Nifty ends below 8200, Sensex falls 99 points; Axis Bank up

3:30 pm Market closing: The market has closed lower with the Nifty below 8200. The 50-share index was down 39.35 points or 0.5 percent at 8182.45 and the Sensex slipped down 94.98 points or 0.4 percent at 26602.84. About 913 shares have advanced, 1729 shares declined, and 149 shares are unchanged.

Axis Bank, Reliance, Infosys, M&M and TCS were top gainers while Coal India, ONGC, Cipla, Bharti Airtel and ITC were losers in the Sensex.

3:00 pm Pharma update: Pharma firm Lupin has received approval from the US health regulator to market its Desoximetasone ointment, used for providing relief from inflammation and itching in a skin disease.

The company has received final approval to market its Desoximetasone ointment USP, 0.05 percent from the United States Food & Drug Administration (USFDA), Lupin said in a filing to BSE.

The product filing is from the company's Pithampur manufacturing facility, it added. The Mumbai-based company's product is the generic version of Taro Pharms North's Topicort ointment in the same strength.

2:59 pm Market Update: The Sensex was down 80.79 points at 26617.03 and the Nifty fell 25.95 points to 8195.85.

About 1612 shares declined against 933 advancing shares on the BSE.

2:50 pm Buzzing: Shares of Omkar Speciality Chemicals gained more than 5 percent intraday Wednesday after receiving patent for derivatives of beta-Ketoester.

"Omkar has obtained a patent related to the process for preparation of higher derivatives of beta-Ketoester granted by the Government of India," the speciality chemicals and veterinary APIs manufacturer said in its filing.

With this, the total number of patents till date granted to the company stood at 4.

Beta-Ketoester is one of the basic building blocks from which advance molecules can be synthesized. This molecule is used in various therapies such as cardiovascular diseases, treatment of dyslipidemia (cholesterol), for anti-microbial / anti-fungal activity etc.

In addition, the company has also applied for more process patents, some of which are expected in over the next 12-18 months.

2:32 pm Citi on CAD: Current account deficit is likely to worsen further in the second half of the current financial year and is expected to be around USD 10 billion for FY17, says a Citigroup report.

According to the global financial services major, besides the widening of trade deficit in goods, the recent trend of decline in software services exports and private remittances has continued.

"CAD is likely to worsen further in H2 (second half) and we expect FY17 (2016-17) CAD at USD 10 billion, with risks skewed to the upside," Citigroup said in a research note.

CAD stood at USD 3.4 billion in July-September of 2016, much higher than USD 300 million in the previous quarter.

2:20 pm Exports after demonetisation: India's exports are likely to witness a momentary "setback or slowdown" following the demonetisation and ensuing cash crunch, a top official has said.

"It is a fact that perhaps the demonetisation process, as was pointed out, it may cause a momentary setback or momentary slowdown (to India's exports)," Commerce Secretary Rita Teaotia said.

On whether the government has assessed the extent of impact on shipments, Teaotia told PTI that Commerce Ministry has entered into a consultative process with all the export promotion councils to understand the level of adaptation to the effects of demonetisation.

"I think that we need...to take this as an opportunity for renewing the direction, for capitalising on the benefits that we can get from a far more transparent, far more open and let me say far less messy cash-based transactions," Teaotia said.

2:00 pm Market Check
Equity benchmarks recovered from day's lows but remained rangebound as investors awaited the decision of Federal Reserve policy meeting due tonight. More than 95 percent economists expect 25 basis points rate hike but the most important factors to watch out for would be its outlook on US economy, inflation and further rate hike.

Chidu Narayanan, Economist-Asia, Global Research, Standard Chartered does not expect the US Fed to surprise the market by not hiking because they may not want to create further volatility in the markets. It is also unlikely that the Fed will change their growth forecasts for 2017 and 2018 as of now in the policy.

The 30-share BSE Sensex was down 25.01 points at 26672.81 and the 50-share NSE Nifty fell 16.10 points to 8205.70. About 1456 shares declined against 1002 advancing shares on the BSE.

Coal India was the biggest loser among Sensex 30 stocks, down nearly 4 percent followed by ICICI Bank, ONGC, HDFC Bank, ITC, HDFC and L&T. However, Axis Bank retained its top position in the buying list, up 3.6 percent. Reliance Industries (up 2.2 percent) and Infosys (up 0.8 percent) continued to support the market.

1:45 pm FII view: US financial markets are riding on expectations that US President-elect Donald Trump will pass a big fiscal expansion package that will not only induce a pick-up in US business cycle but also lengthen it for several quarters, according to Ajay Rajadhyaksha, Managing Director and Global Head-Macro Research, Barclays.

Markets have already factored in rate hike by US Federal Reserve, however, today's FOMC meet may be non-event, Rajadhyaksha told CNBC-TV18. US employment rate is full and rates are at near-crisis levels, thus a rate hike is very much on the cards, he said.

1:30 pm European markets: Markets in Europe opened lower on Wednesday as investors focus on an upcoming rate decision by the US Federal Reserve.

The Stoxx 600 started 0.32 percent lower.

Analysts expect a rate hike of 25 points basis from the Fed with the announcement set to be after European markets close on Wednesday.

Meanwhile, Moody's updated its outlook on Italian banks from "stable" to "negative" on Tuesday on increasing capital needs and a weakening in confidence in the system.

The market is still under selling pressure as the Sensex is down 88.86 points or 0.3 percent at 26608.96. The Nifty is down 36.85 points or 0.4 percent at 8184.95. About 955 shares have advanced, 1469 shares declined, and 142 shares are unchanged.

Axis Bank, Reliance, Asian Paints, Tata Motors and Wipro are top gainers while Coal India, ONGC, Hero MotoCorp, Cipla and Adani Ports are losers in the Sensex.

Current account deficit is likely to worsen further in the second half of the current financial year and is expected to be around USD 10 billion for FY17, says a Citigroup report.

According to the global financial services major, besides the widening of trade deficit in goods, the recent trend of decline in software services exports and private remittances has continued.
 
"CAD is likely to worsen further in H2 (second half) and we expect FY17 (2016-17) CAD at USD 10 billion, with risks skewed to the upside," Citigroup said in a research note.

12:59 pm Market Update: Equity benchmarks continued to consolidate in afternoon trade with the Nifty hovering around 8200.

The Sensex was down 57.02 points at 26640.80 and the Nifty fell 25.70 points to 8196.10. About 1334 shares declined against 1046 advancing shares on the BSE.

12:45 pm Interview: Kaveri Seed reported a steady set of earnings for the quarter ended September 30. The total income was up 2.3 percent at Rs 67.8 crore versus Rs 66.3 crore reported for the same quarter earlier fiscal.

G Vijay Kumar, CFO of the company is very upbeat of growth continuing for the next two-quarters too. He expects a 10-15 percent growth in the third quarter due to good rains. He also expects the market share in Maharashtra to go up.

The quarter two other income was up at Rs 17 crore versus Rs 2.9 crore Q2FY16. Net profit too came in at Rs 7 crore versus a loss of Rs 42.5 crore in Q2FY16. EBITDA for the quarter stood at Rs 3.4 crore.

Demonetisation will be good for the organised players in the long-run. As for their business it only had a very limited impact, says Kumar.

12:35 pm S&P on Indian economy: S&P Global Ratings today said demonetisation and a likely GST rollout from September 2017 are likely to cast a "higher disruptive impact" on informal, rural, and cash-based segments of the economy.

It further said corporates and banks are likely to face short-term downside risk as the demonetisation-induced cash crunch will curtail GDP growth.

"Indian government reforms will have long-term structural benefits, but carry short-term execution and adjustment risks," S&P Global Ratings Credit Analyst Abhishek Dangra said in an article titled India's Demonetization And the GST: Short-term Pain For Long-term Gain, published today.

The rating agency recently revised downwards its estimated economic growth rate for 2016-17 by one full percentage point to 6.9 per cent to reflect the disruption caused by the surprise move of demonetisation.

It said the government's decision to cancel the legal tender status of high-value rupee notes has caused a significant physical cash crunch.

12:25 pm IPOs: The government will shortly submit draft red herring prospectus for IPOs of three companies - Cochin Shipyard, HUDCO and HAL, reports CNBC-TV18 quoting Reuters.

12:18 pm M&A deals in Nov: Corporate India's M&A activity witnessed a 16 percent decline in November at USD 2.06 billion, largely owing to absence of big ticket deals compared to the year-ago period, says a survey.

According to assurance, tax and advisory firm Grant Thornton, the overall M&A market in November saw a 16 per cent fall in deal value and 7 per cent decline in volume.

There were 43 M&A transactions worth USD 2.06 billion in November this year, while in the corresponding period last year there were 46 deals worth USD 2.46 billion.

"This was primarily due to muted cross border deal values as compared to November 2015, which witnessed five big ticket cross border deals valued over USD 100 million, while this month witnessed only one," the report said.

According to Prashant Mehra Partner at Grant Thornton India LLP, as the impact of demonetisation is yet to be seen, and the fate of GST is currently in a wait and watch situation, the developments may have a short term impact on deal closures.

12:00 pm Market Check
Indian equities continued to trade in a tight range as investors awaited the decision of two-day Federal Reserve meeting due tonight. It is the first meeting of the FOMC after US elections.

The 30-share BSE Sensex was down 21.22 points at 26676.60 and the 50-share NSE Nifty declined 12.90 points to 8208.90.

Eswar Prasad, Professor Of Economics at Cornell University believes that rate hike by US Federal Reserve is very much on the cards because inflationary pressures are beginning to creep up in the US economy. Wage growth too has picked up with a strong performance of the labour market, says Prasad.

With the new Donald Trump administration taking office in January, and uncertain about the policies they will adopt, the overall picture is a bit clouded, says Prasad.

Wholesale price index inflation in November stood at 3.15 percent against 3.39 percent in previous month but it was higher compared to CNBC-TV18 poll of 2.8 percent.

Asian shares flip-flopped with markets cautious ahead of what is expected to be the Federal Reserve's first rate hike in a year, with comments on the outlook key.

11:45 am Buzzing: Textile company Mandhana Industries shares rallied 18 percent intraday Wednesday (on top of 20 percent rally in previous session). The company has global licensing arrangement with Being Human – The Salman Khan Foundation, to manufacture and distribute textile products and the royalties from the clothing line support education and healthcare initiatives of the foundation. The Mandhana Retail Ventures started off day at Rs 213.40 on the National Stock Exchange, up 75 percent compared to its previous close of Rs 121.95 reported on the exchange.

11:30 am FII view: US financial markets are riding on expectations that US President-elect Donald Trump will pass a big fiscal expansion package that will not only induce a pick-up in US business cycle but also lengthen it for several quarters, according to Ajay Rajadhyaksha, Managing Director and Global Head-Macro Research, Barclays.

Markets have already factored in rate hike by US Federal Reserve, however, today's FOMC meet may be non-event, Rajadhyaksha told CNBC-TV18. US employment rate is full and rates are at near-crisis levels, thus a rate hike is very much on the cards, he said. Rajadhyaksha expects that dollar to continue strengthening going forward ahead and cautioned that emerging markets on the currency front will continue to struggle. He added that traditionally, a strong dollar has been negative for world economy.

The market is sluggish with the Nifty struggling below 8200. The 50-share index is down 22.75 points or 0.3 percent at 8199.05 and the Sensex is down 34.75 points or 0.1 percent at 26663.07. About 1070 shares have advanced, 1010 shares declined, and 118 shares are unchanged.

Axis Bank, Reliance, Asian Paints, Wipro and Tata Motors are gainers while Coal India, HDFC, Cipla, L&T and Adani Ports are losers in the Sensex.

Eswar Prasad, Professor Of Economics at Cornell University believes that rate hike by US Federal Reserve is very much on the cards because inflationary pressures are beginning to creep up in the US economy. Wage growth too has picked up with a strong performance of the labour market, says Prasad in an interview to CNBC-TV18.

With the new Donald Trump administration taking office in January, and uncertain about the policies they will adopt, the overall picture is a bit clouded, says Prasad.

According to him, Trump's election has set off two very important forces. One, it has created a lot of uncertainty in global financial markets. Uncertainty in global financial markets tends to be good for the dollar because money flows to the US financial markets, especially the US treasury securities markets in search of a safe haven.

10:40 am Barclays on US: US financial markets are riding on expectations that US President-elect Donald Trump will pass a big fiscal expansion package that will not only induce a pick-up in US business cycle but also lengthen it for several quarters, according to Ajay Rajadhyaksha, Managing Director and Global Head-Macro Research, Barclays.

Markets have already factored in rate hike by US Federal Reserve, however, today's FOMC meet may be non-event, Rajadhyaksha told CNBC-TV18. US employment rate is full and rates are at near-crisis levels, thus a rate hike is very much on the cards, he said.

Rajadhyaksha expects that dollar to continue strengthening going forward ahead and cautioned that emerging markets on the currency front will continue to struggle. He added that traditionally, a strong dollar has been negative for world economy.

10:20 am HCC board meeting: HCC will next month seek shareholders' nod for conversion of loan into equity shares or optionally convertible debentures pursuant to implementation of the RBI's scheme for sustainable structuring of stressed assets.

The company will also seek shareholder's nod for increasing the company's authorised capital, HCC said in a filing to the BSE.

The Extraordinary General Meeting of the members of Hindustan Construction Company (HCC) will be held on January 5 and "approval (would be sought) for conversion of Loan by Lenders into Equity Shares/Optionally Convertible Debentures (OCDs) of the company ('Securities') pursuant to implementation of the Reserve Bank of India S4A Scheme for the company," the filing said.

10:00 am Market Check
Equity benchmarks continued to consolidate in morning trade, with the Nifty hovering around 8200 level. Investors maintained caution ahead of the outcome of policy meeting of Federal Reserve due tonight.

The 30-share BSE Sensex was down 51.26 points at 26646.56 and the 50-share NSE Nifty fell 20.85 points to 8200.95. The market breadth was marginally positive as about 937 shares advanced against 782 declining shares on the BSE.

Coal India retained its top position in the selling list, down nearly 3 percent after profit in Q2 fell sharply by 77.4 percent year-on-year to Rs 600.4 crore due to higher employee expenses and weak operational performance.

HDFC (down 1.13 percent, HDFC Bank (down 0.5 percent), Infosys (down 0.3 percent) and ICICI Bank (down 0.2 percent) drove the market lower while Reliance Industries (up 1.2 percent) capped the downside.

Axis Bank gained for the second consecutive session, up over a percent despite a media report indicated that the government has asked the bank to set its house in order after a series of irregularities linked to the exchange of old notes were detected.

9:55 am Market check: The Sensex is down 63.54 points or 0.2 percent at 26634.28, and the Nifty down 26.25 points or 0.3 percent at 8195.55.
About 888 shares have advanced, 753 shares declined, and 86 shares are unchanged.

Asian Paints, Reliance, NTPC, Axis Bank, NTPC and Wipro are top gainers while Coal India, HDFC, Bharti Airtel, Tata Motors and Bajaj Auto are losers in the Sensex.

9:45 am Oil update: State-owned Qatar Petroleum, one of the largest oil companies in the world, announced that it will reduce production levels from the beginning of next year.

The reduction -- beginning on January 1 -- comes following the recent decisions by OPEC and non-OPEC oil-producing countries to cap output.

"We have started advising our customers of the expected reductions in oil deliveries to ensure the state's compliance with OPEC's allocations," said a statements from Saad Sherida Al-Kaabi, president and chief executive of state-owned Qatar Petroleum.

9:30 am FII view: Michael Gavin of Barclays says the macro backdrop is now one of mildly improved growth, firmer inflation, and a shift to fiscal stimulus in major economies.

However, the prospect of higher policy volatility in the US means the range of potential outcomes for financial markets is unusually large entering 2017, he feels.

Gavin says investors should look for value in emerging markets credit, instead of avoiding all emerging markets assets.

The market has opened flat as investors are cautiously waiting for Federal Reserve decision on interest rates. The Sensex is up 5.43 points at 26703.25 and the Nifty is down 8.25 points at 8213.55. About 445 shares have advanced, 227 shares declined, and 34 shares are unchanged.

Axis Bank, HUL, Maruti, Lupin and Sun Pharma are top gainers while Coal India, Tata Motors, HDFC, ONGC and ICICI Bank are losers in the Sensex.

The Indian rupee opened flat at 67.54 per dollar versus previous close 67.54.

NS Venkatesh of Lakshmi Vilas Bank said, "The cautious investors are expected to stay on the sidelines ahead of the FOMC meeting outcome."

The US dollar held steady against a basket of major currencies on uncertainty over whether the Fed would signal a slow or fast pace of interest rate increases at the end of a closely-watched policy meeting.

Asia shares crept cautiously higher while a hush settled on the US dollar as investors felt certain the Federal Reserve would raise rates for the first time in a year, but were less sure what it might herald for 2017.

Australia led the early going with gains of 0.7 percent and MSCI's broadest index of Asia-Pacific shares outside Japan nudged up 0.2 percent. Japan's Nikkei went the other way, easing 0.1 percent with moves across the region modest at best.

US stocks racked up new all-time highs on Tuesday and the Dow Jones industrial average ended fewer than 100 points away from the 20,000 mark as a post-election rally showed no signs of fatigue.

All three major indexes established record highs. The Dow has climbed about 9 percent since the Nov. 8 election, with gains fuelled by expectations that President-elect Donald Trump will reduce taxes and regulation and stimulate the economy.