Sensex, Nifty close lower ahead of Budget 2017; IT stocks fall

3:30 Market closes: Markets end lower ahead of the presentation of the Union Budget on February 1. The 30-share Sensex was down 193.60 points or 0.70 percent at 27655.96, while the Nifty snapped 8600-mark and ended down 71.45 points or 0.83 percent at 8561.30. About 822 shares advanced, 1882 shares declined, and 312 shares were unchanged.

TCS and GAIL were the top losers on the Sensex, while Bharti Infratel and Grasim fell the most on the broader index. Meanwhile, ITC and Bajaj Auto were the top gainers on the 30-share index.

3:20 pm Results: Homegrown FMCG major Dabur India today reported a decline of 7.5 percent in consolidated net profit at Rs 293.76 crore for the third quarter ended December 31, 2016 on demonetisation and currency fluctuations woes. The company had posted a net profit of Rs 317.58 crore in October-December period of last fiscal. Net sales was also down 6.08 percent during the period under review to Rs 1,847.67 crore as against Rs 1,967.48 crore of the corresponding quarter of the previous fiscal.

3:00 pm Results poll: Royal Enfield maker Eicher Motors' third quarter profit on consolidated basis may grow 4 percent sequentially to Rs 430 crore on operational income. Revenue during the quarter is seen falling 7 percent to Rs 1,843 crore compared with Rs 1,981 crore in previous quarter, according to average of estimates of analysts polled by CNBC-TV18.

2:40 pm DeMo impact on economic growth: Demonetisation will shave off the economic growth for the current fiscal by 0.25 percent to 0.50 percent though it will have long-term benefits for the economy by reducing interest rates and eliminating corruption, besides bringing in more activities in the formal sector.

The cash squeeze, following junking of high value notes of Rs 500/1000 on November 8, 2016, the Economic Survey for 2016-17 said, "will have significant implications for GDP, reducing 2016-17 growth by 0.25 to 0.50 percentage points compared to the baseline of 7 percent."

The Survey has, however, projected the growth rate for 2017-18 at 6.75-7.5 percent.

2:28 pm JLR recalls vehicles: Tata Motors-owned Jaguar Land Rover will recall 6,438 vehicles in China due to defective safety belts.

The recall affects 1,554 imported 2016-2017 Range Rover and 3,438 imported 2016-2017 Range Rover sport series manufactured between July 12-October 26, 2016, China's General Administration of Quality Supervision, Inspection and Quarantine said in a statement.

The recall will begin from February 24.

The affected vehicles also include 1,132 imported 2017 Jaguar XE manufactured between July 13-December 7, 2016, and 314 imported 2017 Jaguar F-TYPE manufactured between July 19-December 16, 2016.

2:20 pm Interview: Bajaj Auto reported a 4.7 percent fall in net profit in the third quarter to Rs 924.6 crore as against Rs 970.6 crore in the same period last year. Revenue for the quarter decline 4.1 percent to Rs 59,500 per unit.

Speaking to CNBC-TV18, S Ravikumar, President – Business Development at Bajaj Auto said that the demonetisation impact is visible in shrinkage of numbers in last quarter.

The company is now focusing on its products for growth. Product mix has helped improve realisations by 160-170 basis points year-on-year.

Ravikumar is confident that the company will go back to its 20 percent plus margin growth by end of this fiscal.

2:10 pm Labour and tax reforms are needed to boost employment creation in apparel and leather sectors as the two segments can become vehicles for broader social transformation in the country, the Economic Survey for 2016-17 said today.

Noting that in both apparel and footwear sectors, tax and tariff policies create 'distortions' that impede India gaining export competitiveness, the Survey said that there is a need to undertake 'rationalisation' of domestic policies which are inconsistent with global demand patterns.

2:05 pm Earnings: Kansai Nerolac Paints today reported a 44 percent jump in net profit at Rs 123.96 crore for the third quarter ended December 31.

The company had reported a net profit of Rs 86.08 crore in the year-ago period.

Its total income during the quarter under review stood at Rs 1,143.81 crore, up 6.91 per cent, from Rs 1,069.8 crore in a year ago.

In a separate filing, Kansai Nerolac Paints said its board has approved setting up of a paint manufacturing unit at Achutapuram, Visakhapatnam District in Andhra Pradesh having capacity of 60,000 kl per year, which is expandable in phases, at an estimated cost of Rs 304 crore.

2:00 pm Market Check
Benchmark indices continued to trade lower, though recovered some losses from day's low as investors awaited Union Budget on February 1.

The 30-share BSE Sensex was down 85.54 points at 27764.02 and the 50-share NSE Nifty declined 38.70 points to 8594.05. The market breadth also remained negative as about two shares declined for every share rising on the BSE.

The Economic Survey 2017's remarks on fiscal policy indicate that Finance Minister Arun Jaitley may stick to the fiscal consolidation roadmap in his Budget due tomorrow.

The fiscal deficit target for FY18 is 3 percent of GDP, but most economists are expecting Jaitley to set a target anywhere between 3.0-3.5 percent, as the government looks to revive demand in the wake of demonetization.

''India's experience has reaffirmed the need for rules to contain fiscal deficits, because of the proclivity to spend during booms and undertake stimulus during downturns,'' the Survey notes.

Technology stocks pulled the market down, especially after a legislation has been introduced in the US House of Representatives which among other things calls for more than doubling the minimum salary of H-1B visa holders to USD 130,000, making it difficult for firms to use the programme to replace American employees with foreign workers, including from India. TCS was down 4 percent and Infosys fell 2 percent.

1:55 pm Economic Survey: Labour and tax reforms are needed to boost employment creation in apparel and leather sectors as the two segments can become vehicles for broader social transformation in the country, the Economic Survey for 2016-17 said today.

Noting that in both apparel and footwear sectors, tax and tariff policies create 'distortions' that impede India gaining export competitiveness, the Survey said that there is a need to undertake 'rationalisation' of domestic policies which are inconsistent with global demand patterns.

It noted that India has an opportunity to push exports from apparel and leather sectors since rising wage levels in China have resulted in China stabilising or losing market share in these products, recommending labour and tax reforms to make the country globally competitive.

1:50 pm Economic Survey: The Economic Survey 2017's remarks on fiscal policy indicates that Finance Minister Arun Jaitley may stick to the fiscal consolidation roadmap in his Budget due tomorrow.

The fiscal deficit target for FY18 is 3 percent of GDP, but most economists are expecting Jaitley to set a target anywhere between 3.0-3.5 percent, as the government looks to revive demand in the wake of demonetization.

''India's experience has reaffirmed the need for rules to contain fiscal deficits, because of the proclivity to spend during booms and undertake stimulus during downturns,'' the Survey notes.

1:45 pm Result: State-run oil retailer Indian Oil Corporation's (IOC) Q3 profit grew by 28 percent sequentially to Rs 3,995 crore but missed analysts' expectations due to higher other expenses, excise duty and tax cost.

Revenue during the quarter increased 15.3 percent to Rs 1,15,644.92 crore from Rs 1,00,273.94 crore in September quarter, which was ahead of estimates.

1:40 pm European markets: Markets in Europe opened lower Tuesday as investors focus on data and earnings while keeping an eye on U.S. President Donald Trump's immigration policy.

The pan-European Stoxx 600 was 0.02 percent lower.

Trump's immigration ban continues to create public outcry across the world. Overnight, Trump fired the federal government's top lawyer after she denied implementing the travel restrictions. The tech giant Amazon said it is considering a legal challenge against the ban.


1:30 pm Result: Pune-based two-wheeler maker Bajaj Auto said profit in October-December quarter fell 4.7 percent to Rs 924.6 crore compared with Rs 970.6 crore in year-ago period. Better-than-expected operational performance and other income supported bottomline.

Revenue during the quarter declined 9 percent year-on-year to Rs 5,354.13 crore on lower sales volumes due to demonetisation.

The company sold 8.51 lakh units in the quarter ended December 2016, down 10.5 percent compared with 9.51 lakh units sold in same quarter last year as domestic as well as exports sales were down 5 percent and 17.5 percent, respectively.

1:20 pm Whats in Rail Budget? Reeling under a series of derailments, the Budget is likely to announce creation of a separate safety fund of about Rs 1 lakh crore over the next five years out of which Rs 20,000 cr will be earmarked for 2017-18, according to sources.

Railways will also miss the operating ratio target of 92 per cent and is likely to settle at about 94-95 per cent.

The Budget 2017-18 is likely to announce setting up of Rail Development Authority, a regulatory authority for the public transporter. The formation of High Speed Rail Authority with the selection of its managing Director and other directors is also likely to be announced.

1:15 pm Rail Budget expectations: A safety fund of Rs 20,000 crore for railways reeling under a series of deadly derailments, development of new lines, station redevelopment and setting up of Rail Development Authority and High Speed Rail Authority will be in focus as Finance Minister Arun Jaitley presents the first Rail Budget subsumed in the General Budget tomorrow.

Going ahead with the government's reform agenda, Jaitley will discard the 92-year-long tradition of presentation of a separate Rail Budget and instead make it part of the General Budget earmarking a few paragraphs on the public transporter's finance, projects and the road map for the next fiscal.

Jailtley is likely to give more focus on infrastructure development such as new lines, doubling, station redevelopment, safety upgradation.

1:10 pm Economic Survey: The Survey's GDP growth figure for the current fiscal is lower than 7.1 per cent the Central Statistics Office had forecast earlier this month.

The Survey lists some of the challenges that might impede India's progress. These include ambivalence about property rights and the private sector, deficiencies in state capacity, especially in delivering essential services and inefficient redistribution.

The market continues to see selling pressure even after Economic Survey is tabled in the Parliament. The Sensex is down 93.26 points or 0.3 percent at 27756.30, and the Nifty down 40.70 points or 0.5 percent at 8592.05.

IT stocks are under pressure on visa reform bill. Stocks like TCS, Infosys and Wipro fell 3-5 percent while Tech Mahindra tanked 10 percent intraday Tuesday as minimum salary of H-1B visa holders is proposed to be more than double.

The annual Economic Survey 2016-17 tabled in Parliament said India will at grow at 6.75 to 7.5 percent in 2017-18. The Economic Survey has also stated that India's fiscal experience has underscored the fundamental validity of the fiscal policy principles enshrined in the Fiscal Responsibility and Budget Management Act (FRBM) Act 2003.

Data released at the beginning of the month showed that the economy will likely grow at 7.1 percent in 2016-17, 0.5 percentage points slower than the previous year's 7.6 percent expansion, underlining fears of an economy-wide cash-crunch due to demonetisation.

12:58 pm Survey says lower interest rates in FY18 will boost economy. Recovery from demonetisation needs policy support.

12:56 PM Sharp rise in prices in FY18 may cap room for monetary easing; fiscal gains from GST to take time to be realised, survey says.

12:52 pm Economic survey presented in Parliament. FY18 GDP growth is expected in range of 6.75-7.5 percent.

Survey sees demonetisation risk to FY18 GDP growth forecast.

12:48 pm Idea extends rally: Shares of Idea Cellular, the country's third largest telecom operator by subscriber base, surged 18 percent today in addition of 25 percent rally seen yesterday after both companies confirmed talks of merger.

However, Bharti Infratel continued to hit hard, down 13 percent on top of 7 percent loss yesterday.

12:46 pm Railway Budget expectations: Investment in improving railway infrastructure and amenities including passenger safety and convenience, cleaner and modern coaches and toilets, steps on energy efficiency and enhanced role for private sector in improving the lot of railway stations are among the key announcements that citizens will eye when Finance Minister Arun Jaitley presents the 2017-18 Union Budget.

Steps on bringing back more passengers to its air-conditioned coaches -- a segment that railways is fast losing to airlines – would also be welcome.

This will be the first time in 92 years that there will be no separate Railway Budget but the provisions related to India's largest transport services provider will form part of the main Union Budget.

12:43 pm CPSE ETF lists: The second tranche of CPSE Exchange Traded Fund, operated by Reliance Mutual Fund, got listed on the stock exchanges today.

It is currently trading at Rs 27.01, higher than the allotment price of Rs 25.21.

The Reliance Mutual Fund-managed Central Public Sector Enterprises-Exchange Traded Fund (CPSE ETF), which opened for subscriptions on January 17-20, was oversubscribed by 2.30 times, with bids worth Rs 13,802 crore pouring in against the issue size of Rs 6,000 crore.

12:40 pm Results: Century Textiles turned profitable in Q3 with net income at Rs 13.9 crore against loss of Rs 8.5 crore in year-ago period, led by strong operational performance.

Revenue fell 7.2 percent to Rs 1,962.5 crore on yearly basis.

Operating profit grew by 36.5 percent year-on-year to Rs 214.1 crore and margin expanded by 350 basis points to 10.9 percent in Q3.

12:38 pm BofA ML on H1-B visa: Every 10 percent increase in visa wages is an earnings risk of 4-11 percent, Bank of America Merrill Lynch says.

The brokerage house feels Tech Mahindra is most sensitive to hike in minimum wages.

"Tech Mahindra has EPS negative impact of 11 percent and Infosys has EPS negative impact of 7 percent due to 10 percent hike in wage bill," BoAML says.

12:33 pm Fed meet: The US Federal Reserve is expected to keep interest rates unchanged on Wednesday in its first policy decision since President Donald Trump took office, as the central bank awaits greater clarity on his economic policies.

Trump has promised a largUSe infrastructure spending program, tax cuts, a rollback of regulations and a renegotiation of trade deals but has offered few details or a timeline for their rollout since his victory in the November 8 election.

The central bank's latest policy decision is scheduled to be released at 2 p.m. EST (1900 GMT) on Wednesday at the conclusion of a two-day meeting. Fed Chair Janet Yellen is not due to hold a press conference.

12:25 pm Earnings: December quarter earnings of Cadila Healthcare disappointed analysts today as profit fell 34.6 percent year-on-year to Rs 281.6 crore and revenue declined 2 percent to Rs 2,364 crore.

Operating profit during the quarter plunged 31.7 percent to Rs 404.3 crore and margin contracted sharply by 750 basis points to 17.1 percent compared with year-ago period.

12:23 pm Major impact of change in H1-B visa bill is likely to be seen on TCS and Infosys as these companies have high exposure to US, experts feel.

12:20 pm Budget Expectations: As India's economy continues to reel in the aftermath of last year's demonetisation drive, Finance Minister Arun Jaitley must balance between the need for stimulating growth and continuing fiscal discipline when he presents the 2017-2018 budget on Wednesday.

India's fiscal year starts April 1, and the outlook has certainly changed from last year. Entering 2016 as the world's fastest-growing economy with annual gross domestic product (GDP) growth of 7.6 percent, the South Asian giant now faces shrinking factory output, consumption and rural demand following Prime Minister Narendra Modi's contentious currency reform that launched in November. The cash shortage that ensued could see India enter four consecutive quarters of sub-7 percent growth, Societe Generale estimated.

12:16 pm President Pranab Mukherjee today favoured a constructive debate on simultaneous elections to Lok Sabha and Assemblies and funding of polls to eradicate money power.

The Government, he said, is also committed to combating terrorism and to ensure that perpetrators of such acts are brought to justice.

In his address to the joint sitting of both the Houses of Parliament marking the opening of the Budget session, Mukherjee referred to the government's demonetisation decision to fight blackmoney and corruption as also the surgical strikes across the LoC as bold decisions, both of which were received with thumping of desks by members.

12:14 pm H-1B visa bill introduced: A legislation has been introduced in the US House of Representatives which among other things calls for more than doubling the minimum salary of H-1B visa holders to USD 130,000, making it difficult for firms to use the programme to replace American employees with foreign workers, including from India.

This is more than double of the current H-1B minimum wage of USD 60,000 which was established in 1989 and since then has remained unchanged.

Technology stocks butchered, Infosys and TCS falling 4-5 percent.

12:10 pm Data released at the beginning of the month showed that the economy will likely grow at 7.1 percent in 2016-17, 0.5 percentage points slower than the previous year's 7.6 percent expansion, underlining fears of an economy-wide cash-crunch due to demonetisation. Projections were based on incomplete output and corporate income data, amid signs of faltering investment and weak consumer spending, leading to fears that the actual numbers could be worse.

12:05 pm Economic Survey may indicate growth rate of 7.7-8.1 percent for FY18 and FY17 GDP growth rate of 7.1 percent, according to CNBC-Awaaz sources.

The survey may also indicate pain in short-term due to demonetisation.

12:00 pm Market Check
Equity benchmarks remained under pressure with the Nifty struggling below 8600 level. Investors turned cautious as Union Budget session began today with Finance Minister Arun Jaitley presenting Economic Survey 2016-17 shortly.

The 30-share BSE Sensex was down 153.92 points at 27695.64 and the 50-share NSE Nifty fell 55.20 points to 8577.55. About two shares declined for every share rising on the BSE.

Ahead of the start of the Budget session, Prime Minister Narendra Modi today hoped for a comprehensive discussion in Parliament.

He noted that in the last few days, the government has held discussions with all political parties to ensure that House proceedings are not disrupted.

There should be comprehensive discussion for welfare of society, Modi told reporters outside Parliament.

The Prime Minister said he has faith that all factions will come together in Parliament for welfare of society.

He said it is the first time that the Union Budget is being presented on February 1.

Lauding the country's citizens for the display of character in the wake of government's clampdown on black money, President Pranab Mukherjee said the resilience shown by the people is ''remarkable''. Mukherjee was addressing both Houses of Parliament on Tuesday, kicking off the Budget Session.

11:55 am Economic Survey expectations: Even as Finance Minister Arun Jaitley prepares to table the Economic Survey 2017 in Parliament, former Principal Advisor to Planning Commission Pronab Sen has expressed apprehensions over the applicability of the Economic Survey 2017 in the Budget. Seconding the views of commentators, political and otherwise, Sen said there seems to be a consensus that Budget 2017 will be more political than economic. It would be hard to guage how much the survey will weigh on the Union Budget, he told CNBC-TV18. The survey will also steer clear of making comments on fiscal deficit on the back of measures such as demonetisation, he added.

11:45 am Result poll: Country's largest private sector lender ICICI Bank is expected to see earnings pressure in Q3 owing to elevated slippages and higher provisions. Profit is seen falling 27.8 percent year-on-year to Rs 2,180.2 crore in the quarter ended December 2016. Net interest income, the difference between interest earned and interest expended, may decline 1.7 percent to Rs 5,359.1 crore compared with Rs 5,453 crore in year-ago period. Analysts expect slippages to remain on the higher end between Rs 7,000-8,000 crore (against Rs 8,029 crore in Q2). Hence, slippages from restructured book and movement of stressed assets (sale to asset reconstruction companies, addition to S4A, 5/25 & SDR) will be closely seen.

11:40 am Budget expectation for FMCG: Even as the fast moving consumer goods (FMCG) sector comes to terms with a steep fall in demand due to demonetisation, major firms are turning to Budget announcements to bring back consumer confidence.

Companies such as Marico, Emami and Godrej expect a growth-oriented, all-inclusive, and a progressive Budget, according to reports by broking firms.

Analysts expect tax policy for cigarettes to be benign, with an anticipation of an increase in excise duty on cigarettes by 10 percent across slabs and also the likely introduction of 59-mm segment in the current slab structure.

Furthermore, Morgan Stanley's Indira Badrinarayan also expects no changes in the cigarette taxes in the Budget as goods and services tax (GST) does not look imminent in the current fiscal.

11:35 am Market outlook: Sanjeev Prasad of Kotak Institutional Equities expects a pro-growth Budget tomorrow and likely cut in corporate tax and personal income tax due to demonetisation, indicating that India is moving towards a more tax-moderate regime. Prasad said it is hard to find midcap stocks with right valuations currently, giving an example he said non-banking finance companies (NBFCs) are trading at 3-4 times FY18 book value making them more expensive than the likes of HDFC Bank or HDFC.

11:30 am Note ban may delay banks' asset quality recovery: Demonetisation is likely to push back recovery in banks' asset quality as the cash shortage had a "disruptive impact" on India's informal economy, rating agency Fitch said today.

The impact of demonetisation on asset quality will start showing significantly in data for the January-March quarter, te rating agency said.

"Demonetisation is likely to push back the recovery in Indian banks' asset quality, given the disruptive impact that cash shortages have had on the country's large informal economy," Fitch Ratings said in a statement.

11:27 am Market check: The Sensex is down 120.57 points or 0.4 percent at 27728.99 and the Nifty is down 47.15 points or 0.5 percent at 8585.60. About 798 shares have advanced, 1480 shares declined, and 249 shares are unchanged.

ONGC, ITC, Bharti Airtel, Tata Steel and Dr Reddy's Labs are top gainers while GAIL, TCS, Coal India, Adani Ports and ICICI Bank are losers in the Sensex.

11:20 am President Mukherjee says:

  • 37 percent of Ujjwala beneficiaries belong to SCs and STs
  • Over 20 crore LED bulbs have been  issued via Ujjwala yojana
  • 1.5 crore free LPG connections have already been provided in FY17
  • Sowing area has shown 6 percent increase in this rabi season
  • Focus of govt has been holistic  development of agriculture
  • Favourable monsoon aided average, yield of kharif crops
  • Soaring price of pulses was a grave concern
  • Pulse prices have been brought under control

11:15 am President Mukherjee says:

  • 1.4 lakh villages declared  open-defecation free
  • Over 20 crore RuPay cards have been issued so far
  • Unprivileged got access to LPG connection as the rich gave it up
  • Over Rs16,000 crore made available  to self-help groups
  • Govt committed to affordable housing  via 'housing for all' by 2022
  • Free gas connections are being  provided to 5 crore households

11:10 am President Mukherjee says:

  • It's a historic session as railway budget is merged with the union budget
  • Resilience shown in fight against corruption & black money is remarkable
  • Swachh Bharat scheme is turned  into a 'jan andolan'
  • Core of all government policies is the welfare of needy
  • Financial inclusion key to poverty alleviation

The market continues to struggle with the Sensex is down 108.06 points or 0.4 percent at 27741.50. The Nifty is down 41.55 points or 0.5 percent at 8591.20.
About 795 shares have advanced, 1385 shares declined, and 254 shares are unchanged.

ONGC, Tata Steel, Dr Reddy's Labs, NTPC and Bharti Airtel are top gainers while GAIL, Coal India, TCS, Adani Ports and Infosys are losers in the Sensex.

President Pranab Mukherjee is addressing a joint sitting of the two Houses of Parliament. The government will table the Economic Survey 2017 in the Parliament. The survey will put out economic growth forecasts. It is widely expected to recommend the rollout of universal basic income scheme. Government sources have told CNBC-TV18 that the Union Budget is likely to have a pro-poor focus. It hints at higher allocations for existing rural infra, irrigation and social welfare schemes.

10:48 am Budget expectations: Sources say that the government is focusing on going pro-poor this time.

Indirect taxes are not likely to be tinkered much with as Finance Minister Arun Jaitley's focus continues to be the upcoming Goods & Services Tax (GST).

Government sources, privy to the developments, say that higher allocation for social sectors is likely in this Budget. Areas like irrigation and rural infrastructure will be focused upon.

10:39 am Crude falls further: Oil prices dipped as rising US drilling activity offset efforts by OPEC and other producers to cut output in a move to prop up the market.

Brent crude futures, the international benchmark for oil prices, were trading at USD 55.10 per barrel, down 0.24 percent from their last close.

Since their January peak, Brent has lost over 5.5 percent in value.

10:30 am Earnings estimates: Country's largest private sector lender ICICI Bank is expected to see earnings pressure in Q3 owing to elevated slippages and higher provisions. Profit is seen falling 27.8 percent year-on-year to Rs 2,180.2 crore in the quarter ended December 2016.

Net interest income, the difference between interest earned and interest expended, may decline 1.7 percent to Rs 5,359.1 crore compared with Rs 5,453 crore in year-ago period.

Analysts expect slippages to remain on the higher end between Rs 7,000-8,000 crore (against Rs 8,029 crore in Q2).

10:20 am ONGC gets 1st installment from Venezuela co: India's ONGC has received the first installment of USD 19 million from Venezuela's state oil firm Petroleos de Venezuela towards recovering pending dividend , a senior company official said.

PDVSA and ONGC Videsh Ltd, the overseas investment of arm of state-run explorer ONGC, last year signed a deal allowing the Indian firm to get 17,000 barrels per day of oil to recover dues of about USD 540 million.

"PDVSA is marketing our share of oil. Every month we will get an installment," N. K. Verma, managing director of ONGC Videsh told Reuters late on Monday. He said price of crude from San Cristobal project is market linked.

ONGC has 40 percent stake in the project with PDVSA holding the remainder. ONGC has invested USD 200 million in the San Cristobal field and has not received any dividend since 2009.

10:10 am FII View: Nigel Tupper of Bank of America Merrill Lynch says history suggests Asia tends to be one of the best performing regions in the world when the Global Wave is rising.

Asia has not outperformed global equity indices in the recent rally, but there are a number of positive catalysts for Asia equities, he says.

The Global Wave has improved for the eighth consecutive month, the EPS forecast of Asia has been positively correlated to the Global Wave since 1988, and Asia is trading below long-term average valuation levels relative to other regions of the world, Tupper feels.

10:00 am Market Check
Equity benchmarks as well as broader markets remained under pressure as investors maintained cautious stance ahead of Economic Survey and Union Budget.

The 30-share BSE Sensex was down 90.93 points at 27758.63 and the 50-share NSE Nifty fell 29.75 points to 8603. The broader markets also slipped 0.3 percent as about 1101 shares declined against 754 advancing shares on the exchange.

Finance Minister Arun Jaitley will table the Economic Survey in Parliament today. It is an official report on the economy and will set the tone for the Union Budget 2017-18, which will be presented on Wednesday.

As Jaitley readies to give a detailed account of prospects and the policy challenges, five things like demonetisation, GDP projections, universal basic income, black money and JAM (Jan Dhan, Aadhaar, Mobile) & BAPU (Biometrically Authenticated Physical Uptake) will be closely watched.

Technology and banking & financials stocks were under pressure while FMCG and oil stocks gained.

Ahead of quarterly earnings, ONGC gained 2 percent whereas Bajaj Auto, ICICI Bank and IOC were down 0.4-1.4 percent.

9:55 am Sebi beefs up security ahead of Budget: Markets regulator Sebi and stock exchanges have beefed up surveillance and risk management systems to handle eventualities that may arise from excessive volatility in the wake of Budget announcements.

The regulator has asked the exchanges, as well as clearing corporations and other market infrastructure entities to ensure enhanced vigil in the wake of the presentations of the Economic Survey tomorrow and the Union Budget on February 1, sources said.

The surveillance and risk management systems have been reviewed minutely to tackle any eventuality arising out of any high volatility and to check any manipulative activities, sources said.

9:45 am Economic Outlook Survey expectations: Indian economy will grow 6.8 percent this fiscal due to a slow down in the services and infrastructure sectors post demonetisation, according to a latest round of Ficci's Economic Outlook Survey.

Significantly, the annual median GDP growth forecast of 6.8 percent is sharply lower than the 7.3 percent projected in the previous round of the survey.

The survey was conducted in the months of December 2016/ January 2017 and drew responses from leading economists representing industry, banking and financial services sector.

The Central Statistical Organisation had estimated a GDP growth of 7.1 percent for 2016-17 earlier in January.

9:35 am Market cracks: The Sensex is down 130.03 points or 0.5 percent at 27719.53 and the Nifty is down 44.05 points or 0.5 percent at 8588.70. About 607 shares have advanced, 986 shares declined, and 167 shares are unchanged.

ONGC, Tata Steel, Bharti Airtel, Adani Ports amd ITC are top gainers while Coal India, GAIL, Tata Motors, Infosys and TCS are losers in the Sensex.

9:30 am FII view: Surendra Goyal of Citi says Q3 earnings growth for BSE 100 is tracking at 6 percent YoY, ahead of Citi estimates.

He expects Sensex/Nifty earnings growth of 10/12 percent in FY17 and 15/18 percent in FY18, respectively. He remains constructive and maintains Sensex target of 30,000.

The market has opened weak ahead of Budget with the Nifty marginally holding 8600. The 50-share index down 30.40 points or 0.3 pecent at 8602.35 while the Sensex is down 93.08 points or 0.3 percent at 27756.48.

ONGC, Dr Reddy's Labs, Cipla, Lupin and HUL are top gainers while GAIL, Coal India, Tata Motors, Infosys and Bajaj Auto are losers in the Sensex.

On the macro front, the government will table the Economic Survey 2017 in the Parliament. The survey will put out economic growth forecasts. It is widely expected to recommend the rollout of universal basic income scheme. Government sources have told CNBC-TV18 that the Union Budget is likely to have a pro-poor focus. It hints at higher allocations for existing rural infra, irrigation and social welfare schemes.

 The Indian rupee rose in the early trade on Tuesday. It has opened higher by 11 paise at 67.84 per dollar versus previous close 67.95.

Bhaskar Panda of HDFC Bank said, "The USD-INR pair is expected to trade in a range of 67.80-68.10/dollar for the day." The dollar slipped a percent against the yen overnight on trump policy concerns.
CiplaLupin,HUL
Among Asian markets, stronger yen pushed down the Nikkei over a percent. The index was also weak ahead of Bank of Japan's key monetary policy decision. The Hang Seng index was down around 0.06 percent, almost flat with a negative bias.

In the US, equities closed lower, notching their worst day of the year, as a new measure taken by the US President Donald Trump on immigration sent jitters through the market. The Dow Jones snapped its 20,000-mark after falling around 120 points, with Goldman Sachs contributing the most losses. The S&P 500 and Nasdaq were also down between 0.5 and 0.81 percent.