Sensex flat, Nifty ends above 8200; IT drags, oil & auto up

After a volatile session, the market ended flat but the Nifty managed to hold the crucial 8200-level. The 50-share index ended down 11.25 points at 8224.20. The Sensex was down 45.04 points at 27206.06. Analysts say the market is concerned about rising bond yields in Europe. German and US bond yields surged to their highest in more than five months, making equities look more expensive in comparison to debt and keeping Asian stock markets subdued.

Sandeep Bhatia, executive director, Kotak Institutional Equities feels the Nifty may slip below the 8000 mark and a good entry point for investors is 7800 on Nifty. He expects more earnings headwind the next quarter. The next round of positive trigger will be both the houses of the Parliament passing the Land Bill and GST Bill, he says.

Meanwhile, India VIX rose on worries about key land and tax reforms, and retrospective taxation of foreign investors.

On the macro front, wholesale price index (WPI)-based inflation for April fell to a new low of -2.65 percent, the sixth successive month of deflating prices. The WPI reading for March was -2.33 percent. Some experts say this is a clear sign of deflationary trend in the economy, and calls for some radical action by the policy makers. This is fifth successive month of negative WPI after the flat reading for November.

Buzzing stocks
About 1486 shares advanced, 1215 shares declined and 156 shares were unchanged.
Oil, metals and auto stocks lend major support to the market. Hindalco and SBI rose 3 percent each while Bajaj Auto was up 2 percent. M&M and Tata Steel were other gainers in the Sensex.

Technology stocks were under pressure on rupee. Infosys and Wipro were down around 1 percent each. Vedanta, Sun Pharma and HDFC were other laggards in the Sensex.

Midcap index outperformed peers as Oriental Bank, CCL Internation, KEC International, Allahabad Bank and NCC surged 6-10 percent.

New kid on the block UFO Moviez saw a tepid listing on the bourses. The stock closed 4 percent lower from its issue price.

3:30 pm Market clsoing: The Sensex ended down 45.04 points at 27206.06 and the Nifty down 14.30 points at 8221.15. About 1484 shares have advanced, 1214 shares declined, and 159 shares are unchanged. Hindalco and SBI was up 3 percent while Bajaj Auto, M&M and Tata Steel were other top gainers in the Sensex.

Losers included Vedanta, Sun Pharma, Infosys, HDFC and Wipro.

3:00 pm Result: Indian Bank has registered a fall of 24 percent in its net profit at Rs 206.16 crore in the quarter ended March 31 as it reserved a sum for wage revision. The state-owned lender had earned a profit of Rs 271.29 crore in the corresponding quarter of previous fiscal.

"Total income has increased from Rs 4,234.84 crore for the quarter ended March 31, 2014 to Rs 4,410.49 crore for the quarter ended March 31, 2015," it said in a filing to BSE.

Provision of Rs 30 crore has been made during the quarter toward arrear for wage revision, which will be effective from November 1, 2012, it added.

The aggregate provision as on March 31 is Rs 290 crore, the bank said. During the March quarter, bank's net non-performing assets (NPAs) or bad loans slightly rose to 2.5 percent of the net advances as against 2.26 percent in the year ago period.

2:30 pm Rate cut? With consumer inflation and wholesale inflation for April coming in much lower than expected, India Inc and the markets are abuzz with hopes of a rate cut.

CNBC-TV18 polled a bunch of economists and bond dealers and found out that 80 percent of the respondents expect a rate cut on June 2. Of this, 25 percent expect a cut even earlier.

With consumer price index (CPI) easing off to a four month low at 4.87 percent and IIP slowing to 2.1 percent, expectations from the central bank governor, Raghuram Rajan for another rate cut on June 2 have hit the roof.

Eighty percent of the economists and financial experts polled by CNBC-TV18 expect governor to cut the repo rate by another 25bps this time. This is because Raghuram Rajan gave the policy day on April 7 a miss. Repo rate is the rate at which the central bank lends money to commercial banks.

The Sensex is down 94.87 points at 27156.23, and the Nifty is down 26.70 points at 8208.75. About 1335 shares have advanced, 1207 shares declined, and 157 shares are unchanged.

Hindalco is up 3 percent while SBI and Bajaj Auto gain 2 percent. Hero Motocorp and Bharti are other gainers in the Sensex. Vedanta, Infosys, HDFC, Sun Pharma and Wipro.

The euro hit a three-month high against the dollar on Thursday, drawing further support from a sustained surge in euro zone government bond yields that again kept global stock markets on the defensive.

Investors digested figures from the previous day that showed relatively strong euro zone economic growth in the first quarter, contrasting with disappointingly weak U.S. retail sales in April. The euro rose above USD 1.14, bringing its gains against the US currency in the last month to nearly 9 percent as the difference between benchmark US and euro zone 10-year yields shrinks from the euro-lifetime high touched in March.

1:30 pm Lupin: Shares of Lupin fell 6 percent on Thursday, extending its loss for second day. Most analysts are concerned after its dismal March quarter results and have reduced target price. Lupin's consolidated net profit fell 1.1 percent to Rs 547 crore in January-March quarter from Rs 553 crore in the corresponding quarter last fiscal. During the period, its revenue was almost flat at Rs 3,054 crore from Rs 3,051.6 crore year-on-year. Margins were impacted by overall slower growth. Research & development (R&D) expenses shot 26.1 percent Y-o-Y to Rs 309.6 crore. The company had to also incur a forex loss of Rs 36.7 crore in Q4. Credit Suisse maintains neutral rating on the stock and expects consensus to cut FY16-17 earnings per share (EPS) by 10-8 percent. "Lupin has shifted gears on complex generics and unlike past practices of adding one vertical a year, Lupin has commenced R&D on several verticals but the benefits are back-ended," it says in a report.

The market continues to be fall, as the Sensex is down 221.42 points or 0.8 percent at 27029.68. The Nifty is down 66.05 points or 0.8 percent at 8169.40. About 1188 shares have advanced, 1226 shares declined, and 150 shares are unchanged.

Hindalco, Bharti Airtel, Bajaj Auto, Cipla and Hero Motocorp are top gainers in the Sensex. Among the losers are Vedanta, HDFC, ICICI Bank, Infosys and Sun Pharma.

India VIX, a gauge of expected volatility in Indian shares, surprisingly rose alongside shares on Wednesday, amid worries about key land and tax reforms, and retrospective taxation of foreign investors.

Oil slipped as weak data from the world's top economies raised concern about the outlook for global fuel demand, offsetting data that showed a large drawdown in US crude stockpiles last week.

China, the world's top energy consumer, saw its economy losing more steam in April despite easier monetary policy, while Europe's largest economy, Germany, slowed in the first quarter. In the United States, retail sales were flat in April, dampening hopes of a sharp rebound in growth in the second quarter.

12:50 pm Market outlook: With no major domestic developments, Indian markets may look to global cues, like the Greece debt deal, says UR Bhat, Director, Dalton Capital Advisors. He does not see Nifty settling below 8000 levels unless there is a major catastrophe and feels retail investors should invest with a 2-3 year horizon. Bhat told CNBC-TV18 that the market is close to bottoming out and the Nifty can rise hereon. He expects foreign fund inflows into Indian market to stay muted in near-term. According to Bhat, big IT stocks have not corrected enough given the fall in earnings growth. He is not in a hurry to buy PSU banks and feels that FMCG stocks are not cheap at current levels.

12:30 pm Result: Oriental Bank of Commerce has posted net loss of Rs 178 crore in the quarter ended March 2015 compared to a profit of Rs 310.3 crore in year-ago period. The bank incurred one-time loss of Rs 280.40 crore in the quarter as it sold Rs 395.33 crore to asset reconstruction companies (ARCs).

However, its asset quality was almost flat with gross non-performing assets (NPA) at 5.18 percent versus 5.43 percent sequentially. Net NPA fell slightly to 3.34 percent compared to 3.68 percent quarter-on-quarter (QoQ).

In absolute terms, gross NPA was at Rs 7,666 crore versus Rs 7,669 crore (Q-o-Q) and net NPA stood at Rs 4,816 crore against Rs 5,080 crore sequentially.

The Sensex is down 134.97 points or 0.5 percent at 27116.13, and the Nifty down 45.15 points or 0.5 percent at 8190.30. About 1200 shares have advanced, 1066 shares declined, and 143 shares are unchanged.

Bajaj Auto and Hindalco are up 2 percent while Cipla, Hero Motocorp and Bharti are top gainers in the Sensex. Among the losers are Vedanta, Infosys, HDFC, Sun Pharma and Tata Motors.

Wholesale price index (WPI)-based inflation for April fell to a new low of -2.65 percent, the sixth successive month of deflating prices. The WPI reading for March was -2.33 percent. Experts say this is a clear sign of deflationary trend in the economy, and calls for some radical action by the policy markets.

The rupee advanced further to 13 paise at 63.87 against the American currency in late morning trade on sustained selling of greenback by banks and exporters due to weakness of dollar in the overseas market.

The rupee resumed higher at 63.97 per dollar against the yesterday's closing level of 64 at the Interbank Foreign Exchange (Forex) Market. Banks and exporters preferred to reduce their dollar position in view of lower dollar in the overseas market.

11:30 am Buzzing: Shares of Lupin fell 6 percent, extending its loss for second day. Most analysts are concerned after its dismal March quarter results and have reduced target price. Lupin's consolidated net profit fell 1.1 percent to Rs 547 crore in January-March quarter from Rs 553 crore in the corresponding quarter last fiscal. During the period, its revenue was almost flat at Rs 3,054 crore from Rs 3,051.6 crore year-on-year.

Margins were impacted by overall slower growth. Research & development (R&D) expenses shot 26.1 percent Y-o-Y to Rs 309.6 crore. The company had to also incur a forex loss of Rs 36.7 crore in Q4.

The market is reeling under pressure, dragged by banks and IT stocks. The Sensex is down 175.61 points or 0.6 percent at 27075.49 and the Nifty is down 57.40 points or 0.7 percent at 8178.05. About 1085 shares have advanced, 898 shares declined, and 140 shares are unchanged.

Infosys, Wipro, Vedanta, HDFC and ICICI Bank are major losers in the Sensex. Among the gainers are Bajaj Auto, Cipla, Hero MotoCorp, Hindalco and NTPC.

Brokers said profit-booking by participants in stocks that recorded handsome gains in yesterday's trade and a mixed trend at other Asian markets tracking overnight losses at US markets following a disappointing retail sales report dampened sentiment.

10:55 am Report card: The Budget session can largely be called as productive in terms of the number of Bills introduced and passed and the number of hours worked, says Shobhana Bhartia, chairperson and editorial director, Hindustan Times Media. The Upper House or the Rajya Sabha approved 24 amendments relating to 16 issues. It also passed the Companies Act Amendment Bill. The Lok Sabha, where the ruling NDA has brute majority, passed the GST Constitutional Amendment Bill and the Land Acquisition Bill. However, both these Bills have been sent to panels or committees in the Rajya Sabha, where the BJP doesn't have the requisite numbers to pass key legislative Bills. The Lok Sabha also passed the Black Money Bill, which the BJP termed as a Money Bill and hence it was not required to send to the Rajya Sabha.

10:45am Buzzing: Shares of Man Industries soared up 15 percent intraday on Thursday after it bagged export orders worth Rs 510 crore for oil and gas sectors.

"With these new orders the outstanding executable order book stands at around Rs 1300 crore as on date. The new order intake will result in significant improvement in performance of the company in the current financial year," it said a statement to the BSE.

The company has outstanding bids of over USD 2 billion at various stages of evaluation for oil, gas and water projects in India and abroad.

Man Industries is a manufacturer of Saw pipes and coating systems fro high pressure oil & gas applications with a potential production capacity of around 1 million metric tonnes of Saw pipes per annum.

10:15 am New listing: UFO Moviez debuted on the bourses at Rs 600 per share. The stock of end-to-end high-quality digital cinema solution provider touched a high of Rs 622.80 intraday. Price band of the Rs 600-crore initial public offering (IPO) was at Rs 615-625.

The issue was subscribed 2.07 times. The objects of the offer are to achieve the benefits of listing the shares on the exchange and facilitate for the sale of shares by the existing shareholders.

The company offers a flexible, transparent and high-impact platform that allows advertisers to have maximum engagement with cinema-goers. According to CRISIL, UMIL is Indias largest digital cinema distribution network and in-cinema advertising platform (in terms of numbers of screens).

The market is still unable to get into the green zone as the Sensex is down 126.71 points at 27124.39. The Nifty is down 44.15 points at 8191.30. About 852 shares have advanced, 776 shares declined, and 119 shares are unchanged.

IT and bank stocks are major laggards. Cipla, Bharti Airtel, Bajaj Auto and NTPC are up 2 percent. Among the losers are Infosys, Wipro, HDFC twins and Tata Motors.

The US dollar huddled near three-month lows after poor retail data proved a huge disappointment to those expecting a strong American economic rebound from a weather-weakened first quarter.

Investors reacted by pushing back the likely lift-off date for a rate hike by the Federal Reserve, giving gold a steer to five-week highs above USD 1,218 an ounce. Yet in a bizarre turn, German and U.S. bond yields still surged to their highest in over five months as a vicious selloff extended to its 10th session.

9:50 am WPI Poll: Inflation based on Wholesale Price Index (WPI) for April is expected at -2.07 percent as against -2.33 percent in March. According to a CNBC-TV18 poll, the range could be anywhere between -0.6 percent and -2.56 percent. The core WPI is seen at around -0.4 to -0.5 percent as against -0.35 percent on a month-on-month basis. Retail inflation as measured by Consumer price Index (CPI) for the month of April came in at 4.87 percent as against 5.25 percent in the previous month. The wholesale inflation for March fell to a new low of -2.33 percent, the lowest in nine years and fourth successive month of deflating prices, after flat reading in November as manufactured products inflation entered a negative territory for the first time.

9:40 am FM on Modi: Hitting out at opposition for dragging its feet on the GST Bill, Finance Minister Arun Jaitley said "nobody should get a thrill by delaying GST" as the proposed indirect tax reform would improve revenue and growth. He also said "we must pass it come what may in July". The GST Bill, which was approved by the Lok Sabha, could not pass muster in the Rajya Sabha and was referred to the select committee for scrutiny. "If it (GST) is going to create India into a one unified market and (promote) free flow of goods and services, facilitate free trade, going to improve revenues of the states, going to improve revenues of Centre, going to improve India's GDP, then nobody should get a thrill in delaying GST," the Finance Minister said.

9:20 am Market chcek: The Sensex is down 288.37 points or 1 percent at 26962.73 and the Nifty is down 88.45 points or 1 percent at 8147. About 338 shares have advanced, 584 shares declined, and 78 shares are unchanged.

NTPC, Cipla, Dr Reddy's Labs, Bharti Airtel and Hindalco are top gainers in the Sensex.

The market has opened sharply lower. The Sensex is down 226.04 points or 0.8 percent at 27025.06, and the Nifty is down 40.30 points or 0.5 percent at 8195.15. About 288 shares have advanced, 316 shares declined, and 75 shares are unchanged.

Vedanta, Infosys, Tata Motors, ITC and HUL are major losers in the Sensex. Among the gainers are NTPC, Bharti Airtel, Cipla and HDFC.

The Indian rupee opened flat at 63.97 per dollar on Thursday against previous close of 64 per dollar.

The US dollar continues to weaken, declining 1 percent yesterday. While the euro topped 1.13 to the dollar after weak US retail sales data suggests a dovish Fed.

Mohan Shenoi of Kotak Mahindra Bank said, "Weak US retail sales data has cast doubts about US growth rebound in Q2 resulting in dollar weakness against major currencies. A volatile equity market in India is exerting pressure on rupee. However, RBIs action is preventing fall beyond 64.30/dollar. The rupee is expected to trade in a range of 63.85-64.25/dollar today."

Meanwhile, Asian equities opened mixed on Thursday, mirroring the finish on Wall Street amid fresh worries over the state of the US economy.

Japan's Nikkei 225 opened down amid a broad-based slump. Australia's S&P ASX 200 index threw away nearly all of Wednesday's gains at the open on the back of a selloff in the mining space. South Korea's key Kospi index ticked down marginally, a day after chalking up its biggest single-day gain in three weeks.

A flat finish was witnessed on the Wall Street. Stocks closed narrowly mixed as investors remained wary of climbing bond yields and the lack of indications for a strong second-quarter rebound in the economy.

US treasury yields rose intra-day on Wednesday following the treasury department's auction of USD 24 billion in 10-year notes at a high yield of 2.237 percent.

In commodities, Brent crude slipped marginally to USD 66 per barrel despite crude stockpiles slipping for a second straight week. Gold prices, meanwhile, rose above USD 1200 an ounce.