Nifty ends above 8350, Sensex up 88 points; Vedanta gains 5%

03:30 pm Market closing: After a lot of struggle, the market ended with gains. The Sensex was up 87.74 points at 27661.40 and the Nifty ended up 32 points at 8360.55. About 1415 shares have advanced, 1371 shares declined, and 176 shares are unchanged.

Vedanta, Sun Pharma, HDFC Bank, L&T and BHEL are top gainers in the Sensex. Among the losers are Bharti Airtel, HUL, TCS, GAIL and ONGC.

03:10 pm Fund game: Raising funds through issuing shares to promoters and shareholders on preferential basis plunged by 48 percent to Rs 5,407 crore in May due to volatile market conditions.

After touching 3-year high of Rs 10,485 crore in April, funds garnered by companies through preferential allotments fell to 5,407 crore in May, as per the latest data of the Securities and Exchange Board of India (Sebi).

The April figure marked the highest level of fund raising since May 2012, when the companies had mobilised a total of Rs 14,987 crore through preferential route.

Besides, the number of preferential issues dropped to 30 in May, from 37 in the preceding month

02:58 pm Market Update: The Sensex gained 70.32 points at 27643.98 and the Nifty rose 25.90 points to 8354.45. About 1403 shares have advanced, 1311 shares declined, and 171 shares are unchanged on the BSE.

02:50 pm Talbros Automotive rallies: Shares of Talbros Automotive Components surged 11 percent on securing orders from Maruti Suzuki India and ISUZU Motors India. It received orders under its joint ventures Magneti Marelli Talbros Chassis Systems (MMT) and Talbros Marugo Rubber (TMR).

MMT has bagged order for control arms supply to Maruti Suzuki for their upcoming new launch S-Cross SX4 and the order to TMR is for stabiliser bush, hose intercooler inlet and outlet, muffler hanger and suspension bush across multiple models of Maruti and air intake hose of ISUZU Motors.

MMT is a 50:50 joint venture with Magnetti Marelli SPA, a Fiat Group company while TMR is a 50:50 joint venture with Marugo Rubber Industries, Japan (a global leader in anti-vibration products and hoses).

02:40 pm Funds via preferential allotments fall: Raising funds through issuing shares to promoters and shareholders on preferential basis plunged by 48 percent to Rs 5,407 crore in May due to volatile market conditions.

After touching 3-year high of Rs 10,485 crore in April, funds garnered by companies through preferential allotments fell to 5,407 crore in May, as per the latest data of the Securities and Exchange Board of India (Sebi).

The April figure marked the highest level of fund raising since May 2012, when the companies had mobilised a total of Rs 14,987 crore through preferential route.

Besides, the number of preferential issues dropped to 30 in May, from 37 in the preceding month.

Market participants said fresh capital raked in through preferential allotments mode has declined due to volatile market conditions.

Under the preferential issue, companies raise money by selling shares to a select group of existing investors, rather than to the public at large.

02:20 pm BHEL in News: State-run BHEL said that it has commissioned the second 500 MW unit at Tuticorin Thermal Power Station (TPS) in Tamil Nadu.

"Bharat Heavy Electricals Limited (BHEL) has successfully commissioned the second 500 MW unit at Tuticorin Thermal Power Station (TPS)," the company said in a press release on Friday. The first 500 MW unit of the project was commissioned on March 10.

Tuticorin TPS has been set up by NLC Tamil Nadu Power Limited (NTPL), a joint venture of Neyveli Lignite Corporation (NLC) and Tamil Nadu Generation and Distribution Corporation (TANGEDCO).

The project is situated near the Thoothukudi (Tuticorin) port on the shore of the Bay of Bengal.

Additionally, CLSA has upgraded the stock to buy with a revised target of Rs 320 from Rs 205 per share led by 10-17 hike in earnings per share (EPS), higher FY16 order inflows, better margins on lower materials and economies of scale on large order wins. 

The brokerage feels BHEL will be the biggest beneficiary of potential doubling of Indian power equipment market to 20GW in FY16 and falling material prices. It has raised FY16 order inflow by 17 percent and is optimistic that EPS will be double over FY15-17.

02:00 pm Market Check
Equity benchmarks as well as broader markets remained in a consolidation mode. The Sensex fell 23.88 points to 27549.78 and the Nifty declined 5 points to 8323.55. About 1357 shares have advanced, 1284 shares declined, and 157 shares are unchanged on the BSE.

Vedanta topped the buying list on Sensex, up 4 percent followed by HDFC Bank, Reliance Industries, Sun Pharma and BHEL with 1-2 percent upside. However, ITC, HUL, Bharti Airtel, ONGC, Lupin, M&M, Bajaj Auto, GAIL and NTPC lost 1-3 percent.

TCS is amongst the top five most active stocks on exchanges after its earnings. Net profit and margin beat street expectations in Q1 but revenue missed street forecast, up 3.5 percent against 4.2 percent expected on sequential basis. The stock lost nearly 3 percent.

HPCL, Essar Oil, ITC, ICICI Bank, Tata Motors, Axis Bank, Reliance Industries and Larsen & Toubro are other most active stocks.

1:50 pm Interview: Bhushan Steel has got some relief from its lenders, with the company not having to make principal repayments for next four years. However, the interest outgo will remain the same as before, the company's Chief Financial Officer Nitin Johri told CNBC-TV18. He said Rs 4000 crore of principal repayment due this year has been deferred for four years. Johri expects better performance for the June quarter, but said the company would not be reporting an operating profit. He said a turnaround was likely only in the third quarter.

1:30 pm Stock view:  JP Morgan has an overweight rating on Tata Steel. The brokerage says that from the second half of FY16 onwards both cash flows and earnings should improve, while the stock price is building in continued stress.

Though JP Morgan says that the current environment for steel is very poor and sees downside risks to FY16 earnings estimates as the import protection for the domestic steel industry has not materialised yet, it feels steel demand is improving domestically. "Tata's capital spend is mostly behind us and the European operations remain steady," it adds.

The market is consolidating for another day. The Sensex is up 72.21 points at 27645.87, and the Nifty up 23.55 points at 8352.10. About 1381 shares have advanced, 1146 shares declined, and 160 shares are unchanged.

Vedanta, BHEL, Sun Pharma, Reliance and Coal India are top gainers while Bharti, HUL, GAIL, TCS and NTPC are among laggards in the Sensex.

The recent market correction should be seen in a positive light as it is now trading at 16x earnings, which is not expensive, says Prabodh Agrawal, president and head of research at IIFL Institutional Equities. However, the market may move lower in the near-term, he says. He expects a sharp rebound if there is a correction of 8-10 percent. He sees consistent buying from domestic institutions at every dip.

Agrawal says earnings growth will be back-ended for cements, industrials and 2-wheelers. Private banks and 4-wheelers will also show good results this quarter, he told CNBC-TV18. He is also positive on the technology sector.

12:55 pm Market Update: The Sensex gained 38.40 points at 27612.06 and the Nifty rose 8 points to 8336.55. About 1376 shares have advanced, 1134 shares declined, and 159 shares are unchanged.

12:40 pm Europe opens higher: European equities opened sharply higher as investors take heart from a rebound in China and reforms proposals from Greece. France's CAC and Germany's DAX gained 2 percent each while Britain's FTSE rose over 1 percent.

Greece has submitted its economic reform proposals and asked for 53.5 billion euros (USD 59.4 billion) as part of a new bailout package from its creditors.

12:20 pm Market Expert: The recent market correction should be seen in a positive light as it is now trading at 16x earnings, which is not expensive, says Prabodh Agrawal, president and head of research at IIFL Institutional Equities. However, the market may move lower in the near-term, he says. He expects a sharp rebound if there is a correction of 8-10 percent. He sees consistent buying from domestic institutions at every dip.

On the macro front, he continues to remain positive. He says even if GST implementation gets delayed by three months, it should not be an issue.

Agrawal says earnings growth will be back-ended for cements, industrials and 2-wheelers. Private banks and 4-wheelers will also show good results this quarter, he told CNBC-TV18. He is also positive on the technology sector.

12:00 pm Market Check
The market continued to consolidate with the Nifty struggling below 8350. FMCG and telecom stocks lost ground while banks and capital goods supported. The broader markets gained 0.2 percent.

The Sensex rose 21.74 points to 27595.40 and the Nifty gained 5.20 points at 8333.75. About 1291 shares have advanced, 1104 shares declined, and 147 shares are unchanged on the BSE.

Asian markets traded mostly higher as China markets continued its upmove for the second consecutive session, up 5 percent and Hang Seng up 2.25 percent. European markets are likely to open higher as Greece presented its fresh reform plans.

TCS extended losses, down nearly 2 percent after the company's revenue missed estimates for the fourth straight quarter.. Management is bullish on digital business, saying they are likely to outperform digital revenue target of USD 3-5 billion in next few years.

HUL, Bharti Airtel, ONGC, Lupin, NTPC, Bajaj Auto and GAIL dropped 1-2 percent. However, Reliance Industries, HDFC Bank, L&T, ICICI Bank, Sun Pharma, Tata Motors, BHEL, Wipro, Vedanta and Coal India gained 1-2 percent.

Monnet Ispat is locked in 20 percent upper circuit as the company entered into discussion with JSW Energy to sell controlling stake in their subsidiary Monnet Power.

IIP for the month of May will be released today. A CNBC-TV18 poll sees it modestly higher on the back of strong core sector data, at 4.4 percent against 4.1 percent in April.

11:50 am PM on FDI: Prime Minister Narendra Modi said FDI cap in special technology would be raised to 100 percent as he pitched for greater cooperation with Brazil and South Africa in the field of defence and other areas. During a meeting with Brazilian President Dilma Rousseff here, Modi noted that his government had raised FDI cap to 49 percent but in the area of special technology, it would be raised to 100 percent, Secretary (West) in the Ministry of External Affairs Navtej Sarna said while briefing media on the discussions. Sarna said the Defence Minister favoured increased defence cooperation with Brazil while noting that some Indian equipment is already being used in Brazilian jets.

11:30 am Macro data: If the rally in Capital Goods sector is anything to go buy, the Index of Industrial Production (IIP) numbers for May is expected to be better than April. A CNBC-TV18 poll pegs May IIP at 4.4 percent , higher than 4.1 percent seen in the preceding month. An IIP number of 4.4 percent would be positive for the coming days against the 0.1 percent recorded throughout last year. Voicing his optimism, Jahangir Aziz of JP Morgan says there is a faint hint of a pick up in the capital component of manufacturing. He noticed that infrastructure, which is the biggest part of manufacturing component in the IIP basket, is seeing steady improvement in the form of new project announcements. This has come after a very very long time, he told CNBC-TV18 in an interview.

The market is flat as the Sensex is up 23.76 points at 27597.42. The Nifty is up 2.65 points at 8331.20. About 1277 shares have advanced, 1003 shares declined, and 143 shares are unchanged.

Vedanta, BHEL, Coal India, Wipro and ICICI Bank are top gainers in the Sensex. Among the losers are Bharti Airtel, HUL, NTPC, GAIL and ONGC.

Gold held above a four-month low on Friday, spurred by a firmer euro on signs of progress in debt-hit Greece's efforts to secure fresh funding. But bullion is still down so far for the week, its third in a row, amid weak physical demand in top consumers China and India. Prices have been trapped in a tight range with global uncertainties from Greece to China failing to spark safe-haven bids.

The Greek government sent a package of reform proposals to its euro zone creditors on Thursday in a race to win new funds to avert bankruptcy and will seek a parliamentary vote on Friday to endorse immediate actions.

10:55 am Market Update: The Sensex fell 13.13 points to 27560.53 and the Nifty slipped 4.55 points to 8324. About 1221 shares have advanced, 926 shares declined, and 152 shares are unchanged on the BSE.

10:45 am Oil gains: Oil prices rose on hopes that the Greek debt crisis could be resolved and as Chinese stocks rebounded, but analysts said bigger jumps were unlikely as global crude production remained high.

Greece has tabled a cash-for-reforms proposal to creditors, raising hopes that a deal could be reached this weekend.

In China, the CSI300 stock index was up more than 5 percent, extending gains from the previous session after the government launched measures to halt a 30 percent fall in prices since June.

Despite this pick-up, analysts said that China's economic growth was slowing.

10:35 am Market Update: The market erased gains. The Sensex rose 11.84 points to 27585.50 and the Nifty advanced 5 points to 8333.55. About 1322 shares have advanced, 772 shares declined, and 138 shares are unchanged on the BSE.

10:20 am IIP data today evening: Index of industrial production (IIP) for the month of May will be released today. CNBC-TV18 poll sees it at 4.4 percent versus 4.1 percent in April. An IIP number of 4.4 percent would mean and reflect a positive for the coming days against the 0.1 percent throughout last year.

People are confident about this figure on the back of sectors like electricity, coal, cement and steel performing well. This means there has been a substantial improvement month-on-month and year-on-year(YoY) basis. Therefore, since core forms 38 percent of the IIP, it is likely to reflect in the IIP calculation as well.

Limitations that still remain are poor passenger vehicle and two-wheelers sales, barring a few companies which did relatively well in exports but only contributed a little. This lead to 20 percent lower exports YoY basis. Another limitation that arises is that core sector does not always move in the same flow with the IIP.

10:00 am Market Check
The market continued to see buying interest after a fall in previous three sessions. Banks, pharma, auto, technology, capital goods and metals stocks supported the market while FMCG and telecom dragged.

The Sensex gained 109.45 points at 27683.11 and the Nifty rose 30.05 points to 8358.60. The BSE Midcap index advanced 0.4 percent and Smallcap climbed 0.6 percent. The market breadth remained positive as about 1303 shares have advanced against 491 shares declined on the Bombay Stock Exchange.

Tata Motors rebounded, up 1.7 percent after seeing a 8 percent fall in previous two sessions on fears of slowdown in JLR sales in China. Private sector lender ICICI Bank climbed 1.7 percent as media report indicated that the bank may sell home finance arm for Rs 4,400 crore.

IT company TCS rebounded with marginal gains as its net profit in June quarter declined 3.3 percent and margin slipped 91 basis points on sequential basis but both beat street forecast. Wipro gained more than 1 percent as it announcesd its intension to acquire strategic design firm Designit.

Infosys, Vedanta, Coal India, BHEL and Tata Steel advanced 1-3 percent while HUL, Bharti Airtel, Lupin, Bajaj Auto and GAIL fell 1-2.5 percent.

9:50 am Buzzing: Investors queued up for buying shares of Monnet Ispat after the company entered into discussion with JSW Energy for selling controlling stake in power subsidiary. The stock is locked at 20 percent upper circuit at Rs 42.75. There were pending buy orders of 187,315 shares, with no sellers available.

Monnet Ispat and Energy said it has signed non-binding memorandum of understanding (MOU) with JSW Energy for entering into discussion to sell majority and controlling stake of its subsidiary, Monnet Power Company Limited (MCPL).

MCPL is engaged in the business of developing 1050 MW (2 x 525) Coal fired thermal power plant located at Malibrahmani, Angul Orissa.

Sanjay Sagar, CEO of JSW Energy (in an interview with CNBC-TV18) said due diligence will take 45-60 days for completion

9:30 am Boardroom: N Chandrasekaran, chief executive officer and managing director, Tata Consultancy Services says the company posted decent Q1 results but the softness in its emerging market (EM) business was unanticipated.

TCS has shifted its focus to the digital business in the past few quarters and continues to be extremely confident on the same. After announcing the Q1 numbers, in a conference, Chandrasekaran said the digital segments is the fastest- growing revenue stream, accounting for 12.5 percent of the overall sales. Infact Chandra expects the segment to outperform the revenue target of USD 3-5 billion in the next few years.

"The traditional business is doing well and the momentum in digital business is high as are investments. The size of deals in the digital segment are also increasing sequentially," he adds.

The market has opened higher. The Sensex is up 134.12 points or 0.5 percent at 27707.78, and the Nifty is up 39.30 points or 0.5 percent at 8367.85. About 714 shares have advanced, 115 shares declined, and 64 shares are unchanged.

Vedanta, BHEL, ICICI Bank, Wipro and Infosys are top gainers in the Sensex. TCS is down 1 percent, ITC, Bharti Airtel, HUL and Lupin are among laggards in the Sensex.

The Indian rupee gained further in early trade. The currency has opened marginally higher by 7 paise at 63.32 per dollar against yesterday's close of 63.39 a dollar.

Pramit Brahmbhatt of Veracity said, "Concerns raised over the Greece debt issue will continue to hover over the market. We see the rupee range between 63.20-64/dollar today."
IIP for the month of May will be released today. It is seen modestly higher on the back of strong core sector data. CNBC-TV18 poll sees May IIP at 4.4 percent versus 4.1 percent in April.

Greece submitted its latest economic reform plan. The Greece government will ask Parliament to approve this plan later today ahead of the EU summit on Sunday. Asian stocks opened mixed this morning.

Financial markets in Taiwan are shut today due to typhoon chan-hom which is moving at a speed of 155 kilometres per hour towards the northern coast of Taiwan. US stocks finished mildly higher, giving back more than half of opening gains. The Nasdaq composite gained 0.3 percent, while the blue-chip Dow and S&P 500 ticked up 0.2 percent each.

All 28 member countries of the European Union will meet on Sunday, at which leaders will decide whether to accept the plans and negotiate a third aid program for Greece.

Euro firms up on signs that cash-strapped greece was making some progress in its efforts to secure fresh funding. Nymex crude gained around 2 percent yesterday rebounding from the three-month lows of this week, as uncertainties remained about a nuclear deal that will allow Iran to export more crude. Brent crude trades well above 58-dollar mark.