Sensex, Nifty close flat; banks lead, telecom & FMCG fall

03:30pm Market Closing: The market saw consolidation on Friday after a steep fall in previous session. The Sensex rose 1.06 points to 27458.64 while the Nifty fell 0.75 points to 8341.40.

About 1092 shares have advanced, 1777 shares declined, and 170 shares are unchanged on the BSE.

Hindalco Industries, Infosys, SBI, Larsen & Toubro, ICICI Bank and IDFC rallied 2-4 percent whereas Bharti Airtel, Wipro, Reliance Industries, ITC, M&M, Idea Cellular, Cairn India and HCL Tech lost 2-6 percent.

02:55pm SpiceJet falls: Low-cost carrier SpiceJet will have to cancel more than a fifth of its planned daily flights if it cannot reach an agreement with its lessors to bring in more aircraft by the end of this month, a company spokesman said.

SpiceJet, which came close to collapsing in December after running out of cash to pay its creditors, is scheduled to make 280 daily flights from next week.

But with its current fleet at 17 Boeing 737 jets and 15 Bombardier Q400s SpiceJet can only fly 218 journeys a day, the spokesman said on Friday.

SpiceJet lost 11 of its Boeing planes after the Delhi High Court this month ordered the aviation regulator to deregister the jets, following disputes with three lessors.

The troubles of India's second-largest budget carrier by market share have underlined the difficulties of operating in the country, where air travel is growing rapidly but high costs and tough competition have left most carriers unprofitable.

The company spokesman said SpiceJet is in talks to resolve disputes with two of its lessors and get back enough planes to allow it to meet its summer schedule. On Monday it said one of its lessors had agreed to withdraw the deregistion process, reports Reuters.

02:30pm Interview: Talking on the business prospects going forward Vimal Kejriwal, MD & CEO, KEC International said January to March quarter has always been the best. Historically, about 40-45 percent of the company's revenues come from the fourth quarter.

The company has already announced orders worth Rs 2000 crore in Q3 and Q4 and the total order book by March-end would be between Rs 8000-10000 crores. So, the revenues and margins in Q4 and the next fiscal would improve considerably, he adds.

He expects 150-200 basis points improvement in margins for the next fiscal. In the current year the margins were low due to significant losses in the new business of water and railway but now these loss making orders are getting closed, adds Kejriwal.

According to Kejriwal, the order inflow in first three quarters was not significant even though tenders were floated but now clients like Power Grid and utilities are keen to award those tenders.

02:00pm Market Check
The market recouped its losses to trade flat amid consolidation in afternoon. The Sensex declined 5.63 points to 27451.95 and the Nifty slipped 12.60 points to 8329.55.

The broader markets too cut its half of the losses, down around 0.4 percent. The market breadth remained negative with advance:decline ratio of 902:1830 on the Bombay Stock Exchange.

Valuations for Indian market have gotten out of hand and the next 12 months could be ''very painful'' for some parts of it, believes Dimensions Consulting's Ajay Srivastava.

Srivastava said that economy looked ''fundamentally positive'' in the wake of reforms undertaken by the government, but the steps will take time to percolate down to earnings.

India's biggest lenders State Bank of India and ICICI Bank climbed over 2 percent followed by HDFC Bank with 0.6 percent whereas housing finance company HDFC remained under pressure, down 1 percent.

Infosys rose 2.6 percent after unlisted rival Accenture raised its revenue growth guidance for the current calendar year 2015 to 8-10 percent Y-o-Y in local currency (against its previous 5-8 percent Y-o-Y guidance).

Shares of Larsen and Toubro (L&T) gained 1.65 percent following order worth Rs 1,711 crore win by subsidiary and plans to list businesses over next three years.

01:50pm Market Update: Shares recovered a bit in the afternoon trade, with the Nifty trading above the psychological 8300 mark.

The Sensex was down 29.97 points or 0.11% at 27427.61, and the Nifty was down 12.30 points or 0.15% at 8329.85. About 879 shares have advanced, 1807 shares declined, and 169 shares are unchanged.

Infosys, IDFC, SBI, Hindalco Industries, ICICI Bank and Larsen were the top gainers, while top losers includes Bharti Airtel, BHEL, Wipro, Dr Reddys Labs, Reliance Industries, Idea Cellular, Cairn India, Asian Paints and HCL Tech.

01:20pm Indigo IPO: India's biggest carrier, IndiGo, is preparing to file documents for a stock listing to raise USD 300 to USD 400 million, two sources with knowledge of the plans said, as it looks to cash in on a booming air travel market.

IndiGo, owned by hospitality and travel company InterGlobe Enterprises, has remained profitable in the last two years, avoiding much of the turbulence to hit rival Indian carriers.

IndiGo has picked Citigroup, Kotak Investment Bank, Morgan Stanley and JP Morgan as lead managers for the listing, with UBS and Barclays also involved, the two sources said.

Indigo will file its draft prospectus by the end of May, two sources said. The timing of the market debut itself, however, is not set, a separate source said, and will depend on market conditions, reports Reuters.

01:00pm Market Check
The market extended losses in afternoon trade with the Nifty breaching 8300-mark for the first time since January 14 and the Sensex falling more than 200 points intraday amid consolidation. The broader markets underperformed equity benchmarks; the BSE Midcap and Smallcap indices fell over 1 percent each.

The Sensex slipped 102.13 points to 27355.45 and the Nifty declined 38.35 points to 8303.80.

Telecom stocks extended sell-off with the Bharti Airtel, Idea Cellular and Reliance Communications falling 5 percent each, even though the regulatory overhang got lifted with the conclusion of auctions. Investors remained concerned about the spectrum payout impact on the companies' balance sheets.

Oil ministry sources indicated that upstream subsidy burden is likely to be zero in the fourth quarter. The ministry sought Rs 5,000 crore as compensation from Centre in Q4, but the finance ministry is yet to formally communicate its decision on the subsidy sharing mechanism, say sources.

Globally, Asian markets remained mixed on geopolitical concerns. Japan's Nikkei hit a two-week low due to weak inflation data. In commodities, Brent crude slipped more than a percent to USD 58 a barrel as supply threat eased.

12:35pm Market Update: The market extended losses in afternoon trade with the Nifty breaching 8300 level, dragged by index heavyweights like Reliance Industries, HDFC and ITC. Telecom stocks too plunged with the Bharti Airtel falling 4 percent and Idea Cellular down over 6 percent on fears of debt burden post spectrum auction.

The Sensex shed 88.75 points to 27368.83 and the Nifty lost 35.60 points to 8306.55. The BSE Midcap dropped 1 percent as more than two shares declined for every share advancing on the exchange.

12:20pm Gold demand: Gold bullion purchases across Asia slowed this week as a long rally in prices discouraged buyers, with traders keeping a close watch on top consumer India ahead of a festival that usually sparks strong demand for the metal.

Before dipping on Friday, spot gold had rallied the seven days through Thursday in the longest winning stretch since 2012 on a softer dollar and caution from the Federal Reserve over US interest rate hikes.

The softness in demand comes ahead of April's Akshaya Tritaya festival, when it is considered auspicious to buy gold.

Local prices in India were either on par or at a small premium of USD 1 an ounce to the global benchmark on Friday, lower than premiums of up to USD 2.50 in mid-March.

12:00pm Market Check:
The market gave up morning gains to trade flat on the first day of the April series. The Nifty continued to hover around the 8350 level supported by IT stocks. However, the BSE Midcap Index underperformed benchmarks, down half a percent.

The 30-share BSE Sensex advanced 25.58 points to 27483.16 and the 50-share NSE Nifty slipped 2.20 points to 8339.95. Declining shares outnumbered advancing ones by a ratio of 1433 to 955 on the BSE.

Telecom stocks continued to be in focus on account of the details emerging from the telecom auctions. Idea Cellular was the highest spender at Rs 30,306 crore. Apart from this, Bharti Airtel spent Rs 29,310 crore with Reliance Communications from the listed space shelling out Rs 4,299 crore. Macquarie says given the biggest overhang related to spectrum auction is behind, they have increased their target price for both Bharti and Idea Rs 460 and Rs 215, respectively.

Among frontliners, Reliance Industries, Bharti Airtel, Dr Reddy's Labs, BHEL, PNB, Bank of Baroda, Cairn India and Idea Cellular plunged 2-5 percent. ITC, HDFC, Axis Bank, Sun Pharma, M&M and Hero Motocorp were down 1-1.8 percent. However, Infosys, HDFC Bank, TCS, L&T, NTPC and Hindalco Industries rallied 1-3 percent.

JSPL jumped 5 percent. The Delhi High court raised an eyebrow over the government's decision to cancel coal block bids from JSPL and BALCO yesterday calling the move unfair and asking the government what changed its stance on the possibility of carterlisation and also on why a re-auction has not been considered.

Oil ministry sources indicated that upstream subsidy burden is likely to be zero in the fourth quarter. Oil ministry is seeking a Rs 5,000 crore compensation from centre in Q4, but the finance ministry is yet to formally communicate its decision on the subsidy sharing mechanism. CNBC-TV18 also learnt that gas price is likely to be cut to USD 5.02 from earlier USD 5.61 per mmbtu from April 1.

Globally, Asian markets traded mixed on geopolitical concerns. Japan's Nikkei hit a two-week low due to weak inflation data. In commodities, Brent crude slipped more than a percent to USD 58 a barrel as supply threat eased.

11:30am FII View: Jan Dehn, Head-Research, Ashmore Investment Management is not perturbed by the intense sell-off in Indian equities. The Indian story is far from over, he tells CNBC-TV18 in an interview adding government spending, particularly in infrastucture, will make Indian equities attractive again.

Indices can rise as much as 10 percent in 12 months on policy actions and if GST is implemented one can expect 24 percent return on investments within 2 years, he said.

While advising investors to continue accumulating on dips as the market is poised to go up, Dehn revealed he likes cyclicals and financials where he sees a lot of value.

"See value in downstream oil companies and industrials as well," he said while warning one to cut exposure to healthcare and defensives. He finds the government support to Gas-fed power stations a big positive for the energy sector.

11:00am Market Check
The market gained marginally amid consolidation after yesterday's steep fall. The 30-share BSE Sensex rose 83.70 points to 27541.28 and the Nifty climbed 16.50 points to 8358.65.

About 1106 shares have advanced, 1088 shares declined, and 145 shares are unchanged on the BSE.
 
From the frontline stocks, the new Nifty additions continued to be in focus. Idea Cellular and Yes Bank added in the Nifty while JSPL and DLF excluded and added into the CNX Midcap index along with Dewan Housing, Marico and Wockhardt.

Idea Cellular was in focus also on account of the details emerging from the telecom auctions. Idea was the highest spender at Rs 30,306 crore. Apart from this, Bharti Airtel spent Rs 29,310 crore with Reliance Communications from the listed space shelling out Rs 4,299 crore. Macquarie says given the biggest overhang related to spectrum auction is behind, they have increased their target price for both Bharti and Idea Rs 460 and Rs 215, respectively.

Despite its exclusion from the Nifty, JSPL jumped 5 percent. The Delhi High court raised an eyebrow over the government's decision to cancel coal block bids from JSPL and BALCO yesterday calling the move unfair and asking the government what changed its stance on the possibility of carterlisation and also on why a re-auction has not been considered.

IT stocks saw a fillip as Accenture released a solid set of numbers, raising 2015 guidance to 8-10 percent from 5-8 percent earlier. Nomura read the results as a positive for India IT from a demand perspective. They prefer HCL Technologies, TCS and Tech Mahindra. Infosys surged 3 percent and TCS gained 1.5 percent.

L&T climbed nearly 2 percent on winning orders worth Rs 1,711 crore in the month of March.

However, HDFC, ITC, Reliance Industries, Dr Reddy's Labs, Sun Pharma, Mahindra & Mahindra, Bharti Airtel and HUL dropped 1-2 percent.

From the broader markets, Cadila Healthcare gained 1 percent as the company is going to acquire 50 percent stake in Zydus BSV Pharma from its joint venture partner Bharat Serums.

Pipavav Defence rose 1.6 percent as its debt restructuring was approved by lenders which will include around Rs 150-160 crore of promoter funding and includes Rs 4,500 crore of fresh funds. Adhunik Metaliks gained 3 percent ahead of the board meet today where it will consider the composite debt restructuring sanctioned by CDR Empowered Group.

10:30am Market Expert: Valuations for Indian market have gotten out of hand and the next 12 months could be ''very painful'' for some parts of it, believes Dimensions Consulting's Ajay Srivastava.

Srivastava said that economy looked ''fundamentally positive'' in the wake of reforms undertaken by the government, but the steps will take time to percolate down to earnings.

''Some correction has already happened. More has to happen,'' he said. ''The investor should reallocate his portfolio away from stocks that have made him profits. Also, don't make large commitments [to stocks].''

But still, the analyst said pockets of opportunities existed within select stocks and sectors.

He picked out telecom stocks as one that are poised to double in the next two-three years. ''After the spectrum auction, their cost of material has become fixed. They will have assured revenue. They can't be many new players in the market,'' he said, adding that the shift in dynamics will cause valuations for these stocks to go from the 2 to 4 times price-to-book they are currently at, to 7 to 10 times.

10:00am Market Check
The market trimmed its early gains with the Sensex rising 61.30 points to 27518.88. The Nifty managed to hold 8350, up 13.85 points at 8356.

Deven Choksey of KR Choksey Shares says yesterday's fall (of 654 points on the Sensex) provides an excellent opportunity for those who want to create long only portfolio.

One should now look at investing into quality stocks from the private banking space that have fallen anywhere between 10-30 percent and whose business models look robust, he adds.

The broader markets marginally gained too with the advance:decline ratio at 1001:787 on the Bombay Stock Exchange. Reliance Capital, Gulshan Poly, SBI, Garware Poly, Axis Bank, HDFC, Bharti Airtel and Infosys were most active shares on exchanges.

Top IT exporters TCS and Infosys gained more than 2 percent after Accenture raised its 2015 outlook for revenue growth to 8-10 percent in local currency. IT firm sees Q3 revenue in range of USD 7.35-7.6 billion.

Larsen and Toubro gained 1 percent as L&T Construction won orders worth Rs 1,711 crore in March. ONGC, Hindalco Industries, Tata Motors and Sesa Sterlite were other prominent gainers, up 1-2 percent. Among banks, ICICI Bank, HDFC Bank and SBI climbed 0.4-0.9 percent.

However, HDFC, ITC, Axis Bank, Sun Pharma, Mahindra & Mahindra, HUL, Dr Reddy's Labs, Hero Motocorp and Bajaj Auto declined more than 1 percent.

09:50am Cadila gains: Cadila Healthcare acquired 50 percent stake from Bharat Serums and Vaccines in its JV firm, Zydus BSV Pharma, to make the unit a 100 percent subsidiary.

"The company has purchased 50 percent shares of Zydus BSV Pharma (Zydus BSV) from Bharat Serums and Vaccines and now Zydus BSV has become 100 percent subsidiary of Cadila Healthcare," Cadila Healthcare said in a BSE filing. Zydus BSV Pharma, founded in 2005, is a joint venture (JV) company of Cadila Healthcare and biotech firm Bharat Serums and Vaccines (BSV).

Financial details of the transaction are not known. Zydus BSV Pharma develops, manufactures and markets non-infringing and proprietary novel drug delivery system (NDDS) of approved anti-cancer agents for global markets.

It also offers contract manufacturing capabilities based on its modern facility and experience in the oncology injectable product manufacturing area.

09:35am Market Expert: Deven Choksey of KR Choksey Shares strongly believes that the current market fall is purely technical because there is nothing fundamentally wrong.

According to him, the selling pressure could be because FIIs are reducing their weight in the market and are offloading their longs. They are adjusting their books, he adds.

For him, this fall provides an excellent opportunity for those who want to create long only portfolio. One should now look at investing into quality stocks from the private banking space that have fallen anywhere between 10-30 percent and whose business models look robust, he says.

09:15am Market Check
The market kicked off April series on a positive note on Friday after a 188-point fall on the Nifty in previous session, the last session of March series. The Sensex rose 120.25 points to 27577.83 and the Nifty climbed 30.05 points to 8372.20.

About 450 shares have advanced, 134 shares declined, and 88 shares are unchanged on the BSE.

Infosys, Hindalco, SBI, ICICI Bank, TCS, Idea Cellular and Wipro were top gainers in early trade, up 0.8-1.7 percent while M&M, GAIL, Dr Reddy's Labs, Tata Motors, Bajaj Auto, BPCL and NMDC fell 0.7-2 percent.

The Indian rupee has opened lower by 13 paise at 62.80 per dollar today against previous day's close of 62.67.

The dollar index bounced off a three-week trough led by some upbeat economic data and a rise in US treasury yields.

Pramit Brahmbhatt of Veracity said, "Local equity market is likely to trade sideways today and will take cues from global markets for further directions. Month-end dollar demand from oil importers may force rupee to depreciate."

He further added, "At present, mixed global sentiments have dented the global equity market and has forced it to trade weak. Rupee range for the day is seen between 62.20-63.20/dollar."

On the global front, Asian markets were mixed. Equities in the US failed to shake off losses of the last three sessions and investors weighed geopolitical events ahead of earnings season. The jobless claims data shows that the number of Americans filing new claims for unemployment benefit fell by 9,000 last week to 2,82,000. In other data, Markit's flash reading of service sector PMI rose to 58.6 in March.