Sensex erases all gains, Nifty closes flat but above 10K; HDFC twins gain, DRL tanks

3:30 pm Market at Close: The Indian market had a volatile session, with benchmark indices erasing almost all of its gains on the F&O expiry day. Both of them ended the day on a flat note.

The Sensex and Nifty began the day on a strong note as they both touched record high figures. The former had in fact, gained nearly 300 points intraday, only to cut these gains in the subsequent hours.

At the close of market hours, the Sensex closed up 0.84 points at 32383.30, while the Nifty ended down 0.10 points at 10020.55. The market breadth was negative as 876 shares advanced against a decline of 1,839 shares, while 155 shares were unchanged.

HDFC Bank, HDFC and Yes Bank were the top gainers, while Dr Reddy's Laboratories, Tata Motors and Tata Motors DVR were the top losers.

3:25 pm DRL in focus: Credit Suisse retained underperform rating on Dr Reddy's Labs with a target price of Rs 2,200 post earnings.

The stock lost nearly 4 percent.

3:15 pm Earnings Estimates: Cigarette-hotel-to-FMCG major ITC is all set to announce its June quarter earnings later today.

Profit is seen rising 8.3 percent year-on-year to Rs 2,583 crore, driven by revenue and improvement in operational performance.

Revenue during the quarter is expected to increase 4.7 percent to Rs 13,877 crore from Rs 13,253.1 crore, according to average of estimates of analysts polled by CNBC-TV18.

Operating profit may rise 6.5 percent to Rs 3,757 crore and margin may expand 50 basis points to 27.1 percent compared with year-ago quarter.

Key factor to watch out for would cigarette business that contributes 45 percent to total revenue. Cigarette volumes are expected to decline 2 percent (against 0 percent in Q4FY17 and 3 percent in Q1FY17) but the growth 6-7 percent may be driven by price hike taken in December and post Budget.

3:06 pm Market Update: Equity benchmarks erased gains in last hour of trade due to volatility ahead of expiry of July futures & options contracts.

The 30-share BSE Sensex was up 19.64 points at 32,402.10 and the 50-share NSE Nifty rose 7.60 points to 10,028.25.

About 1,830 shares declined against 829 advancing shares on the BSE.

2:55 pm Yes Bank at new high: Shares of Yes Bank clocked fresh all-time high following its robust earnings as well as the announcement of a stock-split. The stock was just a few rupees away from the psychological mark of Rs 1,800 as it touched at Rs 1,796.5.

It reported 31.9 percent year-on-year (YoY) rise in net profit for the quarter ended June to Rs 965.5 crore which was higher than the CNBC-TV18 estimate of Rs 919 crore.

The net interest income, the difference between interest earned and interest expended, grew by 44 percent on a YoY basis to Rs 1808.90 crore driven by growth in Advances and CASA, and steady expansion in net interest margin (NIM).

The Board also approved Stock split in the ratio of 5 for 1, subject to approval from Shareholders' and RBI.

Brokerages largely have been very upbeat about the stock, highlighting the improved asset quality as well as cost rationalisation.

2:40 pm Asset quality weakens: IDFC Bank's first quarter profit grew sharply by 65.3 percent year-on-year to Rs 437.6 crore, driven by other income but asset quality worsened further.

Net interest income, the difference between interest earned and interest expended, fell 22.2 percent to Rs 388 crore compared with year-ago quarter.

Other income (non-interest income) shot up 205 percent to Rs 649 crore and operating profit increased 49 percent to Rs 647.5 crore compared with corresponding quarter of previous fiscal.

Gross non-performing assets (NPA) rose 114 basis points sequentially to 4.13 percent and net NPA increased 56 basis points to 1.70 percent in Q1.

In absolute terms, gross NPA jumped 30 percent to Rs 2,004 crore and net NPA surged 39.4 percent to Rs 803.7 crore compared with previous quarter.

2:22 pm DRL disappoints: Dr Reddy's Laboratories started off the year with dismal performance on Thursday as profit fell sharply by 56.6 percent to Rs 66.6 crore, hit by weak operational numbers.

Revenue grew by 2.7 percent to Rs 3,333.2 crore from Rs 3,244.7 crore on year-on-year basis.

Operating profit came in at Rs 340 crore and margin at 10.1 percent for the quarter, which were far lower than estimates of Rs 601 crore and 17.8 percent, respectively.

2:12 pm Earnings: Nocil shares hit fresh 52-week high, up more than 4 percent after solid growth in earnings.

Profit in June quarter shot up 46.1 percent year-on-year to Rs 34.6 crore and revenue increased 11 percent to Rs 236.4 crore.

Operating profit was up 42.7 percent at Rs 54.7 crore from Rs 37.1 crore YoY.

2:02 pm Market Check: Equity benchmarks lost nearly half of morning gains due to volatility ahead of expiry of July derivative contracts.

The 30-share BSE Sensex was up 154.00 points at 32,536.46 and the 50-share NSE Nifty gained 51.05 points at 10,071.70.

The market breadth was negative as about two shares declined for every share rising on the BSE.

Technology stocks were under pressure as TCS and Infosys fell 1-2 percent. Tata Motors was down 1.6 percent and Reliance Industries declined 0.6 percent. Bharti Airtel plunged 3 percent.

HDFC extended gains to 5.6 percent as brokerages remained positive on the stock post earnings.

1:50 pm Fundraising: Punjab National Bank said a meeting of board of directors of the bank is scheduled to be held on August 1 for considering raising of capital upto total of Rs 3,000 crore by way equity issue (FPO/QIP/rights etc.) and fixing date of extra ordinary general meeting (EGM) for obtaining shareholder's approval in this regard.

1:38 pm Earnings: Maruti Suzuki India has reported a mixed set of earnings on Thursday as profit missed analysts' expectations due to one-time dealers' compensation for GST but revenue was ahead of expectations.

Profit in June quarter grew by 4.4 percent to Rs 1,556.4 crore and revenue increased 16.4 percent to Rs 19,777.4 crore compared with year-ago quarter.

Profit was estimated at Rs 1,669 crore on revenue from operations at Rs 17,449 crore for the quarter, according to average of estimates of analysts polled by CNBC-TV18.

At 13:38 hours IST, the stock price was quoting at Rs 7,626.00, up Rs 48.05, or 0.63 percent after hitting a life high of Rs 7,679 on the BSE.

1:25 pm HDFC in focus: Housing Development Finance Corporation (HDFC) share price crossed Rs 1,700-mark and hit fresh record high of Rs 1,710.50, up 4.7 percent intraday as brokerages retained positive stance on the stock post Q1 earnings.

While reiterating buy rating on the stock with increased target price at Rs 1,925 (from Rs 1,791 earlier), Bank of America Merrill Lynch said the growth story is intact and asset quality remained manageable after Q1 earnings.

"We value HDFC's standalone business at Rs 1,925 valued at P/B multiple of 3.4x (same as earlier) which we justify on basis of 1) best in class return on equities at over 20 percent, 2) book consists of highly preferred mortgage assets. The target price includes subsidiaries value of Rs 895. This increase in value is largely driven by higher valuation for HDFC Bank," the research house explained.

It believes HDFC may tend to trade on PE basis versus price-to-book value, as it continues to deliver consistent earnings growth. It further believes that home loan sector is at an inflection point and industry leader such as HDFC is likely to be a key beneficiary.

Deutsche Bank also raised target price by 2.2 percent to Rs 1,840 (from Rs 1,800 earlier) as it has factored in new higher target price on HDFC Bank. The research house has a buy rating on the stock.

1:00 pm Nifty's performance on expiry day: A brief look at the return Nifty gave every month of expiry day suggests that index likely to close in the green.

In 5 out of 6 occasions Nifty close well in green on the expiry day.

It gave a return of 1.5 percent in January and marginally negative return in the month of April.

12:54 pm Market Outlook: ICICI Securities said equity benchmarks regained positive momentum after the brief consolidation in June 2017 and catapulted to record life highs powered by a broad based rally.

Stable quarterly earnings from key corporate, decline in CPI and WPI inflation boosted sentiments amid hopes of a rate cut by the RBI in its monetary policy review in the coming month.

The Nifty touched the historic landmark five figure mark of 10000 for the first time and is on course to record its biggest monthly gain in 16 months.

The Nifty continues to stride northwards in a rising peaks and troughs manner on all time frames, highlighting a structured up move and persistent demand at elevated levels.

We expect the ongoing uptrend to extend towards target of 10400 levels over the coming months as it is the value of upper boundary of the major rising channel encompassing the entire up move since March 2016 till date.

12:40 pm Market Check: Equity benchmarks turned volatile in afternoon trade as the Nifty came off day's high ahead of expiry of July derivative contracts later today and the Nifty Midcap lost ground after hitting record highs.

The 30-share BSE Sensex was up 185.50 points at 32,567.96 and the 50-share NSE Nifty rose 61.85 points to 10,082.50. About three shares declined for every two shares rising on the BSE.

12:36 pm Europe opening: European markets opened slightly lower after the US Federal Reserve kept interest rates unchanged and investors reacted to a slew of earnings reports.

The pan-European Stoxx 600 edged 0.18 percent lower with almost all sectors and major bourses in negative territory.

12:26 pm Axis Bank deal: Axis Bank has today entered into a share purchase agreement with Jasper Infotech Private Limited (Snapdeal), to acquire 100 percent equity capital of Accelyst Solutions Private Limited & Freecharge Payment Technologies Private Limited, subject to receipt of requisite regulatory approvals, including from the RBI, for a cash consideration of Rs 385 crore.

12:10 pm Buzzing: Adani Power shares fell as much as 4 percent intraday after foreign brokerage house Citi discontinued its coverage on the stock.

"We are discontinuing coverage on Adani Power due to reallocation of our resources. The firm's last recommendation for the stock is sell and our target price is Rs 23. This is our last rating on Adani Power," the research house said.

In its last recommendation, Citi slashed its target price on the stock Rs 23 (from Rs 25 earlier) to factor in EPS revision and increase in target Price-to-book value to 3.0x (1.0x earlier) as it was more comfortable with the book value post Mundra write off in Q4FY17.

It had revised down FY19-20 EPS by 74-99 percent and FY18 estimates is now a loss (against profits earlier) as it cut sales by 6-10 percent and EBITDA by 24-27 percent over FY18-20 on lower than expected FY17 results.

"We will not provide updates to our previous research or ratings. You should not rely on this or previous research with respect to this company going forward," Citi said.

11:55 am Market Check: Benchmark indices remained strong, with the Sensex rising as much as 290 points in late morning trade and Nifty Bank hit 25,000-mark for the first time.

The 30-share BSE Sensex was up 246.26 points at 32,628.72 and the 50-share NSE Nifty gained 77.30 points at 10,097.95 despite weak market breadth.

About 1,239 shares declined against 1,108 advancing shares on the BSE.

HDFC was the biggest gainer, up 4 percent as Bank of America Merrill Lynch maintained its buy rating on the stock and raised target price to Rs 1,925 after strong earnings.

11:40 am Bihar political drama: Mahesh Nandurkar of CLSA said Bihar CM, Nitish Kumar resigning has increased chances for PM Modi's win in the 2019 elections and has also reduced the risk of heightened populism by Modi ahead of the elections.

In general, this should boost investor sentiment.

11:20 am Market Outlook: Gautam Duggad of Motilal Oswal said the Indian market remained buoyed by continued liquidity inflow amid a strong macro backdrop.

Domestic MF inflows in CY17 stand at USD 7 billion, matching inflows recorded in the entire last calendar year. The macro backdrop remained best in recent times, with inflation under control, twin deficits in check, stable currency, and policy momentum intact.

According to him, only missing link in an otherwise positive set-up is earnings recovery. Nifty earnings have remained flat for the last five years and hold the key for further re-rating, he feels.

11:05 am Earnings Estimates: Pharmaceutical firm Biocon is expected to report degrowth of 32 percent in first quarter profit at Rs 113 crore compared with Rs 166.6 crore in year-ago quarter due to weak operational performance and higher depreciation.

Revenue is seen growing moderately to Rs 996.4 crore for the quarter against Rs 982.4 crore in same quarter last fiscal, according to average of estimates of analysts polled by CNBC-TV18.

Subdued revenue may be led by sluggishness in biopharma and domestic formulation negated by research services.

Domestic formulation business may fall as much as by 30 percent due to higher base and GST. However, growth from Syngene International, which is estimated at 10-18 percent YoY, may negate revenue pressure.

Operating profit during the quarter may drop 20% to Rs 211.3 crore and margin may contract by 560 basis points to 21.2 percent year-on-year.

10:48 am Market Check: Equity benchmarks rallied further in morning, with the Sensex rising 241.28 points at 32,623.74 and the Nifty up 79.45 points at 10,100.10.

The broader markets underperformed benchmarks, with the BSE Midcap index up 0.6 percent on positive breadth. About 1,173 shares advanced against 975 declining shares on the BSE.

10:40 am Earnings Estimates: India's largest private sector lender ICICI Bank is all set to announce its first quarter earnings today.

Net profit for the quarter is expected to fall by 10.2 percent to Rs 2,005.3 crore compared with Rs 2,232.4 crore in same quarter last year, according to average of estimates of analysts polled by CNBC-TV18.

Sequentially, earnings are expected to remain under pressure due to high provisions.

Net interest income, the difference between interest earned and interest expended, may grow by 11.6 percent to Rs 5,758.4 crore in Q1 compared with Rs 5,158.5 crore in corresponding quarter of last fiscal.

This NII growth could be highest in last six quarters.

10:15 am Buzzing: Share price of Orient Cement rose 10 percent intraday as the company turned profitable in the quarter ended June 2017.

The company in Q1FY18 (April-June) has posted net profit of Rs 39 crore against the loss of Rs 7.6 crore, in a year ago period.

Revenue of the company increased 30 percent at Rs 657 crore versus Rs 505 crore.

The operating profit (EBITDA) was up 189 percent at Rs 117 crore and EBITDA margin was up 980 bps at 17.8 percent.

During the quarter, the company signed definitive agreement for the acquisition of 74 percent shares of Bhilai Jaypee Cement from Jaiprakash Associates and its nominees and for the business transfer of Nigrie Cement Grinding unit of Jaiprakash Power Ventures for an enterprise value of Rs 1,450 crore and Rs 496 crore respectively.

10:06 am Market Check: Equity benchmarks extended rally in morning, with the Sensex up 222.91 points at 32,605.37 and the Nifty up 71.50 points at 10,092.15.

About 1,168 shares advanced against 775 declining shares on the BSE.

9:58 am Market Outlook: The Indian market continued its bullish momentum, backed by steady earnings and strong political stability cues from the developments in Bihar on Wednesday. In the opening tick, indices surged to fresh highs.

Having said that, there are experts who still continue to be wary of the rally as it is not commensurate with the fundamentals. UBS Securities believes that from a fundamental perspective, the risk reward is unattractive.

''Political stability will help the market in the short term
there is a confidence that global investors have on this regime,'' Gautam Chhaochharia, Head-India Research, UBS Securities told CNBC-TV18 in an interview.

So, what lies in store for global investors then? ''From a long term perspective, these are not levels to be entered into. Valuations are not justified some of them (investors) have trimmed positions in India,'' he told the channel.

9:38 am Buzzing: Shares of Indiabulls Real Estate rose nearly 9 percent intraday as investors cheered a ratings initiation on the stock.

While the stock rallied post its removal from the F&O ban, CLSA too initiated coverage on the stock with a buy rating and a target price of Rs 282.

CLSA said that the portfolio shift towards office income should double the lease income over the next five years.

The company, the brokerage added, will complete 20 msf of ongoing residential development projects over 3-4 years.

The recent steps for reorganization should lead to value discovery, it added.

The stock has multiple triggers to gain 50 percent over the next two years.

9:25 am Earnings: Software solutions provider HCL Technologies' first quarter profit fell sharply by 6.6 percent sequentially to Rs 2,171 crore, impacted by lower revenue growth but better operational performance capped degrowth.

Revenue during the quarter grew by 0.8 percent to Rs 12,149 crore and dollar revenue rose by 3.7 percent to USD 1,884.2 million on sequential basis.

9:15 am Market Check: The market hit fresh record highs in early trade on Thursday, with the Nifty opening above 10,000 level on expiry day after US Federal Reserve meet and ahead of corporate earnings.

The 30-share BSE Sensex was up 126.76 points at 32,509.22 and the 50-share NSE Nifty rose 40.55 points to 10,061.20.

HCL Technologies and Yes Bank rallied up to 2.5 percent post earnings while ICICI Bank, Idea Cellular, ITC and Maruti Suzuki gained up to 1 percent ahead of earnings.

Tech Mahindra, Cipla, Hindalco and Bosch were moderately lower.

Nifty Midcap was up 0.5 percent as about seven shares gained for every two shares falling on the NSE.

Bharat Financial, Manappuram Finance, Ujjivan Financial and L&T Finance Holdings gained up to 3 percent while Indiabulls Real surged 8 percent. Shree Renuka Sugars and Parsvnath Developers also rallied.