Sensex erases all gains to end flat, Nifty holds 9600; Lupin up 2%

3:30 pm Market at Close: Erasing a huge chunk of its gains in the final hours of trade, benchmark indices ended the session on a flat note, after having surged almost over 150 points on the Sensex intraday. The Nifty closed just above 9600.

The Sensex ended up 7.79 points at 31103.49, while the Nifty was down 9.50 points at 9606.90. The market breadth was negative as 1,318 shares advanced against a decline of 1,355 shares, while 192 shares were unchanged.

Midcaps closed absolutely flat, while metals, IT stocks, as well as auto and power stocks ended lower, FMCG and infrastructure gained.

Lupin, NTPC, and Power Grid Corporation gained the most, while Tata Motors, Vedanta and HCL Technologies were the top losers.

3:20 pm Buzzing: Satin Creditcare Network shares rallied 20 percent intraday after the company said farm loan waiver announced by Maharashtra and Uttar Pradesh governments will not have any negative impact.

Not only banks but non-banking finance companies were also under pressure as investors worried about these companies' financials after farm loan waiver of more than Rs 66,000 crore by both states.

Nomura in its latest report said Punjab is also about to finalise its debt waiver package, and there are demands in MP/Tamil Nadu to extend the debt waiver applicable to co-operative bank debt, even to the debt of commercial banks.

In an interview to CNBC-TV18, HP Singh, Founder & MD of Satin Creditcare Network said credit culture to an extent does get hurt in this process when government announces farm loan waiver but the company will not have negative impact from this.

He further said it gives out loans only to other agri credit segments, and not for farm loans. Default ratio will reduce going forward, he feels.

Credit demand has spurred post demonetisation, he said.

3:04 pm Market Check: Equity benchmarks erased gains in last hour of trade, with the Nifty moving closer to 9600 level that has been a near term support.

The 30-share BSE Sensex was up 22.93 points at 31,118.63 and the 50-share NSE Nifty fell 4.75 points to 9,611.65.

Even the gap between advances and declines also narrowed as about 1,337 shares advanced against 1,294 declining shares on the BSE.

2:50 pm IPO: General Insurance Corporation of India (GIC) is expected to launch its Rs 9,000 crore initial public offering (IPO) in September-October, 2017, reports CNBC-TV18 quoting Cogencis' sources.

The Government of India will offload 10 percent stake in the company through offer for sale issue.

It is a part of divestment programme announced by the government in Union Budget 2017. The government planned to raise Rs 72,500 crore through stake sale in public sector enterprises during the current fiscal.

2:44 pm Labour data soon?: Ministry of statistics & program implementation today said the government would come out with quarterly labour force data covering rural and urban areas.

India has a decentralised system of statistical data and the government

will monitor rural employment data annually & urban data quarterly, it added.

2:40 pm Subsidy burden: Finance ministry official said food subsidy in the month of April totalled at Rs 63,556 crore, which was more than doubled compared with Rs 29,147 crore in year-ago month. It was impacted due to payment of last year dues by the government.

Fuel subsidy during the month totalled at Rs 20,900 crore against nil in corresponding month of last year while fertiliser subsidy stood at Rs 15,715 crore in April against nil in same month last year.

2:35 pm Gold Update: Gold held steady as investors remained cautious ahead of a two-day US Federal Reserve meeting that is likely to provide hints on the central bank's interest rate policy for the remainder of the year, news agency Reuters reported.

The Fed is widely expected to hike interest rates during the policy meeting beginning Tuesday, but the focus is on whether the central bank thinks the US economy is robust enough to withstand further rate increases through 2017.

"If they are not hawkish, gold could be stable for a little while because there seems to be a bit too much longs in the market," said Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong.

2:18 pm New MF schemes: With mutual funds gaining popularity among retail investors, asset management companies have filed draft offer documents with market regulator the Securities and Exchange Board of India for as many as 15 new schemes in May.

Equity, debt, balanced and fixed maturity plans (FMPs) are some of the themes for which the MF houses have filed the applications.

Reliance MF, DSP BlackRock MF, Birla Sun Life MF, HDFC MF and Sundaram MF, Union MF, HSBC MF, Indiabulls MF, L&T MF and Franklin Templeton MF are among the fund houses that have filed offer documents with SEBI.

The schemes will be opened for subscription soon after the necessary clearance.

2:00 pm Management Speak: MS Unnikrishnan, MD & CEO, Thermax in an interview to CNBC-TV18 from the sidelines of Ambit's India Access Conference in London spoke about the demand and business outlook going forward.

He said the demand slowdown seems to be closer to the bottom now. Sectors that are consumption oriented are seeing investments happening and there is some movement visible in areas like commodity and infrastructure. Moreover, Cement and oil & gas space is also attracting attention, he added.

1:45 pm Market Update: Equity benchmarks extended gains in afternoon trade, with the Nifty reclaiming 9650 level.

The 30-share BSE Sensex was up 147.69 points at 31,243.39 and the 50-share NSE Nifty gained 33.95 points at 9,650.35, supported by HDFC, HDFC Bank, Lupin, ICICI Bank, L&T and ITC.

1:20 pm Wipro goes ex-bonus: Wipro declined nearly 2 percent intraday after the stock price adjusted for bonus issue. Hence, it started quoting ex-bonus from today.

The country's third largest IT company announced issue of bonus shares to shareholders (including to ADS holders) on April 25. The ratio is one equity share for every one equity share held.

It has fixed record date as June 14 for bonus issue.

Consequently, Wipro's share price halved to Rs 263.15 from previous day's closing value of Rs 526.

On Monday, its share price on New York Stock Exchange shed more than 47 percent in pre-opening trade due to ex-bonus.

In its clarification note to exchange, Wipro said that payable date and ex-dividend date for its ADR (American Depository Receipts) bonus issue, or stock dividend, are yet to be determined.

1:00 pm Market Check: Equity benchmarks continued to trade higher in afternoon trade, with the Nifty eyeing 9650 level, backed by HDFC Group, infra, pharma and select banks stocks.

The 30-share BSE Sensex was up 119.99 points at 31,215.69 and the 50-share NSE Nifty rose 28.20 points to 9,644.60.

The broader markets continued to outperform benchmarks, with the BSE Midcap index rising 0.5 percent and Smallcap up 0.9 percent. About 1482 shares advanced against 992 declining shares on the BSE.

12:35 pm Upcoming IPO: Mumbai-based Capacit'e Infraprojects has received approval from the Securities and Exchange Board of India (SEBI) for its proposed initial public offering.

The construction company had filed its draft red herring prospectus for an IPO on April 17, 2017.

The company plans to raise 400 crore through its fresh issue.

12:11 pm Market Check: Equity benchmark indices traded steady after it extended its gains in the previous session, with the Nifty inching closer to 9650-mark.

The Sensex was up 98.03 points at 31193.73, while the Nifty was up 25.35 points at 9641.75. The market breadth was slightly narrow as 1,463 shares advanced, against a decline of 888 shares, while 161 shares were unchanged.

Midcaps continued to strengthen, while IT stocks cracked, with the IT index on the Nifty falling nearly a percent.

HDFC, Lupin, Bank of Baroda and Yes Bank were the top gainers, while Tata Motors, TCS, Tata Motors DVR and Tech Mahindra lost the most.

11:53 am USFDA audit: Jeevan Scientific Technology shares were locked at 5 percent upper circuit at Rs 39.80 on successful completion of first audit by the US health regulator.

The company said the US Food and Drug Administration conducted an un-announced audit of company's corporate and clinical pharmacology centre facilities. The purpose of this audit was to review the BA/BE studies.

The USFDA started review of facilities on June 5 and completed on June 8, 2017.

"Auditors were pleased with procedures and processes which resulted with no 483 observations," Jeevan Scientific said.

11:25 am Buzzing Stock: Investors cheered multiple developments around Jaiprakash Associates, which sent the stock soaring nearly 12 percent intraday on Tuesday.

According to reports on CNBC-TV18, the deal between the company and UltraTech Cement is likely to be closed by the end of this month. Approvals from Uttar Pradesh and Andhra Pradesh is already is in place, while a nod is awaited from Madhya Pradesh and Himachal Pradesh, the report added, quoting sources.

On the regulatory front, the company already has approvals from the National Company Law Tribunal, Competition Commission of India as well as from shareholders. The valuation of this deal is pegged at Rs 16,189 crore.

11:10 am Market Check: Benchmark indices extended their gains from the morning session, with the Nifty firmly above 9600- mark, which it had breached on Monday.

The Sensex was up 97.10 points at 31192.80, while the Nifty was up 22.60 points at 9639.00. The market breadth was health as 1,435 shares advanced against a decline of 785 shares, while 119 shares were unchanged.

Banks, both private and public, gained and helped the indices rise, while midcaps too gained. FMCG and metals witnessed marginal correction as well.

HDFC, Sun Pharma, Bank of Baroda and ACC gained the most, while Tata Motors, Infosys, Tech Mahindra and Vedanta lost the most.

11:00 am Buzzing Stock: Shares of Cadila Healthcare were higher by 1.5 percent intraday on Tuesday as investors cheered a recent product nod by US drug regulator.

The pharmaceutical major received a nod from the US Food and Drug Administration for Ezetimibe drug, which is used to treat high cholesterol. The news holds significance as the approval for the product from its Moraiya facility in Gujarat, which was until recently under pressure from the watchdog.

"The estimated sales for Ezetimibe tablets is USD 2.7 billion as per IMS MAT April 2017," the company told the exchanges in a statement.

10:44 am IPO: The initial public offering (IPO) of leading securities depository Central Depository Services (CDSL) will open on June 19 and close on June 21.

The price band of the offer is fixed from Rs 145-149 and little over 3.5 crore shares will be offloaded by CDSL through the Offer for Sale (OFS) route and 7 lakh shares would be reserved for employees.

CDSL, promoted by BSE, had filed draft red herring prospectus (DRHP) with the Securities and Exchange Board of India in December 2016.

The company will only be listed on National Stock Exchange and not on BSE since the latter is the promoter of the depository firm.

10:25 am Market Outlook: Foreign institutional investors (FIIs) which have off-late turned net sellers in the month of June after pouring in close to Rs 10,000 crore in the month of May are very positive on Indian markets assures Pramod Gubbi, managing director and head equities, at Ambit Institutional Equities.

''FIIs continue to be positive in India given the nature of the economy is largely dependent on the domestic market as opposed to other emerging markets (EMs) which are dependent on the global economy,'' said Gubbi.

He further said that I don't think there is any left out feeling among FIIs poured in money in receding years which has made a lot of returns for the market. I don't think last 8-month suggest they have had any serious issue abut India as an investible market.

10:00 am Market check: The broader markets outperformed benchmarks in morning trade, with the BSE Midcap and Smallcap indices rising more than half a percent.

The 30-share BSE Sensex gained 69.63 points at 31,165.33 and the 50-share NSE Nifty rose 17.65 points to 9,634.05.

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

Sun Pharma was biggest gainer among Sensex stocks, up nearly 2 percent followed by ICICI Bank, HDFC, Maruti Suzuki, Lupin, L&T and HUL. TCS, Infosys, Tata Motors and ITC were under pressure.

9:41 am Buzzing: Shares of Sun Pharmaceutical Industries advanced as much as 3.4 percent in morning trade on the back of USFDA approval for generic Zetia tablets.

The company's wholly owned subsidiaries has received final approval from United States Food and Drug Administration (USFDA) for its abbreviated new drug application (ANDA) for generic version of Zetia, (ezetimibe) tablets 10mg.

The tablet Zetia is used to lower cholesterol in the blood. These generic ezetimibe tablets are therapeutic equivalents of Merck's Zetia tablets.

According to IMS data, ezetimibe tablets had annual sales of approximately USD 2.7 billion in the US for the 12 months ended April 2017.

9:32 am Market Update: Benchmark indices gained strength after opening flat. The 30-share BSE Sensex was up 89.49 points at 31,185.19 and the 50-share NSE Nifty rose 24.90 points to 9,641.30, following upmove in Asia after mixed trade.

About three shares advanced for every share falling on the BSE.

Among Asian shares, Hong Kong's Hang Seng, Australia's ASX 200, South Korea's Kospi and China's Shanghai gained 0.4-1 percent.

9:25 am Market Outlook: Anish Damania of IDFC said the market will now closely monitor an expected short-term disruption from GST implementation and a still looming mild threat from El Nino.

He continues to maintain Nifty FY18 target at 9,825.

9:15 am Market Check: Equity benchmarks opened flat but the broader markets outperformed on Monday, after industrial output and retail inflation data.

The 30-share BSE Sensex was down 4.79 points at 31,090.91 and the 50-share NSE Nifty rose 2.15 points to 9,618.55. About three shares advanced for every share falling on the NSE.

Sugar stocks were in action as Ugar Sugar, Rana Sugar, Shree Renuka Sugars, Bajaj Hindusthan and Balrampur Chini gained 4-8 percent.

Among other midcaps, Ashok Leyland, Delta Corp, PFC, OBC and Syndicate Bank were up 1-2 percent while Bharat Financial was down nearly 1 percent. Vascon Engineers fell 10 percent.

The Indian rupee opened flat at 64.43 per dollar versus previous close 64.44.

Bhaskar Panda of HDFC Bank feels India story keeps the USD-INR rangebound. He expects a range of 64.35-64.55/dollar to play out for today.

India's retail inflation rate fell to 2.18 percent in May, lowest since 2012, mainly due to a fall in food prices.

India's factory output grew 3.1 percent in April from 2.7 percent in March, amid revival signs.