Nifty ends below 8400, Sensex in red; Reliance drags 3%, HUL up

3:30 pm Market closing: The market has ended in red. The Sensex was down 52.51 points or 0.2 percent at 27235.66 and the Nifty slipped 14.80 points or 0.2 percent at 8398. About 1342 shares have advanced, 1377 shares declined, and 320 shares are unchanged.

NTPC, Asain, Axis Bank, Hero MotoCorp and HUL were top gainers while Reliance, Coal India, Adani Ports, ONGC and HDFC were losers in the Sensex.

2:59 pm Market Update: Benchmark indices were lower in afternoon, weighed by oil, metals and select banking & financials stocks.

The Sensex was down 63.76 points at 27224.41 and the Nifty fell 18.25 points to 8394.55.

2:45 pm Earnings: Electrical equipment manufacturer Havells India said profit increased 27.5 percent year-on-year to Rs 153 crore in the quarter ended December 2016. It was driven by other income and one-time gain.

Revenue during the quarter grew by 13.3 percent to Rs 1,622 crore compared with Rs 1,431.6 crore in year-ago period, aided by cable and electrical consumer durables businesses.

Operating profit increased 4.2 percent year-on-year to Rs 193 crore but margin contracted by 100 basis points to 11.9 percent in the quarter gone by.

Earnings except margin beat analysts' estimates. Profit was expected at Rs 123 crore on revenue of Rs 1,368 crore and operating profit was estimated at Rs 177 crore with margin of 12.9 percent for the quarter, according to average of estimates of analysts polled by CNBC-TV18.

2:28 pm Nomura on GST: The goods and services tax (GST) is expected to be fiscally neutral and the resulting inflation impact is likely to be minimal at less than 20 bps, says a Nomura report.

According to the Japanese financial services major, while the resulting inflation impact will be minimal, the impact on growth would be marginally negative in the run up to its implementation.

Nomura's observations of the Indian economy comes ar a time when the International Monetary Fund has revised India's GDP growth forecast on note ban woes by one percentage point to 6.6 percent for the current fiscal.

Meanwhile, the Centre has agreed to allow states control over most of small taxpayers, but the GST rollout date was pushed back by three months to July 1.

2:15 pm FDI for single brand retail: The government is considering allowing 100 percent FDI through automatic route in single brand retail to attract a larger number of global players in the sector.

According to sources, there is a proposal to allow 100 percent Foreign Direct Investment in single brand retail sector "through automatic route" with certain conditions.

Currently, FDI up to 49 percent is permitted under the automatic route but beyond that limit, government's nod is required. Foreign investment is allowed subject to certain conditions, which require products to be of a 'single brand' only and to be sold under the same brand globally.

Furthermore, in respect of proposals involving FDI beyond 51 percent, it is mandatory to source 30 percent of the value of goods purchased from India, preferably MSMEs.

2:00 pm Market Check
Benchmark indices as well as broader markets continued to consolidate in afternoon as investors awaited British Prime Minister Theresa May's speech on Brexit plans due later today.

The 30-share BSE Sensex was down 66.72 points at 27221.45 and the 50-share NSE Nifty declined 18.50 points to 8394.30.

Motherson Sumi, Force Motors, RBL Bank, Reliance Industries, Shriram City, Axis Bank, LIC Housing Finance and UPL were most active shares on exchanges.

Reliance Industries, Coal India, ONGC, HDFC and Adani Ports were top losers, down 1-3 percent whereas HUL, Asian Paints, Axis Bank, Sun Pharma, NTPC and UltraTech Cement gained around a percent.

Markets in Europe were lower as investors waited to hear from the UK Prime Minister Theresa May on her Brexit plans. France's CAC, Germany's DAX and Britain's FTSE were down 0.4-0.6 percent.

1:45 pm Exclusive: Fast moving consumer goods (FMCG) company ITC is likely to shuffle its top management in the next 15 days, sources have told CNBC-TV18.

Sources further add that long-timers like B Sumant and Hemant Malik are likely to get larger roles in the company once a new CEO is appointed.
ITC's COO Sanjiv Puri is the front runner for the CEO post.

B Sumant is currently the President, FMCG while Hemant Malik is the divisional chief executive of food business. Sources say that ITC is likely to hold a board meeting on January 27 to consider financial results.

1:30 pm Euroepan markets: Markets in Europe were lower morning as investors wait to hear from the UK Prime Minister Theresa May on her Brexit plans.

The pan-European Stoxx 600 was 0.2 percent lower with most sectors trading negative.

Prime Minister May is set to lay out 12 priorities for the U.K.'s departure from the European Union that will not leave the country in a "half-in-half- out" situation. According to the Daily Telegraph, May will confirm that Britain will exit the EU's single market and customs union and focus on regaining control of the number of people entering and living in the country.

During Asian trading, the pound fell to a three-month low.

The market is still under pressure with the Nifty below 8400. The Nifty is down 15.20 points or 0.2 percent at 8397.60 while the Sensex is down 50.62 points or 0.2 percent at 27237.55. About 1244 shares have advanced, 1285 shares declined, and 315 shares are unchanged.

Reliance, Coal India, ONGC, Adani Ports and HDFC are losers in the Sensex while Axis Bank, HUL, Asain Paints, Sun Pharma and NTPC are gainers.

Meanwhile, Jonathan Garner of Morgan Stanley says so far, emerging markets (EMs) equities are outperforming Japan this year after sharp underperformance in November and December 2016.

He expects EMs to return zero for the rest of 2017, but still sees 16 percent upside for Topix.

Currently, Garner is overweight on India, China, Taiwan, Chile, Peru and Czech Republic while underweight on Australia, South Africa, Singapore, Malaysia, and Qatar.

12:59 pm Market Update: Equity benchmarks were lower in afternoon as investors awaited speech by British Prime Minister Theresa May on Brexit plans and US President-elect Donald Trump's inauguration.

The Sensex was down 49.77 points at 27238.40 and the Nifty fell 13.70 points to 8399.10.

12:45 pm Analysts on LIC Housing: Brokerage houses remained positive on LIC Housing Finance after stable December quarter earnings but expect pressure on margin and home loan yields going ahead.

With maintaining buy rating and target price of Rs 693 (implying 33 percent upside), Motilal Oswal cut its EPS estimates for FY17/18 by 4/3 percent to account for lower yields in the home loan segment due to the recently announced rate cuts, though it believes a company with decent growth, superior asset quality and around 19-20 percent consistent return on equity (RoE) deserves a better multiple.

Nomura, which retained buy rating with unchanged target price at Rs 700, also says cut in MCLR (marginal cost of funds based lending rate) & mortgage rates by banks will impact mortgage spreads and re-financing could impact company's core mortgage growth as well.

12:34 pm  UP poll process kicks off: The Uttar Pradesh assembly poll process today kicked off with the EC issuing notification for the first phase of voting on February 11 which will cover 73 constituencies spread over 15 districts in Muslim-dominated Western UP.

The filing of nominations for these constituencies started at 11 am, immediately after the notification, the Chief Electoral Officer (CEO) office here said.

The last date of filing nominations is January 24 while candidature can be withdrawn till January 27. The polling will be held on February 11.

Uttar Pradesh goes to polls in seven phases between February 11 and March 8.

12:20 pm Pound fall: The pound hovered near three-month lows versus the dollar and stocks were mostly weaker as investors waited for British Prime Minister Theresa May to lay out plans to exit the European Union amid fears Britain will lose access to the single market.

According to her office, May will say in a speech later in the day that Britain will not seek a Brexit deal that leaves it "half in, half out" of the EU. She is due to set out her 12 priorities for upcoming divorce talks with the bloc.

Those priorities will include leaving the EU's single market and regaining full control of Britain's borders, media reported, reinforcing fears of a 'Hard Brexit' which has pushed the pound to some of the lowest levels against the US dollar in more than three decades and weighed on other riskier assets.

Sterling hovered around USD 1.2070, in striking distance of USD 1.1983, its lowest since October 7 struck the previous day.

12:00 pm Market Check
Equity benchmarks extended fall amid volatility in afternoon, weighed by oil, banking & financials, metals and auto stocks.

The 30-share BSE Sensex was down 67.63 points at 27220.54 and the 50-share NSE Nifty fell 22.10 points to 8390.70. The broader markets also erased morning gains to trade flat.

Reliance Industries, HDFC, HDFC Bank, ICICI Bank, Adani Ports and ONGC were leading contributors to Sensex's fall, down 0.6-2.7 percent.

ITC, Asian Paints, HUL, TCS, Infosys, L&T and Axis Bank continued to support the market, rising 0.5-1.6 percent.

Gold prices rose to hover near seven-week highs hit the day before, with safe-haven demand boosted ahead of a speech in which British Prime Minister Theresa May is expected to discuss plans for a "hard Brexit".

US gold futures were up 1.2 percent at USD 1,210.40 per ounce while silver futures rose 1.10 percent to USD 16.95 an ounce.

11:55 am Macro outlook: India's current account deficit is expected to be around 1.3 percent of GDP in 2017 as against a deficit of 0.8 percent in 2016, says a report.

According to Japanese financial services major Nomura, as the cash crunch eases from April-June quarter of this year the country's import growth is expected to rebound faster than the export growth.

The improvement in exports along with the moderation in gold imports narrowed the trade deficit to USD 10.4 billion in December from a 16-month high of USD 13 billion in November.

11:45 am Fund raising: Nifty hovers around 8400, Housing finance major HDFC will raise Rs 800 crore by issuing non-convertible debentures (NCDs) to shore up its long-term resources.

The company will issue secured redeemable NCDs on a private placement basis to raise Rs 800 crore, HDFC said in a regulatory filing.

"The object of the issue is to augment the long-term resources of the Corporation. The proceeds of the present issue would be utilised for financing/refinancing the housing finance business requirements of the Corporation," it said.

The bonds would yield 7.48 percent per annum and are set to mature on February 18, 2020. The issue opens for subscription on January 18.

11:30 am UP Politics: The Uttar Pradesh assembly poll process today kicked off with the EC issuing notification for the first phase of voting on February 11 which will cover 73 constituencies spread over 15 districts in Muslim-dominated Western UP.

The filing of nominations for these constituencies started at 11 am, immediately after the notification, the Chief Electoral Officer (CEO) office here said.

The last date of filing nominations is January 24 while candidature can be withdrawn till January 27. The polling will be held on February 11.

Uttar Pradesh goes to polls in seven phases between February 11 and March 8.

The market is completely flat with the Nifty hovering around 8400. The 50-share index was down 6.30 points at 8406.50 and the Sensex was down 33.12 points or 0.1 percent at 27255.05. About 1240 shares have advanced, 940 shares declined, and 262 shares are unchanged.

HUL, Axis Bank, Asian Paints, Sun Pharma and TCS are gainers in the Sensex while Reliance, Adani Ports, Lupin, Tata Steel and Coal India are losers in the Sensex.

Tracking a firming trend overseas, gold advanced for the second straight day and prices rose further by 0.27 percent to Rs 28,605 per 10 grams in futures trade today as speculators engaged in widening their bets.

Analysts said a firming trend in precious metals overseas as lingering concern over Donald Trump's policies and the UKs position in the European Union, buoyed sentiment here.

10:59 am Market Update: Benchmark indices remained under pressure with the Sensex down 26.14 points at 27262.03 and the Nifty down 5.40 points at 8407.40.

About 1234 shares advanced against 933 declining shares on the BSE.

10:50 am Interview: Rajiv Anand, Executive Director at Axis Bank said 75 percent of the private sector lender's ATMs were dispensing cash two months after the government's decision to junk popular bank notes had triggered a cash crisis.

Speaking to CNBC-TV18, Anand said it was clear that the process of normalisation post demonetisation was underway, after the Reserve Bank of India Monday increased the daily cash withdrawal limit at ATMs to Rs 10,000. The weekly cap, however, remains at Rs 24,000.

"It is clear that the RBI is confident enough to increase the limit," he said. "In terms of psychology, too, customers know that cash is available and so will be likely to withdraw less."

10:45 am Fund raising: Housing finance major HDFC will raise Rs 800 crore by issuing non-convertible debentures (NCDs) to shore up its long-term resources.

The company will issue secured redeemable NCDs on a private placement basis to raise Rs 800 crore, HDFC said in a regulatory filing.

"The object of the issue is to augment the long-term resources of the Corporation. The proceeds of the present issue would be utilised for financing/refinancing the housing finance business requirements of the Corporation," it said.

The bonds would yield 7.48 percent per annum and are set to mature on February 18, 2020. The issue opens for subscription on January 18.

10:25 am Market Update: Benchmark indices erased early gains, dragged by HDFC, HDFC Bank and Reliance Industries. The Sensex was down 28.01 points at 27260.16 and the Nifty fell 6.25 points to 8406.55 but the market breadth was positive.

About 1207 shares advanced against 818 declining shares on the BSE.

10:15 am Buzzing: Gaming company Delta Corp shares rose 3.5 percent intraday after receiving license for casino operations in Sikkim.

"The company, on January 16, has been issued a licence for operations of a casino in Gangtok, Sikkim, under the Sikkim Casino (Control & Tax) Act, 2002," Delta Corp said in its filing.

The company further said it is fully ready to commence casino operations and will do so immediately.

Delta, in pursuing its strategy of expanding gaming imprint, will now have a presence in Sikkim, operating a live gaming casino offering approximately 150 gaming positions, thereby catering to the Eastern region market.

10:00 am Market Check
Benchmark indices remained higher amid volatility in morning, with the Nifty inching towards 8450 level on consistent buying in banks, technology and FMCG stocks.

The 30-share BSE Sensex was up 69.09 points at 27357.26 and the 50-share NSE Nifty gained 22 points at 8434.80 while the broader markets outperformed.

The BSE Midcap and Smallcap indices gained more than 0.6 percent on positive breadth. More than two shares advanced for every share falling on the exchange.

ITC, Asian Paints, TCS, ICICI Bank, Axis Bank, Infosys, HUL and SBI were leading contributors to Sensex's gains, up 0.4-1.5 percent. However, Reliance Industries shares fell 2 percent after December quarter earnings.

Asian markets traded mixed, as investors remained cautious ahead of British Prime Minister Theresa May's speech on Brexit plans due later in the global day, as well as President-elect Donald Trump's inauguration stateside at the end of the week.

9:55 am Market outlook: Though headwinds such as policies of the Donald Trump government in the US exist, Andrew Holland, CEO of Avendus Capital is optimistic on the global
scenario.

Speaking to CNBC-TV18, Holland said India continues to shine in the long-term. The only negative in short-term is earnings, which are unlikely to grow much this quarter, but won't be a disaster either.

Guidance of 15-20 percent earnings growth still needs to be revised down. "Valuations still are not compelling enough to jump into the market,'' Holland added.  In the upcoming Budget, he expects government to increase fund allocation to the infrastructure sector.

9:45 am Raghruram Rajan's interview: The attitude of the Trump administration on trade has the potential of playing a spoiler, says former RBI Governor Raghuram Rajan. Speaking to CNBC he raised concern over the protectionist policies proposed by US President-elect Donald Trump and said there is a significant risk of a trade war between US and China. He said we are in the process of a global recovery, but the major question is how it fares once interest rates move up and currencies become more volatile as the US dollar strengthens. "We do need to weather the asset-price volatility that will come as interest rates move up but this is necessary," he said.

9:30 am FII view: In the last 3 months purchases by domestic mutual funds have more than offset foreign institutional investor outflows. It is tempting to assume that persistent domestic inflows into the equity market are likely to keep the market strong, Neelkanth Mishra of Credit Suisse says.

However, analysis of past market trends suggests that flows only temporarily impact prices, he feels.

Instead, changes to earnings estimates have a stronger influence, and on those we remain cautious, Mishra says.

The market has opened in green Tuesday. The Sensex is up 51.43 points or 0.2 percent at 27339.60 and the Nifty is up 16.10 points or 0.2 percent at 8428.90. About 689 shares have advanced, 192 shares declined, and 174 shares are unchanged.

SBI, ITC, TCS, Tata Motors and ONGC are top gainers while Relaince, Hero MotoCorp, Tata Steel, Lupin and M&M are losers in the Sensex.

The Indian rupee opened flat at 68.09 per dollar on Tuesday against previous close 68.10. The pound remained weak ahead of British Prime Minister Theresa May's speech on brexit plans due later today. The dollar strengthened against a basket of currencies.

Global investors are awaiting UK PM Theresa May's Brexit speech. According to reports, May will lay out plan to exit the European Union that would see Britain lose access to the bloc's single market.

The pound is already near 3-month low ahead of the speech. The pound's losses helped take some pressure away from the greenback, which has been burdened by investor uncertainty over the incoming Trump administration's policies.

Asian markets saw a mixed start as investors were cautious ahead of May's speech. Nikkei was down nearly half a percent, while the Korean market was trading higher by over half a percent.

The International Monetary Fund (IMF) slashed India's growth forecast by as much as a percent. It revised its expectations to 6.6 percent versus the 7.1 forecast by the government, citing demonetisation.

Among other asset classes, crude prices were trade steady as Saudi Arabia's commitments to reducing production offset a report forecasting US output would again rise this year. Gold continues to hold above 1200 dollars an ounce on Trump uncertainty and Brexit concerns.