Sensex, Nifty end rangebound session flat; Midcap underperforms

3:30 Market Closing: The benchmark indices ended the rangebound day on a flat note with Nifty closing below the 8800 mark.

The Sensex is down 12.31 points at 28339.31, and the Nifty is down 12.75 points at 8792.30. About 1037 shares have advanced, 1799 shares declined, and 166 shares are unchanged.

GAIL, Bharti Airtel, Reliance Industries, ONGC, ICICI Bank, Idea Cellular and Eicher Motors are the top gainers on the indices, while top losers includes Tata Motors, Hero Motocorp, HUL, Maruti Suzuki, Bajaj Auto, Tata Motors DVR, BPCL and Zee Entertainment.

2:45 pm Earnings: Anil Agarwal-led Vedanta has reported a 4.5-fold jump in third quarter consolidated profit at Rs 1,866 crore on year-on-year basis, boosted by operational performance and low base in year-ago period despite sharp rise in tax expenses.

Revenue during the quarter increased 29.6 percent to Rs 20,393 crore compared with Rs 15,731 crore in corresponding quarter of last fiscal, driven by metals business.

"Revenues in Q3 were driven by higher volumes at iron ore due to recommencement of operations, ramp-up of volumes at the aluminium and power businesses and higher volumes at Copper India and Zinc India. This was partially offset by lower volumes from oil & gas, and Zinc International due to closure of the Lisheen mine, in Q3 FY2016," the company said in its filing.

2:30 pm Kotak on renewable energy cos: The merger and acquisitions (M&A) announced in 2016 saw a fairly large chunk in renewable energy, it is a space that is attracting interest both from strategic and private equity and will be quite conducive, says S Ramesh, MD and CEO, Kotak Investment Banking.

Speaking to CNBC-TV18, Ramesh said that a few top companies from the renewables space are likely to get listed and will receive a good response from the market.

Further, he said that M&A deals worth USD 65 billion were announced in last calendar year, of which USD 13 billion was from private equity investment and the balance USD 52 billion was from M&A demerger and other traditional ways.

2:00 pm Market Check
Benchmark indices recouped losses in afternoon trade, with the Nifty climbing above 8800 level supported by oil and telecom stocks. All eyes are on Federal Reserve chief Janet Yellen's semiannual testimony that may give a hint for further rate hike.

The 30-share BSE Sensex was up 25.36 points at 28376.98 and the 50-share NSE Nifty rose 2.25 points to 8807.30 despite weak breadth. About 1656 shares declined against 1044 advancing shares on the BSE.

Sameer Goel of Deutsche Bank says that the market is not thinking beyond the two US Fed rate hikes, which is already factored in, thus the emerging market currencies will be under pressure but the pain will not be severe.

On the other hand, if the dollar strengthens due to risk conditions triggered by concerns regarding trade that will spell bad news for the currencies in the emerging markets.

Reliance Industries and Bharti Airtel were biggest contributors to Sensex's gains, up more than 2 percent followed by ONGC and GAIL.

Adani Ports rose 1.4 percent after reporting better-than-expected earnings barring margin. However, HUL, Axis Bank, Hero Motocorp and Maruti Suzuki were down 1-2 percent.

European markets were lower as investors eyed a slew of corporate earnings.

1:49 pm Market Update: Benchmark indices recovered in afternoon trade, with the Sensex rising 1.94 points to 28353.56. The Nifty was trading above 8800 level, down 2.35 points at 8802.70.

About 1644 shares declined against 1039 advancing shares on the BSE.

1:42 pm Earnings: GVK Power & Infrastructure has narrowed net loss to Rs 0.71 crore in the quarter ended December 2016, from Rs 6.8 crore in corresponding period of last year, driven by other income and lower finance cost.

Total income from operations during the quarter increased 4.4 percent to Rs 7.12 crore compared with Rs 6.83 crore in same quarter previous fiscal.

Other income rose to Rs 11.30 crore from Rs 10.09 crore while finance cost declined to Rs 11.24 crore from Rs 12.49 crore on year-on-year basis.

Meanwhile, according to media reports, GVK that operates the airport in financial capital Mumbai has won a bid to develop the Rs 16,000 crore Navi Mumbai airport.

1:20 pm Stake dilution: Housing finance firm CanFin Homes said its promoter Canara Bank will divest up to 13.45 percent stake in the company by the end of next month.

"Canara Bank has informed the company that they have intimated RBI about their proposal to dilute their stake to 30 percent by March 31, 2017," CanFin Homes Ltd said in a BSE filing.

"The Bank has also informed the company that based on the acceptability of the prospective investors, final decision to divest the promoter's stake up to 13.45 percent to the investors would be taken by their Board in due course," it added.

As per BSE data, the promoter's stake in CanFin Homes stood at 44.10 percent as on December 31, 2016.

1:00 pm Market Check
Benchmark indices remained directionless in afternoon trade, with the Nifty hovering around 8800 level as investors awaited semiannual testimony by Federal Reserve chief Janet Yellen to get hint for further rate hike.

The 30-share BSE Sensex was down 8.11 points at 28343.51 and the 50-share NSE Nifty slipped 8.45 points to 8796.60.

The broader markets continued to underperform benchmarks, with the BSE Midcap index falling 0.65 percent as about 1598 shares declined against 1001 advancing shares on the exchange.

Big two companies will announce quarterly earnings today. Tata Motors is likely to post weak numbers in Q3, with likely losses in commercial vehicles business hitting overall earnings. Analysts expect a subdued set from Sun Pharma. Street to watch for commentary on USFDA observations on Halol and Mohali.

GVK Power surged over 10 percent after the company pipped GMR Infra to bag the mega Rs 16,000 crore contract for the Navi Mumbai airport. GMR Infra was down 2.6 percent.

Sun TV Network gained 2.7 percent and Raj Television rallied nearly 10 percent after AIADMK General Secretary VK Sasikala's hopes to become a chief minister of Tamil Nadu dashed by Superme Court verdict.

Supreme Court has convicted Sasikala, who has been engaged in a tussle (with colleague O Panneerselvam) for the Tamil Nadu chief minister's post over the past fortnight, in the 20-year-old disproportionate asset case and sentenced her to 4 years of imprisonment.

HPCL lost 5 percent post a lacklustre quarter. GRMs rose to USD 6.4 a barrel boosted by inventory gains but CLSA downgraded the stock to sell.

12:50 pm Results: State-run infrastructure finance company Rural Electrification Corporation has reported a whopping 28 percent growth in third quarter profit at Rs 1,754 crore on year-on-year basis, driven by other income.

However, net interest income (calculated), the difference between interest earned and interest expended, fell 3.5 percent to Rs 2,200 crore during the quarter compared with Rs 2,281 crore in same quarter last year.

Other income in Q3 increased sharply to Rs 311.4 crore from Rs 19.5 crore on yearly basis.

12:20 pm Earnings estimates: JSPL is expected to post a loss of Rs 606 crore in Q3FY17 against loss of Rs 573 crore in year-ago quarter due to depreciation and interest charges.

The company defaulted on interest repayments to its bondholders in in second half of last calendar year.

Revenue during the quarter may increase 19 percent year-on-year to Rs 5,200 crore while operating profit may jump 87 percent to Rs 1,030 crore and margin may expand 700 basis points to 20 percent, driven by higher steel volumes and improved realisations.

Analysts expect steel EBITDA per tonne to increase 4 percent QoQ aided by higher realisations. Impact of higher coking coal costs will be low for JSPL, they say.

12:00 pm Market Check
Equity benchmarks continued to be rangebound in noon trade as investors look to the Federal Reserve chair's two-day congressional testimony starting Tuesday for hints of further Fed rate hike.

The 30-share BSE Sensex was down 36.41 points at 28315.21 and the 50-share NSE Nifty fell 16.35 points to 8788.70. About 1514 shares declined against 1002 advancing shares on the BSE.

Experts expect the Nifty to reclaim 9000 after current consolidation.

Indian stocks have "climbed the wall of worry" over the past few weeks, overcoming nervousness over demonetisation impact, RBI policy and the political situation, says Sanjay Dutt of Quantum Securities.

He says numbers on the economy have turned out to be fairly okay. "It means economy is quite resilient and was able to absorb this shock of demonetisation,'' he says.

"People are actually looking for good ideas to put money in. I think this positive phase will continue," he feels

WPI inflation in January spiked to 5.25 percent against 3.39 percent in previous month and also ahead of expectations of 4.16 percent. Yesterday, however, retail inflation declined to 3.17 percent against 3.41 percent due to low demand after demonetisation.

11:30 am FII View: The greenback rose to a three week high on Monday all thanks to US President's promise to cut taxes to encourage corporate profits and investments. The dollar has gained strength in the past few months and the dollar index has breached the 100 point mark.

Does this mean pressure for rupee and currencies of other emerging markets? Sameer Goel of Deutsche Bank says that dollar index will move up but at a gradual pace and the emerging market currencies will not be under acute pressure.

''Although the dollar index is headed higher we won't see that scale of move,'' said Goel while speaking to CNBC-TV18.

He further said that the market is not thinking beyond the two US Fed rate hikes, which is already factored in, thus the emerging market currencies will be under pressure but the pain will not be severe. 

On the other hand, if the dollar strengthens due to risk conditions triggered by concerns regarding trade that will spell bad news for the currencies in the emerging markets.

11:00 am Market Check
Benchmark indices remained rangebound in morning, with the Nifty hovering around 8800 level as investors closely watch assembly elections of five states that started on February 4.

The 30-share BSE Sensex was down 7.14 points at 28344.48 and the 50-share NSE Nifty fell 7.90 points to 8797.15 while the broader markets underperformed, with the BSE Midcap index down 0.5 percent on weak breadth.

About 1359 shares declined against 1050 advancing shares on the BSE.

Oil stocks rallied today, with Reliance Industries, ONGC and GAIL rising 1.6-2 percent. Adani Ports climbed 1.5 percent ahead of Q3 earnings.

HUL lost 1.5 percent despite Bank of America Merrill Lynch maintained a buy call on the stock, with target price at Rs 1,000. The research firm says demonetisation-led impact on domestic sales is waning quickly and it is positive about emerging prospects and hence margin goals restated.

Gold prices firmed as investors turned their attention to testimony from US Federal Reserve Chair Janet Yellen later in the day for hints on the central bank's interest rate strategy.

Oil rose, supported by an OPEC-led effort to cut output, but rising production elsewhere kept prices within the narrow range that has contained them so far this year. Brent crude futures, the international benchmark for oil prices, were trading at USD 55.66 per barrel, up 0.13 percent from their last close.

10:45 am Buzzing: Sun TV gained 3 percent and Raj TV surged 10 percent after Sasikala's hopes to become a chief minister of Tamil Nadu dashed by Superme Court verdict.

Supreme Court has convicted her in disproportionate asset case and sentenced her to 4 years of imprisonment.

The court has imposed fine of Rs 10 crore on Sasikala. Conviction in DA case has barred Sasikala from contesting elections for 6 years.

10:40 am FII View: Alexander Redman of Credit Suisse says total dedicated emerging market equity funds including regional funds recorded net inflows of USD 1.1 billion driven primarily by net inflows into pan-emerging market exchange traded funds (ETFs).

Having delivered the second strongest start to the year in over a decade emerging equities are thus far the best performing region among global equities and within less than a percentage point performance of a 19-month index high, he adds.

MSCI emerging markets are now recording positive or neutral breadth of earnings revisions, the most sizeable improvements in the momentum of revisions on the month have been in India and Philippines. The equity market appears appropriately priced given the typical association between earnings revisions, Redman feels.

10:20 am Earnings estimates: Drug major Sun Pharma's third quarter profit is seen rising 27.4 percent year-on-year to Rs 1,804.6 crore, aided by operational performance.

According to average of estimates of analysts polled by CNBC-TV18, revenue during the quarter may increase 11.6 percent year-on-year to Rs 7,905.3 crore, driven by Sun's authorised generic (AG) launches of Daichi Sankyo drugs in US.

Blood pressure drug Benicar, Benicar HCT, Azor and Tribenzor are the AG launches of Daiichi. Market size of these drugs is USD 2.5 billion.

Analysts say AG sales will offset price erosion that Sun Pharma will face in cancer drug Gleevec generic. Gleevec generic sales are expected to fall around 30 percent QoQ to USD 45 million.

10:00 am Market Check
Benchmark indices as well as broader markets were moderately lower amid consolidation in morning as investors awaited last batch of corporate earnings and then focus will be shifted to assembly elections in five states that started last week.

The 30-share BSE Sensex was down 24.32 points at 28327.30 and the 50-share NSE Nifty declined 11.75 points to 8793.30. About 1129 shares fell against 851 advancing shares on the BSE.

Ashwani Gujral of ashwanigujral.com feels the market is likely to consolidate. In the current market breadth scenario, it is difficult for Nifty to take out 9000.

Agreeing with Gujral, Mitessh Thacker of miteshthackar.com said he would be exiting longs only if 8730-8735 on the Nifty is taken out and till then would maintain a range bound outlook.

Tata Motors fell over a percent ahead of Q3 earnings due later today. A CNBC-TV18 poll expects a 27 percent fall in profit on year-on-year basis and loss of Rs 500 crore on standalone basis.

Infosys saw profit booking, down 0.6 percent after management's clarification on all issues raised by the media.

Asian Paints, Hero Motocorp, L&T, Bajaj Auto and Axis Bank were down 0.5-1 percent while Reliance Industries, ITC, HDFC, ONGC, ICICI Bank and SBI continued to support the market, up 0.2-1.3 percent.

9:50 am Citi on Motherson Sumi: Citi has maintained sell call on Motherson Sumi, with target price at Rs 245 after Q3 results were broadly in-line with estimates. Strong earnings were driven by healthy business and EBITDA included Rs 34.6 crore of forex gain.

SMP missed estimates, where EBITDA was impacted by startup cost of new plants. Growth in standalone revenue was driven new models and higher content per vehicle. There was no immediate impact on orders due to expectation of border tax in US, the brokerage house says.

Citi feels revenue growth target of USD 18 billino for FY20 seems optimistic and priced in. The stock may see potential derating in case of a possible FY20 revenue target miss.

9:35 am Buzzing: Shares of GVK Power touched 52-week high of Rs 7.70, rising nearly 17 percent intraday Tuesday as it has won the bid to develop the Navi Mumbai airport.

GVK, which operates Mumbai international airport, has won a bid to develop Navi Mumbai airport beating its competitor GMR Infrastructure, which is operating New Delhi airport.

The said airport, first proposed in 1997 and approved by the government in 2007, has been delayed by problems related to land acquisition and securing environmental clearances, which is expected to be operational in 2019.

GVK Power's board will meet on February 14, to consider and take on record the unaudited standalone financial results for the quarter and nine months ended December 31, 2016 (Q3).

9:15 am Market Check
Equity benchmarks opened flat, following sideways trade in Asian peers on Tuesday. Investors digested January retail inflation that came in at 3.17 percent against 3.41 percent in December.

The 30-share BSE Sensex was up 12.66 points at 28364.28 and the 50-share NSE Nifty fell 9.30 points to 8795.75.

Hindalco, Bharti Infratel, Grasim, Sun Pharma, ONGC, Tata Steel, HUL and Wipro were early gainers while BPCL, ACC, Ambuja Cements, Infosys, BHEL, Tata Motors, SBI and Dr Reddy's Labs were under pressure.

The Indian rupee rebounded in early trade, with gaining past its 67 level against the US dollar

It has opened higher by 5 paise at 66.97 per dollar against previous close of 67.02.

Bhaskar Panda of HDFC Bank says he expects the USD-INR pair to remain rangebound.

The pair is expected to trade in a range of 66.95-67.30/dollar today, according to him.

The dollar rose to a near three-week high against a basket of currencies, lifted by hopes of US tax cuts as well as bets on whether the Federal Reserve may raise interest rates more quickly.

Asian markets traded sideways, as an Australian survey revealed improved business conditions and China's consumer inflation picks up strongly.

US equity indexes hit record highs on Monday, with the benchmark S&P 500's market value topping USD 20 trillion as investors bet tax cuts promised by President Donald Trump would boost the economy.