Sensex, Nifty end flat; Infosys & HUL fall 2%, TCS & RIL up 2%

3:30 pm Market closing: The market has ended with marginal gains. The Sensex closed  up 30.49 points or 0.1 percent at 27673.60 and the Nifty up 10.05 points or 0.1 percent at 8583.40. About 1722 shares have advanced, 1079 shares declined, and 180 shares are unchanged.

Infosys, HUL, HDFC, Lupin and Wipro were major losers while GAIL, L&T, Reliance and TCS were gainers in the Sensex.

3:10 pm IMF: Describing India as a "bright spot" in the complex set of economic forces, IMF Chief Economist Maurice Obstfeld said rising NPAs in Indian public sector banks remain a challenge despite progress.

"The complex set of economic forces continues to shape a subdued global growth outlook... Not only India, but China is maintaining its growth. India is a bright spot, inflation in India... CAD... fiscal deficit are coming down," Obstfeld said at an event organised by Brookings India here.

"But there are still structural challenges. Rising NPAs in public sector banks remain a challenge despite lots of progress."

2:49 pm Europe update: European stocks were higher after stronger-than-anticipated inflation data from China helped to calm nerves over global growth prospects.

The pan-European STOXX 600 was up 0.88 percent with all major bourses in positive territory.

2:35 pm NSE auction: Leading bourse National Stock Exchange (NSE) will auction investment limits for overseas investors for purchase of government debt securities worth over Rs 9,300 crore on Monday.

The auction will be conducted on NSE-ebid platform during 1530-1730 hours, after the close of market trading.

The debt auction quota gives overseas investors right to invest in the debt, up to the limit purchased.

According to latest data available with depositories, total investment in government debt has reached Rs 1,38,667 crore till yesterday, which is 93.69 per cent of total permitted limit of Rs 1.48 lakh crore.

Consequently, the exchange has decided to conduct an auction for the allocation of unutilised debt limits to the tune of Rs 9,333 crore on Monday, October 17, 2016.

2:20 pm Buzzing: L&T shares gained more than 2 percent intraday on bagging major railway order worth Rs 3,799 crore.

"The transportation infrastructure business of L&T Construction has won order worth Rs 3,799 crore from the Dedicated Freight Corridor Corporation of India," the engineering and infrastructure major said in its filing.

This order is secured by a consortium by L&T and Sojitz Corporation, Japan. The project is located at northern end of western corridor and forms a link between eastern & western corridor.

The company said the works would be carried out between Rewari and Dadri (128 km) through regions of Rewari-Alwar-Mewat-Gurgaon-Palwal-Faridabad-GB Nagar in Haryana, Rajasthan and Uttar Pradesh.

Benchmark indices continued to consolidate in afternoon trade with the Nifty trading in a 8570-8600 range while the broader markets remained outperformance.

The 30-share BSE Sensex was up 45.83 points at 27688.94 and the 50-share NSE Nifty gained 11.50 points at 8584.85 while the BSE Midcap and Smallcap indices rose 0.7 percent each.

About 1651 shares advanced against 1015 declining shares on the Bombay Stock Exchange.

Reliance Industries, L&T, TCS, Tata Motors, ONGC and GAIL gained 1-3.6 percent whereas Infosys, HDFC, HUL and Lupin fell 1-2 percent.

1:45 pm Market check: The Sensex is up 96.12 points or 0.3 percent at 27739.23, and the Nifty up 28.45 points or 0.3 percent at 8601.80. About 1674 shares have advanced, 939 shares declined, and 181 shares are unchanged.

GAIL, L&T, Reliance, TCS and ONGC were top gainers while HUL, Infosys, Lupin, M&M and HDFC are losers in the Sensex

1:30 pm Economists take: Wholesale inflation for the month of September came down to 3.57 percent, marginally lower than what economists had estimated and was down 17 basis points (bps) on a month-on-month (MoM) basis.

In an interview with CNBC-TV18, Tushar Arora, Senior Economist at HDFC Bank said that the wholesale price index (WPI) number is in line with expectations and Thursday's CPI number was also below market estimates, this should come as a relief.

He said that lower than expected inflation reading should open a window for a further repo rate cut in the coming months.

The market is sluggish with the Nifty struggling below 8600. The 50-share index is up 9.70 points or 0.1 percent at 8583.05. The Sensex is up 35.12 points or 0.1 percent at 27678.23.

GAIL, L&T, Reliance, ONGC and Adani Ports are top gainers while Infosys, HUL, Lupin, M&M and HDFC are losers in the Sensex.

European stocks opened higher on Friday after stronger-than-anticipated inflation data from China helped to calm nerves over global growth prospects.

The pan-European STOXX 600 was up 0.38 percent with all major bourses in positive territory.

Producer prices in the world's second largest economy headed higher for the first time in almost five years, offsetting the negative sentiment generated Thursday by poor export data from the mainland.

This follows a weak close for US indices also hit by falls in financial shares.

12:59 pm Market Update: The Sensex was up 60.48 points at 27703.59, and the Nifty up 15.95 points at 8589.30. About 1647 shares advanced against 893 declining shares on the BSE.

12:40 pm Europe opens: European stocks opened higher after stronger-than-anticipated inflation data from China helped to calm nerves over global growth prospects.

The pan-European STOXX 600 was up 0.38 percent with all major bourses in positive territory.

Producer prices in the world's second largest economy headed higher for the first time in almost five years, offsetting the negative sentiment generated Thursday by poor export data from the mainland.

12:30 pm Tower business deal: Reliance Communications shares gained 3.6 percent intraday Friday after signing term sheet with Canada-based asset management company for tower business.

Reliance Communications will continue as an anchor tenant on the tower assets, under a long term master service agreement, for its integrated telecommunications business.

"RComm will receive an upfront cash payment of Rs 11,000 crore from the proposed transaction and will also enjoy 49 percent future economic upside from the towers business, based on certain
conditions," it said.

The company will utilise proceeds of the proposed transaction solely to reduce its debt.

12:15 pm IT industry outlook: R Chandrashekhar, President of NASSCOM said a lot of short-term cues are negatively impacting IT industry.

However, outlook for IT industry does not look negative over a long-term, he added.

He further said that slowdown in BFSI sector might impact earnings for a couple of more quarters.

Hence will wait for results of some more companies before revaluating guidance, he said.

12:00 pm Market Check
Equity benchmarks remained volatile in noon trade but broader markets outperformed with the BSE Midcap and Smallcap indices rising 0.6 percent each. Oil and infra stocks continued to support the market but the selling in Infosys and HDFC limited upside.

The 30-share BSE Sensex was up 31.96 points at 27675.07 and the 50-share NSE Nifty gained 5.05 points at 8578.40.

The market breadth remained positive as about 1524 shares advanced against 895 declining shares on the BSE.

Wholesale price index eased to 3.57 percent in September from 3.74 percent in preceding month today. Consumer price index also declined further to 4.31 percent from 5.05 percent in same period.

Infosys fell over a percent after the company slashed full year revenue guidance to 8-9 percent from 10.5-12 percent earlier.

11:45 am BRICS: Ahead of BRICS and BIMSTEC Summits, Prime Minister Narendra Modi today said he is looking forward to building bridges to new partnerships and finding common resolve and solutions to entrenched problems of the region.

Modi, who will also hold bilateral meetings with Russian President Vladimir Putin and other leaders on the sidelines of the Summits in Goa, said they will discuss ways to address "pressing international and regional challenges that stand in the way of our goals".

"I am optimistic that the BRICS Summit will strengthen intra-BRICS cooperation and advance our common agenda for development, peace, stability and reform," the Prime Minister said in a Facebook post.

11:30 am Infosys Q2: IT solutions provider Infosys ' profit beat analysts' expectations, rising 4.9 percent to Rs 3,606 crore in July-September quarter but reduced full year revenue guidance considerably due to uncertain external environment. Rupee revenue rose 3.14 percent to Rs 17,310 crore and dollar revenue was up 3.4 percent at USD 2,587 million on sequential basis, which were slightly ahead of estimates. The country's second largest IT company slashed its revenue guidance for FY17 to 8-9 percent from 10.5-12 percent earlier in constant currency terms after considering performance of H2FY17 and near-term uncertain business outlook.

The market is flat amid volatility. The Sensex is up 17.71 points at 27660.82, and the Nifty down 2.50 points or 0.03% at 8570.85. About 1485 shares have advanced, 815 shares declined, and 171 shares are unchanged.

IT index is in red reacting to TCS and Infosys Q2 results. HUL is down 2 percent, while Infosys, Lupin, Bharti and HDFC are losers in the Sensex. GAIL, L&T, ONGC, Tata Motors and Cipla are gainers in the Sensex.

Combination of factors is likely to trigger earnings recovery for companies going ahead, according to Gautam Trivedi, Managing Director and Chief Executive of Religare Capital Markets.

In an interview with CNBC-TV18, Trivedi listed factors such as passage of Goods and Services Tax, implementation of Seventh Pay Commission, besides a good monsoon and the central bank cutting rates as those that he would propel an earnings recovery in the first quarter of FY18. "But it is too early to predict a V-shaped recovery in the third quarter of FY17."

10:50 am Infosys' client addition: CEO Vishal Sikka says the deal pipeline continues to be healthy with winning 6 large deals in Q2 worth USD 1.2 billion.

Infosys has added 78 clients in Q2, taking total to 1,136 active clients. It added 1 client in USD 100 million category and 2 clients in USD 50 million category.

10:40 am Market Update: Equity benchmarks remained in consolidation mode after yesterday's sharp sell-off. The Sensex was up 31.96 points at 27675.07 and the Nifty up 8.55 points at 8581.90.

The market breadth remained strong as about two shares advanced for every share falling on the BSE.

10:30 am Railways earnings: Compounding the woes of railways, total earnings from goods and passengers fell by over 11 percent from the target in September this year as against the last year for the same period, causing concern in the rail administration.

Railways have earned Rs 12,413.96 crore in September this year as against the target of Rs 13,961.91 crore for the month, a decrease of 11.09 percent.

The total earnings from goods in September was Rs 7,719.52 crore as against the target of Rs 8,564.27 crore, a decline of 9.86 percent, according to Railway Ministry data.

In passenger segment also the earnings are way behind the target as railways earned Rs 3,815.43 crore as against the target of Rs 4,253.71 cr, a decrease of 10.30 percent.

10:20 am Oil woes: International oil prices dipped over doubts that a planned cut in crude production could be achieved on a scale sufficient to rebalance a market that has been oversupplied for two years. Traders said the dip was a result of skepticism that a planned oil output cut by the Organization of the Petroleum Exporting Countries (OPEC) and potentially non-OPEC member Russia would be sufficient to rein in a global production overhang which has been ongoing for two years and still stands around half a million barrels per day (bpd) in excess of consumption.

10:15 am Market outlook: Combination of factors such as passage of Goods and Services Tax, implementation of Seventh Pay Commission, besides a good monsoon and the central bank cutting rates is likely to trigger earnings recovery for companies going ahead, according to Gautam Trivedi, Managing Director and Chief Executive of Religare Capital Markets.

Trivedi said the fruits of such factors will likely propel earnings recovery in the first quarter of FY18, adding that it is too early to predict a V-shaped recovery in the third quarter of FY17.

10:10 am Infosys: ''We focused on strong execution in Q2with our core IT services business showing good progress on the strength of our innovation and operational initiatives. While we continue to navigate an uncertain external environment, we remain focused on executing our strategy and increasing momentum of our software plus services model. Considering our performance in the first half of the year and the near-term uncertain business outlook, we are revising our revenue guidance.'' said Vishal Sikka, CEO.

The market is quite volatile reacting to Infosys September results. The Sensex is down 24.84 points at 27618.27, and the Nifty down 8.45 points at 8564.90.
About 1086 shares have advanced, 675 shares declined, and 86 shares are unchanged.

Infosys is down 3 percent on lower guidance while TCS is up 1 percent. HUL, Lupin, Bharti and HDFC are losers in the Sensex.

GAIL, ONGC, Reliance, L&T and Adani Ports are top gainers in the Sensex.

Gold prices edged lower as stocks firmed and the US dollar rose on expectations the Federal Reserve would raise interest rates by year-end. Markets will next look to Friday's US retail sales data and remarks from Fed Chair Janet Yellen, who will address a Boston Fed economics conference at which Boston Fed governor Eric Rosengren will also speak.

9:53 am Stock reaction: Infosys falls 3 percent after it cuts revenue guidance, disappointing guidance.

The Sensex is down 50.88 points or 0.2 percent at 27592.23, and the Nifty down 12.95 points or 0.1 percent at 8560.40. About 1137 shares have advanced, 542 shares declined, and 78 shares are unchanged.

9:50 am Infosys Q2: FY17 revenue guidance cut to 8-9 percent in constant currency. ''We focused on strong execution in Q2with our core IT services business showing good progress on the strength of our innovation and operational initiatives. While we continue to navigate an uncertain external environment, we remain focused on executing our strategy and increasing momentum of our software plus services model. Considering our performance in the first half of the year and the near-term uncertain business outlook, we are revising our revenue guidance.'' said Vishal Sikka, CEO.

9:45 am Market check: The Sensex is up 66.50 points or 0.2 percent at 27709.61, and the Nifty up 18.80 points or 0.2 percent at 8592.15.
About 1208 shares have advanced, 381 shares declined, and 63 shares are unchanged. Infosys is very volatile post Q2.

9:43 am Results: IT solutions provider Infosys' profit in July-September quarter increased 5 percent to Rs 3,606 crore from Rs 3,436 crore in preceding quarter. Rupee revenue rose 3.14 percent to Rs 17,310 crore from Rs 16,782 crore on sequential basis.

9:30 am FII view: Michael Hartnett of Bank of America Merrill Lynch says bull & bear indicator remains in neutral territory of 4.8, up from Brexit 'buy' signal lows of 1.6. The investor sentiment is in 'goldilocks' territory: not too bullish, not too bearish.

Latest fund manager survey suggests cash levels dropping from 5.5 percent to sub 5.2 percent would be more cautionary sign for stocks, he feels.

Additionally, investor redemptions of 'long-duration' bond funds (duration more than 6 years) for 7th straight week and combined with the preference for 'short-duration' bond funds (duration less than 4 years) over 'long-duration' bond funds highest since end-QE3 taper tantrum is a clear reflection of investor worries on bond market as Fed hikes, Bank of Japan announces yield curve control & ECB taper talk, Hartnett says.

In the past, a good tactical entry point for bonds as macros weakened after end of stimulus, he says.

The market has opened in green on Friday after massive cuts yesterday. The Sensex is up 56.65 points or 0.2 percent at 27699.76 and the Nifty is up 20.65 points or 0.2 percent at 8594.00. About 353 shares have advanced, 102 shares declined, and 23 shares are unchanged.

HUL, Infosys and HUL are losers while BHEL, Reliance, ONGC, Maruti and Tata Steel are gainers in the Sensex.

The Indian rupee has bounced back, opening at 66.84 a dollar, higher by 9 paise compared with 66.93 a dollar in previous session.

Ashutosh Raina of HDFC Bank says the release of FOMC minutes indicating chances of a rate hike in December coupled with weak Chinese data resulted in a risk-off sentiment across markets.

The dollar gained across the board with the Dollar index moving to 98 levels and the USD/INR currency pair was no exception with the pair closing near 67 a dollar figure (on Thursday), he adds.

Meanwhile, India's retail inflation grew 4.31 percent in September, its slowest pace since August last year, bolstering hopes of another round of interest rate cut in the coming months.  Food price inflation fell to 3.88 percent in September-the lowest in a year--from 5.91 percent in August from 8.35 percent in the previous month as fresh supply of seasonal vegetables pushed down prices.

Among global markets, Asian stocks edged higher and the dollar bounced on Friday as global markets took a breather after being churned by downbeat Chinese economic data the previous day.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.2 percent in early trade after dropping 1.1 percent on Thursday. It was headed for a loss of 2.3 percent on the week. Japan's Nikkei inched up 0.1 percent and was on track for a 0.3 percent weekly loss. South Korea's Kospi rose 0.6 percent and Australian stocks was up 0.1 percent.

Overnight, the Dow fell 0.3 percent and Nasdaq shed 0.5 percent, led by falls in financial shares and weak Chinese trade numbers, although a late-day rebound in crude oil limited the decline.

China's exports fell 10 percent year-on-year in September, worse than expected, while imports unexpectedly shrank, reviving concerns about the health of the world's second-biggest economy.