Nifty ends below 8150, Sensex sheds 239 points; banks, metals lose

3:30 pm Market closing: After a lot of struggle, the market has ended sharply lower. The Nifty ended below 8150, down down 59.45 points or 0.7 percent. The Sensex is down 238.98 points or 0.9 percent at 26396.77. Dr Reddy's Labs, Lupin, Maruti, Sun Pharma and Adani Ports were top gainers while Tata Steel, ICICI Bank, Tata Motors, Bharti Airtel and BHEL were laggards in the Sensex.

3:15 pm Market outlook: Although India cannot remain de-linked from global shocks, the basic premise of the bull market remains intact, says veteran stock broker Dipan Mehta.

In an interview with CNBC-TV18, Mehta said that once the global turmoil is done with, the likely passage of goods and services tax (GST), good monsoons etc will help market go up. He added that agro chemicals and FMCG would be clear beneficiaries of that.

From the point of the view of GST, one could look at logistic companies and companies that compete against the organized sector like plywood and tiles manufacturing companies, home appliances etc, which would likely increase market share. Stocks like Century Ply, Greenply Industries, Kajaria, Symphony, Havells, V-Guard etc.

3:00 pm Sugar output: India has exported over 1.6 million tonnes of sugar so far in 2015-16 marketing year that started from October last, up 46 per cent from the whole of previous year, according to industry body ISMA.

The country had exported 1.1 MT of sugar in the 2014-15 marketing year (October-September).

India is the second largest producer of the commodity after Brazil but the biggest consumer of the sweetener.

"As per the information available with ISMA, around 1.6 MT have been exported so far in 2015-16 season," Indian Sugar Mills Association (ISMA) Director General, Abinash Verma, told PTI.

2:55 pm Global markets tank: Fears Britain is on the verge of voting to leave the European Union next week spread through global financial markets on Monday, sending Asian and European shares sharply lower and the pound to an eight-week low.

With the world economy looking shaky, and surprisingly weak jobs figures last month suggesting even the United States is not ready for higher interest rates, concerns over the economic fallout of a Brexit have lurked in the background for weeks.

They were at the heart on Monday of the biggest falls for Asian stock markets in four months, and a 1 percent drop in European share prices, after a new poll late on Friday gave the "Leave" camp a 10 point lead.

2:45 pm Interview: Dr Reddy's Laboratories acquired eight abbreviated new drug applications (ANDAs) from Teva Pharma and an affiliate of Allergan Plc in the US.

Throwing more light on the acquisition, Saumen Chakraborty, CFO of the company, told CNBC-TV18 that it hopes to commercialise four out of the eight products by FY18. He said all the eight products are expected to have limited competition.

The company is also planning to launch 8-10 products in the near-term, said Chakraborty. Out of the 8 products, one is already approved and 7 are pending with FDA, said the company.

Talking about growth outlook, he said first half of FY17 is likely to be challenging but expects second half of FY17 to make up for the challenging first half, adding that FY18 should be a good year for growth.

2:25 pm Europe update: European stocks traded sharply lower as investors look ahead to crucial central bank decisions from the US and Japan this week and uncertainty over "Brexit" shook markets.

The pan-European STOXX 600 was down 1.18 percent.

Global markets will be dominated by two crucial central bank meetings and monetary policy decisions this week. On Tuesday, the US Federal Open Market Committee begins a two-day meeting although expectations for a June rate hike have been pared following a lower-than-expected May nonfarm payroll number in recent weeks which cast doubts over the health of the US economy.

2:00 pm Market Check
The market remained under pressure in afternoon trade, though it recouped some of its losses due to recovery in Reliance Industries, ITC, Infosys and pharma stocks.

The 30-share BSE Sensex fell 247.32 points or 0.93 percent to 26388.43 and the 50-share NSE Nifty declined 66.50 points or 0.81 percent to 8103.55. The broader markets were down 0.7 percent as about 1526 shares declined against 891 advancing shares on Bombay Stock Exchange.

The rupee slipped below 67 a dollar following turmoil in global equity markets. The currency declined 36 paise to 67.12 per dollar.

1:45 pm Market outlook: Stating that there was a "disconnect between the stock market and the ground reality", market expert Ajay Srivastava says recent gains in the market have been led by liquidity and the disconnect makes it important to keep booking profits.

Speaking to CNBC-TV18 in an interview, Dimensions Consulting CEO Srivastava said the market was on a "drug induced high" and corrections were imminent.

He, however, added that a re-test of February lows was unlikely unless a catastrophe -- the monsoon failing for a third straight year -- takes place.

1:30 pm IPO: Larsen and Toubro (L&T) aims to list both its technology companies L&T Infotech & L&T Technology Services by October 2016 and plans to raise around USD 300-400 million, reports CNBC-TV18's Kritika Saxena quoting sources. L&T Infotech focuses on the information technology services while L&T Technology focuses on engineering and infrastructure services. L&T is likely to file the DRHP to list L&T Technology services soon. Sources suggest that the group will be listing the two companies separately and independently on the stock exchanges.

The market continues to skid with global markets tumbling. The  Sensex is down 289.67 points or 1 percent at 26346.08, and the Nifty down 78.45 points or 0.9 percent at 8091.60. About 785 shares have advanced, 1558 shares declined, and 137 shares are unchanged.

Lupin, GAIL, Coal India, Dr Reddy's and HUL are gainers while ICICI Bank, Tata Motors, Tata Steel and Axis Bank are losers in the Sensex.

European stocks opened sharply lower as investors look ahead to crucial central bank decisions from the US and Japan this week.

Global markets will be dominated by two crucial central bank meetings and monetary policy decisions this week. On Tuesday, the US Federal Open Market Committee begins a two-day meeting although expectations for a June rate hike have been pared following a lower-than-expected May nonfarm payroll number in recent weeks which cast doubts over the health of the U.S. economy.

Meanwhile in Asia, the Bank of Japan (BOJ) is also scheduled to hold a policy meeting on June 15 with analysts saying that that bank could surprise markets with additional easing this week.

Asian stocks were trading sharply lower Monday morning, ahead of the central bank meetings. Increasing nervousness over whether the UK would remain in the European Union (EU) when a referendum on EU membership takes place on June 23 is also rattling markets.

12:59 pm Market Update: Equity benchmarks recouped some of its losses in afternoon trade. The Sensex fell 278.73 points or 1.05 percent to 26357.02 and the Nifty declined 77.45 points or 0.95 percent to 8092.60.

12:40 pm Europe opens: European stocks opened sharply lower as investors look ahead to crucial central bank decisions from the US and Japan this week.

The pan-European STOXX 600 was down 0.95 percent.

Global markets will be dominated by two crucial central bank meetings and monetary policy decisions this week. On Tuesday, the US Federal Open Market Committee begins a two-day meeting although expectations for a June rate hike have been pared following a lower-than-expected May nonfarm payroll number in recent weeks which cast doubts over the health of the US economy.

Meanwhile in Asia, the Bank of Japan (BOJ) is also scheduled to hold a policy meeting on June 15 with analysts saying that that bank could surprise markets with additional easing this week.

12:20 pm Interview: Fortis Healthcare  is now in a consolidation phase and is focusing on improvement of occupancy levels and margins of its existing hospitals, according to its management.

The healthcare company will rely on brownfield expansion for driving growth and is also exploring the demerger or a possible listing of SRL Diagnostics arm, Chief Executive Officer Bhavdeep Singh told CNBC-TV18.

He said Fortis aims to for a double-digit revenue growth and EBIDTA margin improvement in FY17. In the next 3-5 years, the company expects its EBIDTA margins to expand to 20 percent from 14.6 percent, Singh said.

Fortis's board has decided to assess and evaluate a potential demerger of the diagnostics business in order to unlock and monetise its inherent value.
The company believes that this process will take approximately 6-9 months, he said.

12:00 pm Market Check
The market fell further in afternoon trade with the benchmarks down more than 1 percent as Asian peers also extended losses. Nikkei plunged 3.5 percent and Hang Seng shed 2.8 percent.

The 30-share BSE Sensex crashed 343.59 points or 1.29 percent to 26292.16 and the 50-share NSE Nifty dropped 97.30 points or 1.19 percent to 8072.75. The market breadth remained weak as about 1532 shares declined against 699 advancing shares on Bombay Stock Exchange.

ICICI Bank, Tata Motors, HDFC, Axis Bank, SBI, Adani Ports, Tata Steel, Cipla and BHEL slipped 2-4 percent while Lupin, Dr Reddy's Labs and Coal India gained more than half a percent.

Ajay Srivastava of Dimensions Consulting says recent gains in the market have been led by liquidity and the disconnect (between the stock market and the ground reality) makes it important to keep booking profits.

He, however, added that a re-test of February lows was unlikely unless a catastrophe -- the monsoon failing for a third straight year -- takes place.

11:55 am Market extends loss: The Sensex is down 338.59 points or 1.3 percent at 26297.16, and the Nifty down 95.05 points or 1.1 percent at 8075. About 702 shares have advanced, 1529 shares declined, and 117 shares are unchanged.

11:45 am Interview: Fortis Healthcare is now in a consolidation phase and is focusing on improvement of occupancy levels and margins of its existing hospitals, according to its management.

The healthcare company will rely on brownfield expansion for driving growth and is also exploring the demerger or a possible listing of SRL Diagnostics arm, Chief Executive Officer Bhavdeep Singh told CNBC-TV18.

He said Fortis aims to for a double-digit revenue growth and EBIDTA margin improvement in FY17. In the next 3-5 years, the company expects its EBIDTA margins to expand to 20 percent from 14.6 percent, Singh said.

11:30 am Brexit fears: The United Kingdom has a certain set of risks involved depending on the outcome of the Brexit referendum and a vote in favour of exiting the European Union is likely to trigger a diminished growth  for the UK, according to James Dowey.

In an interview to CNBC-TV's special series London Eye, Dowey, Chief Economist and Chief Investment Officer of Neptune Investment Management, told Udayan Mukherjee that the market is likely to see stagflation and depreciation in the nation's currency.

Dowey said that right now markets are greeting a dovish Federal Reserve commentary positively.

Selling pressure continues on Dalal Street with Nifty struggling below 8100. The 50-share index is down 77.90 points or 0.9 percent at 8092.15 while Sensex is down 286.20 points or 1 percent at 26349.55.

Coal India, Lupin, Dr Reddy's Labs, HUL and GAIL are gainers in the Sensex. Tata Steel is down 4 percent while ICICI Bank, Tata Steel, Axis Bank and BHEL are top losers.

Gold hit a near four week high early, supported by weaker Asian stocks as investors turned towards safe haven-assets ahead of this week's central bank meetings and Britain's June 23 referendum on its European Union membership. Asian shares and sterling skidded in early trade and the perceived safe-haven yen rose.

The safe-haven yen surged to its highest level in three years against both sterling and the euro. The dollar lost 0.4 percent to 106.60 yen, edging near one-month low of 106.26 touched last Thursday.

10:45 am May inflation: India's consumer price data due to be released later today is likely to show inflation edged up for a second straight month in May, driven by higher prices for food and fuel items, though good rainfall in next three months could dampen food prices.

After leaving rates unchanged at a policy review last Tuesday, Governor Raghuram Rajan said the Reserve Bank of India, which has targeted inflation at 5 percent by March 2017, was still looking for room to reduce interest rates, but there were concerns over upward pressure on food and commodity prices.

Annual consumer prices, which the central bank closely tracks to set its interest rate policy, likely rose by 5.52 percent in May, according to a Reuters poll of economists, compared with a rise of 5.39 percent in April.

10:25 am Maruti resumes production: Country's largest carmaker Maruti Suzuki India Ltd (MSIL) today resumed production at its two plants after a week-long maintenance closure.

The company had advanced the maintenance closure by three weeks to June 6-11, following a fire at the Manesar facilities of its supplier, Subros Ltd, on May 29.

"Due to the strenuous efforts made by all concerned, operations at MSIL's facilities in Gurgaon and Manesar have begun smoothly," the company said in a statement.

On an average, Maruti produces around 5,000 units a day from its two plants at Gurgaon and Manesar, which together have an annually capacity of rolling out 15 lakh units.

10:00 am Market Check: Equity benchmarks extended losses with the Sensex falling 278.53 points or 1.05 percent to 26357.22, tracking weakness in global peers. The Nifty continued to struggle below 8100, down 76.40 points or 0.94 percent to 8093.65, weighed by banking & financials, infra, FMCG, auto and IT stocks.

The broader markets also caught in bear grip. The BSE Midcap and Smallcap indices were down 0.8 percent each. About two shares declined against 591 advancing shares on Bombay Stock Exchange.

Tata Motors and ICICI Bank were top contributors in the selling list, down more than 3 percent followed by L&T, Axis Bank, SBI, ONGC, Tata Steel and BHEL with 1-2 percent loss while Lupin, Coal India and Dr Reddy's Labs outperformed.

Asian markets were sharply lower, ahead of central bank meetings in the US and Japan this week and amid jitters over the upcoming referendum on whether the UK would remain in the European Union. Japan's Nikkei 225 tumbled 2.9 percent, but pared some of its more than 3 percent losses earlier, as a relatively strong yen pressured stocks.

9:55 am RBI on NPA: With the Reserve Bank of India likely to propose a scheme to allow banks throw a helpline to companies that are on the verge of becoming non-performing assets (NPAs) asking them to consider converting unsustainable debt into equity or preference shares with adequate provisioning but will this really help the banks or be worse for the banks is the big question.

RK Bansal, ED, IDBI Bank does not think it could be worse and does not think it would be a moral hazard for banks. According to him if any company is sitting on a sustainable debt then it should be written off.

9:45 am Interview: Tata Power has signed a share purchase agreement to buy Welspun Renewable Energy's 1.14 GW renewable assets (1000 MW is operational). 

The deal that is said to be the largest solar deal in India, will push up Tata Power's renewable capacity to 2.3 GW.

Harshwardhan Dole of IIFL said in an interview to CNBC-TV18 that the acquisition is in line with the company's strategy and will catapult Tata Power as a top renewable energy player in India.

9:30 am Market outlook: There is no doubt that global issues like Brexit and the Orlando terror attack will weigh on the domestic market but in case the market corrects 5-7 percent, it would be a good opportunity to buy, especially if the Nifty goes to levels of around 7600-7700, says market expert Vaibhav Sanghavi of Ambit Investment Advisory.

''It is still a buy on dips market,'' says Sanghavi.

There is always risk aversion towards equities ahead of major events. Globally asset classes see correction across the board, says Sanghavi adding that this could continue for a week or so.

However, Asia is not dependent on trade with Britain as such, so even if Brexit happens it could impact the market sentiment in the short-term but over the long-term domestic fundamentals would catch up.

Dragged by global cues the market has opened with severe cuts. The Nifty is down below 8100. The 50-share index is down 72.75 points or 0.9 percent at 8097.30 while the Sensex is down 246.12 points or 0.9 percent at 26389.63.

ICICI Bank, SBI, Tata Motors, BHEL and Tata Steel are losers while Dr Reddy's Labs and HDFC Bank are gainers in the Sensex.

The Indian rupee opened lower by 18 paise at 66.94 per dollar on Monday versus 66.76 Friday. Pramit Brahmbhatt of Veracity said, "Weak global cues will put pressure on the rupee and it is likely to touch 67/dollar levels."

"We expect the USD-INR pair to trade in a range of 66.50-67.20/USD today," he added.

Brexit fear is leading to nervousness while risk-off plays out in global markets. UK will vote on June 23 on whether to leave the European Union. Asian markets were sharply lower morning, ahead of central bank meetings in the US and Japan this week.

The Federal Open Market Committee will begin a two-day policy meeting on June 14, with many market watchers not expecting a rate hike after a sharply lower-than-expected US jobs report cast fresh doubts over the economy's health.

Meanwhile in other asset class, Yen climbed as traders favour haven assets ahead of crucial meetings of the Federal Reserve and the Bank of Japan. The pound slid to the lowest level in almost two months after a poll showing a 10 percentage-point lead for Britain to leave the European Union sent it tumbling late on Friday.

Crude prices continued to decline after falling 3 percent on Friday as the US rig count rises for the second straight week.