Sensex ends above 29000, up 119 points; Midcap at new closing high

Equity benchmarks on Thursday jumped to the highest closing level in last 18 months on continued liquidity support, driven by FMCG, healthcare, oil and auto stocks. However, sell-off in technology stocks due to TCS' warning limited the upside. The market gained strength in last couple of hours of trade after a consolidation that had been since yesterday.

The 30-share BSE Sensex ended above 29,000 level for the first time since April 13, 2015. The index was up 118.92 points at 29,045.28.

The 50-share NSE Nifty rose 34.55 points to fresh 18-month closing high of 8,952.50.

The Nifty Midcap continued to outperform benchmarks, rising 0.74 percent to end at record closing high.

Market experts expect the Nifty at 9,000 level soon once IT sector's downside is over.

"Option activity continued to extend to higher strike suggesting that traders continue to remain bullish and are not deterred by the approach of record peaks," Anand James, of Geojit BNP Paribas Financial Services said.

Foreign institutional investors continued to pump in money into Indian equities, buying more than Rs 800 crore worth of shares Wednesday on top of Rs 1,393 crore inflow Tuesday, especially after US economic data diminished chances of a September Fed rate hike.

 IT stocks were the biggest laggard with Nifty IT index ending at 25-month low, down 2.5 percent after TCS revised BFSI outlook. The country's largest IT company said there could be sequential loss of momentum and holding back of discretionary spending in BFSI vertical in the US. The stock lost 5.14 percent while Infosys, HCL Technologies and Wipro were down over 1.6 percent.

The Nifty Bank index managed to end in the green as SBI, HDFC Bank, Axis Bank rose 0.3-0.6 percent whereas ICICI Bank fell 0.6 percent.

Sun Pharma, Maruti Suzuki, Lupin, Bajaj Auto, HUL, Hero Motocorp, Cipla and Tata Steel were biggest gainers on the Sensex, up 2-3.7 percent. ITC and Reliance Industries gained 1.4 percent each.

GAIL lost 2 percent while ONGC gained half a percent, reacting to quarterly earnings announced later yesterday.

In the broader space, IRB Infrastructure surged 9 percent after its subsidiary IRB InvIT Fund has filed draft red herring prospectus with SEBI for its Rs 4,300 crore IPO .

Aptech was locked at 10 percent upper circuit after promoter Rakesh Jhunjhunwala and other persons acting in his concert raised stake in the company to 49.30 percent .

The market breadth was positive as about 1600 shares advanced against 1153 declining shares on the Bombay Stock Exchange.

European markets were mixed ahead of latest monetary policy meeting of the European Central Bank (ECB). Asia were also mixed at close.

3:30 pm Market close: The market has ended at new 18-month closing high. The Sensex ended above 29,000 for the first time since April 13, 2015. The Nifty Midcap index ended at record closing high.

The Sensex was up 118.92 points or 0.4 percent at 29045.28, and the Nifty closed up 34.55 points or 0.4 percent at 8952.50. About 1591 shares advanced, 1161 shares declined, and 199 shares were unchanged.

IT index was down 2.5 percent while TCS, BHEL, Wipro, GAIL and Infosys were losers in the Sensex. Among gainers were Sun Pharma, Bajaj Auto, Tata Steel, Maruti and Hero MotoCorp.

3:10 pm Analysts view: Despite posting better-than-expected June quarter, analysts are still not convinced about BHEL 's performance mostly concerned about its order book backlog. Shares of BHEL fell 4 percent intraday, after it gained 15 percent yesterday. Analysts are cautious about its execution which may remain challenging, an over-supplied boiler, turbine and generator (BTG) market pressurising on BHEL's margins.

Bank of America Merrill Lynch has an underperform rating with a target price of Rs 98 per share stating that over 60 percent of BHEL's order book of Rs 1.1 trn is slow moving. It feels that despite beat in Q1, sales/PAT are unlikely to exceed FY17 estimates as Q1 represents about a sixth of its full year's sales. It has cut FY17/18 earnings per share (EPS) by 3-8 percent due to 9 percent cut in FY17 order flow.

2:53 pm Buzzing: Suven Life Sciences shares gained 4.8 percent intraday on securing product patents in Canada, Europe and Hong Kong.

"...announces that the grant of one product patent each from Canada, Europe and Hong Kong corresponding to the new chemical entities (NCEs) for the treatment of disorders associated with neurodegenerative diseases," the Hyderabad-based pharma company said in its filing.

These patents are valid through 2030, 2032 and 2032, respectively.

With these new patents, Suven has a total of 24 granted patents from Canada, 22 from Europe and 21 from Hong Kong.

2:40 pm Nifty back at 8950: Equity benchmarks extended upside with the Nifty reclaiming 8950 amid consolidation in last hour of trade.

The Sensex was up 98.27 points at 29024.63 and the Nifty up 27.20 points at 8945.15. About 1556 shares advanced against 1087 declining shares on the BSE.

2:35 pm Stock split: With a number of shareholders asking for a stock-split, country's largest carmaker Maruti Suzuki today said it will put the matter before the company's board for taking it forward.

"A common demand or request I think of all shareholders was about share split and certainly I can assure that we will put this matter before board for consideration as what should be done in this matter," MSI's Chairman R C Bhargava said while responding to the shareholders during Annual General Meeting (AGM) here.

Shareholders of the company have been demanding for stock-split saying that such a move would increase retail participation in MSI's scrip. The company's shares are trading at an all-time high, and was up by 1.61 percent to Rs 5,422 on BSE in the afternoon trade today. Bhargava said the company's board has approved a dividend of Rs 35 per share for the current fiscal up from Rs 25 last year.

2:20 pm Plant sale: Uttam Galva Metallics, a part of Uttam Galva, is in final stages of sale of its Wardha plant to Posco and Chinese company Tidfore, sources say.

Quoting sources, CNBC-TV's Ritu Singh says that Posco and Tidfore will complete its feasibility study by September 30 and then present the final offer for the plant. The company is likely to make an investment of USD 500 million in the Wardha plant.

Of the total investment, USD 150 million will be in equity and USD 250 million will be invested in procuring equipment by Posco for the development of the plant. The equity infusion will aid in capacity expansion, which at present stands at 0.5 million tonne.

2:00 pm Market Check: Equity benchmarks remained marginally higher in afternoon trade with the Nifty holding 8900 level, supported by FMCG, healthcare, auto and oil stocks. However, technology stocks capped the upside.

The 30-share BSE Sensex rose 62.62 points to 28988.98 and the 50-share NSE Nifty climbed 16.30 points to 8934.25. About 1542 shares advanced against 1077 declining shares on the BSE.

Bajaj Auto, Tata Steel, Hero Motocorp, Sun Pharma, Maruti Suzuki, Bajaj Auto and Grasim were top gainers, rising 2-3.5 percent whereas TCS, BHEL, Wipro, Infosys, GAIL, Yes Bank, Tech Mahindra and HCL Tech fell 2-5.5 percent.

Oil prices extended gains by nearly 2 percent after industry data showed what might be the largest weekly drawdown in crude stocks in over three decades.

US crude stocks surprisingly plunged by 12.1 million barrels last week, data from the American Petroleum Institute showed after market settlement on Wednesday, compared with expectations for an increase of around 200,000 barrels. If official data released from the US government later on Thursday confirms the draw, it would be the largest one-week decline since April 1985.

London Brent crude for November delivery climbed 1.7 percent to USD 48.80 a barrel and US crude futures gained 1.98 percent at USD 46.40 a barrel.

1:45 pm Bond yields: The 10-year G-Sec yield falling off a recent peak has resulted in immediate treasury gains for the banks that hold a lot of these bonds on their books in their available-for-sale (AFS) category. However, bond yields and prices have an inverse correlation. To talk about what is going so right for the sector that have had an extended rally, CNBC-TV18 spoke to Dinesh Khara, MD, State Bank of India and MB Mahesh of Kotak Institutional Equities.

According to Khara, even more than the benefit of falling yields, government's focuses on structural reforms will help the recovery process for the sector. Second is the risk evaluation system put up by banks has had a positive impact and, thirdly, it has been the macro-economic situation where the rural economy is likely to pick up post better monsoons, 7th Pay Commission etc. ''All these ensure a better landscape for the banking sector,'' he said.

1:30 pm IPO: IRB Infrastructure Developers on Thursday said IRB InvIT Fund, an infrastructure investment trust, has filed draft red herring prospectus with SEBI for Rs 4,300 crore initial public offering. "Investment manager IRB Infrastructure Private Limited has filed a draft offer document dated September 7, in relation to an initial public offer of units representing an undivided beneficial interest in the Trust, with the SEBI, the BSE and the NSE, in accordance with the InvIT Regulations," the Mumbai-based road developer said in its filing.

IRB Infrastructure Developers on Thursday said IRB InvIT Fund, an infrastructure investment trust, has filed draft red herring prospectus with SEBI for Rs 4,300 crore initial public offering. "Investment manager IRB Infrastructure Private Limited has filed a draft offer document dated September 7, in relation to an initial public offer of units representing an undivided beneficial interest in the Trust, with the SEBI, the BSE and the NSE, in accordance with the InvIT Regulations," the Mumbai-based road developer said in its filing.

IRB Infrastructure Developers on Thursday said IRB InvIT Fund, an infrastructure investment trust, has filed draft red herring prospectus with SEBI for Rs 4,300 crore initial public offering. "Investment manager IRB Infrastructure Private Limited has filed a draft offer document dated September 7, in relation to an initial public offer of units representing an undivided beneficial interest in the Trust, with the SEBI, the BSE and the NSE, in accordance with the InvIT Regulations," the Mumbai-based road developer said in its filing.

The market is volatile with the Nifty struggling below 8950. The 50-share index is up 11.40 points or 0.1 percent at 8929.35 and the Sensex is up 51.52 points or 0.2 percent at 28977.88. About 1526 shares have advanced, 1020 shares declined, and 180 shares are unchanged.

Tata Steel, Bajaj Auto, Hero MotoCorp, Sun Pharma and Maruti Suzuki are top gainers in the Sensex while TCS, Wipro, Infosys, GAIL and Tata Motors are losers.

Domestic passenger vehicle sales grew 16.68 percent to 2,58,722 units in August from 2,21,743 units in the same month last year.

Car sales were also up 9.53 percent to 1,77,829 units as against 1,62,360 units in August last year, according to the data released by the Society of Indian Automobile Manufacturers (Siam).

Motorcycle sales last month jumped by 22.19 percent to 10,05,666 units as against 8,23,051 units a year earlier. Total two-wheeler sales in August grew 26.32 percent to 16,48,883 units compared with 13,05,348 units in the year-ago month.

1:00 pm Market Update: Equity benchmarks gained some strength amid consolidation in afternoon trade. The Sensex was up 79.51 points at 29005.87 and the Nifty up 19.15 points at 8937.10.

About 1503 shares advanced against 1002 declining shares on the BSE.

12:55 pm Auto sales: Domestic passenger vehicle sales grew 16.68 percent to 2,58,722 units in August from 2,21,743 units in the same month last year.

Car sales were also up 9.53 percent to 1,77,829 units as against 1,62,360 units in August last year, according to the data released by the Society of Indian Automobile Manufacturers (Siam).

Motorcycle sales last month jumped by 22.19 percent to 10,05,666 units as against 8,23,051 units a year earlier. Total two-wheeler sales in August grew 26.32 percent to 16,48,883 units compared with 13,05,348 units in the year-ago month.

Sales of commercial vehicles rose by 1.53 percent to 52,996 units in August, Siam said. Vehicle sales across categories registered a growth of 23.72 percent to 20,10,794 units from 16,25,332 units in August 2015, it added.

12:40 pm Europe opens: European stocks opened slightly lower as markets look ahead to the latest monetary policy meeting of the European Central Bank (ECB).

The pan-European STOXX 600 was down around 0.11 percent.

The ECB is expected to extend its trillion-euro bond-buying program beyond March 2017 and announce plans to expand the universe of eligible bonds as part of its efforts to kick-start the euro zone's economy. The ECB will announce its policy decision today.

12:30 pm Partnership: M&M, India's top SUV maker, has formed a partnership with ride-sharing firm Ola to spur sales of vehicles and other related services, the automaker's chairman Anand Mahindra told Reuters in an interview on Thursday.

The alliance is expected to generate total revenues of USD 400 million over the next two years and will help drive future designs for cars and platforms built by the automaker, Mahindra's chairman said.

"This is going to completely change the auto industry," Mahindra said referring to the entry of ride-sharing firms such as Ola.

12:15 pm IPO: IRB Infra said IRB InvIT Fund, an infrastructure investment trust, has filed draft red herring prospectus with SEBI for Rs 4,300 crore initial public offering.

"Investment manager IRB Infrastructure Private Limited has filed a draft offer document dated September 7, in relation to an initial public offer of units representing an undivided beneficial interest in the Trust, with the SEBI, the BSE and the NSE, in accordance with the InvIT Regulations," the Mumbai-based road developer said in its filing.

IRB Infrastructure Private Limited is a wholly-owned subsidiary of the company and investment manager to the Trust.

The initial public offer consists of a fresh issue by the Trust, and an offer for sale by the company & its subsidiaries - Modern Road Makers, Aryan Toll Road, ATR Infrastructure and Ideal Road Builders.

12:00 pm Market Check
The market remained rangebound from early trade with the Nifty moving in a 40 points range. FMCG, oil, auto and pharma stocks supported the market whereas technology stocks remained under pressure after TCS warning.

The 30-share BSE Sensex was up 55.35 points at 28981.71 and the 50-share NSE Nifty gained 12.80 points at 8930.75. The market breadth remained positive as about 1534 shares advanced against 895 declining shares on the BSE.

Bajaj Auto and Tata Steel were the top gainers on the Sensex, up 4 percent each followed by ITC, Reliance Industries, L&T, Hero Motocorp, Maruti, ONGC, HUL, SBI and Sun Pharma with 1-3 percent upside.

TCS retained its top slot in the selling list, down nearly 6 percent after saying it expects sequential loss of momentum and holding back of discretionary spending in BFSI vertical in the US.

Infosys, Tata Motors, Wipro, BHEL and GAIL were down 1-2.6 percent.

11:45 am Outlook: Suhas Harinarayanan of JM Financial says 12-month forward market price-to-earnings (PE) at 17.7x remains supported more by compression of cost of capital than growth reset.

In Q1FY17, the profit after tax for Nifty grew by 9 percent (YoY) versus 1 percent in Q4FY16. Q1 earnings were above muted expectations but still fell short of the double-digit run rate expected for the full year, he says.

Harinarayanan further says model portfolio continues to recommend heavyweight in private financials, domestic-centric healthcare, and consumer discretionary while maintaining tactical overweight in IT services, primarily through Infosys.

11:30 am Interview: Vice Chairman and CEO, HDFC said that there is plenty of liquidity. "We have seen it reflected in the cost of borrowing. No question about it." Retail deposits haven't come down the way bond rates have come down, he said. "We have to ensure that incremental funding comes from retail deposits." In periods of tight liguqity, retail deposits is excellent funding, he added. If this current liquidity continues for another six months, then you will see lower lending rates. But the quantum of lending rates is difficult to say, he said. He said that a good monsoon will translate into lower food prices.

"Last year, we reached the bottom for commodities. We go the benefit of falling oil, commodity prices." Going forward one may not get that advantage, he said. The ability of an RBI to keep lowering interest rates has some limitations, he maintained.

The market is sluggish as the Sensex is up 28.03 points or 0.1 percent at 28954.39. The Nifty is up 7.55 points at 8925.50. About 1476 shares have advanced, 813 shares declined, and 141 shares are unchanged.

Tata Steel, Bajaj Auto, Hero Moto, ONGC and Maruti are top gainers while TCS, BHEL, Infosys, Wipro and Tata Motors are losers in the Sensex.

Gold was steady, after dipping 0.3 percent in the prior session, as the dollar remained weak and investors awaited cues on monetary stimulus from a European Central Bank policy meeting due later in the day.

The euro zone economy is widely expected to need more stimulus from the European Central Bank (ECB), but it may not come at the bank's policy meeting on Thursday.

Several US Federal Reserve officials have made hawkish comments in the past couple of days, making a push for rate increases.

10:55 am Buzzing: Aptech shares were locked at 10 percent upper circuit at Rs 175.05 after the company announced its foray into preschool education.

The Mumbai-based IT education company has formed strategic alliance with Montana International School - Montana International Preschool powered by Aptech (MIPA).

"The alliance intends to set up 1,000 preschools in India over the next two years and aims to stimulate young children's curiosity & provide positive learning experiences through active learning," Aptech said in its filing.

10:40 am NASSCOM on IT: Indian IT major TCS today said that the company is seeing some sequential loss of momentum in its BFSI business in the Unites States. It also warned of softer Q2 on back of reduced spending by clients in financial business.

The analysts are bearish on the entire IT pack and believe that the sector will underperform in coming quarters. However, industry body Nasscom says that various factors are the reason behind volatility in the sector.

''There are different factors which are causing turbulences be it economic or progression in trajectory of different economies,'' says R Chandrashekhar, President of Nasscom.

IT companies are tilting towards digital business, which is a combination of digital and technological decision.

Nasscom is sticking to its FY17 growth guidance of 10-12 percent. However, Chandrasekhar says that the guidance will be reviewed after second quarter results of software companies.

10:20 am S&P on Indian Bank: S&P Global Ratings said it has affirmed 'BBB-' long-term rating on Indian Bank with a stable outlook on the back of the PSU lender's strong capital base and funding ability.

"We affirmed the rating because we expect Indian Bank to maintain its above-average funding profile, strong liquidity, and adequate capitalisation and business franchise over the next 18-24 months," S&P Global Ratings credit analyst Nikita Anand said.

However, the bank's deteriorating asset quality owing to stress faced by its corporate borrowers could temper the above strengths of the bank, she added. S&P Global Ratings has affirmed its 'BBB-' long-term issuer credit ratings on Indian Bank.

10:00 am Market Check: Equity benchmarks continued to consolidate for second consecutive session with the Nifty hovering around 8900 level due to lack of cues.

The 30-share BSE Sensex was down 24.22 points at 28902.14 and the 50-share NSE Nifty declined 10.85 points to 8907.10 despite positive market breadth. About 1308 shares advanced against 704 declining shares on the BSE.

TCS fell 5 percent after the company warned, saying it sees sequential loss of momentum in BFSI vertical in the US and is holding back of discretionary spending seen in BFSI vertical in the US. The news hit IT stocks sentiment with HCL Technology, Infosys and Wipro falling 2.7 percent, 2.75 percent and 1.75 percent, respectively.

Tata Steel was the biggest gainer, up 4 percent followed by Bajaj Auto, ONGC, Hero Motocorp, SBI, Hindalco Industries and Bharti Infratel whereas BHEL shed nearly 3 percent.

9:55 am Rating: S&P Global Ratings said it has affirmed 'BBB-' long-term rating on Indian Bank with a stable outlook on the back of the PSU lender's strong capital base and funding ability.

"We affirmed the rating because we expect Indian Bank to maintain its above-average funding profile, strong liquidity, and adequate capitalisation and business franchise over the next 18-24 months," S&P Global Ratings credit analyst Nikita Anand said.

However, the bank's deteriorating asset quality owing to stress faced by its corporate borrowers could temper the above strengths of the bank, she added. S&P Global Ratings has affirmed its 'BBB-' long-term issuer credit ratings on Indian Bank.

9:45 am View on IT: Investors are quickly selling TCS on concerns as the company indicated that it has seen holding back of discretionary spending particularly in Banking and Financial Services Solution (BFSI) in the US resulting in sequential loss of momentum. TCS has also said that customers in BFSI vertical are showing abundant caution outlook.

Analysts are also a bit cautious about the sector as a whole. Ravi Menon of Elara Capital says that Federal Reserve not hiking rate is impacting net income of banks in the US which is adding pressure on companies and could have led to cautioning views. Anand Radhakrishnan of Franklin Templeton Investments says that near-term headwinds are evident in IT stocks. However, he sees bigger growth opportunities in the IT sector in medium to long-term.

9:30 am Outlook: Developing Asia, including India and China, had a trade finance gap of USD 692 billion in 2015, multilateral lending agency Asian Development Bank said today.

"The growth of the trade finance gap in 2015 continues to be a drag on trade, and small- and medium-sized enterprises are the most affected," Head of ADB's Trade Finance Program Steven Beck was quoted a saying in a statement.

 In its new study '2016 Trade Finance Gaps, Growth, and Jobs Survey', ADB has quantified market gaps for trade finance and explores their impact on growth and jobs through a survey of over 337 banks in 114 countries and 791 firms in 96 countries.

The matket has opened in red with the Nifty struggling to hold 8900. The 50-share index is down 13.55 points or 0.1 percent at 8904.40 and the Sensex is down 44.70 points or 0.15% at 28881.66. About 497 shares have advanced, 263 shares declined, and 42 shares are unchanged.

TCS is down 6 percent while BHEL, Infosys, Wipro and NTPC are losers in the Sensex. ONGC, GAIL, Bajaj Auto, HDFC and ITC are gainers in the Sensex.

The Indian rupee snapped two-day winning streak. The currency has opened at 66.47 a dollar, down 11 paise compared with 66.36 per dollar on Wednesday.

Mohan Shenoi, Kotak Mahindra Bank said modest data emanating from US was putting pressure on dollar as markets re-think a potential September rate hike.

Emerging markets currencies particularly rupee have gained against dollar. According to him, the USD-INR is expected to trade in a range of Rs 66.25-66.50 per US dollar for the day.

Asian shares opened mixed, as investors consider what the Fed's Beige Book means for US interest rate expectations.

Down Under, the S&P/ASX 200 opened down 1.02 percent, with the energy subindex shedding 1.52 percent, the materials subindex losing 1.77 percent and the heavily-weighted financial subindex seeing losses of 0.79 percent.

Japan's Nikkei 225 was down 0.18 percent, while South Korea's benchmark Kospi opened higher by 0.41 percent. Japan revised its second-quarter gross domestic product (GDP) up to 0.7 percent year-on-year, compared with the initial estimates of 0.2 percent.

US stocks ended little changed on Wednesday, though the Nasdaq eked out another record high close, as investors assessed the outlook for US interest rates.
Investors have been weighing the likelihood of a rate hike this month from the
Federal Reserve, with recent economic data including last Friday's weaker-than-expected jobs report suggesting the US central bank could hold off for now.

The Fed said on Wednesday afternoon in its Beige Book report of anecdotal information that the US economy expanded at a modest pace in July and August, but there was little sign that wage pressures are being felt beyond highly skilled jobs.

In the world of commodities, crude oil prices edged 1 percent higher in a volatile session as the market weighs the prospect of higher supplies against the possibility that the world's top producers could agree on a production freeze.

From the precious metals space - gold dipped, losing momentum due to profit-taking after it soared by the most in over two months in the previous session on economic data that weakened the case for an imminent US rate hike.