer Sintex Industries beat street estimates on every parameter with the second quarter consolidated net profit rising 46.8 percent on yearly basis to Rs 107 crore on strong sales and operational performance. Profit in the year-ago period was Rs 72.9 crore.

According to CNBC-TV18 poll estimates, analysts had expected profit of the company at Rs 89.9 crore on total income of Rs 1,551 crore for the quarter.

Consolidated total income from operations grew by 23 percent to Rs 1,681 crore in the quarter ended September 2014 compared to Rs 1,365 crore in same quarter last year.

Operating profit jumped 35.8 percent year-on-year to Rs 288 crore and margin expanded by 160 basis points to 17.1 percent during the quarter as against expectations of Rs 251 crore and 16.2 percent, respectively.

02:25pm IndusInd Bank hits 52-week high
Private sector lender IndusInd Bank's net profit grew by 30.3 percent to Rs 430.2 crore (beating street expectations) in the quarter ended September 2014 led by strong other income and lower provisions. Profit in the year-ago period was Rs 330.23 crore.

According to CNBC-TV18 poll estimates, analysts had expected profit at Rs 412 crore and net interest income at Rs 826.6 crore for the quarter.

Net interest income, the difference between interest earned and interest expended, rose by 19 percent to Rs 833 crore in July-September quarter compared to Rs 700 crore in the same quarter last year while other income (non-interest income) shot up 34 percent to Rs 558.3 crore from Rs 416.7 crore during the same period. However, operating expenses increased to Rs 666.7 crore from Rs 528.75 crore Y-o-Y.

Provisions of the bank slipped to Rs 73.2 crore in the quarter ended September 2014 from Rs 110.4 crore in previous quarter and Rs 89 crore in the year-ago period.

02:00pm The market bounced back in afternoon trade with the Sensex rising 73.02 points to 26370.40 and the Nifty climbing 19.30 points to 7879.25 led by banks, metals and technology stocks.

BSE Bank, IT and Metal indices gained 1-1.5 percent. Infosys and Tata Power topped the buying list, up 2 percent each followed by TCS, HDFC, Axis Bank, SBI, Tata Steel, Hero Motocorp and Coal India with 1-1.8 percent.

ICICI Bank, HDFC Bank, Tata Motors, Sesa Sterlite, Hindalco Industries, Maruti Suzuki and Bajaj Auto gained 0.2-0.8 percent. However, Mahindra and Mahindra, Cipla, Dr Reddy's Labs, ITC, NTPC, L&T and Sun Pharma remained under pressure with 1-4 percent loss.

Reliance and IndusInd Bank are in focus ahead of their Q2 earnings today. Reliance Industries will be releasing consolidated numbers for the second time; however profit for the standalone performance is estimated to be flat quarter-on-quarter at Rs 5,600 crores. A CNBC-TV18 poll estimates an 18 percent growth in NII and 25 percent growth in profit with a stable asset quality profile for IndusInd.

CPI data for September will be released today evening. A CNBC-TV18 poll expects it to come marginally lower at 7.2 percent versus 7.8 percent month-on-month. A combination of lower vegetable prices and base effect could pull CPI lower to 7 percent.

On the global front, Asian markets closed lower with the Nikkei falling over a percent despite strong exports data from China in September. Brent crude remained subdued, trading below USD 89 per barrel.

01:50pm TTK Prestige under pressure
Kitchen appliances manufacturer TTK Prestige has reported a 7.6 percent fall in second quarter (July-September) net profit at Rs 28 crore on higher tax expenses, lower other income and operating margin. Profit in the year-ago period was Rs 30.3 crore.

Total income from operations grew by 10.6 percent to Rs 382 crore in the quarter ended September 2014 from Rs 345.5 crore in same quarter last year.

Operating profit rose 3.6 percent on yearly basis to Rs 46 crore from Rs 44.4 crore but margin declined 70 basis points to 12.1 percent during the same period due to higher expenses - depreciation, raw material and other.

01:30pm Auto sales
Domestic passenger car sales declined 1.03 percent to 1,54,882 units in September from 1,56,494 units in the year-ago month. Motorcycle sales last month climbed 19.34 percent to 10,56,509 units from 8,85,309 units a year earlier, according to data released by the Society of Indian Automobile Manufacturers (SIAM).

The total two-wheeler sales in September rose 23.81 percent to 15,67,351 units. Sales of commercial vehicles rose 8.59 per cent to 56,140 units in September, SIAM said.

Vehicle sales across categories registered an increase of 20.44 percent to 19,04,007 units from 15,80,933 units in September 2013, it added, reports PTI.

01:00pm Market Check
Equity benchmarks recovered in afternoon trade supported by metals, technology and select banking and financials stocks. The Sensex declined 27.94 points to 26269.44 and the Nifty slipped 5.55 points to 7854.40.

About 1207 shares have advanced, 1473 shares declined, and 108 shares are unchanged.

Dipan Mehta, member, BSE and NSE sees the market moving in a narrow band, which is not good for any bull market.

He has a negative to cautious outlook on the market. He cautions investors not to conclude that support will be at 7800. He says global headwinds and domestic macro numbers will play on the minds of the investors and traders.

Infosys topped the buying list, up 2.2 percent to hit a record high of Rs 3,975.50 after brokerages raised target price on the stock on strong Q2 earnings. TCS, Axis Bank, Hero Motocorp, Tata Steel, Coal India and Tata Power gained 1-2 percent followed by HDFC, SBI, Hindalco Industries and Sesa Sterlite with 0.4-0.9 percent upside.

However, Cipla, Bharti Airtel and Mahindra and Mahindra kept top position in the selling list, down 2-4 percent. L&T, ITC, Dr Reddy's Labs, Sun Pharma, NTPC and Wipro slipped 0.5-1.8 percent.

12:50pm OBC on buyers' radar
Shares of Oriental Bank of Commerce (OBC) climbed 2 percent after Goldman Sachs upgraded the stock to buy from neutral with a target price of Rs 350, citing positive risk reward.

Over the last 3 months, OBC has underperformed the Sensex and Bank Nifty by 25 percent and 29 percent. However, the return on assets (ROA) differential between OBC and other banks has narrowed over FY12-FY14 from 30 basis points to 11 bps. The brokerage expects it to narrow further to 4 bps.

Over FY14-FY18E, it expects OBC's ROA to rise 42 bps on the back of decline in credit costs from 1.33 percent in FY14 to 0.9 perent in FY18E; fall in operating ratio from 1.67 percent in FY14 to 1.45 percent in FY18E; and better net interest margins (partly on better asset quality as impaired loans likely to decline from FY16 onwards).

12:25pm JP Morgan cuts GDP forecast
JP Morgan cuts its India GDP growth projection for 2014/15 to 5.1 percent from 5.3 percent after weak factory output print.

"IP (industrial production) debacle is the straw that breaks the camel's back," JP Morgan said in its Oct. 10 report.

India's August industrial output rose just 0.4 percent compared with 2.4 percent estimated in a Reuters poll.

The Reserve Bank of India projects GDP to grow at around 5.5 percent in the current fiscal year ending March 2015.

A slower growth and a fall in oil and commodity prices increase the chance for the RBI to attain its challenging 6 percent consumer price inflation target by January 2016, JP Morgan said, reports Reuters.

12:00pm Market Check
Equity benchmarks halved losses in noon trade with the Sensex falling 73.47 points to 26223.91 and the Nifty declining 22.95 points to 7837.

About 1075 shares have advanced, 1466 shares declined, and 94 shares are unchanged.
 
Infosys, TCS, Hero Motocorp and Coal India extended gains, up 1.2-1.7 percent. Axis Bank, State Bank of India, Tata Steel and Bajaj Auto gained 0.4-1 percent.

However, utility vehicle maker Mahindra and Mahindra, and realty major DLF slipped further, down 3.7 percent and 5 percent, respectively. Shares of ITC, L&T, ICICI Bank, Tata Motors, HDFC Bank, Bharti Airtel, ONGC, Cipla, Sun Pharma, Dr Reddy's Labs and NTPC declined 0.7-2 percent.

In the midcap space, Essar Ports, BF Utilities, Symphony, Pipavav Defence and Gujarat Mineral rallied 4-13 percent while Kaveri Seed, Amtek Auto, Sundaram-Clayton, Cox & Kings and CRISIL lost 3-5 percent.

Among smallcaps, Essar Shipping, Vascon Engineers, Diamond Power, APL Apollo and Monnet Ispat shot up 7-17 percent whereas JMT Auto, Oscar Investment, KDJ Holiday, Sanghi Industries and Bodal Chemicals slipped 5-6 percent.

11:55am Interview
Diamond Power has posted a strong set of numbers in Q2, with sales up 35 percent to Rs 896 crore and EBITDA at 10.5 percent. The company's profits rose 30 percent to Rs 40.3 crore.

In an interview to CNBC-TV18, Amit Bhatnagar, MD, Diamond Power Infrastructure, said the flood in the plant and capacity constraints have impacted the conductor business during the quarter. He expects EBIT margins to stay in the range of 10-11 percent for the next two quarters.

The company expects a revenue growth of 35-40 percent in FY15, while it sees the tower business revenue at Rs 550 cr (in FY15).

11:30am FII View
The International Monetary Fund on Tuesday downgraded its outlook for global economic growth, citing persistent weakness in the eurozone and a broad slowdown in several major emerging markets.

Discussing the global markets, Richard Jerram, Chief Economist at Bank of Singapore, said the growth in Europe has been disappointing and that the economic situation in China also remains a concern.

''But if you look at Europe in general, the PMI is till above 50, which shows the economy is growing but it's just not growing fast enough to bring unemployment down or to push away that concern about deflation,'' he said.

On India, he said the IIP data, which was released on Friday, showed a volatile set of numbers. According to him, the hope and promise of reforms may reinvigorate some stalled projects in 6-12 months, but the economy simply cannot turnaround on a political promise. ''Thus, there has been a massive disappointment in the medium term and you really need to see the signs of investment freeing up again. That may give a little bit more room for growth to accelerate,'' he added.

11:00am Market Check
The market remained under pressure with the Sensex falling 106.11 points to 26191.27 and the Nifty declining 41.65 points to 7818.30 weighed down by private banks, auto, healthcare, oil & gas and capital goods stocks.

Declining shares outnumbered advancing ones by a ratio of 1323 to 996 on the Bombay Stock Exchange.

Infosys gained another 1.4 percent as brokerages increased target price on the stock. Barclays raised its target from Rs 3,800 to Rs 4,650 as new CEO's plan to embrace newer technologies such as automation and AI to drive growth, is a step in the right direction. While Nomura raised target price to Rs 4,300 given a supportive demand environment, higher comfort on current management and likely cash return possibility.

ACC fell 2 percent as the Odisha and Jharkhand governments have issued closure notices to ACC's limestone mines at Chaibasa and Bargah which will impact total clinker production. The management said that the grinding units of these plants are continuing with transfer of clinker from sister works.

Future Retail climbed 2.6 percent after the company signed agreement with Amazon to sell goods online. Future group will sell more than 45 own labels of apparel initially. Morgan Stanley said this agreement with Amazon could be a game changer for Future Group and is a step forward in the group's Omni channel strategy.

OBC gained nearly 2 percent after Goldman Sachs upgraded the bank to buy from neutral with a target price of Rs 350.

Diamond Power reacted to a good set of results, up 12 percent as Q2 sales rose 35 percent to Rs 896 crore and profit jumped 30 percent to Rs 40.3 crore year-on-year.

10:55am Crude check
Global oil futures lost more than a dollar after Saudi Arabia and Kuwait signalled ample supplies and their willingness to bear lower prices to defend market share, although better than expected trade data from China pared oil's losses.

China's export and import growth unexpectedly trumped forecasts in September, while the world's largest energy consumer increased crude oil imports by 9.5 percent from a month ago, data showed on Monday.

10:30am Diamond Power Infrastructure up 12 percent
Diamond Power Infrastructure, the manufacturer of power transmission equipment and turnkey services provider (EPC), has reported a 29.2 percent growth in second quarter (July-September) net profit at Rs 40.3 crore led by higher revenue growth, lower raw material cost and other expenditures but impacted by higher depreciation and tax expenses. Profit in the year-ago period was Rs 31.2 crore.

Net sales jumped 34.5 percent to Rs 895.6 crore in the quarter ended September 2014 compared to Rs 665.8 crore in same quarter last year driven by power cables, transformer, conductors and towers businesses.

10:00am Market Check
The 50-share NSE Nifty managed to claw back above the 7800 level amid selling pressure, down 40.70 points or 0.52 percent at 7819.25 while the 30-share BSE Sensex declined 154.95 points or 0.59 percent to 26142.43.

The broader markets slipped too with the BSE Midcap and Smallcap indices falling 0.6 percent and 0.25 percent, respectively. About 787 shares have advanced, 1009 shares declined, and 56 shares are unchanged on the Bombay Stock Exchange.

Sandip Sabharwal of asksandipsabharwal.com is not surprised by the recent fall in the Indian market. He says the dollar rally was indicative of pullout of risks.

Markets across the globe, developed markets included, always resist the fall initially and then give up, he adds. In this context, it is very difficult for a country like India to move up in the face of a troubled macro-economic situation.

Wipro extended losses, down 2.5 percent followed by Cipla with 2 percent decline. ITC, Reliance Industries, HDFC Bank, ICICI Bank, Larsen and Toubro, Mahindra and Mahindra, ONGC, Bharti Airtel, Dr Reddy's Labs and NTPC lost 1-1.7 percent.

However, Infosys, TCS and Hero Motocorp outperformed, up over a percent. State Bank of India, Axis Bank, Tata Steel and Hindalco Industries traded with marginal gains.

09:55am IndusInd Bank Q2 earnings today
Private sector lender IndusInd Bankm, which will announce its second quarter (July-September) earnings today, is expected to report a 25 percent growth in profit after tax at Rs 412 crore as against Rs 330 crore in a year-ago period.

Net interest income, the difference between interest earned and interest expended, may climb 18.1 percent to Rs 826.6 crore in the quarter ended September 2014 compared to Rs 700 crore in same quarter last year.

09:40am Market Update
The 50-share NSE Nifty breached 7800 level for the first time since August 18, 2014, down 61.55 points or 0.78 percent at 7798.40. The 30-share BSE Sensex fell 179.46 points or 0.68 percent to 26117.92.

About 621 shares have advanced, 828 shares declined, and 50 shares are unchanged.

Shares of Tata Motors, Bharti Airtel, ICICI Bank, HDFC Bank, ITC, L&T and Wipro declined 1-2.5 percent while Infosys, Hero Motocorp and TCS bucked the trend.

09:30am Market Expert
Sandip Sabharwal of asksandipsabharwal.com is not surprised by the recent fall in the Indian market. He says the dollar rally was indicative of pullout of risks.

Markets across the globe, developed markets included, always resist the fall initially and then give up, he adds. In this context, it is very difficult for a country like India to move up in the face of a troubled macro-economic situation.

Sabharwal says at the moment, for India, inflation is not a concern, but growth is. Going ahead, he sees GDP downgrades and expects the next quarter to be even worse considering there will be a huge agri element.

According to him, the overall macroeconomic scenario, ex-inflation, looks bad.

09:15am Market Check
Equity benchmarks opened lower on weak global cues. The Sensex declined 119.37 points to 26178.01 and the Nifty fell 53.45 points to 7806.50. About 440 shares have advanced, 568 shares declined, and 46 shares are unchanged.

Bharti Airtel, Sesa Sterlite, Hindalco Industries, BHEL, Larsen and Toubro, DLF and Jindal Steel lost 1.5-2 percent. However, Infosys gained further, up over a percent followed by Reliance Industries, Sun Pharma, Hero Motocorp, BPCL, IndusInd Bank and Lupin with marginal gain.

Globally, the US markets logged their worst week since May 2012 with benchmark indices ending in the red for the third straight week after Standard & Poor downgraded its outlook for France to negative from stable.

The CBOE VIX spiked 13 percent with the Asian shares extending losses today following last week's selloff with oil markets under pressure ahead of key Chinese data. Japanese market is shut for a public holiday today.

European shares closed sharply lower over global growth concerns and weak economic data from Germany.

In other asset classes, the dollar continues to gain against most currencies. The euro is trading weak as ECB president Mario Draghi re-affirmed economic slowdown concerns.

And the strength in the dollar index also stalled the rally in gold prices capping four days of gains. The international gold prices trade around the USD 1200 dollar mark as widespread economic concerns and a dollar rally kept commodities muted.
 
Brent crude was trading near the USD 89 mark on rising supplies while Nymex crude fell below USD 85.