Sensex ends in red, Nifty at new closing high; HDFC up 2%

03:30 pm Market closing
The market ended flat after a volatile session ahead of F&O expiry. The Nifty ended at record closing high up 3.80 points or at 8914.30. The Sensex snapped 8-day gains, down 11.86 points at 29559.18.

HDFC, Wipro and Reliance were up 2 percent followed by ONGC and Maruti. Among the losers were Bharti, Sesa, Tata Motors, L&T and Tata Steel.

03:00 pm Rights issue
State Bank of India (SBI) will raise Rs 15,000 crore through a public offer including rights issue to fund business and meet global capital adequacy norms.

"The committee of the Directors for capital raising has decided to seek government or RBI approval for raising capital up to Rs 15,000 crore by way public issue...," SBI said in a statement.

The bank requires adequate capital to match the anticipated growth in asset and comply with stipulated level of capital adequacy, it said.

The fund, SBI said ,would be raised either through follow on public issue, qualified institutional placement, rights issue, private placement, Global Depository Receipt, American Depository Receipt or combination of these.

02:50pm Sadbhav Engineering in News
Gammon Infra is set to acquire Sadbhav Engineering's 20 percent stake in Mumbai-Nasik Expressway for Rs 72 crore. The company already owns the majority 80 percent in the BOT project.

Kishor Kumar Mohanty, MD, Gammon Infrastructure, said it makes an investment sense for both parties as Sadbhav was a minority stakeholder.

''As far as funding is concerned, it will be mostly through internal accruals but our monetization option in different operational projects is possible,'' Mohanty said, adding that the company is also on the verge of completing three more projects in the next couple of months, which will give it a little headroom for ''financial manoeuvring."

02:30pm Ajanta Pharma hits 52-week high
Ajanta Pharma's third quarter net profit jumped 23 percent year-on-year to Rs 84.7 crore led by strong growth in topline and operational income.

Net sales rose 21.8 percent to Rs 356.3 crore in the quarter ended December 2014 from Rs 292.6 crore in same quarter last fiscal. "Domestic business grew 35.6 percent Y-o-Y to Rs 135.4 crore and exports (which contributed 61 percent to total revenue) jumped 15 percent to Rs 224.08 crore during the quarter," said the company in its filing.

Emerging markets business reported a 15 percent growth year-on-year at Rs 223 crore and Africa business grew 4 percent to Rs 110 crore during the quarter. Asian region showed 25 percent growth at Rs 109 crore while Latin America revenue jumped 112 percent to Rs 4 crore.

Operating profit (EBITDA) spiked 40.6 percent on yearly basis to Rs 125 crore and margin surged 470 basis points to 35.1 percent in the third quarter of current financial year 2014-15.

02:00pm Market Check
The market is volatile with negative bias today, after hitting a record high of 8985 on the Nifty and 29708 on the Sensex. Capital goods, metals, power and select banks stocks. However, HDFC and Reliance Industries continued to support the market.

The 30-share BSE Sensex fell 130.54 points to 29440.50 and the 50-share NSE Nifty slipped 29.55 points to 8880.95. Nearly two shares declined for every share advancing on the Bombay Stock Exchange.

Pramod Gubbi of Ambit Capital recommends buying India with a 2-3 years perspective. However, he says underlying recovery and corporate earnings are not upto mark yet.

Ranbaxy Labs fell 2 percent as the drug maker's third quarter net loss widened to Rs 1,030 crore compared to loss of Rs 159 crore in the year-ago period. Higher forex loss of Rs 132.6 crore (versus gain of Rs 10.1 crore Y-o-Y) and tax expenses of Rs 888.2 crore (Rs 98.1 crore in Q3FY14) impacted the bottomline.

Bharti Airtel topped the selling list, down nearly 5 percent followed by L&T, Tata Motors, Sesa Sterlite, HDFC Bank, Sun Pharma, HUL, Cipla, BHEL and Tata Steel with 1.4-4 percent loss.

However, HDFC gained more than 2 percent.

It is a mixed bag across global markets today. Asian markets like Shanghai closed with losses of more than 1 percent while Korea and Nikkei ended in the green. European markets are higher. Fed policy decision later this evening will be watched closely.

In the commodities space, the onslaught on crude continued, Brent crude fell more than 1 percent to USD 49 a barrel post a surge in US crude stockpiles and ahead of FOMC decision today.

1:55 pm Buzzing: Shares of Asian Paints surged to record high at Rs 916.95, up 3 percent intraday after Credit Suisse upgraded it to outperform from neutral rating. The brokerage has also raised target price to Rs 1020 from Rs 710 per share. Credit Suisse has increased earnings estimates by 20 percent considering crude is at USD 58/ bbl in 2015 and USD 75/bbl in 2016. According to it, the company has major margin tailwinds and a very favourable input cost scenario in FY16 as over 70 percent of the input cost basket is trending downwards.

1:45 pm Defaulter? Jaiprakash Power Ventures said it was likely to default on payments for convertible bonds worth USD 200 million due on February 13 this year, as it could not generate enough revenue from its operations. Jaiprakash, which has been weighed down by debts and a sharp downturn in the performance of the Indian power sector, said in a statement on Wednesday the company was confident of its ability to pay its dues under the bonds by March 31, 2016.

1:30 pm Result: Aban Offshore beat street expectations by reporting a 62 percent growth (year-on-year in consolidated net profit at Rs 130 crore. Good operational performance due to decline in expenses pushed the bottomline higher.

Profit was expected at Rs 85 crore on revenue of Rs 992 crore for the quarter, according to the average of estimates of analysts polled by CNBC-TV18.

Consolidated total income of the offshore drilling services provider (to oil companies) grew 1 percent to Rs 1,003 crore in the quarter ended December 2014 from Rs 994.3 crore in same quarter of last fiscal.

Total expenses slipped 1 percent on yearly basis to Rs 669.78 crore during the quarter due to lower cost of materials consumed, rental charges for machinery and insurance cost.

The market started to skid after the Nifty almost touching 9000-level. The 50-share index is up 15.10 points at 8925.60 ahead of Jan F&O series expiry tomorrow. The Sensex is up 42.56 points at 29613.60. About 1073 shares have advanced, 1583 shares declined, and 254 shares are unchanged.

HDFC is up 3 percent followed by Maruti, ICICI Bank, Coal India and SBI. Among the losers are Bharti, Tata Motors, Sesa Sterlite, Tata Steel and Tata Power.

Analysts say traders are cautious because of the Fed's first two-day policy meeting of the year that concludes tonight, and policymakers will likely restate their "patient" approach to raising rates, while also voicing faith that the economy will continue improving.

The Federal Reserve is expected to signal it remains on track to begin raising interest rates later this year, as the central bank shows confidence that low inflation and rising risks from abroad have yet to derail the US economic recovery.

12:45pm Market off record high
The market erased some gains in afternoon trade due to profit booking, which indicates that the Nifty may take some more time to surpass 9000-mark.

The 30-share BSE Sensex rose 35.69 points to 29606.73 after hitting a record high of 29708 while the 50-share NSE Nifty advanced 18.70 points to 8929.20.

About 1157 shares have advanced, 1441 shares declined, and 258 shares are unchanged on the Bombay Stock Exchange.

Tata Motors and Bharti Airtel plunged 2-3 percent followed by L&T, HUL, Tata Steel, Cipla, Bajaj Auto, Sesa Sterlite, BHEL and Tata Power with 0.8-1.6 percent losses.

However, HDFC, ICICI Bank, TCS, Sun Pharma, Maruti Suzuki and Coal India gained 1-1.5 percent. HDFC Bank, Reliance Industries, Infosys, SBI, ONGC and Dr Reddy's Labs advanced 0.5-0.8 percent.

12:25pm Nikkei at 1-month high
Japanese stocks rose to a fresh one-month high today as expectations of strong corporate earnings and a weaker yen boosted investor sentiment.

The Nikkei benchmark gained 0.2 percent to close at 17,795.73, its highest since December 29, after reversing early losses triggered by profit-taking after disappointing US earnings. The average rose 1.7 percent on Tuesday.

Market participants were also buying on expectations that Wall Street shares would recover Tuesday's losses on Wednesday, as US stock futures rebounded during Asian hours.

Sony Corp gained 2.7 percent after sources told Reuters it plans to cut around 1,000 more jobs in its struggling smartphone division.

The broader Topix gained 0.3 percent to 1,429.92, while the JPX-Nikkei Index 400 ticked up 0.1 percent to 12,969.74.

12:00pm Market Check
The market surged in noon trade after a slow start. The frontline indices touched record highs led by real estate, banks, oil and IT stocks. The CNX Midcap outperformed benchmarks, up almost a percent.

The 30-share BSE Sensex climbed 128.47 points to 29699.51 and the 50-share NSE Nifty rose 48.25 points to 8958.75.

Asian markets except Shanghai recovered from intraday lows, but the mood is cautious ahead of the Federal Reserve policy outcome today.

Asian Paints topped the buying list on Nifty today, up 3 percent. Credit Suisse upgraded the stock to outperform from neutral and increased the target to Rs 1020 per share. The brokerage also raised its earning estimates by 20 percent a day ahead of the company's third quarter numbers on Thursday.

Tata Motors is among the top Nifty losers on news that the company will seek shareholders' approval to raise up to Rs 7,500 crore via rights issue of ordinary and DVR shares. The company is planning to raise funds to meet growth plan and reduce debt.

Ranbaxy Labs traded 1.5 percent higher ahead of it's third quarter earnings today. A CNBC-TV18 poll sees a 12 percent growth in revenues. Overall analysts expect a good quarter led by the drug, Diovan generic (hypertension drug).

11:50 am Outlook: While the market may be worried about fiscal stress in FY15, brokerage house house Credit Suisse government can raise capex by at least 1.2 percent of GDP in FY16. "The gains pocketed from falling oil prices could be used for counter-cyclical pump-priming. A further 0.9 percent of GDP can come from the new GDP series and a slight push-out of deficit targets," the brokerage said in its note to clients. ''This fiscal expansion could drive a 0.75-1.00 percentage point addition to growth, driving outperformance of the broader India market. In particular, rising expenditure on roads and housing should drive a pick-up in cement and paints demand,'' the note said.

11:40 am Market check: The market surged higher as the Sensex is up 91.43 points or at 29662.47. The Nifty is up 38.20 points at 8948.70. About 1176 shares have advanced, 1239 shares declined, and 243 shares are unchanged.

Maruti, Coal India, HDFC, Sun Pharma and TCS are top gainers in the Sensex. Among the losers are Tata Motors, Bharti Airtel, Sesa Sterlite, Tata Steel and Bajaj Auto.

11:30 am Rights issue: Auto major Tata Motors plans to raise up to Rs 7,500 crore via rights issue which will be used to invest in business expansion and reduce debt.

The company's board has approved seeking shareholders' approval through a postal ballot for raising funds up to Rs 7,500 crore through a rights issue of ordinary shares for meeting the company's growth plans as well as for reducing the debt on its balance sheet, Tata Motors said in a statement.

The quantum, pricing and timing of the issue will be decided later, depending on market conditions post the shareholders' and other approvals, it added.

Tata Motors, country's largest automobile company, had registered consolidated revenues of Rs 2,32,834 crore in 2013-14.

It's a day of consolidation for the frontliners with the Nifty hovering around the 8900 level. The 50-share index is up 4.10 points at 8914.60. The Sensex is down 21.61 points at 29549.43. About 1120 shares have advanced, 1131 shares declined, and 230 shares are unchanged.

Maruti, SBI, TCS, NTPC and Sun Pharma are top gainers in the Sensex. Among the losers are Bharti, Tata Motors, Tata Steel, Sesa Sterlite and Cipla.

Globally, most Asian markets recover intraday but mood is cautious ahead of the Fed Reserve policy outcome today. China, however, is in the red. Brent crude continues to trade sub USD 50 a barrel.

Oil jumped as much as a weak dollar propped up commodities, but crude prices came off their highs in post-settlement trading on signs of another big US supply build last week.

A Reuters poll showed U.S. crude stockpiles rose by 4.1 million barrels, on average, in the week to January 23. That would add to the previous week's build of over 10 million barrels, the biggest in 14 years, which had already brought inventories to the highest level on record for this time of year.

11:50 am Market outlook: Market could correct in the short term as valuations have become rich and the recovery in the economy and corporate earnings is not up to the mark, says Pramod Gubbi of Ambit, Director-Institutional Sales, Ambit Capital. In an interview with CNBC-TV18, Gubbi says private banks were vulnerable to a pullback as they had run up quite sharply. He is bearish on state-owned banks as he says they still face many structural issues. Gubbi is advising his clients to buy Indian equities from a 2-3 year perspective as the long term story is attractive. And while a lot of global risks are abating, the possibility of a rate hike in the US is very much on the cards, he feels. He is closely watching the Budget for the government's measures to revive the investment cycle.

11:30 am Interview: Mahindra & Mahindra Financial Services sees its loan book in the Southern market improving apost the January harvest, Ramesh Iyer, Managing Director told CNBC-TV18. He said the company was seeing pressure specific to geographies and not products. Iyer said the company was trying to ensure that credit losses did not exceed 2 percent. The company is seeing working capital constraints and shrinking cash flows in semi urban and rural markets, Iyer said. He said the below par monsoon in some areas had affect the yields the company earned on its loans.

The market is still flat as the Sensex is down 12.22 points at 29558.82. The Nifty is up 4.50 points at 8915.00. About 977 shares have advanced, 957 shares declined, and 220 shares are unchanged.

Sun Pharma, Maruti, TCS, Hero, and Dr Reddy's Labs are top gainers in the Sensex. Among the losers are Tata Motors, Bharti Airtel, GAIL, Tata Steel and Cipla.

Brokers said emergence of profit-booking by cautious investors in recent gainers at record levels ahead of tomorrow's monthly expiry in the derivatives segment mainly pulled down the key indices from their peaks. Besides, a weakening trend at other Asian markets following yesterday's heavy sell-off in US markets on poor earnings reports negatively impacted trading sentiments here, they said.

Gold clung to overnight gains to trade just above USD 1,290 an ounce, with focus turning to whether a weaker global economy may curb the Federal Reserve's enthusiasm to raise interest rates.

The Federal Open Market Committee will release a statement at the end of its two-day policy meeting later in the day. Analysts say some disappointing corporate earnings and an unexpected drop in U.S. durable goods orders in December could push back expectations for a rate hike largely seen happening by mid-year.

09:35am FII View
Jyotivardhan Jaipuria, Bank of America Merrill Lynch says India remains a consensus overweight but investors are not looking to trim their positions. Most investors are looking at dips to buy India.''

''Clients believe that rate sensitives will do well over the next few years though there is some concern over valuations in the near term,''

''Amongst our top buys, we sense that clients are still not positioned in the public sector banks. We still like SBI as an under-owned stock that will surprise operationally. Our other top buys include Maruti Suzuki, ICICI Bank, BPCL and Lupin,'' says Jaipuria.

09:15am Market Check
The market consolidates with negative bias in early trade Wednesday ahead of outcome of FOMC's two-day meeting (that will end tonight) and expiry of January derivative contracts (on Thursday).

The Sensex declined 5.32 points to 29565.72 and the Nifty slipped 7.75 points to 8902.75 despite weak global cues.

Tata Motors and Tata Steel falls over a percent while Maruti gained more than 1.5 percent.

The Indian rupee fell marginally in early trade today. The currency has opened at 61.50 a dollar, down 11 paise compared to previous day's closing value of 61.39 a dollar.

Himanshu Arora, Religare said, "USD-INR pair is expected to trade slightly higher today amid uncertainty as the US Fed meeting is going on and the statements out of the meeting are widely expected to provide cues to the market."

"Moreover, month-end dollar demand by oil marketing companies is also expected to underpin dollar today. Expect the range for the USD-INR to be between Rs 61.25-61.68/USD," he added.

Global markets are in the red with US stocks seeing sharp losses on the back of weak economic data and disappointing corporate earnings. European markets ended in the red and Asian markets too are negative following the US handover.

In other asset classes, the dollar stepped back from its 11-year highs against a basket of currencies after soft spending data and some disappointing earnings casting doubts about the underlying optimism on the US economic outlook.

Nymex crude futures fell over 1.5 percent towards USD 45 per barrel after data showed US crude stocks surged by nearly 13 million barrels last week .

And precious metal gold edged higher after two sessions of losses, as the dollar eased ahead of a US Federal Reserve policy meeting.