Nifty ends tad below 8800, Sensex up 109 points; Reliance down 2%

3:30 pm Market closing: The market has ended with gains. The Sensex was up 109.16 points or 0.4 percent at 28452.17 and the Nifty closed up 41.85 points or 0.5 percent at 8786.20. About 1314 shares have advanced, 1359 shares declined, and 232 shares are unchanged.

L&T, Hero, Tata Motors, HDFC Bank and ITC were gainers while Tata Steel, Lupin, NTPC and ONGC were losers in the Sensex.

3:00 pm Deal: Steel Minister Chaudhry Birendra Singh met ArcelorMittal Chairman Lakshmi Mittal and discussed the proposed Rs 6,700-crore joint venture with SAIL to set up an automotive steel plant in India.

Singh held consultations on the JV with top brass of the world's largest steel maker here today along with senior official from the Steel Ministry and SAIL Chairman P K Singh, ArcelorMittal said in a statement.

"ArcelorMittal welcomed Singh, SAIL Chairman and Steel Ministry's Joint Secretary Sunil Barthwal to its London offices for discussions regarding the proposed USD 1 billion automotive steel JV between ArcelorMittal and SAIL," it added.
2:35 pm Market Cap at record high: Riding on a strong stock market sentiment, the total market capitalisation (m-cap) of BSE-listed companies surged to a lifetime high of over Rs 111 lakh crore today.

During afternoon trade, the m-cap of BSE-listed firms surged to Rs 1,11,22,815 crore or USD 1.66 trillion.

Investors' wealth of BSE-listed firms, measured by market capitalisation, had yesterday surged to Rs 110.7 lakh crore (USD 1.64 trillion).

The total market valuation of all listed firms on the BSE had hit a record high of Rs 100 lakh crore in November 2014.

2:20 pm Market Outlook: The Indian market has been on a upward ride ever since it crashed to 52-week lows of about 6,800 in February. Having risen about 30 percent since, it has led some analysts to wonder if the market has become expensive, especially since the long-awaited real turnaround in earnings is yet to take place.

But Raamdeo Agrawal, Joint MD of Motilal Oswal Financial Services, says that one should not rely too much on traditional metrics such as price to earnings (PE) to judge whether valuations are expensive.

For instance, the market is usually valued at either trailing (Rs 1,350 EPS in FY16, translating into 21 times PE for Sensex) or one-year forward basis (expected FY17 EPS of Rs 1,550; 18.3 times) but should earnings rise another 15-20 percent in the next fiscal, valuations would revert to mean of 15-16 times within 6-8 months on FY18 basis.

2:00 pm Market Check: Equity benchmarks maintained uptrend in afternoon trade with the Sensex rising 130.57 points to 28473.58, driven by banks, infra, healthcare and auto stocks.

The Nifty rose 60.80 points to 8805.15. The broader markets also traded in line with benchmarks as the BSE Midcap gained 0.7 percent.

UltraTech Cement surged 4 percent after foreign investors are allowed to buy upto 30 percent stake in the company. Kotak Mahindra Bank hit fresh record high, up 3.4 percent after Canada Pension Plan Investment Board (CPPIB) is allowed to buy more than 5 percent but less than 10 percent stake in the bank.

Crude oil futures dipped as the US dollar held around three-week highs and industry stocks data indicated a build in US crude inventories. International Brent crude oil futures were trading at USD 48.02 per barrel, down 0.72 percent from their previous close. US West Texas Intermediate (WTI) crude futures were down 0.45 percent at USD 46.14 a barrel.

1:45 pm FII view: After attempting several times to break the key 8,700 resistance level, the Nifty managed to close above it yesterday. For Tushar Mahajan, Head of Listed Futures & Options - India of Nomura, the breakout means the index is headed for the 9,000 mark. Speaking to CNBC-TV18, Mahajan said that the leadership for this market will come from domestic-led segments like consumer discretionary, industrial engineering and oil & gas and not from global sectors like IT and pharmaceutical. Banks too will lead the growth: Bank Nifty could touch 20,800-21,000 mark even before Nifty reaches the 9,000 mark, according to him.

1:30 pm FDI norms: In last two years, the government has brought major FDI policy reforms in a number of sectors like defence, construction development, insurance, pension sector, broadcasting sector, tea, coffee, rubber, cardamom, palm oil tree and olive oil tree plantations, single brand retail trading, manufacturing sector, limited liability partnerships, civil aviation, credit information companies, satellites- establishment/operation and asset reconstruction companies. Measures undertaken by the government have resulted in increased FDI inflows at USD 55.46 billion in financial year 2015-16, as against USD 36.04 billion during the financial year 2013-14. This is the highest ever FDI inflow for a particular financial year. However, it was felt that the country has potential to attract far more foreign investment which can be achieved by further liberalizing and simplifying the FDI regime.

The market continues its upmove as the Sensex is up 106.33 points or 0.4 percent at 28449.34. The Nifty is up 51.10 points or 0.6 percent at 8795.45. About 1331 shares have advanced, 1158 shares declined, and 202 shares are unchanged.

Tata Motors, Hero MotoCorp, L&T, Dr Reddy's Labs and Wipro are top gainers in the Sensex. Among losers are ONGC, Axis Bank, NTPC, Tata Steel and TCS are losers in the Sensex.

Construction companies like HCC are on fire as the Cabinet has approved Niti Aayog proposals to boost the debt-laden sector. HCC is locked at 20 percent upper circuit.
European stocks opened lower as global markets gear up for Friday's US jobs report.

Global markets appear to be turning cautious ahead of the all-important US jobs data due on Friday. The non-farm payrolls report will be eagerly watched by the US Federal Reserve and could determine whether the central bank increases interest rates in September.

12:43 pm Europe Opens: European stocks opened lower as global markets gear up for Friday's US jobs report.

The pan-European STOXX 600 index opened 0.09 percent lower with all sectors in negative territory except for autos, banks, financial services, insurance and utilities.

Global markets appear to be turning cautious ahead of the all-important US jobs data due on Friday. The non-farm payrolls report will be eagerly watched by the US Federal Reserve and could determine whether the central bank increases interest rates in September.

12:35 pm FII View: After attempting several times to break the key 8,700 resistance level, the Nifty managed to close above it yesterday.

For Tushar Mahajan, Head of Listed Futures & Options - India of Nomura, the breakout means the index is headed for the 9,000 mark.

Speaking to CNBC-TV18, Mahajan said that the leadership for this market will come from domestic-led segments like consumer discretionary, industrial engineering and oil & gas and not from global sectors like IT and pharmaceutical.

12:20 pm Buzzing: Surya Roshni shares rallied to all-time high of Rs 192.20, up 5.2 percent intraday after media reports suggested that two private equity firms showed interest to buy lighting business.

"Warburg Pincus and Bain Capital have expressed interest to buy into the lighting business of Surya Roshni, as the New Delhi-headquartered company is demerging it into a standalone unit," a media report said quoting unnamed sources.

The private equity acquirers could have the country's second largest maker of lighting goods at about USD 400 million, or Rs 2,400 crore, the report added.

12:00 pm Market Check
Equity benchmarks as well as broader markets were marginally higher amid consolidation in noon trade.

The 30-share BSE Sensex was up 58.89 points at 28401.90 and the 50-share NSE Nifty gained 30.50 points at 8774.85. About 1252 shares advanced against 1116 declining shares on the BSE.

Zee Entertainment gained over a percent after the media company sold its sports business to Sony Pictures Networks for USD 385 million (around Rs 2,600 crore).

Tata Motors was the biggest gainer on the Sensex, up 2.8 percent followed by Hero Motocorp with 2 percent upside. UltraTech Cement topped buying list on Nifty, up 4 percent after the Reserve Bank of India allowed FIIs up to 30 percent in the company.

TCS, Axis Bank, Infosys, ONGC, ITC and Reliance Industries were losers.

11:55 am Exclusive: Even as the broader real estate sector is said to be in the midst of a downturn, housing finance major HDFC says it has never witnessed a slowdown in demand for home loans.

In an interview with CNBC-TV18, Mistry, Vice Chairman and Chief Executive Officer of the NBFC, said the demand for housing loans was going to be strong over the next few years.

''Penetration levels in India are extremely low, we have a young population and people generally buy a house when they are in mid-30s and with 65 percent of population being below the age of 35 years – all these people over the next 1-5-10-15 need housing loans,'' he said from the sidelines of the 12th Anuual Motilal Oswal Investor Conference.

11:45 am FII view: While MSCI Asia Ex-Japan (MXASJ) has rallied by 9 percent year-to-date, the brokerage house has struggled with country allocation as the Expensive 4 have outperformed by 3.6 percent, Sakthi Siva of Credit Suisse says.

The Expensive 4 include India (55 percent premium), the Philippines (48 percent), Indonesia (45 percent) & Malaysia (22 percent).

The good news though is that at least since June 30, the Expensive 4 have underperformed MXASJ by 3.3 percent and all four have underperformed so far in the current quarter, she says.

For India, every time the premium rises to above 50 percent, it has tended to underperform and year-to-date, she says. MSCI India has underperformed by 5.8 percent. She estimates implied return on equity for India to be 17.7 percent against the current 12.1 percent.

11:30 am Interview: Country's second-largest private sector lender HDFC Bank may have grown leaps and bounds over the past decade or so but now is the "best time" for the bank, says MD Aditya Puri. In an interview with CNBC-TV18, Puri said the bank's fortress balance sheet, adequate capital adequacy (16 percent), healthy margins and powerful brand value to help it grow comfortably in the future. He added that he was confident that the bank can reclaim the 30 growth rate it had seen at its peak if economic activity picks up. "If India grows at 10 percent level, HDFC Bank too can go back to 30 percent growth levels," he told CNBC-TV18 from the sidelines of India Business Leaders Award.

The market has cooled off slightly but is still holding early gains. The Sensex is up 98.09 points or 0.3 percent at 28441.10, and the Nifty is up 40.15 points or 0.5 percent at 8784.50. About 1265 shares have advanced, 879 shares declined, and 145 shares are unchanged.

Tata Motors, Hero MotoCorp, Asian Paints, Lupin and Bajaj Auto are top gainers while NTPC, ONGC, TCS, Coal India and HUL are losers in the Sensex.

Oil prices extended losses on the back of a strong dollar while reported comments by Iran's oil minister that his country planned to boost output ramped up oversupply worries.

Traders are now awaiting the release this coming Friday of US jobs figures, which will give a fresh handle on the US economy and could guide the Fed's decision on when to hike rates.

10:55 am Market steady: Equity benchmarks remained higher with the Sensex rising 100.57 points to 28443.58 and the Nifty up 41.45 points at 8785.80.

About 1241 shares advanced against 847 declining shares on the BSE.

10:45 am Oil Update: Oil prices extended losses in Asia on the back of a strong dollar while reported comments by Iran's oil minister that his country planned to boost output ramped up oversupply worries.

The comments by Bijan Zangeneh, carried by Iran's official news agency on Tuesday, added to a feeling that an informal OPEC meeting with Russia in September may not result in a deal that would boost prices.

Zangeneh said Iran needed to raise its output to regain the market share lost while it was under international sanctions, which were lifted only in January.

Iran has struggled to raise production above four million barrels per day since the the sanctions were removed, according to the report, which said it is currently producing 3.8 million.

10:30 am Buzzing: Kotak Mahindra Bank shares surged to record high of Rs 807, up 2.7 percent intraday after the Canada Pension Plan is allowed to increase stake in the country's third largest private sector lender (by market capitalisation).

"The Reserve Bank of India on Tuesday said it has granted approval to Canada Pension Plan Investment Board (CPPIB) for acquiring shares in excess of 5 percent and below 10 percent of the paid up capital of Kotak Mahindra Bank.

10:15 am Q1 GDP Poll: The country's gross domestic product (GDP) growth is expected to see a slowdown in the first (April-June) quarter of fiscal year 2017, a CNBC-TV18 poll of economists suggests, as the impact of a high base and higher deflator plays out.

Compared with that, GDP in last (January-March) quarter of fiscal 2016 showed GDP had come in at 7.9 percent.

For the first quarter, gross value added (GVA), too, is seen slowing from 7.4 percent to 7.3 percent. The data is expected today.

10:00 am Market Check
Equity benchmarks extended rally for the fourth consecutive session with the Nifty reclaiming 8800 level for the first time since April 15, 2015.

The 30-share BSE Sensex was up 102.10 points at 28445.11 and the 50-share NSE Nifty rose 44.65 points to 8789. About 1204 shares advanced against 566 declining shares on the BSE.

Shares of RBL Bank debuted on the exchanges at Rs 274.20 per share, up 22 percent from its issue price of Rs 225. It surged to Rs 282.40 in early trade. The first private lender IPO in a decade was opened for subscription between August 19-23.

9:55 am Corporate deal: India's largest realty firm DLF said it has shortlisted few potential investors to sell promoters' stake in rental arm and expects the proposed deal, estimated at Rs 12,000 crore, to be signed by early October.

Last October, DLF had announced that its promoters would sell 40 percent stake in DLF Cyber City Developers (DCCDL).

They would be reinvesting a significant part of the amount realised from this deal into DLF Ltd.

"We received multiple bids from sovereign funds and global private equity firms. We have shortlisted few," DLF Senior Executive Director (Finance) Saurabh Chawla told analysts in a conference call.

9:45 am Market check: The market continues to climb as the Sensex is up 124.41 points or 0.4 percent at 28467.42. The Nifty is up 46.60 points or 0.5 percent at 8790.95. About 1139 shares have advanced, 474 shares declined, and 89 shares are unchanged.

Auto and bank stocks are leading the rally with big gainers like Hero MotoCorp, Tata Motors, Asian Paints, Bajaj Auto and Cipla while ONGC, TCS, NTPC, Infosys and Wipro are losers in the Sensex.

9:30 am Interview: Country's second-largest private sector lender HDFC Bank may have grown leaps and bounds over the past decade or so but now is the "best time" for the bank, says MD Aditya Puri. In an interview with CNBC-TV18, Puri said the bank's fortress balance sheet, adequate capital adequacy (16 percent), healthy margins and powerful brand value to help it grow comfortably in the future. He added that he was confident that the bank can reclaim the 30 growth rate it had seen at its peak if economic activity picks up. "If India grows at 10 percent level, HDFC Bank too can go back to 30 percent growth levels," he told CNBC-TV18 from the sidelines of India Business Leaders Award.

The market has opened higher with support from banks. The Sensex is up 46.66 points or 0.2 percent at 28389.67, and the Nifty is up 9.70 points or 0.1 percent at 8754.05. About 277 shares have advanced, 80 shares declined, and 24 shares are unchanged.

Wipro, Cipla, Asian Paints, ITC and Sun Pharma are top gainers while ONGC, BHEL, Adani Ports, Tata Steel and Reliance are losers in the Sensex.

The Indian rupee opened marginally lower at 67.08 per dollar versus 62.02 Tuesday.

Bansi Madhvani of India Ratings said, "In an environment of uncertainty over the Fed rate trajectory, rupee has held steady. We believe the renewed Fed rate hike probability may pose minor headwinds in the near term."

The yen traded near its weakest level in a month versus the dollar. The dollar index held strong around the 96 mark.

RBL will be make its market debut today. It is first private bank to hit capital market since YES Bank in 2005. The issue was sunscribed over 69 times. Issue price fixed at the upper end of price band of Rs 224-225 per share.

Asian shares eased following modest losses on Wall Street, but were still on track for a monthly rise as investors waited to see if upcoming job data could prod the Federal Reserve into raising interest rates as soon as September.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.1 percent as traders awaited Friday's job report, but looked set for a near 2 percent gain in August.

Japan's Nikkei stock index added 0.9 percent, poised to rise 1.8 percent for the month, as it got a boost from a weaker yen after upbeat US data lifted the dollar overnight.

The S&P 500 fell for the fourth time in five sessions, but was still within 1 percent of its record closing high set earlier this month. Cyclical sectors, which are expected to perform better in an expanding economy, have taken the lead in the past few weeks as economic data paints a rosier picture of the US economy.

US consumer confidence rose to an 11-month high in August, with households more upbeat about the labor market. Payrolls data on Friday could strengthen the case for higher US interest rates, as has been hinted over the past week by Federal Reserve officials.

The dollar was steady at 102.93 yen after rising as high as 103.14 yen overnight, its strongest since July 29. It was up 0.9 percent for the month.