Nifty ends at 8476, Sensex up 258 points; Bharti, Infosys down

3:30 pm Market closing: The market has ended on a higher note while IT stocks continued to drag. The Sensex closed up 258.24 points or 0.9 percent at 27375.58 and the Nifty was up 84.30 points or 1 percent at 8475.80. About 1572 shares have advanced, 1153 shares declined, and 305 shares were unchanged.

Bharti Airtel, Infosys, HUL, ICICI Bank and Wipro were major losers while Bajaj Auto, Adani Ports, BHEL, M&M and HDFC Bank were gainers in the Sensex.

2:55 pm Market Update: Benchmark indices strengthened further with the Sensex rising 234.15 points to 27351.49 and the Nifty up 79.35 points at 8470.85.

2:43 pm BSE IPO: BSE's initial public offer -- the first by a domestic stock exchange in India -- planning to raise up to Rs 1,243 crore was fully subscribed by the afternoon trade today, the second day of the offer.

The stock exchange aims to raise up to Rs 1,243 crore from the IPO, which is priced at Rs 805-806 per share.

During the initial share sale -- which is also a first by any company this year -- shareholders will sell 15.43 million shares estimated to be around Rs 1,243.44 crore at the higher end of the price band.

The IPO of 15,427,197 shares of face value of Rs 2 each will constitute up to 28.26 percent of the fully-diluted post offer issued share capital of BSE.

2:32 pm Oil reserves deal: India hopes to conclude negotiations with the United Arab Emirates on Tuesday to fill its strategic oil reserves at Mangalore, in southern India, a foreign ministry official said.

Abu Dhabi's Crown Prince Sheikh Mohamed bin Zayed al-Nahyan is headed to India week as a guest of honour to the annual Republic Day Parade in a warming of ties.

Oil-rich Abu Dhabi has been in discussions to finalise a deal to lease part of India's crude oil storage facilities.

India, which imports about 80 percent of its oil needs, is building emergency storage in vast underground caverns to hold some 36.87 million barrels of crude as it seeks to hedge against energy security risks.

2:20 pm Earnings: Two-wheeler maker TVS Motor Company's profit in third quarter grew by 10.4 percent year-on-year to Rs 132.67 crore, driven by other income and lower tax cost.

Revenue during the quarter increased 2.8 percent to Rs 3,239.55 crore compared with Rs 3,151.12 crore in year-ago period.

Earnings more or less matched analysts' estimates. Profit was estimated at Rs 127.2 crore on revenue of Rs 2,994 crore and operating profit was expected at Rs 217 crore with margin at 7.2 percent for the quarter, according to average of estimates of analysts polled by CNBC-TV18.

2:00 pm Market Check
Benchmark indices extended gains in afternoon trade with the Nifty reclaiming 8450 level ahead of expiry of January futures & options contracts, led by HDFC Group, auto, infra and oil stocks.

The 30-share BSE Sensex gained 193.14 points at 27310.48 and the 50-share NSE Nifty rose 59.75 points to 8451.25. About 1518 shares advanced against 1058 declining shares on the BSE.

HDFC, Tata Motors, L&T, Reliance Industries, Bajaj Auto, NTPC and Lupin rallied 1-2 percent while Infosys, HUL and Bharti Airtel remained under pressure, down around 1 percent.

HDFC Bank gained more than a percent after better-than-expected earnings growth in the quarter ended December 2016. L&T Finance Holdings, too, gained 3 percent after profit jumped 27.8 percent year-on-year despite higher non-performing assets.

European markets were higher today as investors wait for fresh economic data and earnings reports.

Asian stocks ended mixed as the dollar remained soft amid uncertainty over U.S. President Donald Trump's policies and his withdrawal from the Trans-Pacific Partnership trade deal.

1:45 pm P Notes: Investments in domestic capital markets through participatory notes (P-Notes) have plunged to 41-month low of Rs 1.57 lakh crore in December.

Market experts believe the trend is likely to continue as Sebi may further tighten the regulations governing P-Notes amid persisting concerns that this route is being used for illicit fund flows.

P-Notes are issued by registered foreign portfolio investors (FPIs) to overseas investors who wish to participate in Indian markets without registering themselves directly. But they still need to go through a proper due diligence process.

According to Sebi data, the total value of P-Note investments in Indian markets -- equity, debt and derivatives -- plunged to Rs 1,57,306 crore in December-end from Rs 1,79,648 crore at the end of November.

1:30 pm Result: HDFC Bank said its profit in third quarter grew by 15 percent to Rs 3,865.3 crore compared with Rs 3,356.84 crore in year-ago period. It was driven by other income , operating profit and net interest income. Net interest income, the difference between interest earned and interest expended, increased 17.5 percent year-on-year to Rs 8,309 crore in the quarter gone by, with loan growth of 13.5 percent (0.1 percent QoQ). Advances (loans) as of December 2016 were Rs 4.95 lakh crore after considering repayments of about USD 2 billion of overseas loans linked to FCNR deposits.

The market has maintained uptrend with the Sensex up 122.22 points or 0.4 percent at 27239.56. The Nifty is up 41.75 points or 0.5 percent at 8433.25. About 1421 shares have advanced, 1040 shares declined, and 279 shares are unchanged.

BHEL, NTPC, Tata Motors, Coal India and Adani Ports are top gainers while HUL, Bharti, Infosys, ITC and ICICI Bank are losers in the Sensex.

Gold prices were steady on Tuesday as the dollar remained under pressure on signs that United States President Donald Trump would adopt a protectionist stance on trade.

Spot gold was mostly unchanged at USD 1,217.42 per ounce by 0337 GMT, after hitting their strongest since November 22 at USD 1,219.59 earlier in the session.

US gold futures inched up 0.2 percent, to USD 1,218. Trump formally withdrew the US from the Trans-Pacific Partnership trade deal on Monday and told US manufacturing executives he would impose a hefty border tax on firms that import products after moving American factories overseas.

12:44 pm Earnings: HDFC Bank said its profit in third quarter grew by 15 percent to Rs 3,865.3 crore compared with Rs 3,356.84 crore in year-ago period.

Net interest income, the difference between interest earned and interest expended, increased 17.5 percent year-on-year to Rs 8,309 crore in the quarter gone by.

Provisions for bad loans jumped 9.5 percent year-on-year to Rs 715.8 crore but declined 4.4 percent compared with previous quarter.

Asset quality was more or less stable in the quarter gone by. Gross non-performing assets as a percentage of gross advances increased to 1.05 percent (from 1.02 percent QoQ) and net NPA climbed to 0.32 percent (from 0.3 percent QoQ).

12:32 pm Acquisition: IT firm Cyient, formerly known as Infotech Enterprises, today said its subsidiary has signed a definitive agreement to acquire 100 percent equity in the US-based Certon Software Inc. in an all-cash deal.

"Cyient Inc., USA, a wholly-owned subsidiary of the company, has signed a definitive agreement to acquire 100 per cent equity in Certon Software Inc., Melbourne, Florida, USA, in an all cash transaction," Cyient Ltd said in a BSE filing.

It also said: "This transaction will further strengthen the automation in its key vertical Aerospace and Defence in line with strategy for growth."

12:20 pm Earnings estimates: HDFC Bank, the country's second largest private sector lender, is expected to report slowest earnings growth in October-December quarter.

Profit is likely to grow 12.3 percent year-on-year to Rs 3,770.7 crore and net interest income is seen rising 16.1 percent to Rs 8,203.8 crore in the quarter ended December 2016, according to average of estimates of analysts polled by CNBC-TV18.

Loan growth may take a hit due to FCNR (foreign currency non-repatriable) redemption & higher SME repayments while low cost deposit flow may remain strong due to demonetisation.

12:00 pm Market Check:
Benchmark indices retained morning gains with the Nifty holding 8400 level ahead of expiry of January derivative contracts tomorrow and Union Budget that will be presented on February 1.

The 30-share BSE Sensex gained 128.68 points at 27246.02 and the 50-share NSE Nifty rose 45.30 points to 8436.80. The broader markets also gained half a percent on positive breadth.

About 1411 shares advanced against 925 declining shares on the exchange.

Ajanta Pharma was the most active share on the National Stock Exchange, down more than 4 percent after the company got an import alert from USFDA for selling an unapproved drug in the US from its Aurangabad facility. In this case, Ajanta was found marketing its erectile dysfunction drug Kamarga in United States without proper approvals. Kamarga uses an active ingredient Sildenafil Citrate (a.k.a Viagra).

HCL Technologies was also in active stock list, down over a percent after reporting in line earnings and maintaining FY17 revenue guidance.

ICICI Bank, Yes Bank and Tata Communications were other most active shares.

11:30 am Buzzing: Shares of Ajanta Pharma fell as much as 12.35 percent intraday after the company got an import alert from USFDA for selling an unapproved drug in the US from its Aurangabad facility.

USFDA notified the import alert on its website on January 20.

The import alert falls in the category of 66-41 which relates to marketing or promotion of unapproved products.

In this case, Ajanta was found marketing its erectile dysfunction drug Kamarga in United States without proper approvals. Kamarga uses an active ingredient Sildenafil Citrate (aka viagra).

The market is holding firm ahead of January Futures and Options (F&O) expiry tomorrow. The Sensex is up 132.57 points or 0.5 percent at 27249.91, and the Nifty up 46.15 points or 0.5 percent at 8437.65. About 1415 shares have advanced, 766 shares declined, and 252 shares are unchanged.

BHEL, Adani Ports, Coal India, L&T and HDFC are top gainers while HUL, Bharti Airtel, Infosys, Wipro and ITC are losers in the Sensex.

Gold prices drifted lower by 0.17 percent to Rs 28,754 per 10 grams in futures trade today as participants cut their bets amid a weak global trend.

Besides, profit-booking by speculators also weighed on gold prices. At Multi Commodity Exchange, gold prices for delivery in February month declined by Rs 49, or 0.17 percent to Rs 28,754 per ten grams in business turnover of 320 lots.
 
Analysts said trimming of positions by speculators in ine with a weak trend overseas mainly attributed the slide in gold prices at futures trade.

10:57 am Market Update: Benchmark indices extended gains in morning with the Sensex up 141.07 points at 27258.41 and the Nifty up 48.45 points at 8439.95.

About 1412 shares advanced against 732 declining shares on the BSE.

10:46 am Market Outlook: With just two more years at the government's disposal to reinforce growth, Nilesh Shah, MD and CEO of Envision Capital, hopes it does not stick to the path of fiscal consolidation in the upcoming Budget.

"It is worth taking the risk and providing incentives to bolster investment and consumption," he says in an interview to CNBC-TV18.

On sectoral trends, Shah says he will be surprised to see the commodities uptrend continuing in 2017 after the terrific run during the last year. Similarly, he sees it wise to wait for further correction before considering investments in the consumer staples sector due to high valuations.

However, public sector companies could enjoy some good tailwinds like a pick-up in the capex cycle.

10:35 am Interview: L&T Infotech reported a mixed set of third quarter numbers with revenue and profits coming in higher than estimates but margins missing,

Vohra Sanjay Jalona, CEO  & MD, L&T Infotech said the real world expertise, depth of the verticals and focus on micro verticals helped maintain performance in Q3 despite it being a traditionally weak quarter for the industry.

Investments in five areas – automation, digital, analytics, internet of things (IoT) and cloud along with sales execution helped services portfolio.

L&T Infotech, the IT services arm of Larsen & Toubro group, reported 10.5 percent growth in net profit at Rs 248 crore for the third quarter ended December 31, 2016.

Ashok Kumar Sonthalia, CFO, L&T Infotech is also confident of the third quarter momentum continuing in the fourth quarter.

10:15 am HCL Tech deal: UBS AG, the Swiss global financial services company, renewed its finance operations services contract with HCL Technologies, announced HCL.

HCL will continue to deliver key Finance Operations services to UBS AG, supporting cost transparency and continuous improvements to the operating model of its finance department for the next three and half years.

HCL has been working with UBS AG since 2012, providing integrated process and technology management in an end-to-end global shared services model. Processes being handled by HCL include the completion of financial reports for multiple regulators; in addition to data management, operational and general accounting functions are delivered, managed via HCL's Enterprise Functionas-a-Service (EFaaS) model.

10:00 am Market Check
Equity benchmarks gained further in morning with the Nifty inching towards 8450, supported by banking & financials, infra and auto stocks.

The 30-share BSE Sensex was up 103.08 points at 27220.42 and the 50-share NSE Nifty gained 34.55 points at 8426.05.

The broader markets also traded in line with benchmarks on positive breadth. About two shares gained for every share falling on the BSE.

HDFC, Tata Motors and L&T were top three contributors to Sensex's gains, up over a percent whereas Infosys, HUL (after disappointing volume growth) and Bharti Airtel (ahead of earnings) fell 1-1.5 percent.

US oil climbed as the dollar weakened, but an increase in drilling activity in the United States is likely to keep a lid on prices.

US West Texas Intermediate crude futures were up 0.45 percent at USD 52.99 a barrel.

Gold prices hit their highest in two months today, pushed up as the dollar weakened due to suspicions President Donald Trump's administration might seek a competitive advantage through a weaker currency.

9:55 am Result poll: Telecom operator Bharti Airtel's third quarter earnings are expected to hit by sharp pricing pressure led by Reliance Jio's free offer and negative impact of demonetisation.

Profit is likely to fall 28 percent sequentially to Rs 1,055 crore and revenue may slip 2.3 percent to Rs 24,077 crore in Q3, according to average of estimates of analysts polled by CNBC-TV18.

Operating profit during the quarter is seen falling 6.4 percent to Rs 8,857 crore and margin may shrink 160 basis points to 36.8 percent compared with previous quarter. Its India business may decline 2.6 percent quarter-on-quarter to Rs 14,348 crore with operating profit declining 10.8 percent at Rs 5,572 crore and margin contraction of 360 basis points at 38.8 percent in Q3.

9:45 am Investment: The capital put in by alternative investment funds (AIFs) has risen to Rs 28,486 crore at the end of October-December quarter of the current fiscal, a surge of 14 percent from the preceding three months.

The AIF investment has more than doubled from Rs 14,031 crore at the end of December last year.

AIFs are a class of pooled-in vehicles for investing in real estate, private equity and hedge funds and 268 such funds are registered with the Securities and Exchange Board of India (Sebi) since 2012. The investment made by AIFs stood at Rs 24,862 crore at the end of September quarter, Rs 20,667 crore as of the June quarter and Rs 18,237 crore at the end of March quarter, according to latest data available with Sebi.

9:30 am FII view: Surendra Goyal of Citi says in the run-up to the Union Budget, MSCI India is up 3 percent in 2017 so far, with expectations of a tax-payer friendly Budget to boost consumer sentiment post demonetisation.

Any change in long-term capital gains tax exemptions for equities needs to be watched out for, he feels.

Beyond the Budget, GST will remain a key investor focus for 2017, he says. Goyal forecasts 15/18 percent earnings growth for Sensex/Nifty in FY18 and remains constructive with Sensex target of 30,000.

The market has opened flat with the Nifty above 8400. The 50-share is up 23.65 points or 0.3 percent at 8415.15 while the Sensex is up 73.91 points or 0.3 percent at 27191.25.

GAIL, Adani Ports, HDFC Bank, L&T and SBI are top gainers while Bharti, HUL, Infosys, Asian Painrs and Wipro are losers in the Sensex.

HCL Technologies is down 2 percent after it posted Q3 results. While retaining FY17 constant currency dollar revenue growth guidance at 12-14 percent, HCL Technologies said its third quarter profit grew by 2.3 percent sequentially to Rs 2,062 crore.

Rupee revenue during the quarter increased 2.6 percent quarter-on-quarter to Rs 11,814 crore and dollar revenue rose 1.3 percent to USD 1,745 million. The IT services provider expects its full year dollar revenue guidance at 10-12 percent while maintaining EBIT margin guidance of 19.5-20.5 percent.

The Indian rupee has opened higher by 12 paise at 68.08 per dollar on Tuesday against previous day's closing of 68.20 per dollar.

Bhaskar Panda of HDFC Bank feels the rupee is likely to remain rangebound within the range of Rs 68-68.30 against the US dollar.

The dollar slumped to a seven-week low against a currency basket, weighed by concerns about the early days of Donald Trump's administration.

Asian markets were mixed in early trade, taking cues from a weak handover from Wall Street as US President Donald Trump formally withdrew the nation from the Trans-Pacific Partnership (TPP) trade deal. The Nikkei was down three tenth of a percent in early trade, extending the previous session's declines of more than 1 percent, while the Korean markets were trading flat with a negative bias.

In the US, equities saw a fall, but closed off its session lows, as investors looked for more details regarding Trump's policies, which are largely seen as protectionist. Banking stocks were among the worst performers, with the sector losing more than 1.2 percent. The Dow Jones closed over 25 points lower, with Boeing and Mcdonald's contributing the most losses.