Sensex, Nifty end in red; Sun Pharma, Tata Motors, HDFC down

3:30 pm Market closing: The market has ended in red with the Nifty below 8650. The 50-share index is down 29.60 points or 0.3 percent at 8642.55 and the Sensex is down 87.79 points or 0.3 percent at 28064.61. About 1108 shares have advanced, 1618 shares declined, and 169 shares are unchanged.

Cipla, Adani Ports, Tata Steel, SBI and L&T were gainers while Sun Pharma,  Tata Motors, TCS, HDFC and Wipro were losers in the Sensex.

3:00 pm Steel output: Steel production in India, the world's third largest producer, is expected to grow annually at an average of 7.3 percent during 2016 to 2020, and touch 127.1 million tonnes (MT), a report by BMI Research said.

The growth will be driven by state-run giant SAIL and Tata Steel, the firm part of the Fitch Group said.

"India will be the global steel production growth bright spot as demand from construction, auto and infrastructure industries continue to accelerate," it said.

2:45 pm Buzzing: Shares of Divis Laboratories touched 52-week high of Rs 1279.90, gains 7.5 percent intraday Tuesday post healthy numbers declared by the company in the quarter ended June.

The company's Q1 (April-June) net profit was up 23.1 percent at Rs 301.8 crore and total income rose 24.7 percent at Rs 1,008.1 crore. The EBITDA of the company rose 33.8 percent at Rs 403.8 crore and EBITDA margin was up 2.8 bps at 40.1 percent.

2:30 am Market outlook: While consumer price inflation (CPI) breaching the 6-percent mark is slightly worrisome, Tirthankar Patnaik of Mizuho Bank believes the Reserve Bank of India's FY17 target of 5 percent still looks achievable. Speaking to CNBC-TV18 Patnaik notes the monsoon's progress and consequent improvement in Kharif sowing this year raises confidence of food inflation easing off in the coming months. He feels it could provide RBI the space to cut rates by 25 basis points by the end of the fiscal. He expects earnings growth of 13-14 percent during FY17, adding, overall earnings performance so far have been only fairly okay.

The market is still weak with the Sensex is down 168.52 points or 0.6 percent at 27983.88 and the Nifty is down 56.65 points or 0.6 percent at 8615.50. About 993 shares have advanced, 1575 shares declined, and 153 shares are unchanged.

Cipla, Adani Ports, L&T, Lupin and ONGC are top gainers while TCS, Tata Motors, Sun Pharma, HDFC and Bharti Airtel are losers in the Sensex.

The total value of FII holdings in NSE-listed companies rose to Rs 20.13 lakh crore in the April-June quarter this year, Prime Database said today.

The increase was attributed to net inflows of Rs 14,671 crore, Prime Database Managing Director Pranav Haldea said.

As per the report, the total value of FIIs' holding rose from Rs 18.37 lakh crore in January-March period to Rs 20.13 lakh crore in the June quarter.

The valuation of FIIs had hit an all time high of Rs 20.29 lakh crore in the January-March quarter of last year. In percentage terms, FIIs' ownership on average climbed to 6.65 percent in the June quarter of this year from 6.59 percent in the preceding three months.

European stocks were lower as investors paused for breath after fresh record closing highs in US equities failed to boost investor sentiment in Europe and Asia.

1:30 pm Double-digit returns in emerging market corporate debt have spurred a record buying spree, forcing yields to 13-month lows and raising the risk that an external shock, potentially from the US or Chinese economies, might produce a dramatic exit.

Dollar debt issued by firms from riskier and less developed countries has been among the year's best performing assets, yielding more than 11 percent, according to JPMorgan's emerging market (EM) corporate debt index, the CEMBI Broad.

The average yield has fallen 150 basis points (bps) this year to about 5.2 percent, dropping more than both EM sovereign debt and developed-country corporate debt yields, which have been falling due to Western central bank bond-buying schemes.

The market is still struggling as the Sensex is down 137.54 points or 0.5 percent at 28014.86. The Nifty is down 45.60 points or 0.5 percent at 8626.55. About 935 shares have advanced, 1550 shares declined, and 133 shares are unchanged.

Adani Ports, Cipla, L&T, Lupin and ONGC are top gainers while Tata Motors , Bharti Airtel, HDFC, Sun Pharna and Reliance are losers in the Sensex. Auto and IT stocks are weak while capital goods, metals and oil stocks are gainers.

Wholesale price index (WPI) inflation climbs to a near two-year high at 3.55 percent as against 1.62 percent month-on-month. Industrial inflation climbed to 1.8 percent from 1.17 percent last month.

May WPI inflation has been revised to 1.24 percent from 0.79 percent.

Food Inflation too increased to 11.82 percent from 8.18 percent last month. The vegetable inflation accelerated to 28 percent from 16.9 percent in June while the pulses inflation has gone upto 35.76 percent from 26.61 percent.

12:45 pm Macro economy: While consumer price inflation (CPI) breaching the 6-percent mark is slightly worrisome, Tirthankar Patnaik of Mizuho Bank believes the Reserve Bank of India's FY17 target of 5 percent still looks achievable.

Speaking to CNBC-TV18 Patnaik notes the monsoon's progress and consequent improvement in Kharif sowing this year raises confidence of food inflation easing off in the coming months. He feels it could provide RBI the space to cut rates by 25 basis points by the end of the fiscal.  

He expects earnings growth of 13-14 percent during FY17, adding, overall earnings performance have been only fairly good.

12:30 pm Deal: FMCG giant Unilever today said it will acquire Sweden-based air purification solutions provider Blueair for an undisclosed sum to foray into air purifier segment.

"Launched in 1996 in Stockholm, Blueair had a turnover of USD 106 million in 2015 and is a leading player in the premium category of air purifiers in markets like China, the US, Japan, South Korea and India. This significant venture in air purification will further complement Unilever's existing water purification business," Unilever said in a statement.

Unilever's Home Care business President Nitin Paranjpe said: "The Blueair brand and products are widely known and represent exceptional quality and design, as well as superior capacity and performance. Blueair was founded on the belief that business should be a force for good in society, which is shared by Unilever."

The market is under pressure with the Nifty still below 8650. The 50-share index is down 53.45 points or 0.6 percent at 8618.70 and the Sensex is down 152.98 points or 0.5 percent at 27999.42. About 927 shares have advanced, 1523 shares declined, and 123 shares are unchanged.

Cipla, Adani Ports, L&T, Lupin and NTPC are top gainers while Tata Motors, HDFC, Bharti Airtel, Reliance and Sun Pharma are losers in the Sensex.

Tracking a firm trend overseas, gold traded higher by 0.47 percent to Rs 31,365 per 10 grams in futures market today as traders enlarged positions.

Analysts attributed the rise in gold futures prices to a firming trend overseas where gold advanced for a second straight day amid speculation that the US central bank will be slow to raise interest rates, with investors counting down to the release of the Federal Reserve's minutes of its July meeting as the dollar declined.

11:45 am Market check: The Sensex is down 110.12 points or 0.4 percent at 28042.28, and the Nifty is down 38.80 points or 0.4 percent at 8633.35.
About 932 shares have advanced, 1437 shares declined, and 106 shares are unchanged.

Adani Ports, Cipla, ITC, L&T and Tata Steel are top gainers while Tata Motors, BHEL, Infosys, Axis Bank and HDFC are losers in the Sensex.

11:30 am Poll: Power Grid is expected to post net profit at Rs 1679 crore in April-June quarter, up 23 percent from Rs 1367 crore in corresponding quarter last fiscal. According to a CNBC-TV18 poll, its revenue may increase 25 percent at Rs 5876 crore against Rs 4718 crore on an yearly basis. During the period, EBITDA is seen up 25 percent at Rs 5168 crore versus Rs 4137 crore while margins may stand at 87.9 percent versus 87.7 percent year-on-year. Analysts polled by CNBC-TV18 expect strong capitalisation to boost earnings but higher interest cost may limit bottomline growth. Ordering (excluding one large order of Rs 5800 crore for HVDC) was higher by 35 percent on a year-on-year basis.

The Sensex is down 33.39 points at 28119.01 and the Nifty is down 12.90 points or 0.1 percent at 8659.25. About 957 shares have advanced, 1284 shares declined, and 103 shares are unchanged.

Tata Motors, Axis Bank, Infosys, BHEL and Sun Pharma are laggards while Adani Ports, Cipla, NTPC, ITC and ONGC are gainers in the Sensex.

Oil prices eased but held above USD 45 a barrel as the market weighed the possibility of major producers reaching an agreement to freeze output during a meeting next month.

Members of the Organization of Petroleum Exporting Countries (OPEC) as well as non-members are scheduled to meet informally in Algeria in September, and Saudi Arabia's oil minister Khalid al-Falih has hinted that discussions could include actions to stabilise prices.

His remarks last week sparked a price rally as they were widely seen as a suggestion that OPEC could revive talks on trimming high output levels.

10:55 am Boardroom: United Breweries reported a 20.4 percent jump in profit to Rs 147.06 crore on back of higher realization and sales. Net sales rose 8.6 percent to Rs 1,485.6 crore for the company in the first quarter.

Speaking to CNBC-TV18, Shekhar Ramamurthy, MD of the company said while April was a good month, May-July have been muted on back of early arrival of monsoon.

He expects volume growth for the industry to be at 5-6 percent for FY17, which the company will surpass.

Even with growing competition from Carlsberg, the company has managed to retain its market share at near 50 percent level and is prepared to deal with competition in future as well, he says.

10:45 am NPS growth: Post the budgetary provision to provide tax benefits up to 40 per cent of maturity of investment in National Pension Scheme, the retail segment of NPS has grown by over 100 per cent over the past one year.

PFRDA Chairman Hemant Contractor told PTI that the new tax benefits provision has drawn a lot of retail investors to the NPS schemes. Earlier, NPS schemes which were launched five years ago, had failed to get retail subscribers.

Retail NPS has grown by over 100 per cent over the past one year. It is another thing that it started with almost a zero base, he said.

The total assets under management of NPS has reached Rs 1.38 trillion out of which Rs 3,000 crore are of retail assets.

10:30 am Oil issues: OPEC will probably revive talks on freezing oil output levels when it meets non-OPEC nations next month as top exporter Saudi Arabia appears to want higher prices, according to OPEC sources, although Iran, Iraq and Russia present obstacles to a deal. Riyadh sharply raised expectations for a global production deal between on Thursday when Energy Minister Khalid al-Falih said Saudi Arabia will work with OPEC and non-OPEC members to help stabilise oil markets. "The comments by the Saudi energy minister give a ?positive indication that they are willing to go for a freeze deal but the question remains: on what level?" said an OPEC source from a key Middle Eastern producer.

The market is refusing to budge ahead with the Nifty above 8650. The 50-share index is up 1.55 points at 8673.70 and the Sensex is up 15.67 points at 28168.07. About 968 shares have advanced, 1005 shares declined, and 94 shares are unchanged.

Adani Ports, Cipla, ITC, ONGC and Tata Steel to be gainers in the Sensex. Among losers are Infosys, Sun Pharma, Axis Bank, Tata Motors and Wipro.

India continues to shine in the global market, says Vikas Khemani of Edelweiss Securities, adding, flows in the market are expected to continue. Global growth will take some time before seeing any uptick.

Khemani is positive on sectors aligned to domestic recovery. Sectors like automobile, banks and cement, despite expensive valuations, will give good returns.

9:55 am Boardroom: State Bank of India (SBI), which saw a sharp decline in its slippages in the first quarter, is expecting strong growth in advances to counter pressure on margins. ''Margin depression due to bad loan creation will hopefully reduce,'' says SBI's Chairman Arundhati Bhattacharya. Pressure will also reduce as deposit rates come down along with cost of funds. The country's largest public sector lender reported a 31.7 percent dip in net profit to Rs 2,520.96 crore while the net interest income rose 4.2 percent to Rs 14,312.31 crore in Q1.

9:45 am Market outlook: Mixo Das of Nomura says having recommended a bullish stance on Asian equities since Brexit, he now recommends shifting to a neutral stance.

The MSCI Asia ex-Japan index is up 12 percent since the Brexit lows and further gains will not come easy, according to him.

The broader earnings trend has shown some improvement in Asia but he believes it is really a surge in foreign buying that has pushed markets higher recently.

The recent pace of inflows has been very rapid, sentiment levels are elevated and the policy easing expectations that triggered the post-Brexit rally have largely been digested, says Das.

9:30 am Lost oppurtunity: Information technology giant Infosys has lost out on a 300-million pound 5-year contract in the BFSI space with Royal bank of Scotland (RBS) deciding against the planned spin-off of Williams & Glyn as a separate entity, reports CNBC-TV18. In a statement, RBS cited high costs and risks as the reason to discontinue its plan to list William and Glyn as a separate bank, adding, it is now looking at alternate means of divestment.

Infosys was awarded the contract in 2013 for setting up the IT backbone for Williams and Glyn. IBM and Infosys had jointly bagged this contract, but IBM's role in the project was significantly smaller, since Infosys was responsible for providing consultancy services, developing applications, and testing IT systems for over 314 branches of Williams and Glyn to get these branches ready to operate as a separate standalone UK bank. "Subsequent to this decision (of not creating a separate subsidiary), [we] will carry out an orderly ramp-down of about 3,000 persons, primarily in India, over the next few months," an Infosys release said.

The market has opened flat. The Sensex is at 28,124.45, down 0.1 percent or 27.95 points while Nifty is down 16.65 points or 0.2 percent at 8655.50.

Infosys is down 2 percent from previous close while Tata Motors, HDFC Bank are down. ITC and PowerGrid are up.

The Indian rupee opened marginally higher at 66.85 per dollar on Tuesday versus 66.89 Friday.

The dollar fell against a basket of currencies, undermined by recent soft US economic data that tempered expectations of a Federal Reserve interest rate hike this year.

Ashutosh Raina of HDFC Bank said, "The expectations of more stimulus from Japan and China, coupled with jump in global oil prices, is helping the global positive sentiment. The markets will also await the Fed July FOMC meeting minutes to get some cues about future hikes."

Asian shares rose to one-year highs, extending their gains so far this year to almost 10 percent, helped by a jump in oil prices and investor expectations of continued easy monetary policy around the globe.

MSCI's broadest index of Asia-Pacific shares outside Japan.

On Wall Street on Monday, S&P 500, Dow and Nasdaq stock indexes all closed at all-time highs, gaining 0.3 to 0.6 percent. Brazilian shares .BVSP also hit two-year highs, helped by higher oil prices.

Oil prices hit one-month highs on Monday, gaining 10 percent or more in a three-day rally as speculation intensified over potential producer action to support prices amid a glut of crude.

Although Fed officials have said a rate hike is possible by the end of year, investors are not convinced the Fed can raise rates this year at all given the fragile global economic outlook. Its December rate hike was the first in almost a decade.