Nifty ends below 8650, Sensex flat; ITC, Maruti, L&T gain 1-4%

3:30 pm Market closing: The market has ended flat with the Sensex down 21.41 points at 27981.71. The Nifty was down 13.65 points or 0.2 percent at 8622.90.
About 981 shares have advanced, 1761 shares declined, and 138 shares are unchanged.

ITC gained 4 percent while Maruti, Hero, ONGC and L&T were gainers while HDFC, Tata Motors, BHEL, Bharti Airtel and GAIL were losers.

3:15 pm Consumer confidence: Consumer confidence in India declined in the second quarter this year with concerns over fuel prices and rising inflation, making the country lose the top position it occupied for the last two years as the most confident globally, says market insight firm Nielsen.

The Consumer Confidence Index score for India decreased by six points to 128 in the April-June quarter of 2016, from a high of 134 in the first quarter, the company said in a statement.

"This puts India in second place on the global index, after being in the lead for eight quarters. Globally, Philippines is the most optimistic country this quarter, with an index of 132," it added.

2:59 pm Market Update: The Sensex was down 12.35 points at 27990.77, and the Nifty down 9.45 points at 8627.10.

About 1698 shares declined against 937 advancing shares on the BSE.

2:50 pm Earnings: Voltas, the largest air conditioning company in India, said its consolidated profit shot up 53.7 percent to Rs 157.6 crore compared with year-ago period. It was boosted by main segment unitary cooling products that contributed 65 percent to total revenue.

Revenue during the quarter jumped 18.6 percent to Rs 1,855.2 crore compared with Rs 1,564.3 crore corresponding period of last fiscal.

"Led by sustained hot weather and increase in consumer demand across the country, unitary cooling products segment revenue was higher by 28 percent and segment result (earnings before interest and tax) was higher by 56 percent," Voltas said, adding the company retained its No. 1 market position in the segment.

Overall earnings beat analysts' expectations but revenue was slightly a miss. Profit was estimated at Rs 129 crore on revenue of Rs 1,884 crore for the quarter, according to average of estimates of analysts polled by CNBC-TV18.

2:35 pm Agri production: The government today said agricultural production has been increasing even though cultivable area has seen a marginal decline.

Agriculture Minister Radha Mohan Singh told the Lok Sabha that state governments have to take suitable measures to check diversion of agricultural land for non-agricultural purposes while Centre is taking steps to increase the cultivable area.

"Despite marginal decline in the cultivable area, the agricultural production in the country has been increasing except in the years affected by drought, floods and other natural calamities," Singh said during Question Hour.

The average area under cultivation declined to 181.713 million hectares in 2013-14 compared to 182.209 million hectares during the period from 2007-08 to 2011-12, according to official data.

2:20 pm DBS on RBI policy: RBI may keep the key interest rates on hold in the upcoming policy meet as inflation for the second quarter has hastened to 5.7 percent and July-August prints may also stay high.

According to the global financial services major, the room for further easing by the Reserve Bank is dependent on the inflation path and make-up of the monetary policy committee.

"The second quarter (April-June) inflation hastened to 5.

7 percent year-on-year, with a high likelihood that July-August prints will also stay high. This diminishes the window to cut rates this quarter(July-September)," DBS said in a research note.

However, DBS expects a 25 bps cut in the fourth quarter of this year, "contingent on softening food prices and a dovish RBI candidate".

2:00 pm Market Check
Equity benchmarks gave up all gains in afternoon trade with the Sensex falling 16.77 points to 27986.35 and the Nifty down 12.25 points at 8624.30, dragged by HDFC (down 2.6 percent), ICICI Bank (down 1.5 percent), Tata Motors and Infosys.

The market breadth weakened further as about two shares declined for every share rising on the Bombay Stock Exchange.

Advanced Enzyme, Atul, Bharat Financial, Bajaj Finance, Maruti Suzuki, ICICI Bank and HDFC were most active shares on exchanges.

European stocks extended losses, dragged down by banking shares as worries about the health of the region's lenders continued to weigh on sentiment. France's CAC, Germany's DAX and Britain's FTSE were down 0.8-1.6 percent.

1:45 pm Banks NPA worsens:  Indian banks will continue to face pressure on their asset quality, profitability and capitalisation over the next 12-24 months, S&P Global Ratings said today.

The US-based agency expects that non-performing loan ratios of Indian banks with high exposure to companies in troubled sectors will continue to rise.

"India's economic risk trend is negative. Prolonged weakness in the asset quality of Indian banks could lead us to assess that economic risks have increased," S&P Global Ratings credit analyst Geeta Chugh said.

In a report titled "Economic woes cast a shadow on Indian and Chinese banks", S&P Global Ratings compared banks in these two countries on parameters such as asset quality, profitability, capitalisation and credit growth.

1:30 pm GST likely this year? The much awaited Goods and Services Tax (GST) Bill is set for consideration and passage in the Rajya Sabha on Wednesday after the government cleared changes in the Constitutional Amendment Bill last week to get Congress on board. Government sources have told CNBC-TV18 that apart from the 4-5 key amendments in the GST Constitutional Bill, the government will move some amendments related to the consolidation fund of India. There will be amendments to Clause 19 which will guarantee compensation to states.

The market is absolutely flat with the Nifty hovering around 8650. The 50-share index is up 15.95 points or 0.2 percent at 8652.50 and the Sensex is up 66.37 points or 0.3 percent at 28069.49. About 1121 shares have advanced, 1391 shares declined, and 143 shares are unchanged.

ITC, Maruti, Hero MotoCorp, HUL and ONGC are top gainers while HDFC, Wipro, GAIL, Lupin and Bharti are major losers in the Sensex. FMCG index is down 1.9 percent.

Japanese Prime Minister Shinzo Abe's cabinet approved 13.5 trillion yen (USD 132.04 billion) in fiscal measures on Tuesday as part of efforts to revive the flagging economy, with cash payouts to low-income earners and infrastructure spending.

The package includes 7.5 trillion yen in spending by the national and local governments, and earmarks 6 trillion yen from the Fiscal Investment and Loan Program, which is not included in the government's general budget.

The stimulus spending is part of a renewed government effort to coordinate its policy with the Bank of Japan, but growing concerns that the BOJ policy has reached its limit triggered the worst sell-off in government bonds in three years.

12:59 pm Market Update: Equity benchmarks remained marginally higher with the Sensex was up 49.43 points at 28052.55 and the Nifty up 10.50 points at 8647.05.

About 1401 shares declined against 1103 advancing shares on the BSE.

12:50 pm Earnings: Public sector lender Indian Bank said profit in April-June quarter grew by 42.8 percent to Rs 307.4 crore compared with Rs 215.3 crore in year-ago period. It was driven by other income, operating profit and stable provisions but higher tax cost limited growth.

Net interest income, the difference between interest earned and interest expended, increased 10.4 percent to Rs 1,236.32 crore on yearly basis.

Other income for the quarter was up by 17.6 percent at Rs 441.7 crore and operating profit grew by 27.5 percent at Rs 903.2 crore compared with corresponding period of last fiscal.

Provisions for bad loans stood at Rs 417 crore during the quarter, increased by 2.2 percent year-on-year and 48.7 percent quarter-on-quarter.

12:40 pm Europe opens: European stocks opened lower following negative sentiment in Asian trade and Wall Street on Monday.

The pan-European STOXX 600 was up 0.16 percent.

US equities closed mixed in choppy trade on Monday, the first day of the month, amid falling oil prices while investors digested economic data, weighing on investor sentiment in Europe.

12:25 pm Fund raising:  Bharat Petroleum Corporation Limited (BPCL) is planning to sell part of its treasury shares to raise around USD 500 million, sources say. The shares will likely be sold via block deals on exchanges.

Quoting sources, CNBC-TV18 says that the share sale proceeds will be used for capital expenditure requirements.

BPCL has 9.33 percent treasury shares which are valued at over USD 1 billion. Of this, it plans to sell around one lakh shares over the next 5-6 years.

The company has also appointed an investment bank to carry out the share sale.

BPCL declined to comment on these speculations to CNBC-TV18.

12:00 pm Market Check
Equity benchmarks erased some morning gains amid consolidation as investors waited the GST bill that is likely to be tabled in the Rajya Sabha on Wednesday.

The 30-share BSE Sensex was up 70 points at 28,073.47 and the 50-share NSE Nifty gained 14.60 points at 8,651.15 while the BSE Midcap outperformed benchmarks, up 0.4 percent.

HDFC extended losses in noon trade, falling more than 2 percent followed by ICICI Bank (down 1.2 percent), Infosys (down 0.65 percent) and Wipro (down 1.7 percent).

Lupin shares fell nearly 1 percent after the Competition Commission of India imposed penalty on Lupin and Karnataka Chemists & Druggist Association (KCDA) for anti-competitive practice in the state.

ITC and Maruti Suzuki shares rallied 2-3 percent followed by HDFC Bank, Reliance Industries, L&T, HUL and Hero Motocorp.

11:45 am New IPO: Private sector lender RBL Bank has received capital markets regulator Sebi's approval for its long-pending IPO for which it had filed draft papers nearly a year ago.

The bank, which had filed draft papers with Sebi in June last year, seeking approval to float IPO, received clearance from the regulator on July 27, according to the latest update.

The Securities and Exchange Board of India (Sebi) withheld approval to RBL's IPO as the regulator was examining past violation by the private sector lender.

RBL's IPO plans was hanging in balance for a long time due to the outstanding cases.

11:30 am Poll: India's largest air conditioning company Voltas is expected to register a 16 percent growth YoY in consolidated profit at Rs 129 crore, according to average of estimates of analysts polled by CNBC-TV18. Revenue may increase 18 percent to Rs 1,884 crore in the quarter ended June 2016 compared with Rs 1,598 crore in year-ago period. Operating profit (EBITDA - earnings before interest, tax, depreciation and amortisation) is seen rising 27 percent to Rs 168 crore and margin may expand 70 basis points to 8.9 percent on yearly basis.

The market continues to gain on support of index heavyweights. The Sensex is up 112.85 points or 0.4 percent at 28115.97 and the Nifty is up 28.60 points or 0.3 percent at 8665.15. About 1219 shares have advanced, 1033 shares declined, and 117 shares are unchanged.

ITC, Maruti, HUL, Hero MotoCorp and Asian Paints are top gainers while Wipro, HDFC, Lupin, Bharti and Infosys are losers in the Sensex.

Oil prices pushed higher, scraping back losses as bargain-buyers took advantage of a weaker dollar, the day after slipping into a bear market. Crude dipped below USD 40 a barrel yesterday after US data pointed to an unexpected increase in commercial oil and gasoline supplies, adding to concerns about a lasting supply glut.

Oil settled down more than a fifth from its June highs in New York, meaning it is now in a bear market by the most common definition of the term.

10:35 am Acquisition: Indian drugmaker Lupin said it had agreed to buy a portfolio of 21 drugs from Japan's Shionogi & Co for 15.4 billion yen (USD 150 million), expanding its presence in its third-largest market.

The portfolio will be transferred to Lupin on December 31, subject to regulatory approvals and certain closing conditions, the companies said in a statement on Tuesday.

The acquisition, which will be done by Lupin's Japanese generic drug unit Kyowa Pharmaceutical Industry Co Ltd, will give Lupin access to Japanese branded pharmaceutical market and strengthen its speciality business portfolio, they said.

The 21 products currently have sales of USD 90 million and cover therapy areas such as central nervous system, oncology, cardiovascular and anti-infectives, the statement said.

10:25 am FIIs inflow: Foreign institutional investors have bought more than Rs 11,000 crore worth of equity shares in the month of July against Rs 5,174 crore worth of buying in June.

Even the August in terms of foreign money inflow started on a positive note as they bought more than Rs 700 crore worth of shares (as per provisional data available on the exchange).

Ajay Kapur of Bank of America Merrill Lynch said fundamental work re-affirms bullish view on Asia.

While explaining about his bullish stance, he said while Asia ex-Japan is up 21 percent from January's lows, emerging markets (EMs) are up 27 percent. This compares with 17 percent for the developed markets from their 2016 lows.

He thinks investors (currently underweight) should be double weighted in Asia ex-Japan/EMs in their benchmarks.

From 1.4x today, Asia ex-Japan's price-to-book could rise 45 percent in the coming 3 years, he feels.

10:00 am Market Check
Equity benchmarks gained strength after opening on a flat note, supported by FMCG, auto, infra and select banks stocks. The broader markets also traded in line with benchmarks.

The 30-share BSE Sensex was up 98.55 points at 28101.67 and the 50-share NSE Nifty rose 25.90 points to 8662.45. About 1065 shares advanced against 816 declining shares on the Bombay Stock Exchange.

ITC was the leading contributor to Sensex's gains, up nearly 3 percent on value buying. Tech Mahindra also gained nearly 3 percent after its topline met analysts' expectations and profit came in higher than estimates, though it disappointed on operational front due to visa cost.

9:55 am Small bank? Speaking to CNBC-TV18, Bharat Financial 's Non-Executive Chairman PH Ravikumar said while the method to apply has become easier, it is not in any hurry to get the licence. Non-banking finance companies (NBFCs) are the flavour of the season and hence, the company isn't looking at a licence on an immediate basis, he said. The size of the company will matter when an NBFC wants to become a bank, Digant Haria of Antique Broking said. Companies minting Rs 20,000-30,000 crore will benefit from becoming banks. However, a drawback is that India's bond market is not too good for NBFCs to borrow large money, Haria said, adding that customers are key for NBFCs than any licence.

9:45 am Auto sales: Tata Motors reported a 7.48 percent increase in total sales at 43,160 units in July.

The company sold 40,154 units in the same month last year. Domestic sales of Tata Motors' commercial and passenger vehicles grew 8 percent to 37,789 units in July over the same month of the previous year.

Sales of passenger vehicles in the domestic market grew 31 percent to 13,547 units last month as against 10,335 in the year-ago period, Tata Motors said in a statement. Passenger car sales were up 43.29 percent at 12,209 units in July compared with 8,520 in the year-ago period.

9:30 am FII view: Viju George of JP Morgan is overweight on Bharti Infratel and underweight on Bharti Airtel. Even if data revenue growth is not exciting, data volume growth is good, he said justifiying his bet on Bharti Infratel. ''Bharti Infratel will be a play on data volumes,'' he said. He has a target price of Rs 440 for Bharti Infratel and Rs 335 for Bharti Airtel.

Among IT stocks, his pecking order remains the same with Infosys being the top pick. ''We aren't going to be judging the company by one bad quarter,''  he said, adding that it will bounce back.

9:20 am Market check: The market is surging ahead with the Nifty above 8650. The 50-share index is up 34.75 points or 0.4 percent at 8671.3 while the Sensex is up 120.38 points or 0.4 percent at 28123.50. ITC, Maruti, SBI, M&M and BHEL are top gainers while ICICI Bank, HDFC, Bharti Airtel, Infosys and Wipro are losers in the Sensex.

The market has opened flat with subdued global cues. The Sensex is up 12.99 points at 28016.11 and the Nifty is up 2.20 points at 8638.75. About 526 shares have advanced, 225 shares declined, and 53 shares are unchanged.

Sun Pharma, Maruti, Lupin, SBI and L&T are top gainers while ICICI Bank, HDFC, Infosys, Wipro and Hero are among losers in the Sensex.

The Indian rupee opened marginally lower at 66.78 per dollar versus previous close 66.74.

The dollar maintained gains against the yen. The dollar, however, did pare some gains after data showed that the US economy's manufacturing sector in July expanded at a slower pace than in the previous month.

Typhoon Nida churned through Hong Kong, shutting down most of the financial hub with gale-force winds and disrupting hundreds of flights, while low-lying areas were put on flood alert.  The morning trading session at the Hong Kong stock exchange will be suspended if the typhoon signal remains at 8 or higher at 9 a.m. local time (0100 GMT). The stock market will be shut for the rest of the day if a typhoon signal 8 is still in place by noon.

Asian shares edged lower in early trading, taking their cues from a modestly lower day on Wall Street as US crude oil prices slid.

The Reserve Bank of Australia's policy board will decide on Tuesday whether rates should be left at 1.75 percent or trimmed a quarter point to a new record low, with most analysts predicting the need to combat low inflation and a rising currency will win the argument for more stimulus.

The S&P 500 and the Dow closed slightly lower, as a drop in oil prices dragged down energy stocks, while tech names Apple and Alphabet helped lift the Nasdaq to its highest close in over a year.

The S&P 500 had hit a record high earlier in the session, but was unable to hold gains as US crude CLc1 slumped to below USD 40 a barrel, its lowest level since April, before settling at USD 40.06.

Crude oil has fallen more than 20 percent from a peak reached in June, with Saudi Arabia cutting crude prices to Asia and further increases in US drilling rigs sparking Monday's 3.7 percent tumble.

Gold prices hold steady around USD 1350 an ounce. Other precious metals fared better on improved investor sentiment, with spot palladium hitting a 13-month high spot silver touching a 3-week high.