Nifty ends above 8150, Sensex flat; Sun Pharma, Reliance down

3:30 pm Market closing: After a lot of struggle, the market has closed marginally lower. The Sensex closed down 57.64 points or 0.2 percent at 26667.96, and the Nifty ended 18.40 points or 0.2 percent at 8160.10. About 990 shares have advanced, 1568 shares declined, and 165 shares are unchanged.

Tata Motors, Tata Steel, SBI, Maruti and Adani Ports were top gainers while Sun Pharma, TCS, GAIL, ONGC and Reliance were losers in the Sensex.

3:15 pm Interview: India is looking to start a "significant" fund that will invest in distressed loans held by lenders, Minister of State for Finance Jayant Sinha said on Tuesday, as regulators strive to clean-up non-performing loans in the struggling sector.

"We will have a significant stressed assets fund," Sinha told reporters on the sidelines of a event by credit ratings agency CRISIL in India's financial capital, Mumbai.

"We expect a variety of funds - stressed debt fund, special situations fund, and NIIF (National Investment and Infrastructure Fund) - to then participate in equity investment in these stressed assets," he also said.

2:57 pm Ruchi Soya falls: Edible oil manufacturer Ruchi Soya Industries disappointed street by posting big loss of Rs 889 crore in January-March quarter against profit of Rs 19 crore in year-ago period, dented by lower revenue and loss at operating level (in major segments like oil, seed extraction and others).

Revenue declined 17.4 percent to Rs 8,048.7 crore during the quarter from Rs 9,738.9 crore in corresponding period of last fiscal due to lower growth across segments (except food products).

Operational performance was pathetic for the quarter as EBITDA (earnings before interest, tax, depreciation and amortisation) loss stood at Rs 840.2 crore against profit Rs 138.3 crore in year-ago period.

The stock lost 4 percent.

2:45 pm Market recovers: Equity benchmarks recouped losses amid consolidation. The Sensex declined 19.41 points to 26706.19 and the Nifty fell 4.45 points to 8174.05.

About 1564 shares declined against 923 advancing shares on BSE.

2:35 pm Earnings: Ramky Infrastructure today reported standalone net profit of Rs 173.53 crore for the fourth quarter ended March, on the back of higher income.

However, the company had posted standalone net loss of Rs 82.65 crore in the corresponding quarter of FY 2014-15, Ramky Infrastructure said in a BSE filing.

Total income of the company during the quarter increased to Rs 867.03 crore, over Rs 336.17 crore in the year-ago period.

On the consolidated basis, the company reported a net profit of Rs 17.30 crore for the year ended March 31, 2016.

However, the company had reported a net loss after taxes, minority interest and share of loss from associates at Rs 482.96 crore for the year ended March 31, 2015.

Total income from operations increased to Rs 2,342.08 crore for the year ended March 31, 2016, over Rs 1,644.12 crore for the year ended March 31, 2015.

2:21 pm BSE IPO: BSE, Asia's oldest stock exchange, plans to sell up to 30 percent stake in its much-awaited initial public offer (IPO), which is expected to hit the market this financial year.

The exchange plans to file draft papers with capital markets regulator Sebi in July.

BSE (formerly known as Bombay Stock Exchange) has already appointed Edelweiss Financial Services as the lead merchant banker and AZB & Partners and Nishith Desai Associates as legal advisors to the issue.

The exchange will hold an annual general meeting (AGM) on June 24 to seek shareholder's approval for the listing.

The total size of the issue will not exceed 30 percent, according to a notice of AGM.

2:00 pm Market Check
Equity benchmarks extended losses a bit in afternoon trade with the Sensex falling 107.50 points to 26618.10 and the Nifty declining 27.75 points to 8150.75. The market breadth remained negative as about two shares declined for every share rising on Bombay Stock Exchange.

With events such as a Fed rate hike and the Reserve Bank monetary policy lined up in June, shares could remain choppy in the near term, says Vibhav Kapoor of IL&FS.

But the medium term outlook remains strong even as two risks, a weak monsoon and Brexit, could upset the applecart.

Asian markets were mostly higher today, with China's Shanghai up more than 3 percent and Japan shares rising 1 percent after better-than-expected economic data. In Hong Kong, the Hang Seng index was 0.9 percent higher.

China shares may be getting a fillip from a Goldman Sachs report released today, which raises its probability estimate from 50 percent to 70 percent for A-share inclusion in the MSCI indexes. The MSCI will announce the results of its Annual Market Classification Review on June 15, which may see the A-share market included in the index.

European markets traded marginally lower as investors digested the prospect of a June US interest rate hike and key risk events this week including a European Central Bank meeting.

1:30 pm FII view: A clear economic and earnings recovery is finally visible and growth is at an inflexion point, says Ridham Desai, Head of Equity Research & India Equity Strategist at Morgan Stanley. ''We are, for first time in last two years, seeing justification of share price,'' he told CNBC-TV18 in an exclusive interview from the sidelines of a Morgan Stanley conference. "Earnings, in this quarter itself, have turned positive with the exception of corporate banks. Mid teens earnings growth is likely over next couple of years," he said. Key calls to watch here would be deflation in producer price index and nominal effective exchange rate, Desai says. Headline index looks like it will get exhausted. Another 3-4 percent upside is expected post which it might take a pause.

The benchmark indices continue to struggle after rallying for five days. The Sensex is down 57.30 points or 0.2 percent at 26668.30, and the Nifty down 12.75 points or 0.2 percent at 8165.75. About 898 shares have advanced, 1476 shares declined, and 163 shares are unchanged.

Tata Motors, Tata Steel, NTPC, Maruti and Adani Ports are top gainers in the Sensex. Among top losers are Sun Pharma, GAIL, TCS, Infosys and ONGC.

Oil prices were mixed today as investors awaited manufacturing data from China ahead of an OPEC meeting on production caps. Dealers expect Chinese manufacturing data due to set the tone at mid-week. China is the world's largest energy consumer so any indication of how its economy is performing acts as a key driver for oil prices.

Meanwhile, Mahantesh Sabarad, Deputy VP Research, SBICap Securities says that investors should stay away from pharmaceutical space, which is already reeling under US FDA issues.

''We see a risk for the sector from the US presidential elections later this year,'' he said in an interview.

The entire business model of pharma companies in the US comprising of substantial filings, inspection of facilities & FDA compliance and marketing distributing strategy is threatened at present, he added.

12:59 pm Market Update: Equity benchmarks continued to in consolidation mode after rallying for five trading sessions. The Sensex declined 65.21 points to 26660.39 and the Nifty fell 13.70 points to 8164.80.

About 1453 shares declined against 881 advancing shares on BSE.

12:45 pm Europe opens: European markets opened modestly higher as investors digest the prospect of a June US interest rate hike and key risk events this week including a European Central Bank meeting.

The pan-European STOXX 600 was up around 0.2 percent.

Markets have been on edge since US policymakers started calling for a rate hike in June, ahead of market expectations. Federal Reserve Chair Janet Yellen said last week that a rate hike could be appropriate in the coming months.

12:25 pm Market Expert: With events such as a Fed rate hike and the Reserve Bank monetary policy lined up in June, shares could remain choppy in the near term, says Vibhav Kapoor of IL&FS.

But the medium term outlook remains strong even as two risks, a weak monsoon and Brexit, could upset the applecart.

In an interview with CNBC-TV18, Kapoor said that even as valuations from a short-term perspective may look expensive, investors should buy shares with a 18-24 month view.

IL&FS year-end target for the Nifty is at 8,700-9,100, which may go up to 8,800-9,400, he said.

12:00 pm Market Check
Equity benchmarks remained under pressure in noon trade with the Sensex declining 79.17 points to 26646.43 and the Nifty falling 17.90 points to 8160.60, led by profit booking.

The broader markets also continued to be weak as about two shares declined for every share rising on Bombay Stock Exchange.

Tata Motors held its top position in the buying list, up 8 percent after stellar performance in Q4. Credit Suisse remained bullish on the stock and assigned outperform rating with increased target price of Rs 530 (from Rs 470 earlier).

Maruti Suzuki, Tata Steel, NTPC and BHEL gained more than 1 percent while Infosys, TCS, Bharti Airtel and GAIL fell 1-2 percent.

Sun Pharma plunged nearly 6 percent on lower-than-expected earnings in Q4.

11:55 am Momentum in economy: India probably gathered momentum to hold its ranking as the world's fastest growing large economy in the quarter through March, giving Prime Minister Narendra Modi more to celebrate after completing two years in office last week.

Modi swept to power promising to revitalise Asia's third-largest economy and, despite a dearth of private investment and shrinking exports, his policies are having some success as cooling inflation and lower interest rates have boosted consumer demand.

A Reuters survey of economists expected data out on Tuesday will show India's gross domestic product grew 7.5 percent year-on-year between January and March, faster than the previous quarter's 7.3 percent.

"This 7.5 percent growth, in a global slowdown environment, has a potential to pick up even more," Finance Minister Arun Jaitley said last week in general comments about the trends.

11:45 am Market outlook: With events such as a Fed rate hike and the Reserve Bank monetary policy lined up in June, shares could remain choppy in the near term, says Vibhav Kapoor of IL&FS.

But the medium term outlook remains strong even as two risks, a weak monsoon and Brexit, could upset the applecart.

In an interview with CNBC-TV18, Kapoor said that even as valuations from a short-term perspective may look expensive, investors should buy shares with a 18-24 month view.

IL&FS yearend target for the Nifty is at 8,700-9,100, which may go up to 8,800-9,400, he said.

11:30 am GDP poll: The fourth quarter FY16 gross domestic product (GDP) and gross value added (GVA), expected later today, are likely to meet the advanced estimates of 7.6 percent and 7.3 percent respectively. Agriculture data is expected to improve to 1.6 percent as against decline seen both year-on-year and quarter-on-quarter. Favorable rabi harvest and base effect will give the sector boost. Manufacturing, however, is unlikely to sustain at 12 percent. The estimates for manufacturing sector stands at 8.9 percent for Q4. Industries with construction are expected at 7.4 percent.

The market is still reeling pressure with the Nifty hovering 8150. The Nifty is down 19.45 points or 0.2 percent at 8159.05 and the Sensex is down 77.08 points or 0.3 percent at 26648.52. About 762 shares have advanced, 1322 shares declined, and 96 shares are unchanged.

Tata Motors, NTPC, Maruti, Tata Steel and Lupin are top gainers in the Sensex while losers are Sun Pharma, GAIL, Infosys, TCS and Bharti Airtel.

Gold futures were up by Rs 41 to Rs 28,644 per 10 gram as speculators raised their bets amid positive cues from global markets. Analysts attributed the rise in gold prices to a firming trend overseas.

Moreover, drop in the dollar also boosted demand for bullion as an alternative asset, they added. Meanwhile, gold was trading 0.64 per cent higher at USD 1,212.60 an ounce in Singapore.

10:40 am Roll back of tax: The government has rolled back its Budget decision to apply 1 percent tax on cash purchase of gold jewellery.

The jewellers had earlier been on a 45-day strike after Finance Minister Arun Jaitley in his Budget speech in February proposed 1 percent excise tax on non-silver jewellery.

Successive governments have struggled to curb appetite for gold in Asia's third largest economy, despite the imposition of a 10 percent import duty in 2013 and other restrictions.

The government imposed an excise duty in 2012, but was forced to roll it back after jewellers went on a strike.

10:20 am CLSA on Tata Motors: The brokerage expects Tata Motors to deliver a strong 21 percent EPS CAGR over FY16-18 driven by strong JLR volume growth, improving JLR margins and a recovering India business.

"We keep EPS estimates unchanged for now as we are keen to see May-June volumes given the weak April numbers but the strong 4Q results have increased our conviction in buy call," says the brokerage.

The market erased its early gains on the back of profit booking after rising consistently for five consecutive sessions. The Sensex fell 70.32 points to 26655.28 and the Nifty slipped 21 points to 8157.50.

The broader markets also turned lower with the BSE Midcap and Smallcap indices falling 0.3-0.5 percent. The market breadth was weak too as about two shares declined for every share rising on the Bombay Stock Exchange.

Sun Pharma extended losses in morning trade, down 5 percent after its Q4 earnings fell short of expectations.

Infosys, L&T, ICICI Bank, Bharti Airtel, Adani Ports, GAIL and Coal India declined 1-2 percent while Lupin, Maruti Suzuki and NTPC outperformed, up over a percent.

Tata Motors jumped 7 percent on solid earnings performance in Q4.

9:50 am Market Update: Equity benchmarks erased early gains with the Sensex falling 33.28 points to 26692.32 and the Nifty declining 2.80 points to 8175.70.

The market breadth also turned negative as about 931 shares declined against 670 advancing shares on BSE.

9:35 am FII View: A clear economic and earnings recovery is finally visible and growth is at an inflexion point, says Ridham Desai, Head of Equity Research & India Equity Strategist at Morgan Stanley.

''We are, for first time in last two years, seeing justification of share price,'' he told CNBC-TV18 in an exclusive interview from the sidelines of a Morgan Stanley conference.

"Earnings, in this quarter itself, have turned positive with the exception of corporate banks. Mid teens earnings growth is likely over next couple of years," he said.

Desai says that at present, broad markets look very attractive and are expected to do better than narrow markets.

9:15 am Market Check: The market started off last day of the May on a positive note, tracking positive Asian cues. The Sensex rose 92.52 points to 26818.12 and the Nifty advanced 25.95 points at 8204.45.

Sun Pharma declined 3 percent after earnings missed analysts' expectations. The pharma major will consider buyback proposal on June 23.

Tata Motors surged 8 percent as profit in Q4 jumped 3-fold to Rs 5,177 crore with revenue rising 19 percent YoY. Standalone profit stood at Rs 465 crore against loss of Rs 1,164 crore YoY.

Finally the government has rolled back its Budget decision to apply 1 percent tax on cash purchase of gold jewellery. It raised threshold back to Rs 5 lakh from earlier Rs 2 lakh w.e.f June 1.

The Indian rupee opened flat at 67.15 per dollar against previous close of 67.16.

Ashutosh Raina of HDFC Bank said, "The continued hawkish Fed speak seems to be preparing the markets for a possible Fed hike soon. The USD-INR pair has been trading in the 67-67.50/dollar range with prospects of a good monsoon and possibility of GST bill getting passed in Monsoon session of Parliament helping the pair."

"We expect the pair to continue trading in this range in the near term," he added.

The dollar reached a two-month high against a basket of currencies and a one-month high against the yen on Monday, after Federal Reserve Chair Janet Yellen fanned expectations the Fed would raise US interest rates soon.
 Among other markets, Asian stocks were trading higher with China leading the pack. The Shanghai Composite gained 0.84 percent while Hong Kong's Hang Seng was up 0.38 percent.  Japan's Nikkei 225 was also marginally up. 

Markets in US and UK were closed for a public holiday. London's FTSE 100 was closed due to a public holiday and.