BSE Sensex ends 183 pts down; banks, autos, realty bleed

3:50 pm Market closing: The market had a tough day of trade and slipped a little more than 1 percent. The Nifty ended the day below the 6,000 mark at 5,955, down 75.55 points. The Sensex was down around 183 points at 19,851. Rate sensitives like banks and autos were the key losers today.

3:45 pm Expert view: Nischal Maheshwari of Edelweiss Financial Services believes that 5500 is a good level to hold on to the Nifty. He told CNBC-TV18 that in the last one month the market was driven by IT individual stocks like Reliance Industries , HDFC Bank , ITC and Hindustan Unilever ( HUL ) and he is not expecting any downgrade in earning this time as well.

He further said that the EPS estimates will be under pressure, the expectation earlier was a recovery in the second half and that has been delayed. Now he expects the recovery to most likely happen in Q4 of the current year or in FY15.

3:40 pm Midcap gainers: Clariant Chemicals India (up 11.2 percent) is among the top midcap gainers of the day. Its board has approved the proposal to initiate the sale of land at Kolshet, Thane subject to the necessary approvals. Firstsource Solutions (up 9.84 percent) and Biocon (up 3.94 percent) other midcap gainers.

3:35 pm Update: Amid talks of Jet-Etihad deal missing the transaction closure deadline, both parties are in talks to extend the deadline to October-November, reports Kritika Saxena quoting exclusive sources.

Abu Dhabi's Etihad picked up 24 percent stake in Jet Airways in April this year and deal is yet to get all necessary approvals.

Sources further say that both carriers have no plans to terminate agreement. However, they are working to make certain changes in the agreement.

3:30 pm FM on gold: Ruling out complete ban on gold import, Finance Minister P Chidambaram on Tuesday appealed to the people to moderate their demand for the precious metal which is costing the nation USD 50 billion in foreign exchange, reports PTI.

"We cannot completely ban import of gold. There is a long time attachment to gold in this country. I am requesting... can we for sometime moderate the demand for gold? "Can we reduce our appetite for gold? If you are buying, say 20 grams, can you buy 10 grams," he said while addressing a press conference here.

3:25 pm: South Korea's POSCO said it will pull out of a USD 5.3 billion steel mill development in Karnataka, but will proceed with another USD 12 billion project billed as India's largest foreign direct investment, reports Reuters.

Don't miss: What is MSF? How MSF hike will help curb rupee volatility?

Nervousness in the market continues. The Nifty is still struggling at 5950, led by big cuts in the banking and financial space. The Nifty is at 5952.85, down 78 points while Sensex slips 193.78 points to 19840.70.

The midcap index suffers too, smaller banks shed anywhere between 5 to 10 percent.

The surprise and aggressive move by the RBI makes big brokerages nervous about India's growth prospects. Morgan Stanley expects a 75 to 100 bps downside to their GDP estimate of 6 percent, Bank of America Merrill Lynch cuts its FY14 GDP growth forecast to 5.5 percent.

Index heavyweights ITC and Reliance Industries gained 2 percent and 0.4 percent, respectively.

Bharti Airtel shares rallied 2.5 percent on the hopes the government may approve a 100 percent foreign direct investment in telecom.

Tata Motors and Tata Power too rebounded in afternoon trade, rising one percent each.

Meanwhile, ONGC , Hindustan Unilever , TCS and Sun Pharma gained 0.7-1.8 percent.

NIIT Technologies , after its first quarter earnings, says that the good signs of recovery is expected in the US and also strong traction is seen in domestic market. Its first quarter consolidated net profit fell to Rs 53.2 crore from Rs 56.6 crore reported in previous quarter.

02:50pm Expert's view on market - Tirthankar Patnaik of Religare Capital says the market will remain under pressure due to RBI measures for curbing rupee volatility. He expects the market to trade at current level till upcoming Federal Reserve meet.

IL&FS Engineering received letter of intent for Rs 284 crore order from Uttar Pradesh. Shares rallied 5 percent.

02:40pm Index heavyweights ITC and Reliance Industries gained 2 percent and 0.4 percent, respectively.

Bharti Airtel shares rallied 2.5 percent on likely nod for 100 percent foreign direct investment in telecom.

Tata Motors and Tata Power too rebounded in afternoon trade, rising one percent each.

Meanwhile, ONGC , Hindustan Unilever , TCS and Sun Pharma gained 0.7-1.8 percent.

NIIT Technologies , after its first quarter earnings, says that the good signs of recovery is expected in the US and also strong traction is seen in domestic market.

European market continues to remain weak, the company says. "We have orders worth USD 263 million executable over 12 months."

02:30pm NIIT Technologies shares declined one percent after its first quarter consolidated net profit fell to Rs 53.2 crore from Rs 56.6 crore reported in previous quarter.

Clariant Chemicals shares rallied nearly 9 percent as the board of directors proposed initiating sale of land at Kolshet, Thane.

The market came off its day's low with Sensex cutting losses from 385 points to 162 points at 19872.10, supported by ITC and Reliance Industries. The Nifty is down 67.20 points or 1.11 percent at 5963.60.

02:20pm Equity benchmarks remain in a downward journey today, weighed down by banks, auto, realty and capital goods stocks.

The BSE Sensex is down 196.93 points or 0.98 percent at 19837.55, and the Nifty is down 78.10 points or 1.30 percent at 5952.70.

Ashok Leyland, the second largest commercial vehicle maker, disappointed the street with posting higher-than-expected loss of Rs 142 crore in first quarter as against profit of Rs 66.9 crore in a year ago period and expectations of Rs 60 crore loss. Revenue fell 21.9 percent year-on-year to Rs 2,364 crore during April-June quarter.

2:10 pm Earnings: Ashok Leyland posted net loss of Rs 142 crore compared to Rs 66.9 crore profit in the year-ago period. During the period, revenue stood at Rs 2364 crore vs Rs 3027 crore year-on-year. The stock crashes 8 percent on the BSE.

1:45 pm Telecom data: India added 35.7 lakh vs 31.1 lakh subscribers month-on-month in June. Bharti Airtel added 13 lakh vs 8.5 lakh subscribers (MoM) during the period. Vodafone India added 3.47 lakh vs 9.1 lakh subscribers (MoM), Idea added12 lakh, Uninor added 2.95 Lakh while MTNL lost 2.87 lakh in June.

1:40 pm Rupee measures: JPMorgan, Goldman Sachs, SBI Cap, SBI-SG have submitted paper to the Finance  Ministry, reports CNBC-TV18 quoting sources. The proposal recommends 5-10 year bond issue to open rupee bond market. It also proposes opening market from USD 500-1000 million in first tranche.

1:35 pm Oil update: The Oil ministry is likely to seek Rs 60,000-70,000 crore compensation from the finance ministry for oil marketing companies in FY14, exclusive sources told CNBC-TV18.

The oil ministry is of the opinion that Rs 20,000 crore compensation proposed earlier is not sufficient. However, there is a case of diesel, liquefied petroleum gas (LPG) price hike but no formal proposal has been submitted so far, sources further said.

1:30 pm Alert: Indranil Sengupta, Chief Economist-India, Bank of America-Merrill Lynch (BofA ML) told CNBC-TV18 that RBI will start cutting rates once the rupee stabilises.

The broking firm lowered its India gross domestic product (GDP) estimate for FY14 to 5.5 percent versus a 5.8 percent earlier, after the central bank announced a slew of measures to curb rupee liquidity.

Sengupta says the 5.8 percent estimate was based on lending rate cuts and better monsoons. However, after yesterday RBI announcement, liquidity will remain tight and there will be no lending rate cuts, therefore the revision to 5.5 percent.

He further said that the FII debt inflows will depend on what happens globally rather than what happens domestically. "At the end of the day the government will need to do either a NRI bond or a sovereign bond issuance to boost FX reserves," he says.

1:27 pm Movers: Telecom stocks are rallying with a hope that the government may approve 100 percent foreign direct investment (FDI) in telecom services. According to CNBC-TV18's sources, the Department of Telecom (DoT) is moving for a 100 percent FDI as the sector requires Rs 5-6 lakh crore in next few years and the DoT can not generate such resources internally. Both Bharti Airtel and Idea Cellular are up around 2 percent on the BSE.

Don't miss: 6% growth possible in FY14, steps taken to revive economy

The market is still jittery as the Nifty collapsed nearly 100 points to below 5950 after a gap down opening. The Nifty is down 84 points at 5946.80 while the Sensex slips 225.28 points to19809.20. About 692 shares have advanced, 1302 shares declined, and 114 shares are unchanged.

Banks are bleeding today with the Bank Nifty cracking over 4 percent. Morgan Stanley cuts the rating for Indian financial companies to 'cautious'. Its top avoids include SBI, PNB and Axis Bank .

The RBI finally came to the rupee's rescue late last night by announcing measures to curb excess liquidity in the system. The marginal standing facility rate is raised to 10.25 percent, also the total funds available under its repo window will now be capped at Rs 75,000 crore.

Even as big brokerages turn nervous about India's growth prospects post the RBI move, the finance minister is hopeful of a 6 percent number. However, that too is a scale down from the 6.5 percent projected in the budget, earlier this year.

12:55pm YES Bank shares crashed 8.5 percent today to Rs 458.05 amid large volumes, after Credit Suisse downgraded the bank, stating that the bank will be forced to curb asset growth in addition to facing margin pressures.

Bharti Airtel and Idea Cellular shares gained 2 percent each as Department of Telecommunication is moving for 100 percent foreign direct investment in telecom services, reports CNBC-TV18 quoting sources. It is learnt that the telecom sector requires Rs 5-6 lakh crore in next few years.

Also Read - Market should be prepared for near-term pain: Montek

12:45pm HSBC estimates Reserve Bank of India 's action to raise short-term interest rates and conduct a bond sale on Thursday will squeeze out 300 billion rupees in liquidity, and says it is "not an insignificant amount," reports Reuters.

Allcargo Logistics rallied 10 percent amid hefty volumes after more than 12 lakh equity shares changed hands at Rs 88 apiece on exchanges via two block deals.

Godrej Consumer rose 0.5 percent to Rs 872.90 amid high volumes. More than 7.7 lakh shares changed hands at Rs 840 apiece via block deal on the Bombay Stock Exchange.

Also Read - India's shirt cleanest in EM but FM, RBI out of sync: Ambit

12:35pm European markets are flat in early trade. Germany's DAX and Britain's FTSE gained just 0.2 percent.

Back home, Zee Enterprises gained 1.5 percent as promoter released pledge on 49.2 lakh equity shares.

Shipping Corporation rose 4 percent on reports that the company may increase Europe route freight rate by USD 200 per container.

12:25pm ONGC and BPCL outperformed other largecaps, rising 2 percent each. Sun Pharma jumped over 1.5 percent while ITC gained 1.3 percent.

TCS and Hindustan Unilever are up 0.7 percent.

Among midcaps, Crompton Greaves rallied over 3 percent as its buyback of equity shares started today. The company will buyback shares at maxium price upto Rs 125 apiece.

Also Read - Challenging for companies to raise money: Sebi chairman

12:15pm Indian equities continue to reel under pressure with the Nifty falling nearly 90 points to below 5950, led by big cuts in the banking and financial space. The midcap index suffered too, smaller banks shed anywhere between 5 to 9 percent.

The BSE Sensex is down 248.65 points or 1.24 percent at 19785.83, and the Nifty is down 89.70 points or 1.49 percent at 5941.10. Declining shares outnumbered advancing ones by 1234 to 621 on the BSE.

The Reserve Bank of India finally announced measures to curb excess liquidity in the system. The marginal standing facility rate raised to 10.25 percent and also the total funds available under its repo window will now be capped at Rs 75,000 crore.

The rupee opened over a percent higher at 59.20 to the dollar thanks to the rupee tightening steps, but has since given up some gains on dollar buying by importers in very thin trades. Dealers expect the impact of the RBI's steps to hit home tomorrow, when the restrictions on borrowing from RBI kick in. The rupee is up 51 paise to 59.38 per dollar.

Banking & financial, capital goods, auto, realty and metals stocks remain under pressure, but FMCG, PSU oil & gas and select technology stocks gained.

11:50 am FM's measure: Asserting that rupee price will be market determined, Finance Minister P Chidambaram today said last night's measures by the Reserve Bank have nothing to do with the upcoming monetary policy review and may not impact interest rates of banks.

RBI's measures, he said, were aimed at checking excessive volatility and speculation in the forex market. "These measures (RBI decisions) should not be read as prelude to any policy rate changes. This has nothing to do with upcoming policy review of RBI...I don't expect banks to increase interest rates as a result of Monday's measures" Chidambaram said at a press conference.

11:45 am Buzzing: Neyveli Lignite Corporation surges around 5 percent as market regulator SEBI has approved Tamil Nadu government's proposal to buy 5 percent stake in the company.

11:40 am Market news: Market regulator Sebi today said it has become challenging for the companies to raise money from the capital markets and there is a significant weakness in the IPO segment in India and other Asian countries, reports PTI.

Tough market conditions are also throwing challenges before the companies to get good investments, while weakness in primary market is also making the exit difficult for pre-IPO investors, Sebi Chairman U K Sinha said.

11:35 am Macro outlook: Despite a 380-point fall on the Sensex, deputy chairman of the Planning Commission, Montek Singh Ahluwalia , believes the market was not "surprised" by the short-term "necessary" measures taken by the Reserve Bank of India (RBI) to curb rupee volatility.

"We have got an overall situation where the RBI did what was necessary to signal to market that the exchange rate is being pushed into an unreasonable range," he told CNBC-TV18 in an interview.

11:30 am Buzzing: Punjab & Sind Bank cuts base rate by 26 bps to 9.99 percent from 10.25 percent to be effective from August 1. The stock is down 1.1 percent on the BSE.

11:25 am Gainers: ONGC , Sun Pharma , ITC , TCS and NTPC are top gainers in the Sensex.

11:20 am SBI 's take: Pratip Chaudhuri, Chairman, State Bank of India says that lender is not contemplating any change in interest rates. Adding the Reserve Bank of India's moves are temporary in nature, Chaudhuri is hopeful that RBI measures will calm down rupee volatility.  According to him,  RBI moves will impact on bond portfolio will not be significant and steps may be rolled back once rupee stabilises.

Don't miss: See volatile FX, bond mkts; rupee to gain today, says Macquarie

The market continues to bleed as rate sensitive stocks are still reeling under selling pressure. The Nifty is still below 5950 with a loss of 91.65 points at 5939.15. The Sensex is down 276.91 points at 19757.57. About 525 shares have advanced, 1053 shares declined, and 98 shares are unchanged.

Bank stocks slump today on the back of the RBI moves to curb the falling rupee. The RBI has stepped in to curb the volatility in the dollar-rupee market. It has enhanced the marginal standing facility rate to 10.25 percent, 300 basis points above the policy repo rate.

Credit Suisse has downgraded wholesale funded banks like yes Bank, Kotak Mahindra Bank , IndusInd Bank and the NBFC's stating that these banks will be forced to curb asset growth in addition to facing margin pressures. Credit Suisse has downgraded Kotak Mahindra Bank and IndusInd Bank to underperform from neutral. Morgan Stanley says with economic growth refusing to pick up, higher rates will be negative for banks, also bank stocks are overowned and could correct due to rise in bond yield. Morgan Stanley's top avoids are SBI, PNB and Axis Bank .

Ashok Leyland plunges 5 percent ahead of its April-June earnings today. The company is expected to post a loss this quarter due to the economic slowdown. The company may post a loss of Rs 60 crore vs profit of Rs 70 crore Y-o-Y. Revenue is expected to degrow by 21 percent to Rs 2371 crore due to big slump in MHCV sales while margins are likely to fall to all-time lows of 4.3 percent due to record high discounts.

Most of Asia is weak, barring Japan which outperforms on weaker yen. Japan was shut for a public holiday yesterday. Shanghai sees profit taking 0.7 percent after Monday's upmove.

Crude price is still at elevated levels. WTI Crude rises to USD 106.5, Brent rises to almost USD 109. Gold is little changed at around USD1280 per ounce. Gold is likely to make moves after Ben Bernanke's congressional testimony this week.

10:55am Exide Industries gained 3.7 percent on reporting a positive surprise in its margins during April-June quarter. Revenues rose by 5 percent year-on-year to Rs 1627 crore while margins improved to 16.1 percent versus 14.9 percent due to price hikes of 5 percent taken in February to combat the falling rupee.

10:45am The BSE Sensex is down 279.93 points or 1.40 percent at 19754.55, and the Nifty is down 92.15 points or 1.53 percent at 5938.65.

ONGC shares gained 2 percent while BPCL jumped 2.75 percent. Sun Pharma is up 1 percent.

10:35am Ashok Leyland fell over 4 percent ahead of its earnings today. The company is expected to post a loss in first quarter due to the economic slowdown .

Analysts on average expect revenues to degrow by 21 percent to Rs 2,371 crore due to big slump in medium and heavy commercial vehicle sales. Margins may fall to all time lows of 4.3 percent due to record high discounts and the company is likely to post a loss of Rs 60 crore as against profit of Rs 70 crore Y-o-Y.

Also Read - History shows gold could fall another $500/oz

10:25am Banks stocks slumped today on the back of the RBI moves to curb the falling rupee. Credit Suisse has downgraded wholesale funded banks like YES Bank (down 7.6 percent), Kotak Mahindra Bank (down 3 percent), IndusInd Bank (down 5.44 percent) and the non-banking finance companies stating that these banks will be forced to curb asset growth in addition to facing margin pressures.

Credit Suisse has downgraded Kotak Mahindra Bank and IndusInd Bank to underperform from neutral and has cut the target price to Rs 618 from Rs 680 and to Rs 416 from Rs 465, respectively.

Morgan Stanley says with economic growth refusing to pick up, higher rates will be negative for banks. "Also bank stocks are overowned and could correct due to rise in bond yield. Our top avoids are SBI (down 4.36 percent), PNB (falls 4.5 percent) and Axis Bank (down 4.3 percent)," Morgan Stanley adds.

Also Read - RBI's rupee protection could impact bond,stock mkt: Udayan

10:15am Bond yields rose to 15-week highs after the RBI, in a surprise move overnight introduced measures to curb the rupee volatility which might tighten liquidity and take interest rates higher.

Bank of America Merrill Lynch has cut FY14 GDP growth rate to 5.5 percent versus 5.8 percent earlier while Morgan Stanley says this move clearly marks a reversal in monetary policy stance for RBI and increases risk for more tightening of rates from the RBI.

Also Read - See volatile FX, bond mkts; rupee to gain today: Macquarie

10:05am Equity benchmarks fell more than one percent in morning trade Tuesday, weighed down by rate sensitives after the Reserve Bank of India (RBI) took measures to curb rupee volatility.

The BSE Sensex is down 252.59 points or 1.26 percent at 19781.89, and the Nifty is down 86.85 points or 1.44 percent at 5943.95.

The Indian rupee appreciated by 54 paise or 0.9 percent to 59.35 against the US dollar.

Taimur Baig, Deutsche Bank believes the measures taken by the Reserve Bank of India (RBI) since past two weeks are aimed extensively at checking the rupee volatility. He expects rupee to hover around 59 against the dollar today .

The BSE Bankex dropped more than 4 percent followed by Realty with 3.6 percent fall. Capital Goods index slipped nearly 2 percent.

Country's largest lenders State Bank of India and ICICI Bank lost 4-5 percent while housing finance major HDFC tanked 4 percent.

Meanwhile, defensives like ITC , Hindustan Unliever and Sun Pharma gained 0.5-1.5 percent.

More than two shares declined for every share advancing on the Bombay Stock Exchange. The BSE Midcap Index is down 1.1 percent and Smallcap slipped 0.7 percent.

9:55 am Macro outlook: Taimur Baig, Deutsche Bank expects rupee to hover around 59 against the dollar today. He believes the measures taken by the Reserve Bank of India (RBI) since past two weeks are aimed extensively at checking the rupee volatility.

Speaking to CNBC-TV18 about the RBI policy on July 30, he says the regulator might have to issue clarifications ahead of the policy to signal it does not want to destabilise growth sentiments at the expense of stabilising rupee.

9:50 am Oil update: Brent futures held near USD 109 a barrel on Tuesday as forecasts of a third straight drop in weekly US crude inventories raised hopes of a steady revival in demand growth in the world's biggest oil consumer, reports Reuters.

9:45 am FM's assurance: India's economy is likely to grow at 6 percent or slightly more for the current fiscal year to March 2014, Finance Minister P. Chidambaram said on Tuesday. Chidambaram also told a news conference he hoped parliament would approve the real estate regulator and land acquisition bills in its monsoon session, which is due to begin in the first week of August.

9:40 am Alert: ADB lowers India's GDP growth rate to 5.8 percent from 6 percent for 2013, reports PTI.

9:35 am Rupee outlook: Saying that the market is taken by surprise by RBI moves, Ananth Narayan, Standard Chartered feels that it is an extremely strong signal by the central bank.  Banks may gravitate towards marginal standing facility (MSF) borrowing on liquidity tightening, he says in an interview to CNBC-TV18.

9:30 am Downgrade: Credit Suisse has downgraded high valuation and wholesale-funded banks on RBI moves. It has downgraded Kotak Mahindra , IndusInd Bank to underperform. It has reduced Kotak Mahindra Bank's target to Rs 618 per share and IndusInd Bank to Rs 416.

9:20 am Movers and losers: ICICI Bank , SBI and HDFC are down 5 percent each while L&T and HDFC Bank loses around 3 percent. ONGC , Sun Pharma , TCS , HUL and NTPC are on buyers' list even in the weak market.

Don't miss what Udayan Mukherjee says about the market?

The market has collapsed in the opening trade weakened by rate sensitive stocks. The Sensex opens 331.73 points down at 19702.7 while the Nifty slips 108.00 points to 5922.80. About 61 shares have advanced, 299 shares declined, and 21 shares are unchanged.

The RBI's steps to curb the rupee volatility has not been taken well by the market. The central bank has enhanced marginal standing facility rate to 10.25 percent, 300 basis points above the policy repo rate. It will supply only Rs 75,000 crore in the repo window. In addition, it will conduct open market sales of bonds worth Rs 12,000 crore on July 18.

The Indian rupee gained 70 paise in early trade Tuesday to 59.19 per dollar as against previous day's closing value of 59.89 after the Reserve Bank of India (RBI) took measures to curb volatility in the exchange rate.

NS Venkatesh of IDBI Bank feels the measures taken by RBI will help stabilise rupee volatility in the near-term. "The increase in cost of liquidity will minimise speculatory positions, which will help reduce the weakness further," he adds.