Nifty ends at 8289, Sensex jumps 173 points; auto, infra rally

3:30 pm Market closing: The market saw good buying interest today supported by auto, infra and oil stocks. The Sensex ended up 173.01 points or 0.6 percent at 26899.56 and the Nifty was up 52.55 points or 0.6 percent at 8288.60. About 1655 shares have advanced, 1142 shares declined, and 372 shares are unchanged.

Tata Motors, Adani Ports, Tata Steel, Asian Paints and HDFC Bank were gainers while Axis Bank, Dr Reddy's Labs, ONGC, Lupin and NTPC were losers in the Sensex.

3:17 pm Results: Private sector lender IndusInd Bank said profit in the quarter ended December 2016 grew by 29.2 percent to Rs 750.6 crore compared with Rs 581.02 crore in year-ago period.

Net interest income, the difference between interest earned and interest expended, during the quarter increased 34.51 percent to Rs 1,578.42 crore from Rs 1,173.42 crore in corresponding quarter of last fiscal.

The stock was quoting at Rs 1,160.25, up Rs 0.55, or 0.05 percent on the BSE.

2:59 pm Market Update: Equity benchmarks remained higher with the Sensex rising 159.05 points at 26885.60 and the Nifty up 46.95 points at 8283.

About 1601 shares advanced against 1124 declining shares on the BSE.

2:38 pm Fuel demand: India's fuel demand rose 4.3 percent in December compared with the same month last year.

Consumption of fuel, a proxy for oil demand, totalled 16.53 million tonnes, data from the Petroleum Planning and Analysis Cell (PPAC) of the oil ministry showed.

Sales of gasoline, or petrol, were 7.7 percent higher from a year earlier at 1.96 million tonnes.

Cooking gas or liquefied petroleum gas (LPG) sales increased 7.9 percent to 1.94 million tonnes, while naphtha sales surged 5.5 percent to 1.08 million tonnes.

Sales of bitumen, used for making roads, were 2.1 percent lower, while fuel oil use edged up 14.0 percent in December.

2:20 pm Motilal Oswal on Hindalco: Motilal Oswal says aluminium major Hindalco Industries remained its top pick in the metals and mining sector. It has reiterated buy rating on the stock and valued at Rs 234, implying 48 percent upside.

The brokerage house says although volume growth is tapering, its commendable achievements in reducing cost of production, rising share of high-margin autos in Novelis' volumes and strict discipline in capital allocation are driving strong free cash flows (FCF).

Furthermore, rapidly declining financial leverage, refinancing of debt and re-setting of interest rates will drive USD 110 million additional annual savings in finance cost, boosting FCF, it believes

Aluminum demand growth remains strong due to substitution of steel, copper and zinc in various applications.

2:00 pm Market Check
Benchmark indices extended gains in afternoon with the Nifty inching towards 8300, driven by HDFC Bank, Tata Motors, Reliance Industries and ITC.

The 30-share BSE Sensex was up 172.58 points at 26899.13 and the 50-share NSE Nifty gained 45 points at 8281.05. The BSE Midcap and Smallcap indices were up 0.3-0.6 percent on positive breadth.

HDFC Bank, Tata Motors, Reliance Industries, Adani Ports, Asian Paints and ICICI Bank were leading contributors to Sensex's gains, up 1-3 percent whereas Axis Bank fell more than 1 percent followed by HDFC, Dr Reddy's Labs, HUL and Cipla.

Bourses in Europe were mixed as concerns over the Italian banking system grew.

Oil markets edged higher on expectations that at least some planned production cuts would be implemented, making a slight recovery from big losses the previous day over doubts the agreed reductions would rebalance an oversupplied market.

Brent crude futures, the international benchmark for oil prices, were trading at USD 55.14 per barrel, up 0.36 percent from their last close. US West Texas Intermediate (WTI) crude oil futures were trading at USD 52.18 per barrel, up 0.42 percent.

1:45 pm European market: Bourses in Europe started Tuesday's session moving slightly higher despite concerns over the Italian banking system and the implementation of an OPEC deal.

The pan-European Stoxx 600 was 0.04 percent higher with all the major bourses trading positive.

Two Italian banks, Popolare di Vicenza and Veneto Banca, which were rescued last year, are to propose a deal with disgruntled shareholders that could cost the
banks more than 600 million euros (USD 634 million). According to Reuters, the two banks are seen as the next big issue in the Italian banking system.

1:30 pm Result poll: Private sector lender IndusInd Bank 's third quarter (October-December) profit is seen rising 24 percent year-on-year to Rs 720.5 crore, according to average of estimates of analysts polled by CNBC-TV18. Net interest income, the difference between interest earned and interest expended, is expected to increase 28.1 percent to Rs 1,502.6 crore in Q3FY17 compared with Rs 1,173 crore in same quarter last year. Key things to watch out for would be loan growth, net interest margin, non-performing assets and credit cost. Analysts say if loan growth comes above 22 percent (26.4 percent in Q2), net interest margin above 3.8 percent (4 percent), gross non-performing assets below 1 percent (0.9 percent) and credit cost below 20 basis points (14 basis points) then that will be positive.

Benchmark indices continue to see buying interest with the Nifty still above 8250. The 50-share index is up 37 points or 0.4 percent at 8273.05 and the Sensex is up 135.56 points or 0.5 percent at 26862.11.

Tata Motors, Adani Ports, GAIL, Wipro and HDFC Bank are top gainers while Axis Bank, Dr Reddy's labs, HDFC, Bharti and Maruti are losers in the Sensex.

Indian equity markets are expected to move in a narrow range during the year and the benchmark Sensex is likely to touch 29,000 by the end of 2017, says a Deutsche Bank report.

According to Deutsche Bank's India Equity Strategy Report, 2017 is expected to be a year of uncertainty and the market is likely to be volatile and uncertain in the first half and recover in the second half.

"We expect the market to move in a narrow range during 2017, with recovery likely in the latter part of the year," Deutsche Bank said in a research note adding, "We are setting December 2017 Sensex target of 29,000 (around 8 per cent upside) implying PE of 16.4 times on 2017-18 EPS," the report said.

12:59 pm Market Update: Benchmark indices remained higher with the Sensex rising 116.60 points to 26843.15 and the Nifty gaining 33.05 points at 8269.10.

About 1506 shares advanced against 1037 declining shares on the BSE.

12:45 pm Credit Suisse on BEL: Credit Suisse has initiated coverage on Bharat Electronics (BEL) with an outperform rating and target price of Rs 1,800 based on steady growth visibility. It says valuations look reasonable in the context of global defence and Indian cap goods peers. The stock surged 5 percent intraday.

The brokerage house expects 15 percent revenue growth and 14 percent earnings growth on the backlog of Rs 35,000 crore and strong inflows.

It also expects an average order inflow run rate of Rs 13,500 crore per annum during FY17-19 (backlog Rs 35,000 crore at 1HFY17-end) to drive growth on the back of a large opportunity basket.

India is one of the largest arms buyers, with high import dependence. BEL is the key beneficiary of extant spending and a focus on increasing indigenisation, the research firm says.

12:35 pm FII View: Indian equity markets are expected to move in a narrow range during the year and the benchmark Sensex is likely to touch 29,000 by the end of 2017, says a Deutsche Bank report.

According to Deutsche Bank's India Equity Strategy Report, 2017 is expected to be a year of uncertainty and the market is likely to be volatile and uncertain in the first half and recover in the second half.

"We expect the market to move in a narrow range during 2017, with recovery likely in the latter part of the year," Deutsche Bank said in a research note adding, "We are setting December 2017 Sensex target of 29,000 (around 8 per cent upside) implying PE of 16.4 times on 2017-18 EPS," the report said.

12:20 pm Interview: Minda Industries has got shareholders' approval to raise funds up to Rs 500 crore via combination of debt and equity.

Speaking to CNBC-TV18, NK Minda, Chairman of the company said management is still evaluating an option for dilution of equity. The promoters hold around 70 percent, of which a 5-7 percent dilution is possible.

Minda Industries will use the funds raised for consolidating its business as well as for large orders. Of Rs 500 crore raised, Rs 200 crore will be set aside as reserve cash by the company.

The company also plans to pare down debt by one percent, Minda said. The current debt of the company is over Rs 400 crore.

12:00 pm Market Check
Equity benchmarks maintained morning gains with the Nifty holding 8250 level, supported by banks, oil and auto stocks. It was despite weakness in Asian peers.

The 30-share BSE Sensex was up 134.69 points at 26861.24 and the 50-share NSE Nifty rose 37.95 points to 8274 while the BSE Midcap index gained 0.34 percent and Smallcap climbed 0.7 percent on positive breadth.

About 1534 shares advanced against 908 declining shares on the BSE.

Tata Motors, GAIL, Adani Ports, Tata Steel, HDFC Bank, Hindalco Industries, Tata Motors (DVR) and BPCL were top gainers, up 1-4 percent while Eicher Motors, Axis Bank, IndusInd Bank, Ambuja Cements, Power Grid and Dr Reddy's Labs were under pressure.

Asian markets were under pressure, as investor sentiment soured after the Dow retreated further from the 20,000 mark and oil prices plunged as much as 4 percent overnight. Australia's ASX 200 fell 0.8 percent, seeing broad losses across all sub-indexes except for gold which was up 1.81 percent. Japanese benchmark Nikkei 225 slipped 0.79 percent, like due to the yen's strength.

11:45 pm Market outlook: Direct tax compliance has been slowly rising in the country. With this gradual increase, the government is likely to provide income tax rebates, says S Naren, Chief Investment Officer of ICICI Prudential AMC. Market inflows in January 2017 has been much better compared to December 2016, says Nimesh Shah, Managing Directot and Chief Executive Officer at ICICI Prudential AMC. The market, although, has seen stable inflows since May 2014. He says flows will continue to remain stable in the domestic market. Naren likes the telecom space due to the current valuations for long-term. He also likes power industry, where he expects a 5-7 percent increase in power consumption in India every year.

11:30 pm Earnings: Private sector lender IndusInd Bank 's third quarter (October-December) profit is seen rising 24 percent year-on-year to Rs 720.5 crore, according to average of estimates of analysts polled by CNBC-TV18. Net interest income, the difference between interest earned and interest expended, is expected to increase 28.1 percent to Rs 1,502.6 crore in Q3FY17 compared with Rs 1,173 crore in same quarter last year. Key things to watch out for would be loan growth, net interest margin, non-performing assets and credit cost.

The market is still gaining with the Sensex up 101.77 points or 0.4 percent at 26828.32. The Nifty is up 27.75 points or 0.3 percent at 8263.80. About 1471 shares have advanced, 818 shares declined, and 367 shares are unchanged.

Tata Motors, Tata Steel, GAIL, Asian Paints and BHEL are top gainers while Axis Bank, Hero MotoCorp, Bahrti, Sun Pharma and Dr Reddy's are losers in the Sensex.

Domestic passenger vehicle sales declined by 1.36 per cent to 2,27,824 units in December 2016, from 2,30,959 units in the same month a year ago. Domestic car sales were down 8.14 per cent at 1,58,617 units last month as against 1,72,671 units in December 2015, according to data released by the Society of Indian Automobile Manufacturers (SIAM).

Vehicle sales across categories registered a decline of 18.66 percent at 12,21,929 units, from 15,02,314 units in December 2015, it added.

10:59 am Market Update: Benchmark indices remained higher with the Sensex rising 126.57 points to 26853.12 and the Nifty climbing 35.80 points to 8271.85.

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

10:40 am Fitch on Jubilant Pharma: Fitch Ratings says it expects Jubilant Pharma's credit profile to benefit from new long-term contracts for its radiopharma business with leading US distributors.

Jubilant Pharma is a wholly-owned subsidiary of Jubilant Life.

The contracts, which were signed by its wholly owned subsidiary, Jubilant DraxImage Inc., are effective for 39 months from January 2017 and involve nuclear pharmaceutical products used for various diagnostic and therapeutic procedures for thyroid, myocardial perfusion, lung, kidney and bone scans.

JPL's radiopharma business - a key constituent of its speciality pharma portfolio - has a good market position in the US with a niche product portfolio. The company has limited competition for many of its radiopharma products, which is reflected in the length of the supply contracts.

Fitch believes the contracts' long tenure supports the company's earnings visibility and credit profile.

10:20 am Buzzing: Share price of Ajanta Pharma gained 2.5 percent intraday on USFDA approval for Duloxetine hydrochloride delayed release capsules.

Duloxetine is a bioequivalent generic version of Cymbalta delayed release capsules and part of an ever growing portfolio of products that the company has developed for the US market.

The company will launch the product shortly in 3 strengths, 20 mg, 30 mg and 60 mg strengths capsules.

The company has 32 abbreviated new drug application (ANDA) of which it has 17 final ANDA approvals, 2 tentative approvals and 13 ANDAs under review with USFDA.

10:00 am Market Check
Equity benchmarks as well as broader markets continued to hold early gains with the Sensex rising over 100 points, led by oil, banks and auto stocks.

The 30-share BSE Sensex was up 126.06 points at 26852.61 and the 50-share NSE Nifty rose 39.40 points to 8275.45 while the BSE Midcap and Smallcap indices gained half a percent each.

The market breadth was positive as about two shares advanced for every share falling on the exchange.

Surendra Goyal of Citi says the market is likely to be rangebound till some clarity emerges. He maintains September 2017 target of 30,000 on the Sensex.

Reliance Industries, Tata Motors, ICICI Bank, ONGC, Adani Ports and Tata Steel gained more than 1 percent whereas Axis Bank, TCS, Sun Pharma and Bharti Airtel were moderately lower.

9:55 am China's growth: China's economic growth in 2016 was expected to be around 6.7 percent, Xu Shaoshi, director of the National Development and Reform Commission (NDRC), said on Tuesday.

Consumption accounted for 71 percent of China's GDP growth in the first three quarters of 2016, Xu told a media briefing in Beijing.

China's government had targetted 6.5-7 percent economic growth in 2016. Activity was boosted by higher government spending, a housing rally and record high levels of bank lending, which, however, also led to an explosive increase in debt.

9:45 am Buzzing: Shares of Max Ventures & Industries surged 18 percent in early trade Tuesday after the board approval for stake sale to a subsidiary of New York Life Insurance Company. "The board of directors of the company, on January 9, made a preferential offer, subject to shareholder approval, to issue common stock to a subsidiary of New York Life Insurance Company," the company said in its filing.

A subsidiary of New York Life Insurance Company will acquire a 22.51 percent equity stake in Max Ventures at an offer price of Rs 78 per share aggregating to Rs 121 crore on a diluted basis. After this deal, it will be entitled to one nominee director to the board of Max Ventures. New York Life is the largest mutual life insurance company in the United States and one of the largest life insurers in the world, with more than USD 500 billion under management.

9:30 am FII view: Surendra Goyal, Citi says the market is likely to be rangebound till some clarity emerges. He maintains September 2017 target of 30,000 on the Sensex. ''UP Elections will be keenly watched given the debate and divided public view on demonetisation. Budget: Lower personal taxes and higher rural spending likely. Strong USD likely to be a challenge for EM flows and India's correlation to USD is negative. Domestic flows remain strong. Our key Overweights are private sector banks, pharma and industrials while key Underweights are materials, IT and consumer staples,'' he adds.

The market has opened in green. the Sensex is up 105.04 points or 0.4 percent at 26831.59, and the Nifty is up 31.95 points or 0.4 percent at 8268. About 601 shares have advanced, 154 shares declined, and 280 shares are unchanged.

Tata Motors, Infosys, ICICI Bank, Axis Bank and Bajaj Auto are top gainers while Dr Reddy's Labs and Bharti Airtel are losers in the Sensex.

The Indian rupee has opened higher by 13 paise at 68.08 per dollar against previous close 68.21.

Bhaskar Panda of HDFC Bank says Dollar Index has been taking a beating after recent highs. Given this background, the USD-INR pair is expected to trade within a range of 67.90-68.20/dollar today, he feels.

US dollar weakened against the safe-haven yen as investors' reduced appetite for risk. The pound declined to more than two-month lows on talk that Britain would drastically rework trade ties with the European Union after Brexit.

Asian markets started on the back foot, after the Dow retreated further from the 20,000 mark and oil prices plunged as much as 4 percent overnight. Australia's ASX 200 was down 0.46 percent in early trade, weighed heavily by losses in its energy sub-index as oil prices plunge. 

Declines in energy and financial stocks weighed on the S&P 500 on Monday and helped stall the Dow's pursuit of the 20,000 milestone ahead of earnings season and expected US policy changes under the Donald Trump presidency.

The Nasdaq notched a record high close, extending its bullish run with help from healthcare stocks. The S&P's energy sector dropped 1.5 percent as oil prices slid on concerns that rising Iraqi exports and US output could dampen the impact of a deal among major producers to limit output.