BSE Sensex ends off day's high, up 88; ONGC, Bharti gain 4%

Equity benchmarks closed off day's high Tuesday, supported majorly by oil & gas and FMCG stocks. The BSE Sensex bounced back quite smartly in late morning trade and rallied more than 250 points intraday on sharp recovery in Shanghai and strong European markets, but towards late trade, it erased more than half of gains on profit booking in some financials and Tata pack.

The index rose 88.26 points to close at 18629.15, and the Nifty gained 18.85 points to finish at 5609.10. However, the broader markets remained under pressure, though they closed off day's low.

The BSE Midcap and Smallcap indices fell over 0.4 percent. Declining shares outnumbered advancing ones by 1308 to 969 on the Bombay Stock Exchange.

Experts feel the market may be near its bottom and may get support soon, though the news flow is not positive.

Nirmal Jain of IIFL says the Nifty might get support at 5,500-5,400 levels . He sees support coming in from Life Insurance Corporation (LIC) of India.

He adds that the good monsoon and the Brent crude prices falling to below USD 100 level were also good for the market which may see FIIs coming back.

ONGC shares rallied 3.8 percent after Oil India (down 2 percent) and ONGC Videsh decided to buy Videocon's 10 percent stake in Mozambique gas field for USD 2.48 billion. However, Videocon tanked nearly 6 percent.

Shares of ITC , Reliance Industries , HDFC Bank and Larsen & Toubro gained 1-2 percent.

Telecom operator Bharti Airtel topped the buying list on short covering, rising 4.3 percent. The government approved a penalty of Rs 650 crore on the company for violating roaming norms. Dealers say this news is already priced in.

Power stocks were under pressure after the prime minister's office shot down power ministry move to approach CCI on gas pooling, reports CNBC-TV18 quoting sources. NTPC and Tata Power fell 2-2.6 percent.

ICICI Bank , HDFC, State Bank of India , TCS , Wipro and Tata Motors declined 0.7-2 percent.

Crompton Greaves shares surged 10 percent as the board of directors will consider buyback of shares on June 28.

Gitanjali Gems was locked at 20 percent lower circuit for the second consecutive session today. All India Gems & Jewellery Trade Federation asked jewellers to suspend sale of coins and bullion bars to retail buyers on Monday. Even over the past month, the RBI has put out several guidelines to dissuade gold imports.

On the global front, European markets were strong in trade. France's CAC and Germany's DAX gained over 1.2 percent while Britain's FTSE was up 0.77 percent.

Shanghai Composite recovered 6 percent from day's low to close flat today.

3:57 pm Market closing: The market witnessed a relief rally on the back of short covering and a recovery in China. However, both the Nifty and Sensex failed to sustain the gains. The Nifty ended just above the 5,600 mark at 5609.10 up 18.85 points. The Sensex closed up 88.26 points at 18629. Rupee is seeing a mild recovery versus the dollar but pares early gains.

3:40 pm Update: Telecom Minister Kapil Sibal is learnt to have approved levying of Rs 650 crore penalty on Bharti Airtel for violating roaming norms in 13 service areas between 2003 and 2005, reports PTI.

"The Minister has approved penalty of Rs 650 crore on SLD (subscriber local dialing) matter," a Telecom Ministry official said.

An internal committee of Department of Telecom had alleged that Bharti Airtel had continued to route national and international calls as local calls (SLD) under a scheme till 2005 despite being told to stop it in 2003.

This caused loss to the government exchequer and state-run Bharat Sanchar Nigam Ltd (BSNL), it said.

3:30 pm Market closing: The Sensex ends up 62.53 points or 0.34% at 18603.42, and the Nifty up 18.85 points or 0.34% at 5609 (provisional).

3:20 pm Alert: The Children's Investment Fund Management ( TCI ), a UK-based investor that has a lawsuit pending against Coal India , the world's largest coal miner, has sold nearly 19 percent of its shareholding in the company since April, a Coal India source said, reports Reuters.

TCI, which held 1.1 percent of the equity in the state miner as of March 31, making it the second-biggest public shareholder in the firm after Life Insurance Corp of India, has sold nearly 12 million shares, or nearly a fifth of its holding, since April.

Don't miss: Nifty support at 5500-5400; stick to fixed income, says IIFL

The market gives up gains in last trading hour of the day as the Sensex is up 99.01 points at 18639.90, and the Nifty is up 22.40 points at 5612.65.  Oil and gas stocks are still leading the indices with a big support from ONGC as it is up 4.4 percent on the Mozambique deal with Videocon.

Bharti Airtel, M&M, Hindalco and ITC are big gainers in the Sensex.

Meanwhile, losing stocks in the Sensex are NTPC , BHEL , SBI , ICICI Bank and Tata Power.

2:50 pm Update: Videocon Group says that the company will continue to be invested in oil business. It is also going to continue with oil field in Brazil.

2:40 pm Alert: SEBI board has cleared new buyback norms. According to the norms, 50 percent of earmarked funds for buyback is to be utilised by company and 25 percent of earmarked funds for buyback to be kept in escrow, reports CNBC-TV18 quoting sources. SEBI says tender offer is mandatory if offer size is greater than 15 percent  of net worth. Accepting Chandrasekhar Committee report, SEBI board has okayed clubbing FIIs, QFIs in new investment class. Foreign portfolio investor limit is capped at 10 percent of equity.

2:30 pm FII view: India appears a shade better than its peers in the emerging market , says Sridhar Sivaram, MD at Morgan Stanley Investment Management. In dollar terms, India is down 13 percent but has outperformed other emerging markets that have lost much more. Hence, Sridhar says, there is a possibility that India goes down a little bit more before some value emerges. Morgan Stanley remains overweight on India.

As far as global ETFs are concerned, emerging markets have not given any returns to investors in the last five years. Now there is a glaring shift from ETFs to long only funds, which have performed reasonably well and that might continue, Sivaram told CNBC-TV18.

Cyclicals were not even under considerations, even when the street was advocating it as safe haven, he says when asked what could be good sectors to bet on now. There is no place to hide except pharmaceuticals which has tailwind from rupee. Financials have underperformed even when it posed as good bet in view of the rates going down. "We remain underweight on financials," he said.

2:25 pm Winners: ICICI Bank , Wipro , Tata Motors , SBI and NTPC are losers in the Sensex.

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It is a big recovery for the market as the Nifty bounces back to 5650 led by commodities and rate sensitives. The Sensex surges 226.59 points to 187676.48 while the Nifty is up 67.30 points at 5657.55.

The midcap index too flattens out. Punj Lloyd and Shree Renuka gain 5 percent each even as names like IRB and Karnataka Bank crack

Meanwhile, it looks like a done deal, Oil India and OVL have agreed to buy Videocon's 10 percent stake in Mozambique's gas field in a deal worth USD 2.50 billion. Oil India tells CNBC-TV18 that the deal will be funded through dollar debt.

1:55 am  Gold expert view: The new rules laid by the Reserve Bank of India (RBI) to curb gold imports has shot up cost of funds for jewellery firms from 5-5.5 percent earlier to 13-14 percent , Ketan Kothari, RiddiSiddhi Bullion told CNBC-TV18.

The lull seen in gold imports is not very short-term or temporary in nature because it is now getting difficult for jewellery firms to get gold for domestic consumption, he added.

According to Bombay Bullion Association President (Emeritus) Suresh Hundia, gold imports are expected to more than halve to about 150 tonne in the coming July-September quarter, against the projected 350 tonnes in the current quarter, due to sluggish demand.

Gold demand in June-July is usually less because of monsoon and non-festive season. Change in policy has also kept a lid on gold demand as of now, but post monsoon demand is likely to rise, Kothari elaborated.

1:45 pm Management speaks: The recent guidelines announced by the Reserve Bank of India, which prohibit jewellers from buying gold on credit, will have an adverse impact on revenue, Gitanjali Gems said on Tuesday.

The stock was locked in the 20 percent lower circuit for the second straight session, and it has shed 40 percent in two days.

Abhishek Gupta, the President of Gitanjali Gems told CNBC-TV18 that gold companies face immediate working capital pressures due to these measures.

Gold jewellery contributes 25-30 percent of Gitanjali Gems' revenue and it is sitting on USD 150 million worth gold inventory, he added. The company is now looking at strengthening its diamond jewellery portfolio to offset the pressures in the gold business.

1:35 pm Gold check: Tracking a weak global trend, gold prices slide by 0.41 percent to Rs 26,760 per 10 grams in futures trading today as speculators offloaded their positions, reports PTI.

At the Multi Commodity Exchange, gold for delivery in October declined by Rs 108, or 0.41 percent, to Rs 26,760 per 10 grams in business turnover of 327 lots.

Similarly, the yellow metal for delivery in August traded lower by Rs 98, or 0.37 percent, to Rs 26,627 per 10 grams in 9,731 lots.

1:27 pm: ONGC Videsh Ltd (OVL) and Oil India will buy Videocon Industries' 10 percent stake in Mozambique gas field for USD 2.48 billion. The deal is expected to close in fourth quarter of 2013.

1:25 pm Expert views: Fast moving consumer goods (FMCG), private banks and pharmaceutical companies will lead the market in its upmove, believes trader and investor Atul Suri.

In an interview to CNBC-TV18 , Suri says the market performance depends on what stocks an investor has parked his funds in. If one was invested in consumption sectors, then the current market has been a bull market for him; however, if one has invested in sectors like realty, infrastructure, then he has been in a bear market, believes Suri.

Suri is betting big on consumption stocks and says these stocks are likely to see lifetime highs soon.

1:12 pm Winners and losers: Both ONGC and Bharti Airtel are up 4 percent each while HDFC Bank and Reliance gain 3 percent each. Meanwhile, Wipro and Maruti Suzuki slip around 1 percent each. Tata Motors , SBI and ICICI Bank are other losers in the Sensex.

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The market has come off the day's lows as the Nifty bounces back to 5650. The Sensex is up 212.26 points at 18753.15, and the Nifty adds 59.30 points at 5649.55.

Oil & gas and realty stocks are lending strength to the market. ONGC, Bharti, HDFC Bank, Indusind Bank support the index even as NMDC , Lupin and Maruti Suzuki trade are under pressure

Some recovery is seen in the midcap index too, now down less than half a percent but Manappuram, Irb Infra, JP Power, Karnataka Bank all collapse around 5-10 percent each

In neighbouring Asia too, the Chinese market recovers and is now down around 2 percent versus the over 5 percent cut earlier. The People's Bank of China announced that it will not drain or inject funds into markets despite mounting fears that tight credit among banks will impair economic growth.

12:50pm The People's Bank of China (PBoC) says the bank will continue monitoring liquidity in banking system. "We will have flexible management of liquidity. Appropriate liquidity management will keep lending growth reasonable," the bank adds.

The bank further says, inter-bank liquidity risk is largely under control. China's Shanghai recovered 6 percent from day's low to close flat.

The BSE Sensex is up 213.93 points or 1.15 percent at 18754.82, and the Nifty up 58.70 points or 1.05 percent at 5648.95.

12:30pm European markets opened higher on Tuesday; Britain's FTSE and Germany's DAX gained nearly 0.6 percent while France's CAC rose 0.7 percent.

China's Shanghai closed off day's low, cutting losses quite sharply from 5 percent to 0.13 percent.

Meanwhile, the BSE Sensex is up 202.58 points or 1.09 percent at 18743.47, and the Nifty is up 55.05 points or 0.98 percent at 5645.30.

12:20pm Apollo Tyres shares fell more than 2 percent as Maruti and Tata Motors are taking lower supply from the company, reports CNBC-TV18 quoting cogencis' sources.

Sources say Tata Motors, which is the largest customer of Apollo Tyres, has taken drastic supply cut from the company while Maruti is buying 20 percent less tyres from company since April.

12:10pm Indian equities extended gains in afternoon trade, tracking sharp recovery in China's Shanghai index that trimmed losses to 1.4 percent from 5 percent.

The BSE Sensex is up 200.95 points or 1.08 percent at 18741.84, and the Nifty is up 55.20 points or 0.99 percent at 5645.45. The broader markets too cut losses from 1-1.5 percent to 0.5-0.7 percent.

Dealers say the recovery is mostly because of short covering in major largecaps that witnessed selling pressure in previous session.

Country's second largest private sector lender HDFC Bank gained nearly 3 percent.

11:50am Aurobindo Pharma fell more than 4 percent as CBI official says the CBI is conducting search on the company in connection with ongoing probe on Jagan Mohan Reddy investments.

Shares of HDFC Bank, Bharti Airtel, ONGC and Hindalco Industries gained 2-3 percent.

However, country's largest lenders State Bank of India and ICICI Bank are down 0.4 percent each.

Infosys lost 0.9 percent while Maruti and Wipro slipped 1.5-2 percent.

11:40am Equity benchmarks gained some momentum on recovery in Asian markets, but broader markets remained under pressure. Index heavyweights ITC and Reliance Industries rose 1-1.5 percent.

The BSE Sensex is up 101 points at 18641.89, and the Nifty is up 23.05 points at 5613.30, but the BSE Midcap and Smallcap indices are down 0.7-1.3 percent.

Declining shares outpaced advancing ones by 1182 to 631 on the Bombay Stock Exchange.

China's Shanghai trimmed losses to 2.35 percent from 5 percent on short covering while Hang Seng bounced back with 0.7 percent gains.

11:30am Ranbaxy Labs shares gained 2.5 percent after the Supreme Court dismissed PIL against the company for manufacturing and distributing of adulterated drugs.

The court says there is no material to show Ranbaxy manufacturing adulterated drugs.

Strides Arcolab's anti-malarial drug gets WHO pre-qualification. The stock is flat.

Chairman of Mahindra Satyam Vineet Nayyar says merger process of company with Tech Mahindra completed.

CP Gurnani, managing director of Tech Mahindra and CEO of Mahindra Satyam says the merged entity will be branded as 'Tech Mahindra.'

"There will be no job losses post merger. We will divide merged entity into three units namely telecom, enterprise and BPO," Gurnani adds.

11:05am The selling fury in frontline shares has abated for now, but midcaps continue to get pummeled. Indian shares have been resilient today despite the carnage in China, that has dragged down other key markets in Asia.

The BSE Sensex was down about 11 points at 18,529.61, and the Nifty was down about 10 points to 5580.30.

Dealers attributed the slide in second line shares to unwinding of speculative positions, a part of which could have been pledged through unofficial channels.

The rupee was stable at 59.72 to the dollar, but near term outlook on the currency remains weak.

Trading in shares of Gitanjali Gems was frozen at the lower end of the 20 percent intra-day circuit filter at Rs 324.30 for want of buyers. The stock was down 20 percent on Monday also.

Shares of other jewellery firms, PC Jeweller and Tribhovandas Bhimji Zaveri were down between 3-5 percent.

The string of restrictions on gold imports by the RBI over the last month is seen hurting profit margins of these companies.

Auto, capital goods and healthcare shares were among the laggards, while shares from the oil & gas and realty sectors were firm.

Rahul Singh, head of equity research, Standard Chartered Securities, feels the market is close to forming a bottom , but could stay there for a while.

"We will see violence during this period of bottom formation for the equity markets before we can conclusively say that equity returns will outpace everything else. But now bonds are not giving as much returns as they gave in the first four months of the year. Gold has also coming off," he said in an interview to CNBC-TV18.

10:50am Abhishek Gupta, president of Gitanjali Gems (down 20 percent) says the new RBI guidelines will compromise company's gold sales. "Gold business contributed 25-30 percent to total revenues. Change in category mix will impact sales. Impact on topline would be more adverse than bottomline," he adds.

According to him, gold companies are facing immediate pressures on working capital.

Earlier the Reserve Bank of India has mandated that all imports of gold for domestic consumption can be made only with 100 percent cash margin to curb the supply side to protect the current account deficit.

10:40am Experts talk: Nirmal Jain of IIFL feels that the markets may be near bottom, may find some support soon. According to him, valuations will become attractive at 5400-5500 on the Nifty.

He further says the current scenario is not conducive for additional money flow in India. Foreign institutional investors have sold more than Rs 9,000 crore worth of shares in previous 10 consecutive sessions since June 11.

10:30am Shares of gold loan financing companies Muthoot Finance and Manappuram Finance crashed 11-15 percent. Gitanjali Gems is down another 20 percent on concerns that the Reserve Bank of India and the government measures to curb gold imports may impact the sectors growth.

Over the past month, the RBI has put out several guidelines to dissuade gold imports. It has mandated that all imports of gold for domestic consumption can be made only with 100 percent cash margin to curb the supply side to protect the current account deficit.

Den Networks and ESS DEE Aluminium are down 11-13 percent.

The BSE Sensex is up 20 points at 18560.89, and the Nifty is up 1.70 points at 5591.95.

China's Shanghai plunged 4 percent to a 4.5 year low, breaching 1900 level for the first time since January 2009. The index is officially in bear market territory after the central bank reinforced its decision to tolerate a credit squeeze.

10:20am MCX gold fell by 0.58 percent to Rs 26570 per 10 gram today. Ketan Kothari of RiddiSiddhi Bullion feels that the demand for gold is down on policy and non-festive season. He expects gold demand to rise post monsoon.

Oil & gas stocks are on buyers' radar; Reliance Industries and ONGC gained 1 percent and 2 percent, respectively. Even oil marketing companies like HPCL , IOC and BPCL are down between 1 percent and 2 percent.

10:10am The NSE Nifty is hovering around the 5600 level as it is consolidating after a sharp fall in previous session. In fact, the market is waiting for a trigger that will give direction on either side.

The BSE Sensex is up 8.59 points at 18549.48, and the Nifty is up 0.30 points at 5590.55. Declining shares outnumbered advancing ones by 693 to 413 on the National Stock Exchange.

Gitanjali Gems shed another 20 percent today due to sharp fall in gold prices in previous week. All India Gems & Jewellery Trade Federation asked jewellers to suspend sale of coins and bullion bars to retail buyers on Monday.

IRB Infrastructure is the second biggest loser among midcaps, falling 16 percent.

9:55am Mahindra Satyam gained more than one percent as the company submitted Andhra Pradesh high court order on merger with RoC Andhra Pradesh.

Trader and investor Atul Suri feels the markets are going through correction in an upmove. "I will be an optimist till Nifty sustains above 5477," he adds.

09:45am Sridhar Sivaram, MD of Morgan Stanley Investment Management says there is a possibility that the markets may fall another 4-5 percent.

Shares of HDFC Bank , TCS , ONGC , Bharti Airtel and Mahindra & Mahindra gained 1-1.5 percent.

China shares extended losses on Tuesday, sinking to their lowest levels since early 2009, with the financial sector again hard hit on expectations that an official crackdown on easy credit and tighter funding conditions will persist, reports Reuters.

09:35am Equity benchmarks are consolidating amid weak Asian cues, after previous day's more than 200 points fall on the Sensex.

The BSE Sensex is down 13.45 points at 18527.44, and the Nifty is down 4.90 points at 5585.35.

Country's largest lenders State Bank of India and ICICI Bank slipped more than one percent.

Commercial vehicle maker Tata Motors extended losses to 2.5 percent, topping the selling list in morning trade.

The broader markets are under pressure as two shares declined for every share advancing on the National Stock Exchange.

09:20am Indian equities recovered on Tuesday after seeing a fall in previous session due to China's liquidity concerns. However, Asian markets remained under pressure, especially China's Shanghai extended losses to 4 percent and is trading at 2009 levels.

The BSE Sensex is up 72.85 points at 18613.74, and the Nifty is up 21.90 points at 5612.15. Gitanjali Gems plunged another 20 percent on fall in gold prices.

M&M Financial slipped further, losing  3.5 percent after the company said it would not apply for banking license.

Apollo Tyres bounced back, rising one percent.

Videocon Industries jumped over 3 percent after sources told CNBC-TV18 that Videocon is likely to apply for banking licence today. It is set to bring in foreign bank for banking foray and will divest part stake to the banking partner. Videocon will hold majority stake and a separate subsidiary to be launched for banking foray.

National Fertilisers fell more than 2 percent as its divestment is likely within a week. The inter-ministerial group will meet on NFL divestment today. The government will divest 7.64 percent stake.

IGL has hiked Delhi CNG price by Rs 2 a kg w.e.f. midnight to Rs 41.90/kg. Prices in Ghaziabad and Noida have been hiked by Rs 2.25. It has also hiked piped cooking gas price by Re 1 per unit in Delhi.