Sensex ends 114 pts down; Jindal Steel, ONGC, Maruti losers

4:00 pm Market closing: It was a weak session on Dalal Street. The Sensex ended 113.57 points down at 19463.82, and the Nifty closed at 5857.55, down 41.30 points.

3:40 pm Losers: Jindal Steel , ONGC , Maruti Suzuki, Infosys and Tata Power are losers in the Sensex.

3:35 pm Rupee: Concerned about the rupee's fall to a record low, the Reserve Bank has discreetly phoned trading desks with unusually explicit messages to cut their speculative positions in the currency, said three senior market participants with direct knowledge of such calls.

While the Reserve Bank of India (RBI) regularly monitors positions and flows in the currency market, the sources said it was unusual for the RBI to call so often or state so explicitly that banks should cut their intraday net open position limits - or their outstanding positions in futures and forwards markets.

3:30 pm Market closing: The Sensex closes 119.42 points down at 19457.97 while the Nifty ends at 5857.55, down 41.30 points (provisional). About 1129 shares have advanced, 1210 shares declined, and 154 shares are unchanged.

3:23 pm Management talk: Production at the strike hit  Bajaj Auto 's Chakan plant near Pune is improving day by day and output on Monday was close to 50 percent of normal, Rajiv Bajaj, MD, said on Tuesday .

Bajaj Auto produces 3,000 motorcycles at Chakan on a normal day and yesterday 1,400 units were produced (400 out of that was at Aurangabad). Also 450 people reported to work at the plant, Bajaj told CNBC-TV18.

Workers at the company's Chakan plant have gone on strike since last week. The union's demands include a hike in wages and an option for workmen to subscribe to 500 equity shares of the company at Rs 1 a share.

The strike caused a production loss of 20,000 units in June, the company said.

Also read: Warning bell! Deutsche downgrades 34 cos earnings estimates

The market has grown weak further in the last trading hour of the day.  The Nifty is still struggling at 5857.65, down 41.20 points while the Sensex slips 116.93 points to19460.46. About 1063 shares have advanced, 1184 shares declined, and 153 shares are unchanged.

Jindal Steel (down 4.1 percent) is the biggest loser in the Sensex. Tata Power, ONGC, Infosys and HDFC Bank are other losers.

Mumbai-based real estate firms DB Realty and Bombay Dyeing rallied 5 percent each while state-owned IFCI lost 4 percent on profit taking.

Ranbaxy Labs rebounded in late trade, rising 9 percent after the USFDA told CNBC-TV18 that there is no proof of data reliability issues other than at 3 units that are Paonta Sahib, Batamandi & Dewas.

USFDA said, "Company's two manufacturing plants remain under ongoing review. There is no evidence of major current good manufacturing practices (cGMP) violations except Gloversville."

02:55pm Mumbai-based real estate firms DB Realty and Bombay Dyeing rallied 5 percent each while state-owned IFCI lost 4 percent on profit taking.

Ranbaxy Labs rebounded in late trade, rising 9 percent after the USFDA told CNBC-TV18 that there is no proof of data reliability issues other than at 3 units that are Paonta Sahib, Batamandi & Dewas.

USFDA said, "Company's two manufacturing plants remain under ongoing review. There is no evidence of major current good manufacturing practices (cGMP) violations except Gloversville."

The BSE Sensex is down 124.18 points at 19453.21, and the Nifty is down 42.70 points at 5856.15.

02:50pm Shares of Lupin , IDFC , Rural Electrification and Bata India gained 2-3 percent in afternoon trade. Anand Rathi recommended buying these stocks.

Hindustan Copper tanked 6 percent. The panel of ministers on divestment will meet today to decide on the base price for around 4 percent stake sale in the company. The offer for sale issue is likely to hit the market tomorrow.

02:35pm State-owned BHEL topped the buying list, rising 3.55 percent followed by Lupin with 3.5 percent gains.

However, Jindal Steel shares plunged 4 percent and realty major DLF lost 3 percent on profit booking.

Most active shares on exchanges are United Spirits , Reliance Communications , United Breweries , State Bank of India , Future Retail and Mahindra Satyam .

02:25pm Rajesh Subramaniam, MD & CEO of Firstsource Solutions says the company does not need to raise money for repayment of loans. He expects the debt-to-EBITDA to reduce to 2:1 in few years. The stock rallied 6 percent.

Transport Minister today approved the draft for quadricycle norms, reports CNBC-TV18 quoting government sources.

It is learnt that quadricycle norms have been sent to law ministry for vetting. Bajaj Auto's RE60 is the India's first quadricycle. The stock is flat now.

02:15pm Indian equity benchmarks remain under pressure amid choppy trade on profit booking. The BSE Sensex is down 65.55 points at 19511.84, and the Nifty is down 29.05 points at 5869.80.

Crompton Greaves shares gained 5.8 percent as promoter released pledge on 20 lakh shares. India Ratings cut rating on the stock to 'AA' from 'AA+' but the outlook is stable, the rating agency says.

Indian rupee was quite volatile; it gained about 25 paise in morning trade, but again it came closer to its previous day's closing value of 59.52 per dollar.

Rajesh Jejurikar, chief executive of tractor and farm mechanization at Mahindra & Mahindra says tractor business has gained some market share in last two months. On Monday, the company announced its sales numbers for June; domestic tractor sales increased to 26,723 units from 22,471 units on month-on-month basis.

1:50 pm FM's views: With 26 public and private sector companies applying for bank licences, Finance Minister P Chidambaram has said that there was no ceiling on the number of entities which can be permitted to operate a bank.

"I don't think there is a ceiling. I don't think there is a number in mind. It all depends upon how many applicants are eligible applicants. The fact that somebody applies doesn't mean he is an eligible applicant," he told PTI in an interview.

"If there are very few eligible applicants, then the number of banks that will get licences will also be few. I don't think that the Governor has any ceiling in mind," he said.

1:40 pm IT outlook: The Immigration Bill passed by the US senate recently will have a significant impact on the Indian IT sector, says Moshe Khatri of Cowen & Co. Speaking to CNBC-TV18 , he says, one of the provisions in the Bill could be consequential and disruptive to the Indian IT sector if it goes through in its current form.

On Monday, Morgan Stanley said that Infosys may lower its revenue guidance for 2013-14 to 4-6 percent, from its forecast in April of 6-10 percent. Khatri, however, does not see any significant margin degradation. "But you could see some revenue and earnings reset in Infosys' at least for the next few quarters given some of the things that are going internally," he said.

1:35 pm: Losers: Jindal Steel (down 3.5 percent), HDFC Bank (down 1.8 percent), ONGC, L&T and Tata power are losers in the Sensex.

1:30 pm: Civil Aviation Minister Ajit Singh tried to play down the issues surrounding Jet Airways' deal with Abu Dhabi-based Etihad and said the concerns raised on the deal are being addressed by the regulatory bodies, reports CNN-IBN.

The Minister, who is in favour of Jet's planned 24 percent stake sale to Etihad, said the Securities and Exchange Board of India (SEBI) and the Foreign Investment Promotion Board (FIPB) will be looking into issues surrounding the deal. "FIPB still has to give clearance. It hasn't come to government yet. Let's wait for the clearance. Government is following procedure on the deal" Ajit Singh said.

1:27 pm Macro outlook: India's purchasing managers' index (PMI) data for manufacturing in June was unremarkable and there was no evidence of domestic demand picking up, said Sajjid Chinoy of JPMorgan. The index moved to 50.3 in June from 50.1 in May. The new orders declined for the fourth consecutive month, which points to the lack of momentum in domestic demand, Chinoy told CNBC-TV18 in an interview .

Speaking on the prospects of recovery, he said that strong monsoon, which will boost rural demand, and reduced easing fiscal deficit concerns may be the drivers of growth. However, he expects  the recovery to remain modest.

He said that the falling currency's impact was also visible on the rising input costs. He saw the Reserve Bank of India's (RBI) intervention in the forex market as a purely 'tactical' and a 'strategic' move.

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It is flat market with a negative bias for the frontliners. The Sensex is down 21.86 points at 19555.53, and the Nifty is 5890 down 8.85 points. About 1059 shares have advanced, 1052 shares declined, and 145 shares are unchanged.

The Midcap index is positive and stocks like Jaypee Infra, United Breweries , Future Retail & Crompton Greaves power ahead.

BHEL (up 3.2 percent), Sterlite Industries (2.8 percent), GAIL (up 2.4 percent), Bharti Airtel are top gainers in the Sensex.

Jet airways recovers from the day's lows after the Civil Aviation Minister assures that the SEBI & FIPB are addressing concerns raised on the Jet-Etihad deal and he does not see any security concerns.

Auto stocks struggle. Hero Moto Corp's total June sales came in 10 percent lower to around 5 lakh units. Tata Motors CV and passenger vehicle segments continued to de-grow. Ashok Leyland sales slipped 30 percent year-on-year. Bajaj Auto too posted a 13 percent decline month-on-month. Rajiv Bajaj blames weak domestic demand, says motorcycle market share is down to 30 percent due to Chakan production loss.

12:55pm The Immigration Bill passed by the US senate recently will have a significant impact on the Indian IT sector, says Moshe Khatri of Cowen & Co. Speaking to CNBC-TV18, he says, one of the provisions in the Bill could be consequential and disruptive to the Indian IT sector if it goes through in its current form.

Also Read: H1-B salary rise clause will hit Indian IT cos hard: Nomura

For IT giant Infosys , Khatri does not see any significant margin degradation. "But you could see some revenue and earnings reset in Infosys' at least for the next few quarters given some of the things that are going internally," he said.

12:50pm Bajaj Auto's total sales dropped to 2.95 lakh units in June from 3.39 lakh units in previous month, but exports increased to 1.2 lakh units from 1.11 lakh units during the same period.

Rajiv Bajaj of the two-wheeler major says sales weakened due to weak domestic demand environment, but export markets are seeing some revival currently, he adds.

He further says motorcycle market share is down to 30 percent due to Chakan production loss. The strike has been continued at Chakan plant from last week.

12:45pm Crompton Greaves rallied 5 percent and M&M Financial gained 3 percent.

12:35pm Reliance Communications shares declined 1.7 percent on profit booking after the stock rallied 12 percent in previous session.

Mahindra Satyam and Tech Mahindra are down 5-6 percent. Former will stop trading on exchanges from July 4 and will be merged into Tech Mahindra.

Tata Motors and Tata Power slipped 1.5 percent each on profit taking.

12:25pm Coal India shares dropped 1.7 percent as its production in June was 32.57 mt, which was lower as compared to target of 35.23 mt. Even offtake was lower than target at 37.09 mt as against 39.85 mt targetted by the company.

Natco Pharma gained 2.6 percent after the pharmaceutical company received approval from US FDA for generic Maxalt tablets.

12:15pm It is a consolidation day for equity benchmarks Tuesday as both indices are trading in a particular range with negative bias. Even the Indian rupee is quite volatile.

The BSE Sensex is down 28.90 points at 19548.49, and the Nifty is down 13.15 points at 5885.70.

European markets too are volatile in opening trade due to lack of trigger.

Future Retail shares gained more than 8 percent. Future Ventures and Pantaloon Fashion are likely to be listed this week, reports CNBC-TV18.

11:55 am Auto sales: Bajaj Auto's total sales in June declined 14 percent year-on-year to near 2.96 lakh units, as strong demand for three-wheeler commercial vehicles was offset by sluggish growth in motorcycles.

The India's second largest two-wheeler maker sold 2.55 lakh motorcycles last month, down 20 percent from a year ago.

11:50 am Rupee outlook: Brokerage house Credit Suisse is of the view that the recent pressure on the rupee has more to do with a liquidity problem, and is not a solvency crisis.

"While external debt has risen, as a percentage of reserves and of GDP, it is much lower than in the 1990s; this reduces much of the solvency risk. However, with debt to be rolled over in the next year, now two-thirds of currency reserves, any sustained disruption/reversal in capital flows can cause sharp currency swings, like the FII debt outflows did over the past month," said the Credit Suisse note to clients.

11:45 am alert: News reports suggest Unitech , through its bankers, has approached global investors like Morgan Stanley, GIC and Blackstone to sell its IT SEZ in Gurgaon. According to experts, the project could have an estimated value of around Rs 1,800 crore. The stock remains under pressure and is down 1.1 percent on the BSE.

11:30 am: Prabhat Awasthi of Nomura Financial Advisory and Securities remains positively baised on Indian equities and feels margins are in India were changing for the better. He told the CNBC-TV18 that the Indian currency, which tumbled to life time low recently, is unlikely to weaken further and will stabilise going ahead.  Given this, FIIs pulling out money will not be a major cause of concern.

Indian equities outperformed other emerging markets (EMs) in June, but it will start looking attractive after another five-six percent correction from current levels, he said Awasthi added that he not overly bullish on the market, but he continues to maintain the 21,700 Sensex target for this year.

11:25 am Big gainer: Elder Pharma sees strong 4 percent gains as its UK subsidiary acquires Max Healthcare. The move will allow company to re-enter the over the counter market.

11:20 am Buzzing: Telecom stocks are buzzing in trade today. The telecom commission is meeting later today to take a call on 100 percent FDI in the sector. Bharti Airtel is up 3 percent, Reliance Communication is up 1 percent, Tata Tele is up 4 percent on the BSE.

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The market is in the red as the Nifty drifts further below 5900 pulled lower by capital goods, infrastructure and select rate sensitives. The Sensex is down 38.12 points at 19539.27, and the Nifty down 17.95 points or 0.30% at 5880.90.  About 842 shares have advanced, 867 shares declined, and 96 shares are unchanged.

The Midcap index too turns negative.

The rupee is higher today and is outperforming several peers in the emerging markets but the market is choppy with FIIs and cooperates both selling and buying dollars.

Indian bonds are marginally higher following the rupee's slightly steady performance. A stable rupee is seen as opening the door to some RBI cuts later in the year.

Gold is now above USD 1250 an ounce. Brent moves back above USD 103. Asian markets are mixed with Nikkei almost at the14000 mark helped by the weaker yen.

10:59am Shares of oil retailer IOC rose one percent to Rs 239 apiece on hike in diesel price by 50 paise. Bank of America Merrill Lynch has a buy rating on the stock with a target price of Rs 322.

"Our positive view on the stock is based on ongoing reforms to deregulate diesel, which would cut subsidy sharply and boost earnings and investor sentiment," the brokerage house report said.

10:55am Equity benchmarks extended losses a bit with the Nifty falling 27 points to 5873 and the Sensex losing 69 points to 19509.

Aviation stocks are under pressure as Jet Airways and SpiceJet lost nearly 4 percent. Karnataka Bank and IFCI lost 4 percent each on profit booking.

Dish TV shares gained nearly 2 percent as Nomura advises buying the stock with a target price of Rs 108. "Direct-to-home companies, including Dish, have increased set top box prices to reduce subsidy, attract quality customers and improve their balance sheet," the brokerage house report said.

10:45am Steel Strips Wheels shares dropped nearly 3 percent after poor numbers in June. The company sold 7.43 lakh wheel rims in June, down 9.72 percent compared to 8.23 lakh units sold in previous month.

Even its exports declined to 1.06 lakh units from 1.11 lakh units during the same period.

Gitanjali Gems shares are locked at 5 percent lower circuit for the second consecutive session today. Its lower circuit chain has been continued from last week.

10:35am The BSE Sensex is down 42.49 points at 19534.90, and the Nifty is down 21.05 points at 5877.80.

Tata Motors shares slipped nearly 2 percent on profit booking while Jindal Steel lost 2.5 percent.

Telecom operator Bharti Airtel topped the buying list, rising 2.5 percent followed by Sun Pharma and GAIL with 1.4-1.7 percent gains.

10:25am Indian rupee appreciated by 14 paise to 59.37 per dollar Tuesday as against previous close of 59.52.

McNally Bharat Engineering gained 0.5 percent after the company received order worth Rs 109 crore for supply and installation of coal handling plant.

Value Industries is locked at 20 percent upper circuit as diversified conglomerate Videocon Industries applied for banking license in the name of this company.

10:05am Indian equity benchmarks are marginally in red on profit booking Tuesday, after rising more than 1000 points on the Sensex in previous three sessions. Even major Asian markets like Shanghai and Hang Seng are down 0.4 percent each.

The BSE Sensex is down 7.32 points at 19570.07, and the Nifty is down 9.95 points at 5888.90, but broader markets outperformed benchmarks.

The BSE Midcap and Smallcap indices gained 0.4 percent each as advancing shares outnumbered declining ones by 759 to 513 on the exchange.

United Breweries rallied more than 10 percent.

IOC shares gained more than one percent after the oil retailer raised diesel price by 50 paise followed by hike petrol and jet fuel prices last week.

PK Goyal, Director Finance of IOC says 50 paise diesel hike cuts under-recovery by Rs 300 crore per month. Diesel under-recovery is now at Rs 8.10 per litre, he adds.

Goyal sees diesel under-recovery for current financial year 2013-14 at Rs 59,000 crore and first quarter under-recovery for industry is at Rs 25,000 crore.

He expects under-recovery for industry at Rs 1.25 lakh crore for FY14.

10:00 am F&O expert: Siddharth Bhamre of Angel Broking is expecting around 150-200 points correction in the Nifty from current level to 5720. So, he advices short-term traders to go short in Nifty at 5900-5920 and keep a stop loss at around 5980.

9:55 am Gold update: Gold inched up on Tuesday, stretching its gains into a third straight session as buyers in China continued to snap up deals after bullion's plunge to a three-year low last week, reports Reuters.

Prices were also helped by short covering that kicked in after gold logged its biggest ever three-month loss in the second quarter ended June on indications of an early wind down to the US Federal Reserve's stimulus measures.

9:50 am Buzzing: The Prime Minister's office (PMO) has raised concerns over the clearance of the Jet Airways -Etihad deal for which a meeting has been called by the Cabinet Secretariat to discuss the issues. Earlier, PMO had written letters to all the concerned ministries like Finance, Commerce as well as Civil Aviation asking them for clarity on some of the concerns raised by Janta Party's Subramanian Swamy and BJP's Jaswant Singh. The stock is reacting negatively to the development and is down around 3 percent on the BSE.

9:47 am Market check: The Sensex is down 23.26 points at 19554.13, and the Nifty is down 10.75 points at 5888.10.  About 724 shares have advanced, 405 shares declined, and 57 shares are unchanged.

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9:40 am FII view: Gems and jewellery shares are unlikely to regain their record high levels anytime soon, feels Gautam Chhaochharia of UBS. Jewellery shares have taken a beating over the last couple of months ever since the Reserve Bank of India started putting curbs on gold imports.

In an interview to CNBC-TV18 , Chhaochharia said Titan's underlying business fundamentals were weak and advised investors to sell the stock.

Chhaochharia is not too impressed by the rebound in second line shares over the last week. He attributes it to covering up of short positions more than fresh buying.

9:30 am Alert: Glenmark receives final ANDA approval for Rizatriptan Benzoate tablets.

9:20 am Gainers: Tata Steel (up 1.32 percent), Sun Pharma (up 1 percent), Bajaj Auto , Bharti Airtel , ICICI Bank are top gainers in the Sensex.

Don't miss: Market momentum on bulls' side, follow this uptrend, says Sukhani

The market opens on a mute note. The Sensex is down 20.04 points at 19557.35 while  the Nifty is 5885.50, down 13.35 points . About 175 shares have advanced, 108 shares declined, and 32 shares are unchanged.

Indian rupee opened flat at 59.50 per dollar on Tuesday as against Monday's closing value of 59.52. Himanshu Arora of Religare says surge in dollar demand from state-run banks, mainly from oil importers, and demand from custodian banks may support the dollar's uptrend.  According to him, the range for the rupee is seen between 59.30-59.90/USD.

The euro was flat above 1.30 to the dollar. The dollar index was just above the 83 mark. Meanwhile, yen remained weak against the dollar.

US markets eased off their best levels, but still kicked off the first day of the third quarter with a modest rally, boosted by a pair of better-than-expected economic reports. The CBOE volatility index slipped near 16. So far for the year, the Dow has surged more than 14 percent, while the S&P 500 and Nasdaq have spiked more than 13 percent each. US treasury prices continued below 2.50 mark.

Mirroring the Wall Street, Asian markets were positive in morning trade on Tuesday.