Market sees biggest 1-day percentage loss since Jun 24;auto down

3:30 pm Market closing: The market has posted biggest one-day percentage loss since June 24. The Sensex ended at 27774.88, down 310.28 point or 1.1 percent while Nifty was at 8575.30, down 102.95 points. Adani Ports, Bank of Baroda, TCS, YES Bank and Zee Entertainment were top gainers while ACC, Grasim, Idea, Lupin and Ambuja were losers in the Nifty.

3:20 pm Commodities: Riding on firm global trends and increased buying by domestic jewellers to meet festive season demand, gold prices surged by Rs 310 to Rs 31,280 per ten grams at the bullion market today.

Silver too regained Rs 1,050 to Rs 47,350 per kg on increased offtake by industrial units and coin makers.

Traders said sentiment bolstered after gold rebounded from the lowest in a week in global markets as the dollar weakened, boosting demand for the precious metal as a store of value.

2:58 pm Market Update: The Sensex tanked 299.24 points or 1.07 percent to 27785.92 and the Nifty fell 101.20 points or 1.17 percent to 8577.05.

About 1845 shares declined against 806 advancing shares on the BSE.

2:50 pm July auto sales: Car sales rose 9.62 percent in India last month while overall passenger vehicles grew 16.78 percent, driven mainly by robust sales of utility vehicles including Maruti Suzuki 's Vitara Brezza and Hyundai's Creta.

According to Society of Indian Automobile Manufacturers (SIAM), domestic passenger vehicle (PV) sales stood at 2,59,685 units in July as against 2,22,368 units in the same month last year.

"The new models in the UV segment have created a lot of excitement in the market. Also the sentiment is positive due to better rains and coming of the 7th Pay Commission. All these factors put together are responsible for the off take which is happening," SIAM Deputy Secretary General Sugato Sen told reporters here.

Growth in overall PV sales was driven by UVs, which saw a jump of 41.85 percent to 64,105 units as against 45,191 units in the same month last year.

2:40 pm BSE Q1 performance: Top stock exchange BSE has reported a 40 percent increase in its consolidated net profit at Rs 52.72 crore for the first quarter ended June 2016.

BSE, which is currently working towards an initial public offer (IPO), had a net profit of Rs 37.52 crore during the April-June period of 2015-16, latest update available with BSE (formerly known as Bombay Stock Exchange) showed.

Total income of the stock exchange also rose nearly 15 percent to 165.42 crore during the first quarter of the current fiscal.

2:20 pm Earnings: M&M has posted a consolidated net profit at Rs 961.6 crore in April-June quarter up 16 percent from corresponding quarter last fiscal.

On a standalone basis, its net profit jumped 12 percent to Rs 955 crore. Auto segment margins in Q1 was at 4.3 percent from 7.7 percent year-on-year.

Utility vehicle and tractor maker Mahindra and Mahindra's (M&M) first quarter profit on standalone basis was seen rising 2 percent year-on-year to Rs 870 crore, according to average of estimates of analysts polled by CNBC-TV18.

2:00 pm Market Check
The sell-off extended in afternoon trade with the equity benchmarks as well as broader markets falling 1 percent each. Banks, auto, healthcare, FMCG and oil stocks remained under pressure on profit booking after the market priced in RBI policy.

The 30-share BSE Sensex was down 283.06 points at 27802.10 and the Nifty down 93.35 points at 8584.90. About 1836 shares declined against 747 advancing shares on the Bombay Stock Exchange.

Oil prices were lower today. US West Texas Intermediate (WTI) crude oil futures were trading at USD 42.15 per barrel, down 1.5 percent and International Brent crude futures were at USD 44.37 per barrel, down 1.4 percent.

1:55 pm Macro economy: Indian inflation is expected to have picked up to a near-two-year high in July as food prices relentlessly rose, according to economists in a Reuters poll, who also predicted factory output improved in June.

Other central banks have been loosening policy but with inflation above its target - and expected to run higher - the Reserve Bank of India kept its key repo rate on hold at outgoing Governor Raghuram Rajan's final meeting on Tuesday.

The RBI has cut its key repo rate by a cumulative 150 basis points (bps) to 6.50 percent since January 2015 and now has less room to ease further. It is expected to slice another 25 bps later this year, then hold steady until at least the end of 2017.

1:45 pm Exclusive: The Reserve Bank of India's interest rate cuts -- 1.5 percent since early last year -- has helped drive yields lower, enabling banks to book treasury profits and clean up their balance sheets, says Arundhati Bhattacharya, chairperson of State Bank of India . Speaking to CNBC-TV18, Bhattacharya said higher profits would enable banks to make provisions for stressed assets and extend more loans. Treasury gains are those that banks make on money kept in liquid securities such as g-secs. "In fact, we had recently written a note pointing out during the previous economic recovery cycle, 64 percent of bank profits were driven by treasury gains. This time, 16 percent of profits have been driven by treasury gains."

1:30 pm Result: Automotive products manufacturer Motherson Sumi Systems said profit in April-June quarter grew by 15.8 percent year-on-year to Rs 439 crore, which was ahead of estimates but revenue and operational performance were a miss due to which the stock fell 10.6 percent intraday Wednesday. Revenue for the quarter increased 15.5 percent to Rs 10,450 crore on yearly basis with domestic business showing 19.1 percent growth and exports 15.7 percent, said the flagship company of Samvardhana Motherson Group. Operating profit (EBITDA - earnings before interest, tax, depreciation and amortisation) jumped 20.3 percent to Rs 928 crore and margin expanded by 40 basis points to 8.9 percent on yearly basis.

The market is still under selling pressure. The Sensex is down 233.75 points or 0.8 percent at 27851.41, and the Nifty is down 78.25 points or 0.9 percent at 8600. About 778 shares have advanced, 1724 shares declined, and 131 shares are unchanged.

Adani Ports, TCS, Bharti Airtel, Coal India and Bajaj Auto are top gainers while Lupin, ICICI Bank, Reliance, Tata Motors and Maruti Suzuki are losers in the Sensex.

European stocks traded lower on Wednesday as global investors tread cautiously, considering the timing of the next interest rate hike by the US Federal Reserve as well as the outlook for oil prices. Investors were digesting the likelihood of an imminent rate hike by the Fed after US second-quarter productivity unexpectedly fell by 0.5 percent.
 
Oil markets remain in focus for markets amid renewed expectations that OPEC members, due to meet in September, could once again discuss a production freeze. Prices fell on Wednesday with a global supply overhang weighing on markets. OPEC releases its monthly oil market report on Wednesday.

12:59 pm Market Update: Equity benchmarks continued to trade lower in afternoon trade as the Sensex was down 234.13 points or 0.83 percent at 27851.03 and the Nifty down 79.40 points or 0.91 percent at 8598.85.

12:42 pm Europe opens: European stocks traded lower as global investors tread cautiously, considering the timing of the next interest rate hike by the US Federal Reserve as well as the outlook for oil prices.

The pan-European STOXX 600 was down 0.31 percent.

Oil markets remain in focus for markets amid renewed expectations that OPEC members, due to meet in September, could once again discuss a production freeze. Prices fell today with a global supply overhang weighing on markets. OPEC releases its monthly oil market report today.

12:35 pm New listing: Shares of infrastructure firm Dilip Buildcon, which recently concluded its Rs 654-crore initial public offering, will make its stock market debut on Thursday.

Dilip Buildcon's IPO had attracted massive demand, with the offer getting subscribed by around 21 times.

The portion set aside for qualified institutional buyers (QIBs) was oversubscribed 9.76 times, while non -institutional investors category received 79.64 times subscription and retail investors 2.35 times.

12:20 pm Interview: Lupin 's June quarter margins were off 2.5 percent. This was on account of the change in accounting standards, said S Ramesh, CFO of the company. Not just this, the company's research and development (R&D) spends increased tremendously to 60 percent year-on-year (YoY), he added.

However, he expects the company's margins to be around 30 percent going forward.

In an interview to CNBC-TV18, Ramesh said Lupin is looking at launching specialty and complex products as to stand out in the competition and has a 340 number filings in the pipeline.

In a cautiously optimistic approach, he said the company is working with best of consultants to mitigate any risks in its internationla business.

12:00 pm Market Check
Equity benchmarks remained under pressure with the Sensex falling 219.34 points or 0.78 percent to 27865.82 and the Nifty declining 76.65 points or 0.88 percent to 8601.60.

The broader markets also traded in line with benchmarks as about 1710 shares declined against 729 advancing shares on the Bombay Stock Exchange

Motherson Sumi fell 5 percent on profit booking after the profit and revenue in Q1 grew by over 15 percent on yearly basis and margin failed to hit double digit mark.

Tata Chemicals increased nearly 7 percent after the company decided to sell its urea business to Yara Fertilisers India for Rs 2,670 crore on slump basis.

11:55 am Done deal: Tata Chemicals said that it has sold its urea business to Yara for Rs 2,670 crore. The company expects to complete the sale process in next 9-12 months.

''The urea business along with the assets, liabilities, contracts, deeds etc., shall be transferred and vested with Yara India pursuant to the scheme becoming effective on a slump sale basis,'' Tata Chemicals said in a BSE filing.

The urea business had contributed 21.2 percent to the total turnover of the company for last FY16.

The company had first initiated process to sell the segment in 2014, but a deal could not be struck due to high asking price.

11:30 am New listing: Shares of infrastructure firm Dilip Buildcon, which recently concluded its Rs 654-crore initial public offering, will make its stock market debut on Thursday. Dilip Buildcon's IPO had attracted massive demand, with the offer getting subscribed by around 21 times. The portion set aside for qualified institutional buyers (QIBs) was oversubscribed 9.76 times, while non -institutional investors category received 79.64 times subscription and retail investors 2.35 times. The company had fixed the price band at Rs 214-219 per share for its IPO which was open from August 1-3.

The market is still struggling under pressure. The 50-share index is down 76.85 points or 0.9 percent at 8601.40 and the Sensex is down 215.22 points or 0.8 percent at 27869.94. About 708 shares have advanced, 1532 shares declined, and 108 shares are unchanged.

Adani Ports is up 7 percent while NTPC, TCS, Bajaj Auto and Bharti Airtel are top gainers while Lupin, ICICI Bank, Reliance, Tata Motors and Dr Reddy's Labs were losers in the Sensex.

Gold futures were up by Rs 186 to Rs 31,751 per 10 grams as traders raised bets amid positive cues from global markets.

At the Multi Commodity Exchange, gold for delivery in far-month December contracts was quoting higher by Rs 186, or 0.59 percent, at Rs 31,751 per 10 grams in a business turnover of 16 lot.

Analysts attributed the rise in gold prices to a firming trend overseas where it rebounded from the lowest in a week as the dollar weakened, boosting demand for precious metals as a store of value.

Meanwhile, gold was trading 0.88 percent higher at USD 1,352.40 an ounce in Singapore.

10:40 am Market Update: Equity benchmarks fell further as the Sensex was down 230.58 points at 27854.58 and the Nifty down 80.05 points at 8598.20.

More than two shares declined for every share rising on the BSE.

10:20 am Interview: The Reserve Bank of India's interest rate cuts -- 1.5 percent since early last year -- has helped drive yields lower, enabling banks to book treasury profits and clean up their balance sheets, says Arundhati Bhattacharya, chairperson of State Bank of India.

Speaking to CNBC-TV18, Bhattacharya said higher profits would enable banks to make provisions for stressed assets and extend more loans.

Treasury gains are those that banks make on money kept in liquid securities such as g-secs.

"In fact, we had recently written a note pointing out during the previous economic recovery cycle, 64 percent of bank profits were driven by treasury gains. This time, 16 percent of profits have been driven by treasury gains."

Still, she said the RBI's accommodative stance, also with respect to its liquidity stance, would help boost monetary policy transmission.

10:00 am Market Check
Equity benchmarks fell sharply after flat opening, dragged by index heavyweights Reliance Industries, HDFC twins, ITC.

The 30-share BSE Sensex was down 163.34 points at 27921.82 and the 50-share NSE Nifty declined 57.80 points to 8620.45. About 1189 shares declined against 803 advancing shares on the BSE.

Surendra Goyal of Citi says India has performed in-line with emerging markets this year.

"Earnings recovery remains the key, and we remain constructive," he adds.

9:55 am Q1 poll:  Utility vehicle and tractor maker Mahindra and Mahindra's (M&M) first quarter profit on standalone basis is seen rising 2 percent year-on-year to Rs 870 crore, according to average of estimates of analysts polled by CNBC-TV18.

Revenue is likely to grow 11.5 percent to Rs 11,080 crore in April-June quarter compared with Rs 9,830.4 crore in same period last year on healthy volume growth in auto and tractors segments.

Analysts expect a good quarter as tractors did well due to good monsoon and low base. New launches in the utility vehicle segment, KUV100 and TUV300 have seen good demand.

M&M sold 1.96 lakh units in Q1, a growth of 14 percent over a year-ago period. Auto sales grew by 10.9 percent to 1.21 lakh units and tractor volumes increased 19.6 percent to 74,594 units YoY.

9:45 am Tax kitty: Reflecting an upturn in economic activity, government's revenue collection showed an impressive growth in April-July period of this fiscal, with total direct and indirect tax mop-up rising to Rs 4.3 lakh crore.

Indirect tax collections rose by 29.9 percent during the first four months of the current fiscal to about Rs 2.71 lakh crore, mainly on account of 50.8 percent jump in excise revenues.

Direct tax revenue rose 24.01 percent to Rs 1.59 lakh crore in April-July, driven mainly by higher mop-up in personal income tax due to early advance tax collections.

The indirect and direct tax collections till July account for 34.90 percent and 18.82 percent of the annual budget target, respectively.

9:30 am Market outlook: The notoriously bearish Marc Faber is doubling down on his dire market view. The editor and publisher of the Gloom, Boom & Doom Report said Monday on CNBC's "Trading Nation" that stocks are likely to endure a gut-wrenching drop that would rival the greatest crashes in stock market history. "I think we can easily give back five years of capital gains, which would take the market down to around 1,100," Faber said, referring to a level 50 percent below Monday's closing on the S&P 500.

The market has opened in green but the Nifty is below 8700. The 50-share index is up 8.45 points at 8686.70 and the Sensex is up 42.38 points at 28127.54.

About 243 shares have advanced, 87 shares declined, and 16 shares are unchanged.

Adani Ports, SBI, M&M, Coal India, ICICI Bank are top gainers while BHEL, GAIL, Infosys, ITC and TCS are losers in the Sensex.

The Indian rupee opened at 66.68 a dollar, up 16 paise compared with 66.84 a dollar in previous session.

NS Venkatesh of IDBI Bank says the rupee seems to strengthen because of growing confidence that the Federal Reserve will hike rates in this year. According to him, the rupee is expected to trade today in a range of 66.85-67.05 per dollar.

Meanwhile, the British pound fell after a Bank of England policymaker said that more quantitative easing was probably necessary if the UK's economic decline worsens.

Asian shares held near one-year highs as investors pared expectations slightly for a Federal Reserve interest rate increase following weak US productivity data, which drove the dollar and Treasury yields lower.

MSCI's broadest index of Asia-Pacific shares excluding Japan. Japan's Nikkei fell 0.6 percent on the yen's gains.

Wall Street eked out gains on Tuesday following a strong session for European stock markets. Additionally, the Bank of England's reverse bond auction failed to meet its target on Tuesday, highlighting the scarcity of investors willing to sell from a quickly dwindling pool of long-term bonds with positive yields.