Sensex, Nifty fall for 2nd day; TCS, Lupin, NTPC shed 2%

3:30 pm Market closing: Equity benchmarks fell for the second consecutive session. The Sensex was down 91.46 points at 27985.54 and the Nifty down 37.75 points at 8629.15.

About 1471 shares declined against 1248 advancing shares on the BSE.

Lupin, TCS, Sun Pharma and NTPC topped the selling list on Sensex, down 2 percent each whereas ITC, HUL and BHEL gained 1-2 percent.

3:15 pm PE investment: There were 39 private equity and venture capital investments worth USD 886 million in July 2016, registering a decline of 58 per cent as compared to the corresponding period last year, says a report.

According to the EY report, the decline in both value as well as volume terms was mainly due to the drop in number of early-stage and large-sized deals.

In July 2015, there were 71 PE/VC deals worth USD 2.1 billion.

Meanwhile, exits grew significantly to USD 1.8 billion in July this year from USD 550 million in July 2015.

"After the record breaking investments amidst the hyperactive e-commerce and other early stage deal activity in 2015, exits are the big story in 2016," EY Partner and Leader for PE Mayank Rastogi said.

3:00 pm Market Update: Equity benchmarks continued to reel under selling pressure with the Sensex falling 101.76 points to 27975.24 and the Nifty down 40.55 points at 8626.35.

2:55 pm Earnings: India's largest power generation company NTPC said profit in April-June quarter grew by 4.1 percent year-on-year to Rs 2,369 crore from Rs 2,276 crore in year-ago period.

Revenue stood at Rs 19,063 crore for the quarter, up 11.5 percent YoY.

Profit was estimated at Rs 2,346 crore on revenue of Rs 18,487 crore for the quarter, according to average of estimates of analysts polled by CNBC-TV18.

2:30 pm Drug approval: Drug firm Lupin has received approval from the Central Drugs Standard Control Organisation (CDSCO) for Acotiamide 100 mg tablets used for treatment of indigestion.

It said the company will shortly start promoting the product in India.

"Acotiamide is a first-in-class novel drug to be introduced into the Indian pharmaceutical market which could benefit millions of patients suffering from dyspepsia or indigestion, amongst the most common stomach complaints encountered in clinical practice," Lupin said in a BSE filing.

Acotiamide is approved by Pharmaceuticals and Medical Devices Agency (PMDA) Japan and is actively marketed in Japan, it added.

2:15 pm Interview: Lenders of the Indian financial systems require liquidity, more efficiency and pools of profit to resolve non-performing accounts (NPA) issue, said Arundhati Bhattacharya, Chair-Managing Director of the largest public sector lender, State Bank of India (SBI) at IACC Annual Convention.

"Important is to have comfort on liquidity especially with foreign currency non-residential (FCNR-B) deposits maturing," she added.

While recovery in the banking sector will be attainable in less than 5 years, real challenge is to create more employment in today's time, the SBI chief said.

2:00 pm Market Check
The market recouped some losses in afternoon trade with the Sensex reclaiming 28000 level as L&T, ITC and HDFC group stocks gained more strength. Technology, auto and healthcare stocks remained lower.

The 30-share BSE Sensex was down 42.45 points at 28034.55 and the 50-share NSE Nifty fell 18.90 points to 8648.

European markets were slightly higher as investors trod cautiously ahead of the US Federal Reserve's Jackson Hole meeting this week which could produce some hints about the timing of a further interest rate hike.

1:35 pm DBS on appointment of new RBI governor: The Indian government has voted for status quo, policy continuity and macro-stability with the appointment of a new RBI governor, the Development Bank of Singapore (DBS) said today.

The government has named Reserve Bank of India (RBI) deputy governor Urjit Patel to succeed Raghuram Rajan from September 4.

"This is the second instance after the decision to retain the inflation target of 4 percent (+/-2 percent range), where the government has demonstrated that inflation will remain a policy priority," DBS said.

Patel was the chief architect of a report on the monetary policy framework in January 2014. Therein he recommended a shift to flexible inflation-targeting, move to a medium-term target of 4 percent (+/-2 percent range) within 12-24 months and need to maintain positive real rates, said DBS in its daily regional market commentary.

1:00 pm Market Check
The sell-off continued in afternoon trade with the Sensex falling 108.31 points to 27968.69 and the Nifty down 40.40 points at 8626.50. However, the European stocks gained strength after flat opening.

The market breadth remained weak as about 1323 shares declined against 1173 advancing shares on the BSE.

Coal India, SBI, Vakrangee, Kalyani Steels, Axis Bank, Infosys and Sun Pharma were the most active shares on exchanges.

European markets were slightly higher as investors trod cautiously ahead of the US Federal Reserve's Jackson Hole meeting this week which could produce some hints about the timing of a further interest rate hike.

The pan-European STOXX 600 was up around 0.51 percent.

Fed Chair Janet Yellen will speak at the annual mountain retreat meeting of central bankers on Friday, with markets watching closely for comments on the US economy.

12:45 pm Europe opens: European markets opened flat today as investors hope that the US Federal Reserve's Jackson Hole meeting this week will produce some hints about the timing of an interest rate hike.

The pan-European STOXX 600 was hovering around the flatline at the open.

Fed Chair Janet Yellen will speak at the annual mountain retreat meeting of central bankers on Friday, with markets watching closely for comments on the US economy.

12:25 pm IPO: Private sector lender RBL Bank's up to Rs 1,213 crore initial public offering was fully subscribed on the second day of the sale today, stock exchange data showed.

The IPO, the first by an Indian bank since 2010, had received bids for 39.1 million shares, or 1.03 times the 37.9 million shares on offer. The sale closes on Tuesday.

RBL is selling new shares in a price band of Rs 224 to Rs 225 per share to raise up to Rs 833 crore to boost its capital base. Some of its shareholders are also paring their stakes by selling up to 16.9 million shares in the IPO to raise up to Rs 380 crore.

Cornerstone investors last week bought Rs 364 crore worth of shares as part of the IPO.

12:00 pm Market Check
Equity benchmarks remained under pressure in noon trade with the Sensex falling over 100 points, weighted down by technology, banks and auto stocks. However, HUL, ITC and HDFC continued to support the market.

The Sensex fell 145.18 points to 27931.82 and the Nifty declined 50.65 points to 8616.25. About 1302 shares declined against 1089 advancing shares on the BSE.

Asia markets traded mixed, with traders likely holding their horses ahead of a speech from Federal Reserve chair Janet Yellen at Jackson Hole on Friday. China's Shanghai and Hong Kong's Hang Seng were down over 0.4 percent whereas Japan's Nikkei closed 0.3 percent higher.

Oil prices fell as analysts doubted upcoming producer talks would rein in oversupply, saying that Brent would likely fall back below USD 50 a barrel as August's more than 20-percent crude rally looks overblown. Soaring exports of refined products from China also pressured prices, as this was seen as the latest indicator of an ongoing global fuel glut, traders said.

Brent crude futures were down 1.77 percent at USD 49.98 a barrel and US futures fell 1.59 percent to USD 47.75 a barrel.

11:51 am Interview: Sponge iron ore price has risen by Rs 500-600 per tonne in the last 3-4 days. Speaking to CNBC-TV18, DP Deshpande, MD of Tata Sponge , said the increase is due to expected demand from the neighbouring countries and shortage of supply there.

He believes 50-60 percent of the price hike will reflect directly in the company's operating profits. Operating profit per tonne should improve to Rs 1,300-1,400 over the longer term and Rs 900 in the medium term, he added.

11:25 am Rupee & bonds: Indian bonds and currency fell today as investors took the appointment of Urjit Patel as the next governor of the Reserve Bank of India as a signal of policy continuity at the central bank, making a near term cut in interest rates unlikely.

The benchmark 10-year bond yield rose 4 basis points to 7.14 percent, while the rupee fell to a near one-month low of 67.17/67.18 to the dollar, compared with its close of 67.07.

Patel, currently an RBI deputy governor, had been seen as among the more hawkish candidates that had been in the running to take over from Raghuram Rajan, who steps down as governor on September 4.

The RBI had cut the policy repo rate by 150 bps from January 2015 to April this year but has held them steady since then.

11:00 am Market Check
The market extended losses amid consolidation in morning trade, dragged by banks, technology and auto stocks. However, the buying in FMCG and HDFC group stocks limited the selling pressure.

The 30-share BSE Sensex was down 108.67 points to 27968.33 and the 50-share NSE Nifty declined 37.55 points to 8629.35 on weak market breadth.

Experts say the market has been in a tight range and has a strong support at 8500 on the Nifty due to consistent inflow of foreign money.

The economy is heading into a credit boom and next 12 months look reasonably solid, Saurabh Mukherjea of Ambit Capital said.

His Sensex year-end target remains at 29,500.

About 1162 shares declined against 1020 advancing shares on the Bombay Stock Exchange.

ITC, HUL and BHEL were top gainers on the Sensex whereas ICICI Bank, TCS, Axis Bank, Lupin, Bharti Airtel and Sun Pharma slipped over a percent.

10:25 am Market Expert: India is entering a pronounced consumer credit-driven consumption phase, said Saurabh Mukherjea, CEO-institutional equities of Ambit Capital. The economy is heading into a credit boom and next 12 months look reasonably solid for India's growth, he added.

Speaking to CNBC-TV18, he said funding cost for all financial institutions has come down significantly due to abundance of liquidity in the financial system. "That (liquidity), allied with squeeze in the residential housing sector, jewelry sector and black money, is resulting in consumer credit boom," he said.

His Sensex year-end target remains at 29,500. However, Mukherjea is of the opinion that pharma as a sector will de-rate in coming days. He believes the cash flows related to pharma companies are risky and valuations are overly-rated.

10:00 am Market Check
Equity benchmarks remained rangebound with the Nifty hovering around 8650 level as FMCG stocks continued to support the market while auto, technology and banks dragged.

The 30-share BSE Sensex was down 59.45 points at 28017.55 and the 50-share NSE Nifty declined 22.80 points to 8644.10 despite positive market breadth.

About 1044 shares advanced against 825 declining shares on the BSE.

ITC and HUL rallied 1-2 percent while ICICI Bank, Lupin, Sun Pharma and Maruti were down over a percent.

Meanwhile, the government on last Saturday appointed Urjit Patel as new RBI governor.

Mahesh Nandurkar of CLSA says appointment of Urjit Patel as the next RBI Governor puts to rest, months of speculation.

His appointment pretty much signals that the Government intends to continue inflation targeting as Urjit's thought process is considered to be not too different from that of Raghuram Rajan and generally hawkish, he feels.

Certain section of investors who were hoping for aggressive rate cuts may get disappointed, according to Nandurkar.

9:49 am Nomura on Fortis Health: Brokerage Nomura has buy call on Fortis Healthcare and gives a target price of Rs 238 per share on account of its demerger plans.

Fortis Healthcare will transfer its diagnostic business, including SRL Limited, to Fortis Malar Hospitals Limited. Before this, Fortis Malar 's Hospital business will be sold to Fortis Healthcare by way of a slump sale for a cash consideration of Rs 430 million.

Post the demerger, listed entity Fortis Malar will be renamed SRL, which will include Fortis Healthcare's Diagnostic business and Fortis Malar.

The firm believes that the separation of the hospitals and diagnostics business into separate entities is going to be positive. The deal will bring in a great deal of focus and clarity in the running of the individual businesses. Not just this, it will also unlock value for current shareholders.

9:35 am FII View: Urjit Patel's appointment as Reserve Bank Governor will ensure ''institutional and policy continuity that will make the investor comfortable'' says Arvind Sanger, Managing Partner at Geosphere Capital Management.

While some slight volatility might be seen in near-term over the news, Sanger says it will be a buying opportunity for investors. Most investors will be happy with downward inflation trajectory over a longer period.

Growth in India is starting to improve. However, valuations continue to remain a challenge, Sanger says.

9:15 am Market Check
Equity benchmarks started off the week on a flat note as investors digested the news of appointment of new RBI governor Urjit Patel.

The 30-share BSE Sensex was down 12.55 points at 28064.45 and the 50-share NSE Nifty fell 4.50 points to 8662.40.

Adani Ports topped the buying list, up 2 percent followed by ITC, HDFC, HDFC Bank, HUL and Reliance Industries whereas TCS, Lupin and Tata Steel fell over a percent.

The government on Saturday evening appointed Urjit Patel as new RBI governor. Raghuram Rajan's term as a governor will end on September 4.

The Indian rupee opened lower by 13 paise at 67.19 per dollar today against Friday's closing value of 67.06 a dollar.

Pramit Brahmbhatt of Veracity said, "Rupee is likely to depreciate today as we have seen supportive buying in the USD. However, the rally in USD could be limited to 67.30/dollar."

"We expect the USD-INR pair to trade in the range of 66.80-67.30/dollar," he said.

The dollar gained against major peers, as hawkish comments from a Federal Reserve official added to prospects that US interest rates will increase this year.

Asian markets were mostly trading lower with China's Shanghai and Hong Kong's Hang Seng falling 0.3-0.6 percent while Japan's Nikkei gained 0.2 percent.