New high: Nifty ends Jan expiry at 8952, Sensex up 123 points

03:30 pm Market close
The market ended at record closing high on expiry of January F&O series. The Nifty ended at 8952, up 38.05 points while the Sensex was up 122.59 points at 29681.77. Top gainers in January series were DLF (up 26.6 percent), Tata Motors (up 24 percent) and Axis Bank (up 21 percent). Nifty gained 9.5 percent while Bank Nifty surged 10.7 percent in the series.

In today's trading session, Dr Reddy's Labs, HDFC Bank, BHEL, Reliance and ITC were top gainers in the Sensex. Among the losers were HDFC, SBI, M&M, Coal India and Maruti Suzuki.

03:10 Rights issue
Tata Motors intends to utilise Rs 7,500 crore, which it plans to raise via a rights issue, to fund various activities, including introduction of more than 100 new commercial vehicles over the next three years and passenger vehicles on a new modular platform from FY 2016-17.

The company, which is seeking shareholders' approval through postal ballot for raising funds up to Rs 7,500 crore through a rights issue of ordinary shares, also intends to use the funds to expand in international markets.

''The rights issue proceeds are expected to be utilised to finance a portion of the ongoing capital expenditure, including product development expenses; invest in subsidiaries to support future growth opportunities in India and abroad,'' Tata Motors said in a filing to the BSE.

2:55 pm Royalty restrictions?
The Finance Ministry has turned down a DIPP proposal seeking re-introduction of restrictions on royalty payments for preventing excessive outflow of foreign exchange, saying it would send a negative signal to overseas investors.

The ministry, according to sources, is of the view that imposing restrictions on royalty payments will be "retrograde step" and not in sync with the liberalised FDI policy environment. Worried over excessive outflow of foreign exchange as royalty and fees for technology transfer, and use of brand names, the Department of Industrial policy and Promotion (DIPP) had mooted a proposed to re-introduce restrictions on such payments by foreign companies to their parent entities.

02:40 pm Results
Commercial vehicle maker Ashok Leyland turned profitable in the quarter ended December 2014. Net profit for the quarter stood at Rs 32.1 crore against loss of Rs 167.2 crore in the year-ago period. Higher other income and lower finance cost supported the profitability but tax cost restricted profit growth.

Topline and operational performance beat street estimates while the bottomline slightly missed expectations. Profit was expected at Rs 35.8 crore on revenue of Rs 3,195 crore for the quarter, according to the average of estimate of analysts polled by CNBC-TV18.

Revenue shot up 72.1 percent year-on-year to Rs 3,361 crore, driven by strong sales volume growth.

Total volumes during the quarter grew 38 percent on yearly basis to 25,397 units led by medium and heavy commercial vehicle (MHCV) sales. MHCV volumes saw a solid 70 percent growth while light commercial vehicle sales declined 8 percent Y-o-Y.

02:30pm Adani Enterprises in focus
Adani Enterprises plans to announce a mega restructuring plan tomorrow reports CNBC-TV18's Varinder Bansal quoting sources.

The restructuring is mainly to remove the holding structure and then focus on the core business of the left entity, which would be mining, trading, agri, logistics etc.

The current market cap of Adani Enterprises is Rs 65,000 crore because it owns 74.99 percent in Adani Ports and 68.99 percent in Adani Power.

Post the restructuring process, the company is also looking at raising funds.

Post restructuring, analysts do not expect a huge upside for the stock from current levels but it will undoubtedly be a clean structure.

02:00pm Market Check
Equity benchmarks as well as broader markets continued to consolidate on expiry day for the January derivative contracts. Weak global cues and expiry factors kept markets subdued.

The 30-share BSE Sensex fell 101.55 points to 29457.63 and the 50-share NSE Nifty declined 31.95 points to 8882.35. About 1290 shares have advanced, 1475 shares declined, and 260 shares are unchanged on the Bombay Stock Exchange.

Manish Gunwani of ICICI Prudential AMC expects a correction or minor consolidation in the near term. However, the market looks good with a 2-3 years perspective, he say.

Global markets are weak today. Asian markets like Shanghai closed with losses of more than 1 percent while European equities like FTSE traded down more than 0.5 percent as oil declined and Greece weighed. NYMEX crude traded at USD 44 a barrel, the lowest level since March 2009.

Telecom stocks like Bharti Airtel, Idea Cellular are under pressure after the Cabinet approved 3G auction reserve price at Rs 3,705 crore which is 36 percent higher than the TRAI recommendation and 10.6 percent higher than the previous 3G auction held in 2010.

In key earnings reactions today, Asian Paints disappointed after Q3 profit rose 12 percent, lower than expectations of 30 percent growth. The stock fell 3 percent. HDFC dropped over 2 percent after the housing finance company reported 11.5 percent growth in profit, in line with estimates. However, Dr Reddy's Labs reported a 7 percent fall in profit in Q3, which is higher compared to expectations of 14 percent decline. In midcaps, VIP Industries and OBC tanked 7 percent after weak numbers.

1:55 pm Interview: Idea will bid for spectrum in the upcoming auction, but with the same prudence it has done in the past, Himanshu Kapania, MD of Idea Cellular told CNBC-TV18. The company spent Rs 18,000 in the last three auctions. On cash availability, Kapania says Idea is well-placed to renew existing spectrums in 900 MHz band. In its third quarter results, the company reported cash profit of around Rs 2,000 plus crore. Next year it expects to generate Rs 10,000 crore cash profit. Idea has a huge retention bidding coming up in the 900 MHz band in around nine major circles. The company has reduced its debt by Rs 8,000 crore since April 2014 and its net debt/EBITDA stands at 1.12x, one of the lowest in the industry, he adds.

1:40 pm  Internationla market: In an interview to CNBC-TV18, James Glassman, senior economist, JP Morgan welcomes the Fed's decision and says the Fed's goal is not to slowdown the economy but to merely step off the gas. He expects the US inflation to continue to remain low and infact expects a negative inflation. "I do not see inflation coming back within the range of Federal Reserve's 2 percent goal for a year," Glassman said. "I do not think they wait for this to happen. As long as they feel that the trajectories are moving in the right direction, they will be willing to start slowly raise interest rates," he said.

1:30 pm Earnings: HDFC, India's largest housing finance company, said its third-quarter net profit stood at Rs 1,425.5 crore, rising 11.56 percent from Rs 1,277.7 crore in the same quarter last year. A CNBC-TV18 poll of analysts had forecast this Rs 1,426 crore. Income from operations rose 12.9 percent to Rs 6,758.4 crore. Its loan book, as of December 31, 2014, stood at Rs 2.19 lakh crore, compared to Rs 1.92 lakh crore on December 31, 2013.

1:20 pm Results: Dr Reddy's Laboratories beat street expectations on topline and bottomline front but the operating performance was below estimates. Consolidated net profit of the drug maker fell 7 percent year-on-year to Rs 574.5 crore, impacted by weak operational performance. Higher finance cost and R&D expenses also affected the profitability.

Profit was expected at Rs 534.3 crore on revenue of Rs 3,617 crore for the quarter, according to the average of estimates of analysts polled by CNBC-TV18.

Consolidated revenue grew 8.7 percent to Rs 3,843 crore during October-December quarter from Rs 3,533.8 crore in the year-ago period.

The market is still under pressure. The Sensex is down 91.17 points at 29468.01. The Nifty is down 31.90 points at 8882.40. About 1262 shares have advanced, 1358 shares declined, and 259 shares are unchanged.

Dr Reddy's Labs, Reliance, HDFC Bank, Hero MotoCorp and HUL are top gainers in the Sensex. Among the top losers are Coal India, HDFC, Bharti Airtel, SBI and ICICI Bank.

The rupee fell by 12 paise to 61.53 against the American currency in late morning trade today on month-end dollar demand from importers. The rupee resumed lower at 61.44 as against yesterday's closing level of 61.41 at the Interbank Foreign Exchange (Forex) and moved down further to 61.54 before quoting at 61.53 at 1100 hours. The local currency hovered in a range of 61.42 and 61.54 during late morning trade.

Month-end dollar demand from importers, mainly oil refiners, affected the rupee value against the dollar, a forex dealer said. However, strong foreign capital inflows into equity market restricted the rupee's fall, he added. In the New York market, the dollar inched higher against the euro and pound yesterday afternoon after the Federal Reserve's policy statement included no clear guidance about its rate hike plans.

12:30pm Info Edge in focus
Online restaurant guide Zomato has acquired Turkey's popular restaurant research service firm Mekanist in an all cash deal for an undisclosed sum.

Post this acquisition, Zomato's restaurant coverage will increase from about 27,500 restaurants in Istanbul and Ankara to more than 50,000 restaurants across Turkey.

Commenting on the development, Zomato Founder and CEO Deepinder Goyal, said, "Mekanist has established itself as one of the heavyweights in the online restaurant search and discovery space in Turkey. We're excited to be joining forces with them as we continue to grow in one of our most important markets."

On being asked how the company plans to raise funds for the acquisition Goyal said, "We already had the money.

Mekanist is one of the earliest and most successful service player to emerge from the Turkish startup ecosystem, and we're excited about them becoming a part of Zomato," he added.

This is Zomato's seventh acquisition in the past six months, having acquired Urbanspoon for USD 52 million to enter the US and Australia markets only a couple of weeks ago.

Zomato recently also acquired local dominant restaurant search players in New Zealand, Poland, the Czech Republic, Slovakia and Italy, reports PTI.

Info Edge owns a little over 50 percent stake in the company.

12:00pm Market Check
The 50-share NSE Nifty snapped winning streak to trade in the red on expiry day. The index fell 14.20 points to 8900.10 and the 30-share BSE Sensex declined 47.94 points to 29511.24, dragged by select metal and banking & financial stocks.

Asian markets traded lower, taking weak cues from the US markets and oil prices falling to new lows dampened sentiment. Brent crude traded below USD 49 a barrel.

Coal India topped the selling list on Nifty, down over 3 percent after the CCEA approved selling 5 percent stake or upto 31.58 crore shares in the company with a greenshoe option of an additional 5 percent stake. The market is waiting for floor price for the offer for sale scheduled for tomorrow.

HDFC Bank surged 2 percent after the cabinet approved the bank's proposal to bring in foreign investment worth Rs 10,000 crore without exceeding the 74 percent cap. Lupin too gained more than 1.5 percent as the company is now allowed to bring in foreign investment worth over Rs 6,000 crore after increase in FPI cap to 49 percent from the current 33 percent.

Telecom stocks like Bharti Airtel and Idea Cellular are under pressure, down 2-3 percent after the Cabinet approved 3G auction reserve price at Rs 3,705 crore which is 36 percent higher than the trai recommendation and 10.6 percent higher than the previous 3G auction held in 2010.

Oriental Bank of Commerce's (OBC) third quarter net profit plunged 91.3 percent year-on-year to Rs 19.5 crore, dented by reduction in the book value of security receipts. The profitability was also impacted by higher provisions but higher other income restricted fall in profits. The stock lost 6 percent.

11:55 am Result: State Bank of Bikaner and Jaipur 's (SBBJ) third quarter net profit increased 7.5 percent year-on-year to Rs 163.4 crore, supported by other income. However, the slow growth in net interest income and higher provisions restricted growth in bottomline. Net interest income grew 2.2 percent to Rs 747.6 crore in October-December quarter from Rs 731.6 crore in same quarter last fiscal. Net interest income is the difference between interest earned and interest expended. Other income (non-interest income) during the same period increased 14.5 percent to Rs 193.29 crore on yearly basis.

11:45 am Market outlook: The market could consolidate or even correct near term as valuations are looking "stiff" after the recent run up, says Manish Gunwani, Senior Fund Manager, ICICI Prudential AMC. He sees supply of divestment share offerings as a short term headwind for the market. In an interview to CNBC-TV18, Gunwani says he expects some minor earnings downgrades in the near to medium term, but adds the market looks good from a 2-3 year perspective. He sees improving macro-economic environment as a major trigger for earnings growth. Gunwani expects current account to strengthen over the next couple of quarters. He is bullish on domestic cyclicals, but advises investors to take a stock specific view.

11:30 am Buzzing: Shares of both HDFC Bank and Lupin jumped 2 percent intraday on hopes of raking in more foreign moolah.

The private bank has got Cabinet Committee on Economic Affairs' (CCEA) nod to raise up to Rs 10000 crore via foreign investment and is allowed to limit foreign holding in the company upto 74 percent of the total paid-up capital.

 Meanwhile, Lupin touched record high at Rs 1539 per share as the CCEA has allowed itto increase in FIIs investment limit to 49 percent from 33 percent, which would result in foreign investment of around Rs 6099 crore in the country.

Investors are trading cautiously as January F&O series expires today. The Sensex is down 105.74 points at 29453.44 and the Nifty is down 31.00 points at 8883.30. About 1208 shares have advanced, 1025 shares declined, and 235 shares are unchanged.

Reliance is up 3 percent while HDFC Bank, Dr Reddy's Labs, Wipro and HUL are top gainers in the Sensex. Among the losers are Coal India, HDFC, Bharti Airtel, Sun Pharma and ICICI Bank.

Asian markets are lower following the weaker close of the US markets. Gold steadied above USD1,280 an ounce after the US Federal Reserve reiterated it would be patient in deciding when to raise interest rates, keeping bullion trading in recent ranges.

Spot gold was nearly flat at USD1,284.91 an ounce by 0034 GMT, not far below a five-month top of USD1,306.20 reached last week.

The Federal Open Market Committee said that it would take "financial and international developments" into account when determining when to raise rates, adding a reference to global markets for the first time since January 2013.

10:30am SBBJ in focus
State Bank of Bikaner and Jaipur's (SBBJ) third quarter net profit increased 7.5 percent year-on-year to Rs 163.4 crore, supported by other income. However, the slow growth in net interest income and higher provisions restricted growth in bottomline.

Net interest income grew 2.2 percent to Rs 747.6 crore in October-December quarter from Rs 731.6 crore in same quarter last fiscal. Net interest income is the difference between interest earned and interest expended.

Other income (non-interest income) during the same period increased 14.5 percent to Rs 193.29 crore on yearly basis.

Provisions for bad loans jumped 45.5 percent year-on-year (up 19.8 percent sequentially) to Rs 244.5 crore during the quarter with the provision coverage ratio at 58.57 percent as on December 2014.

Asset quality was weakened in December quarter as gross non-performing assets (NPA) rose 41 basis points Y-o-Y (up 14 bps Q-o-Q) to 4.38 percent and net NPA climbed 20 bps year-on-year (up 15 bps quarter-on-quarter) to 2.64 percent.

10:00am Market Check
The market remained under pressure in morning trade following weakness in global markets post Fed meet and ahead of big offer for sale of Coal India on Friday. Banking & financials, metals, telecom and select technology stocks dragged the market while Reliance Industries, HDFC and L&T supported the market.

The Sensex fell 150.68 points to 29408.50 while the Nifty lost 42.45 points to 8871.85 ahead of expiry of January derivative contracts today. However, the broader markets outperformed benchmarks with the BSE Midcap and Smallcap indices rising marginally.
 
Yogesh Radke, head of quantitative research at Edelweiss Securities is of the view that with rights issues, offer for sale, divestments, fund raising in the pipeline, there could be large supply in the market, so one needs to be a bit cautious at present and unwind long leverage positions.

The leverage positions in the Futures market have gone as high as Rs 1 lakh crore, he adds.

In an interview to CNBC-TV18 he says, although the India story is still intact, the Nifty is likely to consolidate or correct around 4 percent and see levels of 8600-8500. According to him 9000 levels would act as strong resistance.

Coal India dropped nearly 4 percent ahead of stake sale by the government tomorrow. HDFC, ICICI Bank, Sun Pharma, ONGC, Bharti Airtel and Mahindra & Mahindra declined 1.4-2.4 percent.

However, HDFC Bank and Lupin gained more than a percent on CCEA clearance for foreign investment in company. Reliance Industries climbed over a percent followed by L&T, HUL, Wipro and Hero Motocorp with 0.3-0.9 percent upside.

Dr Reddy's Labs gained 0.4 percent ahead of Q3 earnings. According to a CNBC-TV18 poll, profit is expected to fall 13.6 percent year-on-year to Rs 534.3 crore.

9:55 am Market check: The market is still under pressure. The Sensex is down 106.50 points  at 29452.68 and the Nifty down 34.00 points  at 8880.30. About 971 shares have advanced, 824 shares declined, and 200 shares are unchanged.

9:45 am Buzzing: Shares of Coal India lost 5 percent intraday after the government has decided to divest upto 10 percent stake via offer-for-sale (OFS). The government will sell 31.58 crore shares with an option to sell additional 31.58 crore share, totaling 10 percent of the total paid up capital of the company.

The OFS will open on January 30 and floor price will be declared today.

JP Morgan feels that the short window for stake sale will save it from further erosion as it limits potential damage to the stock price to effectively one day, unlike in the past when the stake sale would be announced months before the actual sale, keeping investors away and pushing down the stock price in the run up to the stake sale.

However, the brokerage is underweight on the stock with a price target of Rs 325 per share as given the stake sale there is less room for a repeat of last year's dividend.

9:30 am Poll: Housing finance company HDFC 's third quarter profit is expected to increase 11.7 percent year-on-year to Rs 1,426.7 crore, according to the average of estimates of analysts polled by CNBC-TV18. Profit growth may be impacted by deferred tax liability (DTL). Analysts expect DTL of Rs 90 crore for December quarter as against Rs 83.27 crore in Q2FY15 and Rs 74.4 crore in Q1FY15. Net interest income, the difference between interest earned and interest expended, may jump 14.1 percent to Rs 2,010 crore in the quarter ended December 2014 from Rs 1,762 crore in same quarter last fiscal.

The market opens in red on January F&O series expiry today. The Sensex is down 42.69 points at 29516.49 and the Nifty slips 12.80 points at 8901.50. About 350 shares have advanced, 193 shares declined, and 168 shares are unchanged.

Coal India is down 4 percent while ICICI Bank, Sesa Sterlite, SBI and Sun Pharma are among laggards. Top gainers are HDFC Bank, Maruti, GAIL, Tata Power and GAIL.

The Indian rupee has opened at 61.43 a dollar, down 2 paise compared to previous day's closing value of 61.41 a dollar.

Mohan Shenoi, Kotak Mahindra Bank says FOMC meeting held yesterday did not significantly alter the current market expectations of a Fed rate hike in second half of Calendar 2015.

According to him, the USD-INR is expected to trade today in a range of Rs 61.20-61.50/USD.

The US Federal Reserve has made it clear that no rate hike is imminent. US markets declined as Nymex crude prices sunk to 6-year lows. The CBOE Vix tumbled 19 percent. The US Fed stuck to its vow to be "patient" on hiking interest rates and raised its view of the economy and labor market.

European markets ended mixed after seesawing for much of the session, with indices pressured by a staggering slump in Greek banking stocks. Asian market is following US markets trading in the red in early trade.

In commodities, Nymex Crude prices slipped to 6-year lows after the Fed's reiteration that it will be "patient" in raising rates. And precious metal gold remained largely unchanged, currently trading around USD 1280 dollars an ounce.