Nifty ends above 8700, Sensex flat; IT & Metals outperform

It was a dull trading day on Dalal Street with dealers and traders mostly in an extended holiday mode. The market ended flat amid thin volume as but the Nifty managed to recapture 8700.

The 50-share index ended up 11.20 points or 0.1 percent at 8708.80 while the Sensex was up 21.20 points at 28082.34.

The market will remain closed on Tuesday and Wednesday due to festival. Investors will be waiting for second quarter corporate earnings with IndusInd Bank, TCS and Infosys announcing results this week.

Rahul Singh, Managing Partner, Ampersand Capital feels Q2 may be slightly better because of definite improvement in certain sectors. ''We have seen autos, cement demand being there and prices being up in cement, NBFCs will continue to be strong. Banking on a sequential basis, you could see some moderation in the way the NPA recognition takes place. So, on the whole, I think the mix would be slightly better but not a whole lot better because there are sectors and segments which are still struggling,'' he said in an interview to CNBC-TV18.

Meanwhile, global market is reacting to the second debate between US Presidential candidates Donald Trump and Hillary Clinton. Asian stock markets were mixed on Monday, with falling crude oil prices weighing on Australian oil majors' shares.

Back home, stock-wise IT and metal stocks outperformed the market, both the indices were up over 1 percent from previous close. Tata Steel was top gainer in the Sensex, up 3 percent.

Union Minister for Steel Birender Singh today said India would become the second biggest steel manufacturer in the world by year-end. Currently, China is the largest steel manufacturing country followed by Japan and produces five times more steel than India. Steel industry accounts for just 2 percent share in the Gross Domestic Product (GDP) of the country and efforts are being made to increase it," he said while inaugurating the newly-constructed Ganga Ram Hospital in Rohtak.

Other big gainers of the day were Infosys, Cipla, Asian Paints and Lupin. Among losers were Reliance, NTPC, Bharti Airtel and HDFC.

Less than week after the RBI cut interest rates for the first time in six months, the Finance Minister hinted that there could be room for further rate cuts. In an interview with CNBC-TV18, Arun Jaitley said the RBI will have greater flexibility once inflation eases even further. He also pointed out that good monsoon and a bumper harvest should drive inflation even lower.

3:30 pm Market closing: The market has ended with minor gains amid low volume. The Sensex was up 21.20 points at 28082.3 and the Nifty was up 11.20 points or 0.1 percent at 8708.80. About 1710 shares have advanced, 1180 shares declined, and 135 shares are unchanged.

Tata Steel, Asian Paints, Infosys, Cipla and Lupin are top gainers while Reliance, Adani Ports, NTPC,  Bharti Airtel and HDFC are losers in the Sensex.

2:55 pm Interest rates: Country's largest lender SBI today said it has consistently passed on RBI's rate cuts to borrowers and would further reduce the lending rate in the near term, benefiting auto and home loan seekers.

State Bank of India (SBI) Chairperson Arundhati Bhattacharya has said that out of the 1.75 percent rate cut by the RBI since January 2015, it has already passed on up to 0.95 percent to the borrowers.

"Of the 175 bps (1.75 percent) cut that the Reserve Bank (RBI) has done, we as a bank have passed on 95 bps (0.95 percent). More will get passed on in the near term rather than in the longer term," Bhattacharya said in an interview to CNBC TV18.

2:45 pm Bumper sales: Tata Motors reported 5.35 percent increase in global sales at 1,02,289 units, including that of Jaguar Land Rover (JLR) vehicles, for September.

It had sold 97,102 units in September 2015, Tata Motors said in a BSE filing.

In the passenger vehicles category, global sales stood at 67,895 units last month as against 63,334 units during the same period a year ago, up 7.2 percent.

Sales of luxury brand Jaguar Land Rover were up 3.6 percent to 52,914 vehicles units in September compared with 51,074 units in the same month last year. Sales of commercial vehicles were at 34,394 units as against 33,768 units in the year-ago month, a growth of 1.85 percent.

2:30 pm  Exclusive: Reliance Communications is advanced stages to complete the sale of its tower arm to private equity investor Brookfield Asset Management. The deal is likely to be completed this week, reports CNBC-TV18. Brookfield Asset Management is looking to acquire a controlling stake in the tower asset, according to people privy to the talks between the two companies. The deal for 44,000 towers, which has been pending for about six years, is valued at Rs 19,000-21,000 crore. The transaction will help Reliance Communications bring down its debt. Both the companies have completed the due diligence and are in the last lap of closing the deal and signing the term sheet, according to the people.

The market is trading with low volumes in a truncated week but metal and pharma stocks shine on an otherwise quiet day. The Sensex is up 62.22 points or 0.2 percent at 28123.36, and the Nifty up 24.25 points or 0.3 percent at 8721.85. About 1702 shares have advanced, 1078 shares declined, and 127 shares are unchanged.

Tata Steel, Asian Paints, Cipla, Infosys and GAIL are top gainers while NTPC, Bharti Airtel, HDFC, Adani Ports and SBI are losers in the Sensex.

Gold rose for the second straight session, after falling in the preceding eight, buoyed by post-holiday buying in China and a weaker dollar, while a slowdown in US job growth bolstered expectations that US interest rate hikes would only be gradual.

The metal is highly sensitive to US interest rates, increases in which lift the opportunity cost of holding non-yielding gold while boosting the dollar, in which it is priced.

1:55 pm Views on media: The demand for the FMCG sector is a bellwether for TV channels, says Abneesh Roy, Associate Director At Edelweiss Securities. With growing demand of FMCGs, and the fact that 55-60 percent of ads on television are from the consumer sector, he expects the TV channels to do very well.

He is positive on Zee Entertainment due to its exit from sports after it sold Ten Sports to Sony Pictures in August.

With an expectation of around 13-14 percent ad growth in the current quarter, DB Corp will continue to remain fastest growing print media company in the country, says Roy. He expects the revival of interest in DB Corp to continue.

1:30 pm Market outlook: While earnings growth remains tepid, the Sensex has risen 22 percent from February lows. If earnings growth continues to remain weak, we may soon see a reversal in markets, says Sanjay Mookim, Director, India Equity Strategy At Bank Of America-Merrill Lynch. He advises investors to keep away from any risky stocks or sectors where there hope for revival. Instead, he asks investors to focus on stocks which are doing well despite them already being expensive. He is positive on the consumer focussed sectors like consumer discretionary, consumer focussed banks and nonbanking financial companies (NBFC). He also expects the auto sector to do well for 2-3 years.

The market is still sluggish as the Sensex is up 70.95 points or 0.2 percent at 28132.09 and the Nifty is up 28.70 points or 0.3 percent at 8726.30. About 1689 shares have advanced, 1021 shares declined, and 117 shares are unchanged.

Tata Steel, Cipla, Asian Paints, Infosys and Dr Reddy's Labs are top gainers while Bharti Airtel, HDFC, ONGC, Adani Ports and NTPC are losers in the Sensex.

European markets were mixed in early trade as investors remained cautious following a weak US jobs report on Friday and falling oil prices.

Oil prices fell in early trading over doubts that an OPEC-led plan to cut output to rein in global oversupply would be supported by other producers, including Russia, Reuters reported.

12:45 pm ITC sale: Diversified group ITC will sell its entire stake in US-based wholly owned subsidiary 'King Maker Marketing' for USD 24 million (about Rs 160 crore). King Maker Marketing, registered in the state of New Jersey, USA, is engaged in the distribution of ITC manufactured cigarette products in the US market. "The Corporate Management Committee has approved divestment of company's entire shareholding in King Maker Marketing, Inc, USA, a wholly owned subsidiary, along with assignment of certain trademarks owned by the company," ITC said in a BSE filing.

12:30 pm Market outlook: While earnings growth remains tepid, the Sensex has risen 22 percent from February lows. If earnings growth continues to remain weak, we may soon see a reversal in markets, says Sanjay Mookim, Director, India Equity Strategy At Bank Of America-Merrill Lynch. He advises investors to keep away from any risky stocks or sectors where there hope for revival. Instead, he asks investors to focus on stocks which are doing well despite them already being expensive. He is positive on the consumer focussed sectors like consumer discretionary, consumer focussed banks and nonbanking financial companies (NBFC). He also expects the auto sector to do well for 2-3 years. BofA-ML has a target of 26,000 for the Sensex by the end of 2016, he said.

The market is still in green but without any major gains. The Sensex is up 69.50 points or 0.2 percent at 28130.64, and the Nifty is up 29.75 points or 0.3 percent at 8727.35. About 1676 shares have advanced, 898 shares declined, and 144 shares are unchanged.

Cipla, Tata Steel, Infosys, GAIL and Asian Paints are top gainers while HDFC, Bharti, ONGC, Adani Ports and SBI are major gainers in the Sensex.

Stating that there was "clear and present" danger of a correction in stocks, veteran financial commentator Udayan Mukherjee said a 10 percent downtick could be on the cards.

Citing the price action in frontline stocks as well as midcaps, Mukherjee told CNBC-TV18 in an interview that the largecaps seemed to have 'lost momentum despite good news' while pockets of bubbles had formed among midcaps. He, however, added that while a 10 percent correction cannot be ruled out, the Nifty will likely stay in the 8,600-8,900 range till the US elections, from which a positive outcome could propel stocks higher.

11:45 am FM on IMF: Expressing "extreme disappointment" with delay in completion of IMF quota reforms, India today stressed that the Fund should strictly abide by the new deadlines set for the 15th General Review of Quota (GRQ).

Finance Minister Arun Jaitley also said that since the forces of globalisation and multilateralism can go a long way in expanding global growth opportunities, "we must focus on the coordinated policy actions and growth strategies".

"Let me say we are somewhat disappointed that the deadline for completing the 15th Review will be pushed back to the 2019 Spring Meetings," he said at the International Monetary and Finance Committee (IMFC) plenary session.

11:30 am Steel update: Union Minister for Steel Birender Singh today said India would become the second biggest steel manufacturer in the world by year-end. Currently, China is the largest steel manufacturing country followed by Japan and produces five times more steel than India. "At present, about six lakh tonnes of steel is manufactured in old factories and private plants across India. Steel industry accounts for just two per cent share in the Gross Domestic Product (GDP) of the country and efforts are being made to increase it," he said while inaugurating the newly-constructed Ganga Ram Hospital in Rohtak. Singh said a new steel manufacturing plant of one million tonne capacity would soon be set up in joint venture and the Steel manufactured here would be exported.

The market is gaining marginally supported by strenghts in FMCG, metals and pharma stocks. The Sensex is up 67.50 points or 0.2 percent at 28128.64 and the Nifty is up 26.65 points or 0.3 percent at 8724.25. About 1565 shares have advanced, 806 shares declined, and 101 shares are unchanged.

Tata Steel, Cipla, GAIL, Asain Paints and Lupin are top gainers while Bharti, HDFC tiwns ONGC and NTPC are losers in the Sensex.

Gold prices were up by Rs 193 to Rs 29,850 per 10 gram in futures trade today as speculators created positions amid positive cues from the global market.

According to analysts, a firming trend overseas where gold rebounded from the biggest weekly decline this year as investors piled into bullion-backed exchange-traded funds, lifting global holdings to the highest Bank of America's recession warning: This market is scarysince 2013, and as the dollar fell for a second day, influenced the precious metal in futures trade.

10:55 am Exclusive interview: Tata Motors is riding high after its domestic sales in September rose 8 percent to 48,648 units and Jaguar Land Rover sales increased 28 percent to 61,047 units, indicating a good festive demand.

Mayank Pareek, President of Passenger Vehicles Business at the automaker said that initial festive demand beginning Onam has been very good for Tata Motors. The company is on course to achieve its business plans globally, he added.

Pareek said that the auto industry is seeing a good demand in a long time, adding that initial response from Navratri festival looks great. The auto industry grew at 20 percent in September, he said. On the back of this festive demand, he expects Tata Motors' third-quarter performance to improve year-on-year.

10:30 am Buzzing: Share price of IRB Infrastructure Developers declined nearly 2 percent intraday on termination of concession agreement by MSRDC. The Maharashtra State Road Development Corporation (MSRDC) has terminated concession agreement for Mumbai-Pune phase II project, which had executed by company's wholly owned subsidiary Mhaiskar Infrastructure with the MSRDC on October 2014. The MSRDC could not provide necessary work order to commence construction for Mumbai Pune phase II project as per concession agreement.

The market is flat with the Nifty holding 8700. The 50-share index is up up 17.25 points or 0.2 percent at 8714.85 while the Sensex is up 27.12 points or 0.1 percent at 28088.26.

Tata Steel, Asian Paints, Cipla, Maruti and ITC are gainers while HDFC, Bharti, ONGC, TCS and Adani Ports are losers in the Sensex.

Oil prices fell more than 1 percent in early trading on Monday over doubts that an OPEC-led plan to cut output to rein in a global fuel supply overhang would be supported by other producers, including Russia.

Traders said prices were also under pressure from a rise in the US rig count, which implied that American oil producers are willing to increase production again at price levels around USD 50 per barrel.

Despite the weaker prices on Monday, analysts said they expected slightly higher prices for the rest of the year and into 2017.

9:45 am FM on IMF fund: Expressing "extreme disappointment" with delay in completion of IMF quota reforms, India today stressed that the Fund should strictly abide by the new deadlines set for the 15th General Review of Quota (GRQ).

Finance Minister Arun Jaitley also said that since the forces of globalisation and multilateralism can go a long way in expanding global growth opportunities, "we must focus on the coordinated policy actions and growth strategies".

While expressing India's extreme disappointment, the finance minister emphasized that the Fund should strictly meet the new deadlines, a release said.

Jaitley felt that there is a "dire need" for increasing quotas since there is a broad agreement on maintaining the current overall lending capacity of the Fund and its resource pool is excessively tilted towards borrowed resources.

9:30 am FII view on India: Even as the second debate between US Presidential candidates Donald Trump and Hillary Clinton came to a close early Monday, the US market is unlikely to change fundamentally, according to experts. There are economic restraints and when an electorate is divided, it is hard to push changes through, said James Glassman, Senior Economist at JP Morgan. It is difficult to believe that markets will change fundamentally and we don't think US election is playing strongly, he said, adding that there are a lot of fiscal issues that may limit economic change. Glassman said that the US market has started to factor in a rate hike by the US Federal Reserve in December. The hike, if it happens, will be favourable for emerging markets but it won't be a dominant driver, he said.

The market has opened higher as the Sensex is up 112.05 points or 0.4 percent at 28173.19. The Nifty is up 37.75 points or 0.4 percent at 8735.35. About 406 shares have advanced, 90 shares declined, and 27 shares are unchanged.

ITC, Axis Bank, Tata Motors, Lupin and Cipla are top gainers while Bharti Airtel are losers in the Sensex.

The Indian rupee opened higher in the early trade on Monday. It has gained 10 paise at 66.58 per dollar versus 66.68 Friday.

Pramit Brahmbhatt of Veracity said, "US economy data which announced last Friday were negative for dollar. Even dollar is trading weak against its peers. Thus rupee may appreciate for the day."

"Trading range for the day will be 66.50 to 67/USD," he added.

Among global cues, Asian stock markets were mixed, while the Mexican peso climbed as US presidential candidates debate this morning.

The Mexican Peso was up 1.93 percent against the greenback, at the highest levels in nearly a month, as the second US presidential debate kicked off, signalling that the markets were lengthening odds on a Trump victory.

Meanwhile, the US added 1,56,000 new jobs in September but the unemployment rate in the world's largest economy rose slightly by 0.1 per cent to 5 percent, according to latest government data released.