Sensex, Nifty end low; Tata Power, Tata Steel, SBI up 4-8%

The market remained under pressure to close at lower levels. Corporate earnings of April-June quarter of some companies too were a big led down as the Sensex dragged 87 points  to close  at 18646.30 while Nifty ended at 5519.10 down 23.15 points. About 1242 shares have advanced, 1032 shares declined, and 153 shares are unchanged.

Technology, auto, FMCG stocks dragged during the day while oil & gas, metals and realty stocks were on buyers' list today.

Smallcap stocks outperformed peers with a gain of over 1 percent from the previous close.

Tata Power , Tata Steel , SBI , Sterlite Industries and Jindal Steel are the top gainers in the Sensex with a surge of 4-8 percent.

Meanwhile, Tata Motors slumped 3 percent. The auto major  disappointed street with its standalone performance during April-June quarter, but strong numbers by UK subsidiary Jaguar Land Rover (JLR) salvaged the consolidated performance of the commercial vehicle major.

Consolidated net profit fell 23 percent year-on-year to Rs 1,726 crore while revenues grew by 8 percent on yearly basis to Rs 46,785 crore, despite a weak operating environment in the standalone (domestic) business, growth in volumes, richer product mix and favourable foreign exchange at JLR.

HDFC , TCS , Sun Pharma and ITC were other losers in the Sensex. Lupin ended down 6.50 percent. Its first quarter (April-June) net profit grew higher-than-expected 43 percent year-on-year to Rs 401 crore, but revenues rose lower-than-expected 10 percent on yearly basis to Rs 2,476 crore, sending shares 6 percent lower.

Analysts on an average had expected it to report net profit of Rs 373 crore on revenues of Rs 2,674 crore for the quarter.

Domestic revenues declined to Rs 675.53 crore during the quarter from Rs 681.53 crore in corresponding quarter of last fiscal due to new pricing policy being implemented, but its revenues from international business grew by 14.5 percent Y-o-Y to Rs 1,800.45 crore.

02:59pm Midcaps and Smallcaps buzzers
Strides Arcolab shares surged 17 percent while Financial Technologies , Fresenius Kabi, HDIL and Indiabulls Real rallied 7-9 percent.

STC India spiked 20 percent while Kolte-Patil, Suven Life, Advanta and Tilaknagar Industries rose 10-13 percent.

02:45pm The market is marginally higher in afternoon trade after recouping losses, helped by PSU banks, oil & gas, power and metals stocks. Index heavyweights Reliance Industries and State Bank of India , one of the most beaten down stocks in last few sessions, gained 4-5 percent.

The BSE Sensex is up 31.23 points at 18764.27, and the NSE Nifty is up 6.20 points at 5548.45.

Tata Power shares topped the buying list, rising 8 percent on short covering. It had fallen 15 percent in previous session on weak Q1 performance. NTPC too gained 3 percent.

Metals stocks are also on buyers' radar; Sterlite Industries and Jindal Steel rallied more than 5 percent while Tata Steel rose 4 percent.

State-run Coal India and BHEL gained more than 2.5 percent after falling sharply in previous sessions.

However, shares of ITC , HDFC , TCS , Sun Pharma , Tata Motors (ahead of Q1 earnings), L&T and Bajaj Auto declined 1.4-3 percent.

2:00 pm Boardroom: Road and bridges constructor, Ashoka Buildcon hopes to clock revenue growth of 20-25 percent in current financial year, however sees margins dipping by 5 percent due to lower traffic, Satish Parakh, MD, Ashoka Buildcon told CNBC-TV 18 today.

The company reported 26 percent on year decline in consolidated net profit at Rs 30.4 crore for the quarter ended June due to lower income from BOT (build-operate-transfer) projects and slow growth in construction segment. Its consolidated income rose marginally by 0.6 percent on year to Rs 469.1 crore. Parakh said the company had to handover one of the project back to government during the quarter leading to fall in revenue.

1:50 pm Earnings: Lupin's first quarter (April-June) net profit grew higher-than-expected 43 percent year-on-year to Rs 401 crore, but revenues rose below estimates 10 percent on yearly basis to Rs 2,476 crore, sending shares 6 percent lower.

Analysts on an average had expected it to report net profit of Rs 373 crore on revenues of Rs 2,674 crore for the quarter.

Domestic revenues declined to Rs 675.53 crore during the quarter from Rs 681.53 crore in corresponding quarter of last fiscal, but its revenues from international business grew by 14.5 percent Y-o-Y to Rs 1,800.45 crore.

1:40 pm Views on rupee: Jayesh Mehta, MD & Country Treasurer, Bank of America, says had the RBI not gone ahead with the tightening measures, rupee would have perhaps gone up to 62-62.5 or maybe even 63. But it couldn't have gone up to 65-70, he says adding that was all noise.

According to him, RBI has been very clear that the focus has to be on growth and the need to have something done on the fiscal and on the macro side. He told CNBC-TV18, tightening measures are not going to help in the short term and from that perspective there is a need to focus on growth. Though he still hopes for an interest rate cut in this financial year.

He feels, at this point even a small positive news on the macro side would definitely help the market a lot. The currency will follow the equity market, so that is where people are looking at.

1:30 pm Market outlook: Despite the pain witnessed by the markets in the last 10 days, the downside does not end here, atleast not for the heavily leveraged companies, says Ajay Srivastava, CEO - Dimensions Consulting. These companies will see at least 40-50 percent erosion in share price even from today's level, he adds.

Srivastava advises investors to hold on to consumer companies such as HUL and ITC and even some of liquor firms. But he believes it's asking for trouble if an investor if still holding on to some of the leveraged PSU companies. "Even if there is a pullback rally, the chances of these stocks being a part of it are less," he says.

1:20 pm Down: Shares of housing finance company Housing Development Finance Corporation (HDFC) plunged around 4 percent amid high volumes in afternoon trade Wednesday. Morgan Stanley has cut weight of HDFC and HDFC Bank in its Asian model portfolio.

The brokerage house reduced combined weight of HDFC and HDFC Bank to 10 percent from 25 percent.

Raising concerns, Morgan Stanley feels that Indian banks have entered a very weak spot and may face sharp decline.

Investors continue to sell in afternoon trade as Sensex is down 123.69 points at 18609.35, and the Nifty slips 39.95 points to 5502.30. Capital goods, auto and FMCG stocks are dragging the indices.

Tata Motors is under pressure as the street expects losses in the standalone business to widen this quarter, while Ranbaxy could post a loss to the tune of Rs 500 crore.

Financial technologies rallies after NSEL discloses that its stock positions are worth over Rs 6,000 crore versus outstanding of nearly Rs 5550 crore.

Jet Airways is buzzing as sources indicate the deal with Etihad is likely to be completed this month, the CCEA nod is likely soon.

12:55pm Buzzer
Financial Technologies shares rallied nearly 17 percent after the National Stock Exchange (NSEL) disclosed its stock positions as on July 31.

NSEL says that the value of stock stands at Rs 6,052 crore as against outstanding of Rs 5,544 crore.

"Sugar outstanding was Rs 1,472 crore versus value of stock at Rs 1,643 crore while Paddy outstanding stands at Rs 1,465 crore as against value of stock at Rs 1,551 crore," NSEL adds.

12:45pm Stocks in news
Lupin has signed licensing pact with Romark Labs. The agreement has granted company rights to promote and market Alinia in the US. Alinia used for treatment of Diarrhoea.

The stock declined nearly one percent ahead of its first quarter earnings today. Analysts on an average expect profit after tax of the healthcare company to grow by 33 percent year-on-year to Rs 373 crore, helped by topline and operational performance, according to a CNBC-TV18 poll.

12:30pm Chambal Fertilisers shares rallied 3.5 percent today. Promoter bought 14 lakh shares. Promoters hold 56.41 percent stake in the company as on June 2013.

Emami shares fell nearly 3 percent despite good earnings in April-June quarter. Net profit grew by 30 percent on yearly basis to Rs 60.7 crore and revenues increased by 13 percent year-on-year to Rs 384 crore during the quarter.

12:15pm The market trimmed early losses in noon trade, but the domestic currency remained weak against the US dollar. Banks, oil & gas, metals and pharma stocks led the support.

The BSE Sensex is down 42.66 points at 18690.38, and the NSE Nifty is down 14.65 points at 5527.60.

India continues to grapple with macro economic problems like high interest rate, inflation, wide current account deficit and barring monsoons, there is no other positive cue for the market as of now, says Nirmal Jain, chairman, IIFL.

Though Jain is not too pessimistic on the market from current levels , but he cautions that given the way macros are shaping up, the market continues to face near-term headwinds and there is a threat of the Nifty falling below the key support of level of 5,500. In the best case scenario, Nifty can go back to 6000 level, he added.

Country's largest lender State Bank of India gained 3.6 percent on short covering while its rival ICICI Bank is up one percent.

Morgan Stanley cut its target price on SBI to Rs 1,200 a share from Rs 1,525. The brokerage house also reduced earnings per share estimates by  13-20 percent in FY14e/FY15e.

Canara Bank rallied 3 percent despite Morgan Stanley reduced target price to Rs 170 a share from Rs 290 on the stock. "Stock of impaired loans could see more stress," Morgan Stanley report said.

Tata Power , which was the top loser with 15 percent loss in previous session on poor Q1 earnings, bounced back with 4 percent gains.

11:50 am Market outlook: India continues to grapple with macro economic problems like high interest rate, inflation, wide current account deficit and barring monsoons, there is no other positive cue for the market as of now, says Nirmal Jain, chairman, IIFL.

Though Jain is not too pessimistic on market from current levels, but he cautions that given the way macros are shaping up, the market continues to face near-term headwinds and there is a threat of the Nifty falling below the key support of level of 5,500. In the best case scenario, Nifty can go back to 6000 level, he added.

Further, he added that overseas investors have holdings concentrated in FMCG, IT and pharma space and they have now started offloading positions in private banks. But, he does not see large ticket selling from FIIs yet.

Like most experts, he expects India's FY14 GDP growth to be below 5 percent.

11:40 am Buzzing: News reports suggest that a group of ministers is considering taking over MTNL's entire debt and also waiving off its licence fees and spectrum charges for three financial years. The stock is up 3 percent on the BSE.

11:30 am Houseview: Morgan Stanley cuts price target on SBI to Rs 1,200 per share from Rs 1,525 per share. The brokerage has reduced EPS estimates by 13-20 percent In FY14e/FY15e.

11:20 am Alert: Japan's Nikkei average tumbled 4 percent on Wednesday, suffering the biggest one-day percentage loss since mid-June as the dollar fell to a six-week low to the yen, while heavyweights were sold off ahead of Friday's options settlement.

The benchmark Nikkei shed 576.12 points to a one-week low of 13,824.94. The broader Topix dropped 3.2 percent to 1,155.26 in relatively thin trade, with all of its 33 sectors falling.

The market continues its southward journey dragged by capital goods and FMCG stocks. The Sensex is down 109.93 points at 18623.11, and the Nifty slips 30.60 points to 5511.65. About 934 shares have advanced, 893 shares declined, and 123 shares are unchanged.

Midcap index, however, outperforms. CLSA says that a break below 5,500 would be a bearish sign suggesting further downside risk.

Bank of America Merrill Lynch maintains its target of Rs 96 on JP Associates after the company issues an ad stressing on its focused plan of deleveraging across businesses. The stock jumps up 4 percent.

Asian markets were lower on US stimulus withdrawal fears. Nikkei was down over 2.5 percent as yen hits a 6-week high and Kospi trades at a 2 week low. China bucks the trend and holds up in the green.

Dollar index is at 81.6, euro was firm against the dollar as German factory orders were at an eight-month high in June. Yen is at six week high near 97.25

Indian bonds are down a bit tracking the rupee; news that Finance Minsitry officials are in Mumbai to discuss rupee supporting strategies with the RBI is also keeping sentiment nervous

Gold is down to USD1275/ounce at a 3 week low. Brent is down to USD 108, and Nymex is at USD 105.5 per barrel.

10:55am Stocks in news: Bosch gained 2 percent after reporting good earnings during April-June quarter. Topline grew by 5 percent on yearly basis to Rs 2,269 crore and net profit improved to Rs 251 crore from Rs 247.5 crore. Margins were down just 15 bps Y-o-Y to 14.5 percent.

Apollo Tyres shares fell nearly 3 percent ahead of its earnings today. Analysts on an average expect revenues to dip by 8 percent to Rs 2,910 crore due to demand slowdown in the domestic business as well as in the overseas subsidiary like Vredestein and Dunlop. Margins may be stable at 11.3 percent due to stable rubber prices in June quarter.

Unitech rose nearly 4 percent post earnings. Citi maintained high risk buy rating on the stock, but cut target price to Rs 23 from Rs 36. "Unitech's assets have long-term value and valuations at 0.35 times P/BV are cheap; the company would also benefit from a possible sale of Unitech Corporate Parks' IT SEZ assets in Gurgaon. However, its risk profile remains high," Citi report said.

10:40am Buzzers:SpiceJet shares rallied 4 percent on reports that the company is in talks with Singapore based low cost carrier Tiger Air for a stake sale even as the two airlines are set to sign a code sharing agreement soon. According to reports, Kalanithi Maran might offload 24 percent stake in SpiceJet in an attempt to retire debt.

Welspun Corp tanked 8 percent after reporting a net loss of Rs 59.4 crore in April-June quarter as against profit of Rs 7.5 crore reported in a year ago period. Net sales saw a marginal growth to Rs 2,675 crore from Rs 2,550 crore.

10:15am The market remained under pressure on rupee volatility, weighed down by FMCG, auto and healthcare stocks. However, the buying in banks and oil & gas stocks capped the downside.

The BSE Sensex is down 100.00 points at 18633.04, and the NSE Nifty is down 29.75 points at 5512.50, but the broader markets are flat.

Tata Motors shares are down nearly 3 percent in morning trade ahead of first quarter earnings. Analysts on an average expect flat consolidated profit after tax, but the loss on standalone basis may widen during April-June quarter, according to a CNBC-TV18 poll.

Defensives are in bear grip today with the ITC falling 2.5 percent. Hindustan Unilever declined one percent and HDFC slipped 0.33 percent.

Among healthcare stocks, Sun Pharma and Cipla declined one percent each.

Capital goods major Larsen & Toubro dropped 2 percent while BHEL gained more than 2 percent on short covering.

Banks, the most beaten down sector in last few sessions, rebounded. HDFC Bank gained one percent and State Bank of India rallied nearly 2 percent. ICICI Bank rose 0.5 percent.

Oil & gas explorer ONGC climbed 1.7 percent while its rival Reliance Industries is up just 0.2 percent. Oil marketing companies - HPCL , IOC and BPCL jumped 2-3 percent.

9:55 am Fall: Welspun Corp shares crashed nearly 16 percent in early trade Wednesday to touch close to 10-year low of Rs 28.95 after it reported huge loss during April-June quarter.

The pipe manufacturer posted a consolidated net loss of Rs 59.4 crore in first quarter as against profit of Rs 7.5 crore in a year ago period, but net sales declined 5 percent on yearly basis to Rs 2,675 crore during the quarter.

9:50 am Market check: The Sensex is dragging further down The Sensex is down 133.46 points at 18599.58 and the Nifty slips below 5500, down 44.90 points at 5497.35. About 493 shares have advanced, 580 shares declined, and 61 shares are unchanged.

9:45 am FII view: Jitendra Sriram, MD and Head of Research, HSBC India does not see too much of a downside in major indices, but cautions that the chances of the midcap universe getting hit is far more.

FII inflows over the last couple of years have been much more polarised towards the top end of the market, he told CNBC-TV18 in an interview. Though developed markets are being preferred over emerging markets because two of the world's largest equity markets, US and Japan, are both showing some acceleration in growth and new inflow has slowed, but still FII flows are not in any kind of an exodus mode, Sriram told CNBC-TV18.

9:40 am: Watch out for IT stocks as Cognizant continues to set the benchmark for IT companies. Dollar revenues rise 7 percent sequentially and the tech major raises its 2013 revenue forecast pegging a growth of 19 percent from 17 percent earlier.

9:30 am High flye: SpiceJet is flying high (up 6 percent) as stake sale talks with Singapore-based budget carrier Tigerair gather steam . According to sources, SpiceJet promoter and media baron Kalanithi Maran may offload up to 24 percent to Tigerair as the airline faces fall in profits and attempts to retire debt, the sources familiar with the development said.

The Chennai-based airline reported a 10 percent fall in its net profit in the June quarter.

9:20 am Loser again: Tata Power shares fell nearly three percent in early trade Wednesday on top of previous day's 15 percent decline, after CLSA cut target on the stock to Rs 90 apiece from Rs 105 on poor earnings in April-June quarter.

The brokerage house also reduced its earnings per share estimate by 18-31 percent for FY14-15. "CERC decision on Mundra tariff is likely near-term trigger," CLSA report said.

The private power producer on Tuesday posted consolidated net loss of Rs 114.7 crore in first quarter (April-June) as against profit of Rs 145.9 crore in a year ago period, dented by higher interest payment and forex loss, but its standalone performance was quite good.

Read what Udayan Mukherjee says about the market

The market has opened on a flat note as Nifty struggles below 5550. The Nifty opens marginally up 6.45 points at 5548.70 while the Sensex is up 36.45 points at 18769.49. About 163 shares have advanced, 102 shares declined, and 27 shares are unchanged.

The Indian rupee continued its downtrend on Wednesday as it opened weak by 48 paise at 61.25 per dollar against 60.77 Tuesday.

Pramit Brahmbhatt, Alpari India said, "A weak equity market and high dollar demand from domestic importers will put pressure on the rupee. However, a weaker dollar and the announcement of a new RBI governor could generate positive momentum. The range for the day is seen between 60.40-61.57/USD."

In important earnings today, according to a CNBC-TV18 poll Tata Motors' loss in standalone business to widen in April-June quarter. Meanwhile JLR's strong product pricing and margins could help improve profitability year on year.

Other results expected today are Ranbaxy, Lupin, NMDC, GlaxoSmithKline Pharma, Aban Offshore, Apollo Tyres, Cadila Health, Emami, Lanco Infra, Omaxe, Alembic Pharma, Apollo Hospital, Arvind Remedies, Cinemax, Dhampur Sugar, Eicher Motors, Essar Shipping, Gulf Oil, MOIL, MT Educare, NCC, PCJ, Unity Infra, Zee Learn, Welspun India and Zydus Wellness.

Meanhile watch out for IT stocks as Cognizant continues to set the benchmark for IT companies. Dollar revenues rise 7 percent sequentially and the tech major raises its 2013 revenue forecast pegging a growth of 19 percent from 17 percent earlier.

Meanwhile, US markets closed near session lows, with major averages logging their biggest declines since June, after two Federal Reserve presidents said the central bank could begin tapering its easy-money program as early as september. The CBOE volatility index ended above 12.

The US trade deficit fell 22.4 percent to USD 34.2 billion in June, narrowing to its lowest level in more than 3 and a half years.

Asian stocks fell to their lowest since mid-July early on Wednesday following a second day of losses on Wall Street as uncertainty about when the Federal Reserve will start to reduce stimulus kept a leash on market bulls, reported Reuters.

Hong Kong's Hang Seng slipped 0.26 percent or 56.83 points at 21,866.87.  Japan's Nikkei plunged 2.28 percent or 328.91 points at 14,072.15.

In Europe, major indices close in the red on renewed fears in the US that the fed may start tapering in September.

In commodities, Brent crude slips towards USD 108 and Nymex is soft around USD 105 per barrel.

From precious metals space, gold slips over 1.5 percent to sub USD 1300 an ounce.