Sensex falls 133 points, Nifty below 8700; autos & banks drag

03:30 Market closing
The market ended in red as autos, oil and banks dragged. The Sensex is down 133.06 points at 28717.91 and the Nifty slips 50.65 points at 8661.05. About 877 shares have advanced, 1991 shares declined, and 224 shares are unchanged.

HDFC, Sesa Sterlite, Infosys, ITC and TCS are top gainers in the Sensex. Among the losers are Tata Motors, BHEL, Tata Steel, Sun Pharma and HDFC Bank.

03:15 pm Air traffic
Air passenger traffic in India saw an 8 percent growth last year compared to 2013, the highest after China and Russia, even as global traffic rose by 5.9 percent, according to data released by International Air Transport Association (IATA). Also, the passenger carrying capacity in India rose by 5.7 percent in 2014 with a 76.3 percent load factor or capacity utilisation. According to IATA, the global industry out-performed the 10-year average growth rate of 5.6 percent.

Air passenger traffic in China rose by 11 percent, helping to drive global air travel performance upward while travel demand in Russia grew by 9.8 percent during this period. Besides, the Asia Pacific carriers recorded an increase of 5.8 percent in traffic, which was the largest increase among the three biggest regions compared to 2013, IATA said. Overall, a record 3.3 billion passengers boarded aircraft globally last year, an increase of 170 million from 2013, it said.

03:00 pm International markets
World shares were heading for their strongest week since October as markets awaited U.S. jobs data on Friday, while oil was shooting for a near 20 percent rebound and the euro was on track for its biggest weekly rise since late 2013.

European stocks dipped at the open and the region's bonds made ground as investors, who have faced fluctuating sentiment over Greece's problems this week, began to square up positions ahead of the monthly US jobs data.

02:30pm Dena Bank in News
Dena Bank's third quarter net profit increased 13 percent year-on-year to Rs 76.6 crore, driven by strong other income and lower provisions. However, the profit was impacted by fall in operating profit and net interest income.

Net interest income (the difference between interest earned and interest expended) fell 8.9 percent to Rs 602.3 crore whereas other income (non-interest income) jumped 52 percent to Rs 196.21 crore during the same period.

Operating profit of the public sector lender declined 13.7 percent to Rs 319.9 crore in December quarter from Rs 370.74 crore in same quarter last fiscal. The bank paid tax of Rs 2 crore during the quarter against tax writeback of Rs 79.5 crore in the year-ago period.

Provisions for bad loans slipped 36.8 percent year-on-year (down 23.4 percent sequentially) to Rs 241.3 crore with provision coverage ratio at 50.94 percent as on December 31, 2014.

Asset quality weakened during the quarter as gross non-performing assets (NPA) climbed 265 basis points Y-o-Y (up 49 bps Q-o-Q) to 5.61 percent. Net NPA spiked up 197 basis points on yearly basis (up 38 sequentially) to 3.97 percent in the quarter gone by.

02:00pm Market Check
The market remained under pressure amid consolidation in afternoon trade as the Nifty continued to struggle at 8700 level due to selling in auto, oil & gas and private banks stocks.

The index slipped 33.30 points to 8678.40 and the Sensex declined 83.46 points to 28767.51 while the BSE Midcap and Smallcap indices lost 1-1.5 percent.

More than two shares declined for every share advancing on the Bombay Stock Exchange.

Tata Motors topped the selling list on Sensex, down more than 5 percent on disappointing numbers in Q3. JLR margins came in below estimates while the standalone business too was hit by one-off provisions. Barclays, however, reiterated its overweight rating with a lower target, saying the third quarter missed does not deter their FY16 outlook.

Shares of HDFC Bank, Reliance Industries, Sun Pharma, ICICI Bank, ONGC, M&M, BHEL, Hero Motocorp, Coal India and Tata Power were down 1-4 percent.

Tata Steel fell over 2 percent ahead of its third quarter numbers. A CNBC-TV18 poll expects the steel major's total turnover to fall by 4 percent Y-o-Y to Rs 35,400 crore. Analysts expect the profits to plunge by 58 percent. GAIL also lost over 2 percent ahead of earnings today.

However, Cipla gained 0.7 percent as Cyrus Poonawalla told CNBC-TV18 that there are possible exploratory talks of a merger between Cipla and Serum Institute. Any further development, however, will be based on the success of their recent collaboration.

Technology stocks outperformed market again as TCS, Infosys and Wipro climbed over a percent each. Index heavyweights like HDFC, ITC gained 2.5 percent, 1 percent, respectively. Bharti Airtel was up 1 percent.

State Bank of India, ICICI Bank, Axis Bank, Tata Motors, Infosys, Jet Airways and HDIL were most active shares on exchanges.

The rupee traded marginally lower around 61.77 a barrel as large state-run banks bought dollars. Benchmark bond yields traded steady at 7.70 percent, ahead of weekly debt auction results.

1:55 pm Chinese yuan? The Chinese yuan will reverse its recent weakening trend and appreciate over the next year due to the country's large trade surplus, despite expectations that its central bank will ease policy further, a Reuters poll showed.

The yuan has lost about 2 percent against the dollar since November when it broke an appreciating trend after the People's Bank of China unexpectedly cut interest rates. China's economy grew at its slowest pace in 24 years in 2014 and will likely cool further to around 7 percent this year, even with additional stimulus, weighed down by a cooling property market, industrial overcapacity and slowing investment.

1:45 pm FM special: Having already crossed the fiscal deficit target in November, Finance Minister Arun Jaitley today hinted at more cuts in spending so as to contain it within limits for the current fiscal, saying he does not believe in living on borrowed money. "We're trying to rationalise expenditure as far as the government is concerned because we do not want the government to live on borrowed money indefinitely," he told a gathering of industrialists and planners here via video conferencing.

"The whole concept of spending beyond your means and leaving the next generation in debt to repay what we are overspending today is never prudent fiscal policy," he said.

1:30 pm Buzzing: Shares of jewellery stocks are on buyers' radar hoping that the government may consider 2-4 percent reduction in import duty on it in the upcoming Budget. The move may help boost exports and manufacturing of gems and jewellery. The industry has already sought reduction in customs duty on gold to 2 percent,from 10 percent now, with decline in gold imports.

Stocks like Titan, Gitanjali Gems and Tribhovandas Bhimji Zaveri jumped 2-6 percent intraday.

Commerce and Industry Minister Nirmala Sitharaman, had last month, hinted that the gems and jewellery sector, which employs about 3.5 million people, may get some incentives in the Budget.

The market seems to be in a sluggish mode as it winds up trade for the week. The Nifty just managed to rise above 8700-level. The 50-share index is down 5.55 points at 8706.15. The Sensex is up 10.19 points at 28861.16. About 833 shares have advanced, 1798 shares declined, and 217 shares are unchanged.

HDFC is up 3 percent while Cipla, Infosys, Sesa Sterlite and TCS are top gainers in the Sensex. Among the losers are Tata Motors, GAIL, BHEL, Hero and Tata Steel.

Traders worry that elections in the national capital, due on Saturday, may show loss of popularity for the ruling BJP and become a drag on the awaited reforms, while Arvind Kejriwal-led Aam Aadmi Party (AAP) may go for populist measures, if it comes to power.

There is also a cautionary trend prevails ahead of the GDP and inflation data due next week after the central bank held interest rates steady on Tuesday, leaving its next move probably until after the government's annual Budget on February 28.

12:30pm Market Expert
The mood is slightly nervous leading up to the Budget, but any sell off should be a good opportunity to load up on equities, feels Ashish Maheshwari, co-Head, Equity, Antique Stock Broking.

''Everyone is looking for the Budget as the be all & end all and a fair bit of positioning is already there on a more positive Budget,'' Maheshwari said.

''Any knee-jerk reaction could shave 10 percent off from current levles but that again is a huge buying opportunity,'' he said.

His colleague, Dhirendra Tiwari, Head of Research, says an economic recovery is already underway and the base is being formed for stronger growth next year.

Tiwari sees the imminent reduction in interest rates as the catalyst for growth to accelerate, and is bullish on the banking sector.

''There has been cautious commentary by some of a few of private sector banks. However this is an opportunity to buy because if one is looking to invest in banking stocks I should be looking for improved performance in the second half of this year and not in the recent quarter or the forthcoming one,'' Tiwari said.

He is expecting aggregate earnings of Sensex companies to grow 18 percent in FY16.

12:00pm Market Check
The market continued to consolidate for the third consecutive session today. The broader markets underperformed benchmarks yet again as the BSE Midcap and Smallcap indices declined 0.8 percent and 1.2 percent, respectively.

The 30-share BSE Sensex fell 50.96 points to 28800.01 and the 50-share NSE Nifty slipped 21.70 points to 8690 weighed by 
About 743 shares have advanced, 1773 shares declined, and 202 shares are unchanged.
 
Asian markets traded mixed as markets are cautious ahead of the US jobs report and as worries from Greece weighed. Crude bounced back with the Nymex settling above USD 51 a barrel while Brent crude traded above 57 a barrel.

Cipla gained 2 percent as Cyrus Poonawalla told CNBC-TV18 that there are possible exploratory talks of a merger between Cipla and Serum Institute. Any further development, however, will be based on the success of their recent collaboration.

Tata Motors topped the selling list on Sensex, down 5 percent on disappointing numbers in Q3. JLR margins came in below estimates while the standalone business too was hit by one-off provisions. Barclays, however, reiterated its overweight rating with a lower target, saying the third quarter missed does not deter their FY16 outlook.

In key earnings, Tata Steel traded 0.8 percent lower ahead of its third quarter numbers. A CNBC-TV18 poll expects the steel major's total turnover to fall by 4 percent Y-o-Y to Rs 35,400 crore. Analysts expect the profits to plunge by 58 percent.

11:5 am  Market outlook: The mood is slightly nervous leading up to the Budget, but any sell off should be a good opportunity to load up on equities, feels Ashish Maheshwari, co-Head, Equity, Antique Stock Broking. ''Everyone is looking for the Budget as the be all end all and a fair bit of positioning is already there on a more positive Budget,'' Maheshwari said. ''Any kneejerk reactions could see 10 percent being shaved off but that again to mind is a huge buying opportunity,'' he said.

11:45 am Interview:  Tyre maker Ceat reported an increase of 32.50 percent in its standalone net profit to Rs 80.63 crore for the third quarter ended December 31, 2014. The company had posted a net profit of Rs 60.85 crore in the October-December period of the 2013-14 fiscal.

Speaking to CNBC-TV18 post Q3 earnings, CFO A Subba Rao said the company is not seeing any unusual inventory build-up. The midcap company reported flat domestic volume in Q3.

Rao further said the company is yet to see any improvement in original equipment manufacturer (OEM) market for trucks. Ceat saw a deceleration of 6 percent in OEM in Q3.

11:30 am Poll: Tata Steel's third quarter consolidated profit after tax is seen falling 58 percent year-on-year to Rs 210 crore, according to the average of estimates of analysts polled by CNBC-TV18. Total turnover may fall 4 percent to Rs 35,400 crore in December quarter from Rs 36,735 crore in the year-ago period. Operating profit is expected to fall 17 percent year-on-year to Rs 3,330 crore and margin may decline 150 basis points to 9.4 percent in the quarter gone by.

The market has slipped into red dragged by auto stocks. The Sensex down 62.27 points at 28788.70. The Nifty is down 25.30 points at 8686.40. About 642 shares have advanced, 1658 shares declined, and 204 shares are unchanged.

Banks, metals and realty stocks are under selling pressure too while IT stocks are on buyer's radar for second consecutive day. HDFC, Wipro, Cipla, Bharti and Infosys are top gainers in the Sensex. Among the losers are Tata Motors, GAIl, BHEL, M&M and Tata Power.

Globally, Asia is mixed as markets are cautious ahead of the US jobs report and worries from greece weigh. Crude bounced back yesterday with Brent above USD 55 a barrel.

10:50am Market Update
The market extended losses in morning trade as the Sensex declined 101.80 points to 28749.17 and the Nifty fell 40.65 points to 8671.05.

Nearly three shares declined for every share advancing on the Bombay Stock Exchange.

10:30am Infosys' organisational restructuring
Infosys has announced realignment of organizational structure on Thursday, which is effective from the beginning of FY16.

The software services exporter will be organised into sales, delivery and business enabling functions. Sales will continue to be organised around 5 industry segments, which include financial services (including cards & payments), manufacturing retail; CPG & logistics energy, utilities; communications & services; life sciences; and healthcare & insurance delivery, says Infosys.

According to the company, delivery organisation will be structured around 7 service lines - digital integration services, application development & maintenance, engineering services, cloud & infrastructure services, independent validation & testing, enterprise package application services, and management consulting services.

10:00am Market Check
The market still continues to be flat. The Sensex is up 30.04 points at 28881.01 and the Nifty is up 2.40 points at 8714.10. About 815 shares have advanced, 980 shares declined, and 165 shares are unchanged.

Cipla, Sesa Sterlite, Wipro, Infosys, HDFC are gainers in the Sensex while Tata Motors, GAIL, M&M, Hero and Sun Pharma are major laggards.

Crude prices are up as rising violence in producer Libya and an expected boost in oil demand from China's central bank easing helped the market rebound from a sharp rout in the previous session.

Traders and analysts said they expect crude's rollercoaster ride which began last Friday to continue as it tries to find a bottom to a seven-month selloff that took prices near six-year lows But many were pessimistic about a sustained rally, as record-high US inventories rekindle worries about a glut.

09:55 am Big deal: Pharmaceuticals giant Pfizer Inc will acquire Hospira Inc, a leading provider of injectable drugs, infusion technologies and biosimilars, at a total enterprise value of USD 17 billion. This is Pfizer's biggest acquisition after its failed USD 117 billion takeover bid for UK-based pharmaceuticals firm AstraZeneca in May last year. The Boards of Directors of Pfizer and Hospira have unanimously approved the merger, Pfizer said in a statement. Under the deal, Pfizer will pay USD 90 a share in cash for a total enterprise value of approximately USD 17 billion.

"The proposed acquisition of Hospira demonstrates our commitment to prudently deploy capital to create shareholder value and deliver incremental revenue and EPS (earnings per share) growth in the near-term," Pfizer Chairman and Chief Executive Officer Ian Read said. Coupled with Pfizer's global reach, Hospira is expected to drive greater sustainability for Pfizer's Global Established Pharmaceutical business over the long term, he added.

09:45am Bad loan? US-based Mirach Capital has backed out of its deal to arrange a loan and investments for the beleaguered Sahara Group, alleging breach of trust and weak financials, reports CNBC-TV18's Ashmit Kumar. Under the proposed deal, Mirach Capital, headed by 34-year Indian origin Saransh Sharma had offered to extend a loan of USD 650 million to the Sahara Group, and invest around USD 400 million in Sahara's properties in India. The Sahara Group is desperately looking to sell three of its overseas hotels--Plaza,Dream Hotel,Grosvenor House--to raise money to get its founder Subroto Roy out of jail.

09:35am FII View
Sakthi Siva, Credit Suisse says the performance of MSCI Asia ex-Japan has shown the best start since 2012 in 2015 so far. "In absolute terms, MSCI Asia ex-Japan has risen by 3.7 percent in 2015 so far and has outperformed MSCI World by 3.1 percent," she adds.

She further says the brokerage believes this start could persist. "Additionally, India and China are the two economies with the highest real short rates and therefore possessing the greatest room for policy easing," she adds.

09:15am Market Check
The market opened flat with negative bias on Friday. The Sensex fell 26.73 points to 28824.24 and the Nifty declined 2.40 points to 8709.30. About 434 shares have advanced, 225 shares declined, and 149 shares are unchanged.
 
M&M, HDFC Bank, Bharti Airtel, Hero Motocorp, BPCL, Bank of Baroda and DLF were down 0.4-1.8 percent while Cipla, ONGC, Hindalco, Sesa Sterlite, Reliance Industries and Cairn India gained 0.8-2.5 percent.

From the earnings corner, Tata Motors reported disappointing Q3 numbers. Jaguar Land Rover (JLR) margins came in below estimates. The company's standalone business was hit by one off provisions as the management made a one time provision of Rs 310 crores for write offs at Singur plant. The stock lost 5 percent.

Earnings to watch out for today will be Tata Steel and NMDC. According to a CNBC-TV18 poll, Tata Steel's total turnover will fall 4 percent to Rs 35400 crore while profits may plunge 58 percent. Meanwhile, NMDC may see a 4 percent drop in profits.

The Indian rupee opened at 61.69 per dollar against previous day's closing value of 61.73 a dollar.

Pramit Brahmbhatt of Veracity said, "Reduction in FII inflows coupled with weakness in local equities may pressurize rupee to depreciate. However, gains in Asian equities and some exporters selling may limit losses in the local unit. We see the USD-INR ranged between 61.20-62.20/dollar."

Global cues, meanwhile, are positive with the US markets rallying 1 percent ahead of it's non-farm payrolls report. The data is expected to show creation of 230,000 jobs in January.

Equities ended flat after the European Central Bank (ECB) put more pressure on Greece to come to an agreement with its lenders over the future of its bailout program. Greek markets closed down 3 percent.  Asian equities followed Wall Street higher but apprehension about Greece's bailout program may cap gains.

In other asset classes, Nymex crude prices jumped about 4 percent as falling output and rising violence in Libya, along with central bank easing in China, helped crude rebound. Brent crude rose to USD 56 a barrel.

In the currency space, the euro inched up on strong German data, gaining back some of the lost ground. Data showed German industrial orders surged far more than forecast in December, hitting their highest level since April 2008.And precious metal gold dipped marginally to USD 1260 dollars an ounce.