BSE Sensex sheds 112 as share sales, Fed meet weigh

Benchmark indices fell for the second successive session Tuesday, as the market is trying to digest the heady gains of the past few weeks. Brokers said share sales by promoters trying to meet the 25 percent minimum public shareholding rule, and the US Federal Reserve meeting Wednesday, made buyers cautious.

The 30-share Sensex fell 112.37 points to close at 20111.61, and the 50-share Nifty ended at 6114.10, down 42.80 points over the previous close.

Shares from the realty, auto, power and banking sectors struggled, while those from the IT services sector gained ground.

Indian equities have risen sharply over the last few weeks, in line with other emerging markets, with the widely held theory being that global investors are switching from commodities into equities.

However, fourth quarter earnings and macroeconomic indicators still do not make the case for Indian shares to be able to sustain recent gains.

Rating agency S&P has retained its negative outlook on the country, and Thermax boss MS Unnikrishnan today said order flows for the capital goods sector had not improved in the March quarter. Revival in the corporate investment cycle holds key to India's economic recovery.

In addition, the offer-for-sale (OFS) issues by companies trying to meet the June deadline on minimum public shareholding, is soaking up a good portion of the available liquidity in the market.

''We could see some supply over the next 10-15 days which aggregates close to USD 2 billion. So to that extent, that supply may put some pressure on the market,'' said Jyotivardhan Jaipuria of Bank of America Merrill Lynch in an interview to CNBC-TV18 earlier in the day.

Shares of Fortis Healthcare, which recently concluded its OFS, and those of Omaxe, which set a floor price for its OFS at a discount to market price, were among the big losers on Tuesday.

Fortis shares fell over 5 percent and Omaxe, over 7 percent.

Overall mid-caps fared worse than their large cap counterparts, as investors chose to take some cash off the table after the recent rally.

Divi's Lab fell over 7 percent as fourth quarter numbers fell short of market expectations. Aurobindo Pharma, Karnataka Bank, Bajaj Finance and UltraTech cement were the other big losers, falling between 4-6 percent.

Investors are eagerly eyeing the US Federal Reserve meet on Wednesday, which could have a bearing on the near term trend in equities.

The popular view is that the Fed may start tightening its monetary policy, with the US economy showing signs of strength. This could put further pressure on commodity prices, which have so far benefited from a loose monetary policy, or in other words, very low interest rates.

But should the Fed decided to maintain status quo, there could be pressure on equities, and a rebound in commodity prices, especially gold.

3:30 pm Styrolution ABS lost 7.5 percent and Omaxe dropped 7%.

The BSE Sensex slipped 126.80 points to 20,097.18 and the NSE Nifty declined 46.25 points to 6,110.65 (provisional figures).

Top losers: Tata Motors, State Bank of India, NTPC, Maruti and Tata Steel were down 2-4 percent.

Top gainers: Infosys and TCS gained 1 percent each while Coal India and BHEL rose 2 percent each.

3:25 pm Fortis Healthcare plunged more than 5 percent amid hefty volumes, after allotment of shares to qualified institutional buyers (QIBs).

Trading volumes jumped 53 times to 19,23,757 equity shares as compared to its five-day average of 35,818 shares.

Fortis alloted fresh 35 million equity shares to QIBs.

3:17 pm Steel Strips Wheels jumped 9% after cogencis' sources said the company was in talks with foreign company for joint venture.

It is learnt that the company plans joint venture for truck and tractor segments.

3:12 pm Tata Motors, SBI extend losses to 2-3 percent.

The BSE Sensex slipped 123 points to 20,100.95 and the NSE Nifty declined 44 points to 6,112.90.

European markets: Athex Composite tanked 4 percent.

3:05 pm FC MF cuts stake in Punj Lloyd to 3.04 percent versus 5.08 percent on May 17; the stock dropped nearly 3 percent.

Omaxe crashed nearly 7 percent to Rs 153; its offer for sale issue received bids for 3.63 lakh shares as against size of 50 lakh shares.

3:00 pm The BSE Sensex extended losses in late trade, losing 100 points due to further sell-off in Tata Motors. Country's largest lender State Bank of India slipped 1.5 percent.

Meanwhile, NTPC is the top loser, falling more than 4 percent.

The Sensex is down 105.46 points to 20118.52 and the Nifty fell 37 points to 6119.75. Bank Nifty dropped nearly one percent.

The Indian rupee hit four-month low today, trading at 55.12 per dollar.

Commodities: Gold and Silver dropped more than 1 percent.

02:52pm Breaking News: Athex Composite index down over 4 percent.

At 14.52 hrs IST, the Sensex is down 70.78 points or 0.35% at 20153.20, and the Nifty is down 25.10 points or 0.41% at 6131.80. About 915 shares have advanced, 1313 shares declined, and 168 shares are unchanged.

Buzzing Stock: LIC sold 2.53 percent stake in Maruti

The country's largest car maker Maruti Suzuki India today said Life Insurance Corporation of India has sold 2.53 per cent stake in the company over a period of almost six months.

Post-sale, LIC's stake in Maruti Suzuki India (MSI) has come down to 8.247 per cent currently from 10.777 per cent earlier, the auto maker said in a filing to the BSE.

Buzzing Stock: ITC launches deodorants range, to compete with HUL's Axe deodrant

Diversified group ITC Ltd today expanded its personal care products portfolio with the launch of a range of deodorants under the brand 'Engage'. "Expanding its footprint in the rapidly growing deodorant market in India, 'Engage' marks the Personal Care Business' foray into deodorants," ITC said in a statement. ITC was down close to one percent. HUL was trading flat.

Update on iGate-Phaneesh Murthy
NASSCOM Chairman Krishnakumar Natarajan today said iGATE board has taken a right decision to sack its President and CEO Phaneesh Murthy over alleged sexual harassment, emphasising that a "quick and decisive" action in such incidents augurs well for the IT industry.

Rupee check: Indian Rupee down at 55.07 owing to exporters selling, despite higher dollar overseas.

Also Read: Rupee trims early gains, still up by five paise

Management Interviews
Don't expect revival in power sector orders soon: Thermax
Yet to get clarity on power price hike: Adani Enterprises
Loan refinancing to save $2.5 m in interest cost: Redington

02:22pm Buzzing stock: Steel Strips Wheels up 11 percent.

Cogencis sources told CNBC-TV18 that the company is in talks with foreign company for a joint venture. The foreign company will buy stake in the joint venture.

The board meeting will be held on May 29, 2013.

02:17 pm UK Data Watch: April CPI index up 0.2 percent (M-o-M), up 2.4 percent (Y-o-Y). April core CPI numbers are lowest since November 2009.

Power stocks in doldrum

Over 15,000 MW capacity plants stuck with no supply by RIL

Over 15,000 MW gas-based capacity is stranded in the country due to non supply of natural gas from RIL 's KG basin. "The total capacity of gas-based stations in India is 18,830 MW of which 15,529 MW is fed with gas from RIL. That (15,529 MW) is idle as there is no gas available from RIL, " an official told PTI.

MUST READ: Phaneesh Murthy admits to relationship, alleges extortion

02:06 pm Top percentage losers in the NSE: Voltamp Transformers (Rs 453.00, 9.05%), V-Mart Retail (Rs 150.70, 7.8%), IG Petro (Rs 22.20, 6.53%), Styrolution ABS (Rs 486.00, 6.39%) and Omaxe (Rs 154.15, 6.29%).

Indian shares bounced off from day's low led by recovery in banks and IT stocks. Heavyweights like TCS, Infosys and HCL Technologies surged close to 2 percent each. Private bank major ICICI Bank too surged over 2 percent in this recovery.

At 13.59 hrs IST, the Sensex is up 73.63 points or 0.36% at 20297.61, and the Nifty up 16.70 points or 0.27% at 6173.60. About 934 shares have advanced, 1226 shares declined, and 142 shares are unchanged.

Key gainers in the Nifty were BHEL (Rs 207.45, 2.57%), Coal India (Rs 308.45, 2.37%), ICICI Bank (Rs 1,233.60, 1.97%), TCS (Rs 1,498.15, 1.75%) and Infosys (Rs 2,413.30, 1.74%).

Laggards included UltraTech Cement (Rs 1,946.70, 3.63%), NTPC (Rs 154.70, 3.04%), Tata Motors (Rs 295.80, 2.07%), Maruti Suzuki (Rs 1,714.10, 1.62%) and Jaiprakash Associates (Rs 78.75, 1.5%).

1:59 pm Mover: ICICI Bank was quoting at Rs 1,233.05, up Rs 24.40, or 2.02 percent.

1.48 pm: The market is off day's low. The Sensex is up 75.67 points at 20299.65, and the Nifty gains 20.85 points at 6177.75.

1:45 pm Midcap buzz: Amtek India, Bajaj Corp, Berger Paints, Crompton Greaves, DB Corp and Emami are some midcap gainers.

1:35 pm Telecom buzz: Vodafone posted its largest ever quarterly fall in key organic service revenue on Tuesday, prompting it to keep hold of a 2.1 billion pound dividend from its US arm rather than return it to shareholders.

The world's second largest mobile operator, at the centre of intense speculation as to whether it will sell its US arm in one of the world's largest deals, posted a 4.2 percent fall in organic service revenue, broadly in line with forecasts.

1:30 pm OFS update: Omaxe gets bids for 3.63 lakh shares vs size of 50 lakh shares till 1:15pm. Indicative price is at Rs 150.48 per share till 1:15 pm.

Expert comments:
Expect bigger rate cuts in India in 2013: Barclays Capital
Bernanke unlikely to upset mkts; may not cut QE3: AMP Cap

1:25pm Buzzing: LIC cuts stake in Maruti Suzuki by 2.5 percent to 8.25 percent between November-May. It is quoting at Rs 1,707.00, down Rs 34.85, or 2.00 percent on the BSE.

1:20 pm Losers: NTPC, Tata Motors, Maruti Suzuki, M&M and Sterlite Industries were major losers in the Sensex.

1:15pm Brokerage calls: Nomura has assigned buy rating on Apollo Hospitals with a target of Rs 950. This is the first time in the last five years that topline growth has fallen below 20 percent year-on-year. The decline is primarily due to a higher number of holidays in the quarter and the temporary closure of the Chennai hospital operation theatre.

1:10pm News update: The finance minister, petroleum minister and PMO will meet today on export parity pricing of petroleum products.

Confession: Phaneesh Murthy admits to relationship, alleges extortion

It was a bit down day for market with the Nifty slipping below 6150. The broader markets too are struggling in trade today.The Sensex was down 85.59 points at 20138.39, and the Nifty down 33.05 points at 6123.85.

Auto, realty and power were growing weak while technology stocks were seeing buyers' interest.

Coal India, BHEL, TCS, ICICI Bank and Infosys were major gainers in the Sensex.

The dollar index lost some momentum and slipped below 84 ahead of Federal Reserve Chairman Ben Bernanke's testimony. The euro was back at the 1.29 mark.

From commodities section, gold saw a slight bounce back after trading at levels seen in august 2011 and silver too from the lows seen in November 2010.

12:56 pm European markets down in early trade

Also Read - Bernanke unlikely to upset mkts; may not cut QE3: AMP Cap

France's CAC and Germany's DAX fell 0.5 percent while Britain's FTSE declined 0.16 percent.

Meanwhile, Indian equities extended losses. the Sensex is down 80.10 points to 20143.88, and the Nifty fell 31.70 points to 6125.20.

12:50 pm Adani Enterprises falls over 2%

Adani Enterprises is looking forward to strengthen margins in FY14 , once it is allowed to charge higher tariff for power sold to consumers. The  Central Electricity Regulatory Commission's ( CERC ) has in a ruling last month allowed power companies to charge compensatory tariff till they make up for losses incurred due to higher fuel cost.

12:45 pm BHEL, HCL Tech gain 1.5% each

Disgraced CEO if iGate Phaneesh Murthy denied charges of sexual harassment calling them completely false. While admitting that he had a relationship with a subordinate Araceli Roiz, Murthy said he had not violated any company policy.

As per iGate code of conduct, Murthy was required to inform superiors in case of a personal relationship.

12:40 pm Expert talks

Rashesh Shah, chairman & CEO of Edelweiss Group says global liquidity will continue to drive markets higher . Indian equities have been on a roll this month mainly on global cues, coupled with the improved economic data and hopes of further rate cuts from the Reserve Bank of India (RBI).

12:36 pm Most active: SBI, United Spirits and Hindalco on exchanges

12:32 pm IFCI, Bayer CropScience down after Q4 earnings

IFCI lost more than 1 percent as its fourth quarter (January-March) net profit dropped 31.6 percent year-on-year to Rs 150 crore.

Meanwhile, Bayer CropScience declined 1.4 percent. It reported net profit of Rs 71.8 crore as against loss of Rs 21.6 crore Y-o-Y due to exceptional gain of Rs 84.7 crore. If we remove exceptional item then company remains in a loss.

12:25 pm Top losers on Nifty: Jaiprakash Associates and UltraTech Cement are down more than 3 percent each. Power major NTPC too dropped over 3 percent.

Also Read - Expect bigger rate cuts in India in 2013: Barclays Capital

Reliance Infrastructure slipped more than 2 percent on media reports that the company will exit projects worth Rs 20000 crore.

12:15 pm Steel stocks under pressure; Tata Steel down over 1%

Must Read: Phaneesh Murthy fiasco: What next for iGate?

In a press conference, Phaneesh Murthy said charges of sexual harassment were completely false. "I have not violated company policy," he added.

CNBC-TV18 reported quoting sources that Tata Steel, one of the world's largest steel companies, may explore options to sell Corus assets.

However, sources say Tata Steel has no plans to sell equity in Corus. Corus will continue to remain 100% subsidiary of Tata Steel, sources add.

It is learnt that steel major aims to deleverage balance sheet via unlocking value.

12:10 pm April CPI farm labourers inflation slips

Consumer Price Index (CPI) farm labourers inflation declined to 12.32 percent in April as against 12.64 percent in previous month.

CPI rural labourers inflation for same month stood at 12.15 percent versus 12.62 percent.

12:05 pm Shriram City Union shares gained 2.5 percent, after its fourth quarter (January-March) net profit grew by 28.8 percent year-on-year to Rs 125.7 crore. Net sales jumped 36 percent Y-o-Y to Rs 825.9 crore during the quarter.

Equity benchmarks remained under pressure in late morning trade, weighed down by auto and metals stocks.

The BSE Sensex fell 52.11 percent to 20,171.87 and the NSE Nifty slipped 22.65 points to 6,134.25.

Meanwhile, capital goods shares are sluggish today; with the BSE Capital Goods Index down roughly 1 percent. These stocks had risen sharply last week, partly on hopes of a recovery in the capex cycle, and partly on speculation that some of MNC names in the sector would delist. ABB has denied the talk, but the stock has retained much of the gains made last week.

The capital goods sector in general seems to have little going for it at the moment. A short while ago, Thermax boss MS Unnikrishnan said in an interview to CNBC-TV18, that there were no signs of recovery in order flows, across companies, in the March quarter. He is not expecting a material recovery in the power sector for at least the next year-and-a-half.

Earlier in the day, Bank of America's Jyotivardhan Jaipuria said said corporate debt continues to be high and would constraint capital expenditure. The capex cycle will take some more time to recover, he feels

11:57 am Silver Check: MCX Silver up Rs 3 at Rs 43266 per kg.

Silver price to correct further if Fed hawkish: Anand Rathi

"Silver is more volatile than gold therefore any movement in silver prices is always magnified. If FOMC is hawkish about their policy move, then one can expect prices to correct further," said Priti Gupta, Director at Anand Rathi Commodities.

11:54 am NTPC top loser in the Nifty, down close to 3 percent.

11:48am Market check The Sensex is down 63.12 points or 0.31% at 20160.86, and the Nifty down 25.15 points or 0.41% at 6131.75. About 748 shares have advanced, 1154 shares declined, and 138 shares are unchanged.

11:45am Gold Check: MCX Gold up close to 1 percent at Rs 26315 per 10 grams.

Also Read: Silver and gold lurch higher after early dive

Market Outlook: Expect bigger rate cuts in India in 2013: Barclays Capital

Barclays Capital now expects another 75 bps of rate cuts over the rest of 2013 versus its previous call of 25 bps in easing due to slowing inflation and weakening economic growth.

11:40 am Buzzing Stock: IG Petrochemicals down 7 percent on poor results.

IG Petrochemicals reprted net loss of Rs 20.4 crore in the fourth quarter compared to net profit of Rs 11 crore, in the same quarter previous year.

11.33am Buzzing Stock: Hotel Leela was down 4 percent after reporting a massive loss of Rs 142 crore in the latest quarter.

Buzzing Stock: Divis Laboratories falls 6% on disappointing Q4 earnings

Healthcare firm Divis Laboratories shares plunged more than 6 percent Tuesday, after it disappointed with fourth quarter (January-March) earnings.

Rupee Check: Indian Rupee at 55.04 per dollar.

Robert Prior-Wandesforde of Credit Suisse told CNBC-TV18, "The pressure on rupee will continue due to current account deficit weakness. We see Indian rupee to end 2013 in range of 56.50-57 per dollar."

IPO Check: As per latest data on NSE, Just Dial IPO susbcribed 0.52 times on Day 2. The issue will close for subscription on May 22.

Also Read: What experts say about Just Dial IPO, find out here

Featured: Phaneesh Murthy's billion-dollar software game - Forbes

11:18 am Only Buyers: LML, Uniply Industries, Himadri Chemicals locked at upper circuits.

11:15am Coal India up 2.5 percent at Rs 307.4

Riding on dividend income paid by its subsidiaries, Coal India Ltd (CIL) on Monday reported a nearly 90-percent jump in standalone net profit at Rs 2,320.61 crore for the fourth quarter ended March 31.

Also Read: Coal India Q4 net profit up 90% on dividend income

Hindalco Block Deal: 1.3 crore shares changed hands on BSE, NSE at Rs 110 per share. The stock is up 2 percent.

MUST READ: iGATE sacks Phaneesh Murthy on sexual harassment charge
How Phaneesh Murthy blew it all up

Indian shares were consolidating in the late morning trade on lack of corporate news and economic data points. Asian shares were trading mixed while US markets closed flat overnight.

At 11.01 hrs IST, the Sensex is down 16.09 points or 0.08% at 20207.89, and the Nifty down 12.35 points or 0.20% at 6144.55. About 741 shares have advanced, 956 shares declined, and 104 shares are unchanged.

Auto stocks took a breather in trade today after rallying between 2 to 4 percent on Monday. Shares of Tata Motors, M&M and Maruti Suzuki were down between 1 to 3 percent.

Key gainers in the Nifty were Coal India (Rs 307.90, 2.19%), BHEL (Rs 205.75, 1.73%), Hindalco (Rs 112.05, 1.72%), Sun Pharma (Rs 978.75, 1.33%) and Lupin (Rs 778.55, 1.33%).

Laggards included Tata Motors (Rs 294.10, 2.63%), UltraTech Cement (Rs 1,969.65, 2.49%), NTPC (Rs 155.75, 2.38%), Jaiprakash Associates (Rs 78.25, 2.13%) and Ranbaxy Labs (Rs 434.50, 2.05%)

10:55am Hindalco block deal: 1.3 cr shares exchange hands on exchanges at Rs 110 per share.

10:53 am Gainers: Adani Power was quoting at Rs 55.90, up Rs 1.85, or 3.42 percent.

10:50 am Acitvity: Hindalco, SBI, TCS, Tata Motors, L&T, RIL and ICICI Bank are most active stocks on the BSE.

10:45 am Brokerage call: CLSA has an outperform on India Cements with a target of Rs 100. While cement prices have recovered in the past few weeks and there is the possibility of one more hike in the near-future, the management expects volatility to continue as demand-supply imbalance is likely to continue in south.

10:40 am Monsoon update:
Indian Met Department says on CNBC-TV18:
Monsoon covers Andaman Sea, more parts of Bay of Bengal
Expect monsoon to hit Kerala coast on time
First part of monsoon should be better than last year
Next monsoon forecast will be in the middle of June

10:33 am Buzzing: Divis Lab sinks 6.6 percent on weak March quarter earnings. Its revenue was down 9 percent, margin was at 38 percent while profits fell 17 percent to Rs 180 crore.

10.26 am Market update: The Sensex is down 30.91 points at 20193.07, and the Nifty is down 16.35 points at 6140.55.

10:25 am Market pulse check: There is limited scope for the Indian market to get further re-rated, feels Jyotivardhan Jaipuria of Bank of America Merrill Lynch. The current rally is being fuelled purely by liquidity and the upside appears to be capped, Jaipuria said in an interview to CNBC-TV18 .

He said there were enough factors that would keep the market in check. The current account deficit is big cause for worry. Also, India's forex reserves is at its lowest since 1995. Despite softening of crude oil and gold prices, India's trade deficit widened to over USD 17 billion in April.

10:15 am Buzzing: Omaxe was quoting at Rs 154.35, down Rs 9.95, or 6.06 percent.

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10:07am  Losing stocks: Tata Motors, M&M, NTPC, Maruti Suzuki, Dr Reddys Labs were the major losers in the Sensex.

Experts comments
Market won't see deep downside; bet on cement: NBIE's Advani
Don't panic, mkt won't correct significantly: Angel Broking

The market looked tired and seem to be taking rest after rallying for sometime. The Sensex was up 13.12 points at 20237.10 while the Nifty was at 6156.90.

Technology stocks were lending strength to the indices with both TCS and Wipro gaining over 1 percent.

Coal India was the big index gainer today. It has announced a full year dividend of Rs 14 against the street expectations of Rs 10. Additionally, JPMorgan has released a report this morning raising their target to Rs 345. On the divestment front, their view is that a likely stake sale by the government would be an opportunity to add

Moneycontrol Bureau
9:50 am Index gainer: BSE IT index is up 1 percent from its previous close.

9:40 am Key gainers: Coal India, BHEL, Wipro, HDFC and Infosys are key gainers in the Sensex.

9.35 am Market update: The Sensex is up 37.75 points at 20261.73, and the Nifty is up 8.35 points  at 6165.25. About 596 shares have advanced, 367 shares declined, and 80 shares are unchanged.

What do you think? iGATE sacks Phaneesh Murthy on sexual harassment charge

9:25am Currency opening: Rupee opened higher at 54.96 per dollar on Tuesday as against previous day's closing of 55.11. Jayesh Mehta of Bank of America feels the rupee could appreciate to 54.90/USD due to mild weakness in the dollar.

Big deal: Yahoo takes big leap with $1.1-bn deal for Tumblr

9:20 am Falling: Omax is down around 6 percent. Realty firm Omaxe's promoters will sell 50 lakh shares through offer for sale (OFS) at a floor price of Rs 148 a share to raise upto Rs 74 crore. The promoters companies Constellation Capital and S A Finvest will sell 25 lakh shares each through OFS to dilute their stake in Omaxe to meet Sebi's minimum 25 percent public shareholding norms by June this year.

Expert Views
Nifty in consolidation mode; eyes on Fed meet now
Invest gradually in equities, look long term: ICICI Pru AMC
Mkt momentum waning; time to exit long positions: Sukhani

The market has opened on a flat note. The Sensex is down 8.37 points at 20215.61, and the Nifty is 4.55 points lower at 6152.35. Analysts feel that after the rally, the market is likely to take some pause hereon.

Coal India, Bajaj Auto, ONGC, GAIL and Wipro are the key gainers in the Sensex.

On the losing side were NTPC, Maruti Suzuki, Tata Motors, L&T and Cipla.

Among the midcaps, Voltas, Fortis Health, Omax are the major losers.
Companies that will announce March quarter earnings are Tech Mahindra, AstraZeneca Pharma, J K Paper, JSW Ispat, Mahindra Forging, Prestige Estates and Subex.