BSE Sensex falls 347 points; Jet up 3%, SpiceJet tanks 10%

3:55 pm Market closing: The market traded cautiously to end the day on a weak note. The Sensex is down 347.50 points or 1.76 percent at 19379.77. The Nifty ended the day at 5735.30 down 97.90 points or 1.68 percent. About 878 shares have advanced, 1382 shares declined, and 139 shares are unchanged. The market was nervous on fears of a possible shutdown of the US government at midnight, if the republicans and the democrats fail to reach a common ground on debt ceiling.

Back home, June quarter current account deficit data is expected in the evening which too kept the market on tenterhooks. Stock specifically, Tata Steel , BHEL , Coal India , ICICI Bank and L&T were laggards in the Sensex. On the gaining side are HUL , Sun Pharma , Infosys , NTPC and GAIL .

3:40 pm Opinion: In an interview to CNBC-TV18, Gagan Dixit, Oil Analyst at Quant Broking said, if export parity is implemented then it would impact gross refining margins (GRMs) of oil marketing companies (OMCs) by USD 2-2.50/barrel. ''It will be boost for refining margins of these companies. Historically, they usually reported around USD 4-5 GRMs. If it goes through, then their refining businesses will be able to save around 50 percent of the refining profit,'' he added. Dixt prefers downstream PSU stocks and is bullish on BPCL at current levels.

3:30 pm Buzzer: SKS Microfinance shares gained nearly 4 percent in intraday trade Monday after the microfinance lender announced the conclusion of a securitisation transaction for Rs 321 crore with a major public sector bank. "This fiscal we could complete the first securitisation transaction in Q2 itself as against Q3 in FY13," S Dilli Raj, chief financial officer of SKS Microfinance said in its filing. He further said that the present transaction generates liquidity of Rs 321 crore for SKS Microfinance Limited, and enables the company to extend  micro loans to 4,75,000 rural women entrepreneurs.

The market is still under selling pressure as the Sensex is down 255.47 points or 1.30 percent at 19471.80. The Nifty is down 69.25 points or 1.19 percent at 5763.95. About 801 shares have advanced, 1331 shares declined, and 147 shares are unchanged. Banks, capital goods, metals and FMCG stocks are under seeing active selling while technology and pharma stocks are still on buyers' radar. Tata Steel, BHEL, ICICI Bank, Coal India and L&T are major losers in the Sensex while Sun Pharma, HUL, GAIL, Infosys and Cipla are in the green.

Government sources tell CNBC-TV18 that the decks have been cleared for the Jet-Etihad deal. The Cabinet Committee on Economic Affairs (CCEA) is likely to take up the proposal this week or the next. A copy of the airlines' revised shareholding pact has been sent to the government departments.   Meanwhile, railway freight rates will go up by 15 percent from tomorrow owing to the commencement of busy season. JSW Steel is down 2 percent as it gets most of their iron ore requirement via rail from NMDC's Chhattisgarh mines. Cement companies like ACC and UltraTech are weak as they have higher dependence on railways.

02:55pm Buzzers Glenmark Pharma shares gained nearly 2 percent as the company has received the USFDA's nod for its generic Hydrocortisone Butyrate cream. The cream, which is used to treat skin diseases like eczema, dematitis and allergies, has annual US sales of USD 34 million. Glenmark will have 180-day exclusivity on the cream and will launch it by the end of the year. Government sources told CNBC-TV18 that the decks have been cleared for the Jet-Etihad deal. CCEA is likely to take up the proposal this week or the next. A copy of the airlines' revised shareholding pact has been sent to the government departments.

02:45pm Movers & Shakers Tata Steel (down 7 percent) and BHEL (down 5 percent) are the biggest losers in the Sensex followed by ITC , ICICI Bank , L&T, ONGC , M&M, Coal India and Hero MotoCorp with 2.5-4 percent loss. However, Sun Pharma and Wipro are the outperformers, rising 1.6 percent each followed by HUL with 1.2 percent gains and Infosys with 0.8 percent upmove.

02:36pm The market remained under pressure in afternoon trade Monday with the equity benchmarks losing 1.5 percent on concerns over US debt ceiling. The Sensex is down 298.80 points at 19428.47, and the Nifty is down 86.40 points at 5746.80. Metals, infrastructure and banking stocks are among top losers while.midcaps and small caps also lost ground. Financial Technologies fell another 11 percent on top of a 4.5 percent loss in previous session. Jignesh Shah, promoter of FT, told CNBC-TV18 that the board is the biggest victim and clarified that he has no plans to sell stake in MCX .

ING Vysya Bank rallied 4 percent on a media report that the ING group is looking to sell 43 percent stake and Kotak Mahindra Bank has emerged as the top suitor. If the deal goes through, ING may get atleast USD 600 million for the stake at current market prices. Reliance Power shares lost 5 percent on news that the CEO, JP Chalasani has resigned and will be leaving the company towards the year end. JP Morgan says this will be a big blow for the company as Chalasani has been the face of the company at investors and analysts' interactions.

2:00 pm Gold update: Gold edged higher as a possible US government shutdown prompted safe-haven buying, and the metal was on track to record its best quarter in a year despite a cloudy outlook for US stimulus, reports Reuters. Gold has gained nearly 9 percent in July-September, boosted by a big short-covering rally, geopolitical tensions in the Middle East and some weak US economic data. The gains bring to an end gold's longest quarterly losing streak since 2001 - the metal fell more than 30 percent in the three quarters to June on fears of an early end to the US Federal Reserve's bond-buying programme.

1:45 pm Management: RK Singh, CMD of BPCL is optimistic of better monetary gains from the discovery of oil resources in Brazil's SEAL-II block. The actual quantity will be known after the appraisal programme by 2015, he says. The company has a 20 percent stake in the oil reserve, he tells CNBC-TV18 in an interview. Meanwhile, he also feels that a one-time diesel price hike is needed. But, is a political decision, Singh adds.

1:30 pm Macro outlook: The current account deficit (CAD) for the June quarter (Q1 FY14), is likely to come at 6.1 percent of gross domestic product (GDP), due to higher gold imports, believes Sonal Varma, India Economist, Nomura Financial Advisory & Securities. On the other hand Haseeb Drabu, economist, expects the macro data to come between 3 and 3.5 percent for FY14. The government will be releasing the country's balance of payment numbers today.

1:20 pm Exclusive: The NSEL crisis is a classic case of management fraud and NSEL board is its biggest victim , says Jignesh Shah in an exclusive interview to CNBC-TV18. While he understands and is sensitive to the pain of investors, the worst hit is Financial Technologies . To ease investor pains, NSEL is focussed on recovery of funds. "We are making all efforts within our capabilities to solve the crisis,'' he added. In the interview, Shah blatantly reiterated that NSEL is a trading platform and borrowers are to be blamed for the default. Shah clarified that he has no plans to sell stake in MCX .

The market is in negative terrain on weak global cues. The Sensex is down 289.04 points or 1.47 percent at 19438.23, and the Nifty down 84.15 points or 1.44 percent at 5749.05. About 717 shares have advanced, 1221 shares declined, and 118 shares are unchanged. In the domestic market, all eyes are on the release of the June quarter current account deficit data expected this evening. It will determine if the government can manage to keep its full year fiscal deficit within its estimated USD 70 billion. Metals, infra and banking stocks are among top losers.

Financial Technologies sees another 13 percent fall today taking MCX lower with it. Jignesh Shah tells CNBC-TV18 that the board is the biggest victim and clarifies that he has no plans to sell stake in MCX. Global markets like Asia and Europe also slip on fears of a possible shutdown of the US government. The rupee is off lows but is still weak, tracing the euro and other Asian currencies. Also caution prevails ahead of the Q1 balance of payments data to be released later today. Bond prices are higher as US yields fall but gains limited.

12:55pm Losers BHEL , which gained 6 percent last week, is the top loser in the Sensex with more than 5 percent loss. Tata Steel too tanked more than 5 percent. Country's largest private sector lender ICICI Bank , capital goods major L&T, state-run oil & gas explorer ONGC , top telecom operator Bharti Airtel , coal mining company Coal India and utility vehicle maker M&M lost 3-4 percent. Index heavyweights ITC and Reliance Industries declined 1-1.8 percent. The Sensex is down 255.12 points or 1.29 percent at 19472.15, and the Nifty is down 74.15 points or 1.27 percent at 5759.05. About 713 shares advanced while 1214 shares declined on the Bombay Stock Exchange.

12:40pm Global Update European markets opened one percent lower on Monday on US debt woes. The US is facing its first government shutdown in 17 years as the Republican-run House at the weekend voted to delay President Barack Obama's health care law by one year to keep the government running, reported CNBC. Democrats within the US Senate are planning to table the Republican measures when they convene on Monday, leaving the House just hours to pass a standalone spending bill free of any measures that undermine the health care law.

Budget spending must be agreed by Congress before October 1, to prevent a government shutdown which could involve federal employees facing unpaid temporary leave. The arguments between Democrats and Republicans over the spending bill come ahead of a more crucial challenge to raise the Federal borrowing limit by October 17 in order to avoid a debt default.

12:25pm The market stayed in bear grip in noon trade with the Nifty trading way below the 5800 level on weakness in global markets. Among Asian markets, Hang Seng and Nikkei lost 1-2 percent as fears of a possible shutdown of the US government at midnight looms if the Republicans and the Democrats fail to reach a common ground on debt ceiling.

The Sensex is down 250.97 points or 1.27 percent at 19476.30, and the Nifty is down 77.10 points or 1.32 percent at 5756.10. Sushil Kedia, Director- Quantitative Strategy at CIMB feels that the Nifty is increasingly getting bearish. He says that in the near-term support for the index is under 5,500. A rebound from here to 5750-5800 levels is possible, he tells CNBC-TV18 in an interview. However, he continues to maintain his medium-term target of 4,500 on the index. Global markets will see a dramatic correction and expect gloom in the next one and a half years, Kedia adds.

Financials, auto, oil & gas, capital goods, metals, telecom and power stocks are under pressure whereas only four stocks in the Sensex outperformed, which are Infosys (up 0.85 percent), HUL (up 1.24 percent), Wipro (up 0.81 percent) and Bajaj Auto (up 0.24 percent). Meanwhile, the rupee fell 26 paise to 62.77 per dollar, in-line with weakness in the euro and other asian currencies. Also caution prevails ahead of the Q1 balance of payments data to be released later today. Brent crude slipped below USD 108 a barrel and was on track for its first monthly drop in four months, as tensions over Iran eased and as a potential US government shutdown clouded the outlook for demand.

12:00 pm Current affairs: Lalu Prasad, Rashtriya Janata Dal (RJD) supremo and former Bihar chief minister, and 44 others have been convicted by a special Central Bureau of India (CBI) court in Ranchi in one of the cases - RC 20 A/96 - of the multi-crore fodder scam on Monday. Lalu has been convicted of corruption, criminal conspiracy and cheating and the sentencing will take place on October 3. Lalu, who ruled Bihar for 15 years, has been convicted by special CBI judge Pravas Kumar Singh and faces immediate disqualification as a Lok Sabha MP and his political future is in jeopardy. Lalu was one of the 45 people facing charges in the RC 20 A/96 case and had been charged with fraudulent withdrawing Rs 37.7 crore on fake fodder bills from Chaibasa treasury in the 1990s. Chaibasa was then part of undivided Bihar and is now in Jharkhand.

11:45 am Buzzer: Investors are buying shares of Reliance Power with the stock rising 4 percent in intraday trade Monday. The company has said that its CEO J P Chalasani will be leaving the company towards the end of the year. Chalasani is going to pursue his entrepreneurial ambitions and re-locate overseas, the company said in its filing to the BSE. JP Morgan says that the CEO's exit is a blow to the company as he has been the mouthpiece and face of the company at investor and analyst interactions over the past several quarters.

11:30 Market outlook: Sandeep J Shah, market analyst sees no reason for the Nifty to head higher from the current level. He is not totally bearish on market but cautions that the Nifty could re-visit the 5200-5400 depending on how soon repo rate hikes are announced and QE tapering, if it happens this year. Speaking to CNBC-TV18, he said that there may not be an impact of the much-talked about US debt ceiling issue on Indian market. He recommends staying invested in consumption, pharma and IT.

Indian market is trading in the red on weak global cues. Fears of a possible shutdown of the US government at midnight looms if the Republicans and the Democrats fail to reach a common ground on debt ceiling issue. The Sensex is down 231.66 points or 1.17 percent at 19495.61, and the Nifty down 68.40 points or 1.17 percent at 5764.80.  About 660 shares have advanced, 904 shares declined, and 94 shares are unchanged.

Asian markets widen their losses post the Chinese PMI that came in at 50.2 significantly below the flash estimate of 51.2. China however manages small gains. Investors are worried over the US debt ceiling uncertainty. Brent recorded its third straight weekly loss while gold was up 1 percent to USD 1340. Currencies saw the dollar slide on budget concerns. The euro rose to 1.35 while the yen was at 98.23. Back home, the rupee fell against the US dollar tracking weakness in euro and asian currencies. Meanwhile, gains in government bonds are restricted ahead of the release of India's balance of payment data for Q1FY14.

10:55am Market update The market remained under pressure. The Sensex is down 203.18 points or 1.03 percent at 19524.09, and the Nifty is down 61.30 points or 1.05 percent at 5771.90. Railway freight rate will be increased by 15 percent from October 1 owing to the commencement of busy season which typically exists from October-June. JSW Steel is down 2 percent as it gets maximum of their iron ore requirement via rail from NMDC's Chattisgarh mines. Also cement companies like ACC and UltraTech are down 1 percent apiece as they have higher dependence on railways.

10:45am Outperformers Infosys and Hindustan Unilever are the top gainers in the Sensex, gaining more than 1 percent. Wipro , Bajaj Auto and Sesa Goa advanced around 0.5 percent. Glaxosmithkline Consumer Healthcare, Glenmark Pharmaceuticals and United Breweries are up 2-4 percent as all the three securities would be available for trading in the derivatives market w.e.f. october 03, 2013.

10:30am Stocks In News ING Vysya Bank gained 4 percent as a report suggests that ING group may sell 43 percent stake and Kotak Mahindra Bank emerges as the top suitor. The group may get at least USD 600 million at current market prices, though there is no certainty that a deal will happen. Reliance Power is down 2 percent on news that J P Chalasani, CEO, will be leaving the company towards the end of the year to pursue his entrepreneurial ambitions and re-locate overseas. JP Morgan says CEO's exit is a blow to the company; he has been the mouthpiece and face of the company at investor.

10:16am The market extended losses in morning trade with the equity benchmarks falling more than one percent, weighed down by financials, capital goods, oil & gas, telecom and auto stocks. The Sensex is down 204.11 points at 19523.16, and the Nifty is down 60.45 points at 5772.75, but the fall in broader markets is less compared to benchmarks. The BSE Midcap and Smallcap indices declined marginally. About 450 shares advanced while 662 shares declined on the Bombay Stock Exchange.

Sandeep J Shah, market analyst sees no reason for the Nifty to head higher from the current level. He is not totally bearish on market but cautions that the Nifty could re-visit the 5200-5400 depending on how soon repo rate hikes are announced and QE tapering, if it happens this year. Speaking to CNBC-TV18, he said that there may not be an impact of the much-talked about US debt ceiling issue on Indian market. He recommends staying invested in consumption, pharma and IT. BSE Bankex fell more than 2 percent as country's largest lenders State Bank of India , ICICI Bank and HDFC Bank slipped 1.6-2 percent. Housing finance major HDFC lost 2 percent. Bharti Airtel , BHEL and Tata Steel are biggest losers among largecaps, falling 4 percent each. Index heavyweight ITC plunged 1.75 percent.

10:00 am Buzzer: Shares of ING Vysya Bank rallied 17.5 percent on a media report that ING Groep NV is looking to sell its 43 percent stake in the bank. However, the stock came off its day's high on profit booking. The biggest Dutch financial-services company ING Groep NV, which has been selling assets across the Asian region and some in Europe itself to repay the Dutch government for bailing it out from the 2008 credit crisis, may exit the domestic banking business comprising retail, corporate and treasury, to focus on corporate banking, a media report said quoting unnamed sources.

9:45 am Market opinion: According to Ajay Bodke, Prabhudas Lilladher, October would be repeat of September because there are two strong global headwinds that the markets globally would be watching especially the October 17 as well as about the budget deal in the US. ''Locally all of us have given hopes of any reduction in interest rates in the short-term. We are expecting interest rates to move up. We will have to wait individually to see how the corporate earnings pan out but overall I tend to be cautious on the market. The bias will continue to be negative and broadly a level between 5,500 and 5,900 is what I am looking at in the current series,'' he says in an interview to CNBC-TV18.

9:35 am Data watch: Foreign investors have pumped in over Rs 13,000 crore (USD 2 billion) in the Indian stock market this month following new RBI Governor Raghuram Rajan's announcing measures to boost the weakening rupee and reviving economic growth, reports PTI. Moreover, the US Federal Reserve's decision of leaving its stimulus programme unchanged also encouraged foreign investors to park funds in the Indian equities. Inflows in equities were about Rs 13,228 crore (USD 2.09 billion) during September 2-27. There is just one trading session left for this month. However, there was a pull-out of Rs 6,016 crore (USD 965 million) from the debt market, still leaving behind a net inflow of Rs 7,213 crore (USD 1.12 billion), according to latest Sebi data.

9:25 am Big concern: The auditors of SpiceJet have, yet again, raised red flags over the company's net worth. In their annual report released over the weekend, it says that the airline's accumulating losses has fully eroded its networth. The auditors had also pointed out the same issue in FY12 too. The management had made efforts to pay-off its liabilities then. In this fiscal, the auditors said that the operating losses have been materially affected due to factors like higher maintenance charges, fuel costs etc. The stock fell around 5 percent on the BSE.

The market has kick-started the week in the negative terrain. The Sensex is down 78.20 points at 19649.07, and the Nifty slips 32.15 points at 5801.05. About 120 shares have advanced, 204 shares declined, and 23 shares are unchanged. Infosys , Sesa Goa , Sun Pharma , Wipro and Bajaj Auto are major gainers in the Sensex. On the losing side are BHEL , Tata Steel , Bharti Airtel , ICICI Bank and SBI . The Indian rupee opened with a gain of 48 paise at 62.99 per dollar against 62.51 Friday. Agam Gupta, Standard Chartered said, "Rupee should open around 62.90 to 63. The higher opening will be due to risk aversion from global news flow around the US shutdown. CAD data expected later today will be an important cue. The range for the day is seen between 62.70 - 63.20/USD. Expect exporters to sell above 63/USD levels."

The euro is taking a knock sub 1.35/dollar, the dollar too has slumped to 80.30 levels and the yen trades at a 1-month high of 97/dollar. Meanwhile on the global market front, it is the last day for the US Congress to pass a Budget in the absence of which the government will face a shutdown for the first time in 17 years.

The House of Representatives votes to delay US President Barack Obama's pet healthcare law for a year. The question now is if a 13th hour deal will materialise. In US, markets finished in the red on Friday with major averages closing lower for the first week in four, as mounting concerns of a potential government shutdown spook Wall Street.

The CBOE volatility index jumped above 15. The Dow has lost 1.25 percent and the S&P 500 lost over a percent while Nasdaq managed to end with minor gains. As the clock ticks on the US debt ceiling debate, investors cash out sending Asian markets skidding this morning with Nikkei down over 2 percent. China's final manufacturing PMI from HSBC is also due later in the session.