BSE Sensex loses 180 points; Bank Nifty falls 2%, BHEL up 3%

3:50 pm Market closing: The rally fuelled by Iran nuke deal came to a grinding halt. The Sensex ends down 180.06 points at 20425.02, and the Nifty ends at 6059.10, down 56.25 points.

Bank, oil and realty stocks lead the decline. About 1047 shares advanced, 1449 shares declined, and 137 shares were unchanged.

3:40 pm Commodity check: Oil held near USD 111 a barrel on Tuesday as investors judged the historic deal between Iran and world powers would bring no immediate increase in crude oil supplies from the OPEC member, reports Reuters.

The deal halts Iran's most sensitive nuclear activity and suspends some sanctions by the West, but caps Iran's exports at the current level of about 1 million barrels per day (bpd).

3:30 pm RBI norms: The Reserve Bank of India on Tuesday allowed banks to treat loans given to medium manufacturing enterprises after November 13 as priority sector advance, in its efforts to provide enhanced liquidity support to the medium and small enterprises.

The RBI also allowed incremental bank loans to medium services enterprises extended after November 13 to up to Rs 10 crore and raised the loan limit given to micro and small service enterprises to Rs 10 crore from Rs 5 crore that will be treated as priority sector advance.

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The market is reeling under selling pressure with the Nifty unable to budge above 6100. The Sensex is down 165.30 points at 20439.78, and the Nifty is down 53.50 points at 6061.85.  About 991 shares have advanced, 1392 shares declined, and 135 shares are unchanged.

Nilesh Shah, MD & CEO, Envision Capital says in an interview to CNBC-TV18, "It looks like there is some kind of value buying which is emerging below the 6000 levels and that is primarily because the dollar side of the market is actually turning very benign."

Banking stocks are dragging the market. Bank Nifty is down over 1 percent while auto stocks are firm led by Tata Motors and Hero Motocorp . Other gaienrs in the Sensex are BHEL , HUL and Sesa Sterlite. On the losing side are ICICI Bank , Coal India . Bharti Airtel , ITC and HDFC .

Diageo's proposal to sell a bulk of Whyte & Mackay business to secure regulatory clearance for its acquisition of United Spirits (USL) gets thumbs up from brokerages. They feel the sale could result in a sharp fall in USL's debt. However, several block deals keep the USL stock under pressure

03:05pm Market Update

The market extended its fall in late trade with the Sensex losing 165.96 points to 20439.12, and the Nifty slipping 52.90 points to 6062.45.

ICICI Bank and Bharti Airtel are the biggest losers, falling between 2.5-3 percent while HUL, Tata Motors and BHEL gained 1-3 percent.

03:00pm Biocon in focus

Biocon & Mylan received Indian regulatory approval for biosimilar Trastuzumab for treating breast cancer.

02:52pm Ballarpur Industries slumps

Rating agency Fitch downgraded Ballarpur Industries to 'B+', which reflects company's heightened debt levels, but the outlook is stable, the report adds.

Shares of Ballarpur Industries lost 2.55 percent to Rs 12.60 on the BSE.

02:42pm MSCI changes

MSCI will add Nestle India (down 3 percent), Tech Mahindra (up 1.9 percent) and Yes Bank (up 1.8 percent) to its MSCI India Index with effect from today's closing.

However, Bank of India, Canara Bank, Wockhardt and Unitech will be dropped from the Index. These stocks fell between 3-7 percent.

02:32pm Gainers and Losers

Shares of ITC, HDFC, HDFC Bank, ICICI Bank, Bharti Airtel, Dr Reddy's Labs, Coal India and Tata Steel dropped 1-2 percent followed by Reliance Industries and TCS with 0.4 percent loss.

However, BHEL extended its gains to 5 percent in afternoon trade while HUL, Tata Motors, Sesa Sterlite and Hindalco Industries gained over 1 percent.

02:22pm Eicher Motors at record high

Shares of Eicher Motors rallied 3.9 percent in intraday trade to touch a record high of Rs 4,353.50. The stock surged 50 percent in the current year so far.

Bank of America Merrill Lynch today increased the target price to Rs 6,000 on the stock.

According to the report, sales volumes regards to motor-cyele business is a key trigger for the stock going ahead.

The brokerage house upgraded valuations of the stock and sees more profitability coming in, given its motor cycle business has been doing well, contributing 75 percent to total profits.

02:12pm The market continued to trade in a negative territory with the Nifty struggling below the 6100 level, weighed down by financials and oil & gas stocks.

The Sensex declined 130.26 points to 20,474.82, and the Nifty slipped 47.20 points to 6,068.15. Declining shares outnumbered advancing ones by a ratio of 1373 to 978 on the BSE.

GEPL Capital feels the level of 6000 continues to remain as an important support for the index. "If breached we may see a decline till 5850 and below that 5700," the report adds.

On the higher side, the brokerage house says the Nifty needs to surpass and sustain above 6215 to scale higher till 6270 and beyond that 6350 to 6460. However, the bias would remain weak till Nifty is unable to clear 6215 decisively, GEPL report says.

Education stocks are witnessing huge buying interest. Everonn Education , Educomp Solutions and Core Education surged 10 percent each while Career Point gained 20 percent amid hefty volumes in afternoon trade.

Meanwhile, the rupee climbed 12 paise to 62.38 against the US dollar.

2:00 pm Gainers and losers: Maintaining its upmove, BHEL (up 5 percent) is the biggest gainer in the Sensex, followed by HUL, Sesa Sterlite, Hindalco and Hero Motocorp. Coal India falls 2 percent, while Dr Reddy's Labs, HDFC, Tata Steel and ITC are top losers in the Sensex.

Bank Nifty is down around 1 percent from previous close while Auto and Capital Goods indices are in the green.

1:50 pm Gold update: Gold was trading near a one-week high on Tuesday, buoyed by short-covering gains in the previous session, but still looking likely to drop back as physical demand remained lacklustre and uncertainty over the US stimulus outlook weighed, reports Reuters.

Spot gold was unchanged at USD 1,251.36 an ounce at 0714 GMT. It hit USD 1,256.49 in early trade, its highest since November 20.

On Monday, spot gold fell to a 4-1/2-month low near USD 1,225 an ounce before recovering to gain nearly 1 percent due to short-covering and options-related buying.

1:40 pm Buzzer: Shares of Aban Offshore jumped around 9 percent in intraday trade on Tuesday. The company is a beneficiary of the Iran nuclear deal which eased crude import process.

Around 40 percent of the company's revenues come from Iran with 7 out of 18 rigs being deployed there. Insurance premium that Aban Offshore pays may come down leading to financial savings.

1:30 pm FII view: The US Federal Reserve could start tapering its monthly bond purchases sometime in December or January, feels Jonathan Schiessl, Asian equities specialist at asset management firm Ashburton. However, markets' could be resilient to the phased withdrawal of monetary stimulus, unlike in July when the mere mention of tapering was enough to send investors into a tizzy.

"Overall the tapering noise has calmed down a little and for the Indian markets to push higher we will need to see further evidence of sustainable growth in developed markets which will therefore lead to better export," Schiessl said in an interview to CNBC-TV18.

He sees the market selling off if the Bhartiya Janata Party fares badly in the general elections next year. Expectation of the BJP-led NDA coalition returning to power has been one of the key triggers of the recent rally.

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It's a quiet day on Dalal Street as most Asian markets beat a retreat after the recent rally. Lack of triggers keep indices stuck in a tight range. The Sensex is down 104.51 points at 20500.57, and the Nifty is down 32.20 points at 6083.15.

About 964 shares have advanced, 1178 shares declined, and 148 shares are unchanged.

The Aditya Birla group is all set to embark on a Rs 6,000 crore exercise to ring-fence two group companies. Sources say the group is looking to hike promoter stake in Hidalco and Grasim through the creeping acquisition route.

Tata Motors goes on a massive cost-cutting drive. It is likely to bring down number of suppliers and cut wasteful expenses. The automobile manufacture mau impose a temporary freeze on large hiring and even pare down investments in its subsidiaries. The stock is down over 1 percent.

Sugar stocks in focus as another round of talks will take place between mill owners and the UP government to find a solution to the cane pricing impasse.

Most Asian stock markets slipped into the red as the euphoria from Iran's historic deal dies down and oil prices stabilises. Traders take money off the table after valuations climbed to near six-month highs.

01:00pm Market Update

The market sees profit taking after a 388-point rally seen in previous session. The Sensex is down 118.55 points or 0.58 percent at 20,486.53, and the Nifty is down 35.90 points or 0.59 percent at 6,079.45. About 964 shares have advanced while 1177 shares declined on the BSE.

12:55pm Aban on fire

Shares of Aban Offshore jumped around 9 percent in intraday trade on Tuesday. The company is a beneficiary of the Iran nuclear deal which eased crude import process.

Around 40 percent of the company's revenues come from Iran with 7 out of 18 rigs being deployed there. Insurance premium that Aban Offshore pays may come down leading to financial savings.

12:50pm Mercator Lines talks on Iran deal

Atul Agarwal, Jt MD, Mercator Lines also agree that the softening of oil prices will be good for the industry. However, he believes the Iran deal will help only if Europe lifts sanctions against insurance and banking as Mercator Lines will be able to ship oil only when there is availability of insurance and banking facilities.

In an interview to CNBC-TV18, Agarwal says FY14 will be better as there has been tremendous cost cutting and cutting down of flab.  Also, the revenues of the company have increased marginally.

12:40pm Movers and Shakers

Shares of ITC, Tata Motors, Tata Steel, Dr Reddy's Labs and Wipro declined between 1-2 percent while HDFC Bank, TCS and HDFC lost 0.66 percent each.

However, BHEL remained in a lead position, rising 4 percent followed by Hindustan Unilever, Sesa Sterlite and Hindalco with 1-2 percent gains.

In the midcap space, Novartis India surged 13.07 percent. Solar Industries, Sun Pharma Advanced, Indian Hotels and NIIT Technologies gained 4-7 percent. However, Ruchi Soya, Prism Cement, Indian Infotech, Hexaware Technologies and India Infoline lost 3-5 percent.

12:30pm Market Expert

The US Federal Reserve could start tapering its monthly bond purchases sometime in December or January, feels Jonathan Schiessl, Asian equities specialist at asset management firm Ashburton. However, markets' could be resilient to the phased withdrawal of monetary stimulus, unlike in July when the mere mention of tapering was enough to send investors into a tizzy.

"Overall the tapering noise has calmed down a little and for the Indian markets to push higher we will need to see further evidence of sustainable growth in developed markets which will therefore lead to better export," Schiessl said in an interview to CNBC-TV18.

His fund is not looking to increase exposure to India at this stage, and Schiessl says he would like to wait for evidence on the economy having bottomed out.

He sees the market selling off if the Bhartiya Janata Party fares badly in the general elections next year. Expectation of the BJP-led NDA coalition returning to power has been one of the key triggers of the recent rally.

Schiessl says he prefers midcap shares over large cap shares at this point.

12:20pm Sun Pharma gains 1%

Taro Pharmaceutical Industries announced the start of a tender offer to buy back up to USD 200 million of its ordinary shares, reports Reuters.

If the offer is fully subscribed, the number of Taro shares to be purchased in the offer represents approximately 4.6 to 5.3 percent of the unit's total outstanding shares.

Sun Pharma's stake in Taro will go up to more than 69 percent from 66 percent should the buyback be fully subscribed.

12:10pm Gammon India falls post earnings

Shares of Gammon India fell nearly 3 percent in intraday trade on Tuesday after it reported huge loss of Rs 261.54 crore in the quarter ended September 2013. It was higher compared to a loss of Rs 39.44 crore posted in a year ago period.

During the same period, income from operations declined to Rs 1,045.6 crore from Rs 1,088 crore.

Total expenses of the company jumped 7 percent Y-o-Y to Rs 1,128 crore and finance cost rose 32 percent to Rs 137.95 crore during July-September quarter.

There was an exceptional gain of Rs 12.46 crore in the second quarter. "It represents the fees and costs in connection with the corporate debt restructuring (CDR) process of Rs 2.05 crore and reversal of interest cost of Rs 14.51 crore due to reduction in interest rate as per CDR," the company said in its release.

12:00pm Equity benchmarks continued to reel under selling pressure in noon trade as major largecaps from IT, FMCG and financials space are weak.

The Sensex declined 102.71 points or 0.50 percent at 20502.37, and the Nifty fell 31.40 points or 0.5 percent at 6083.95.

Nilesh Shah of Envision Capital feels the market seems to be in a consolidation mode and there is some value buying coming in at lower levels.

"There is some kind of value buying emerging below 6,000 levels and that is primarily because the dollar side of the market is turning very benign. The macros is now becoming a mix picture which means macros on the external front are looking better in terms of data on the current account deficit (CAD) front but other problems in terms of balance portion of the macros, I still think there are challenges there," Shah reasoned.

11:50 am Stock in news: Sun Pharmaceutical Industries gains 1 percent after unit Taro Pharmaceutical Industries announced the start of a tender offer to buy back up to $200 million of its ordinary shares.

If the offer is fully subscribed, the number of Taro shares to be purchased in the offer represents approximately 4.6 to 5.3 percent of the unit's total outstanding shares.

11:40 am Poll: India's economic growth likely picked up slightly in the July-September quarter as improved manufacturing activity steered it from a four-year low in the previous three months, a Reuters poll showed on Tuesday. Any improvement would be welcome news for the government as a string of opinion polls forecast a poor performance for the ruling party in general elections which must be held by next May.

Economic growth virtually halved in two years to 5 percent in the last fiscal year - the lowest level in a decade - and most economists surveyed by Reuters last month expect 2013-14 to be worse.

11:30 am Buzzer: Shares of United Spirits (USL) slipped over 8 percent in intraday on Tuesday as UK's regulator Office of Fair Trading Practices (OFT) raised concerns. The UK's regulator has concluded that the USL-Diageo deal violates competition norms in the country. The regulator is now considering a proposal from Diageo to sell bulk of Whyte and Mckay stake.

USL and Diageo had been asked to sell majority of their Whyte & Mackay business aside from two distilleries. Since the deal violates competition norms, they have suspended the transfer of this particular deal case to the Competition Commission and will now be considering a revised offer from Diageo. The revised offer has already been submitted to sell most of the Whyte & Mackay business.

11:20 am Market outlook: Financial services stocks are the last place to be in for the moment, feels Nilesh Shah of Envision Capital. Shah expects some value buying if the Nifty falls below 6000 , but does not see politics being a key trigger for the market at least till March when there could emerge a clearer picture as to which party was best placed to come to power.

Shah sees value in companies which earn a large chunk of their revenues in dollars. He is bullish on sectors like IT and pharma.

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The market is drifting lower on pressures of profit booking. The Sensex is down 87.40 points at 20517.68, and the Nifty is down 24.80 points at 6090.55. About 805 shares have advanced, 872 shares declined, and 125 shares are unchanged.

BHEL continues its uptrend with a gain of 3 percent. Hindalco, Sesa Sterlite, GAIL and Sun Pharma are other gainers in the Sensex. Tata Steel, ITC, Tata Motors, Dr Reddy's Labs and HDFc are top losers in the Sensex.

However, midcaps and smallcaps are outperforming.Sun Pharma Advance, Novartis India, Indian Hotels, NBCC and Mahindra Holiday are gainers among the midcaps.

The rupee is stronger on continued hopes that the recent slide in oil prices will make for a lower trade deficit. Dollar-buying by importers prevents an all-out rally.

Bond prices are extending Monday's gains as dealers continue building positions in the newly-issued 10-year paper.

The Asian market is mixed as Nikkei moves off of it's recent six-month peak on the back of a flat finish on Wall Street and as the yen sees a tad bit of strength this morning.

In currencies, yen enjoys a rare breather as the euro recoiled from a four-year high against the yen on dovish comments from ECB officials. The dollar index trades at 80.82 levels.

Brent succumbed to a bout of profit booking after rebounding earlier to USD 111/bbl as uncertainty still persists over the timing of the rise in Iran's oil exports. Gold holds onto the previous session's gains this morning on the back of short-covering.

11:00am Market Update

The market remained under pressure as the Sensex is down 77.55 points at 20,527.53, and the Nifty is down 21.10 points at 6,094.25.

Shares of Hindalco surged 2.5 percent. Aditya Birla Group is planning to hike stake in group companies, reports CNBC-TV18 quoting sources.

It is learnt that Aditya Birla Group may spend Rs 6,000 crore for stake hike in in Hindalco and Grasim to 40-45 percent.

Aditya Birla Group owns 37 percent in Hindalco and 25 percent in Grasim Industries as of September 2013.

10:50am Market Expert

Vikas Khemani, Edelweiss Capital expects foreign flows to continue to find its way to the Indian shores. He says the market can rally around 5-10 percent further in the run-up to the general elections next year.

Speaking to CNBC-TV18 on specific sectors and stocks, he says IT and export-driven companies will continue to outperform given the depreciation in rupee. He also sees huge amount of capex coming into the manufacturing export space.

Khemani is bullish on L&T and expects it to become a multi-bagger in next 1-2 years. Also, after Iran's nuclear deal with the six global powers including US, market is expecting the crude price to fall substantially and therefore, he believes it's a good time to invest in oil marketing stocks at the current levels.

10:40am Bafna gains 10 percent

Bafna Pharmaceuticals shares are on buyers' radar on Tuesday as a media report indicates that US-based generic drug maker Mylan and two Indian pharma companies are in the race to buy Chennai-based healthcare company. The stock surged 19 percent in intraday trade.

"The due-diligence is over and the transaction is in its final stages as the promoters are negotiating on price," a media report said quoting unnamed sources.

Meanwhile, the healthcare company launched RARICAP in injection form as RARICAP* S in domestic market in last week after successful of launch of RARICAP in oral dosage forms.

"It is another product in women wellness segment for iron deficiency anaemia during pregnancy and also for anaemia in chronic kidney disease," the company said in its release.

Bafna Pharmaceuticals on Monday also expanded its base into pain management and anti-infectives by launching Afenac-P and TH, Nocaf syrup, Izabof suspension, Izabof-250 and 500 mg tablets in domestic market.

10:30am IDBI Bank weak

Shares of IDBI Bank fell 1.8 percent in intraday trade after rating agency Standard and Poor's downgraded the bank to 'BB+/B' from 'BBB-/A-3'.

S&P expects IDBI's asset quality to remain weak for 12-18 months. Now the stock declined 0.6 percent.

10:20am Cairn India in focus

The board of directors of Cairn India will meet today to consider share buyback. London-listed Vedanta Resources' subsidiary will spend about USD 1 billion to buy back shares.

The stock declined 1 percent to Rs 327.35 on the BSE.

10:10am Kalpataru Power on fire

Shares of Kalpataru Power Transmission rallied more than 6 percent in early trade on Tuesday on receiving three orders worth Rs 1,000 crore.

EPC company having presence in power and infrastructure sector bagged order for exceution of Suez Gulf/Samalaut 500 KV D/C over-head transmission line worth Rs 630 crore in Egypt.

Other two orders are for supplying and installation of 220 KV transmission systems worth Rs 246 crore in Rwanda and D R Congo; and installation of cross-country pipeline worth Rs 131 crore from HPCL . The stock gained 4 percent now.

10:00am The market is marginally weak in morning trade weighed down by profit booking in technology, power, HDFC twins, Tata pack and FMCG stocks.

The Sensex is down 38.34 points at 20566.74, and the Nifty is down 11.10 points at 6104.25.

Mahesh Nandurkar of CLSA said according to recent India forum, existing investors appeared cautious near-term, although a lot of new investors were willing to look through the near-term worries.

"Caution was primarily on the belief that the market has already factored in, partially, the strong outcome in the elections," he elaborated.

ITC is the major loser among largecaps in the Sensex, falling 1.5 percent. Other losers are TCS , Infosys , HDFC, Tata Motors , HDFC Bank and ONGC , which declined between 0.3-0.8 percent.

However, the gainers are ICICI Bank , Reliance Industries , L&T, M&M, Sun Pharma and Bharti Airtel .

BHEL topped the buying list with 3.5 percent gains, continuing upmove for the second consecutive session.

10:00 am Downgrade: Shares in IDBI Bank fell as much as 2 percent on Tuesday after ratings agency Standard and Poor's downgraded the lender's rating to below investment grade citing expectations for weaker asset quality.

S&P lowered IDBI's foreign currency issuer credit rating to "BB-plus/B" from "BBB-minus/A-3." The outlook is "negative."

9:50 am Update: IT services major iGATE today said it has entered into a credit agreement for a secured term loan facility of USD 360 million with DBS Bank and ING Bank. The agreement will help the US-based company save about USD 105 million worth of interest over a period of five years.

"This will help us lower our financial leverage and create shareholder value by refinancing the indebtedness. We expect this will result in significant interest savings in the years to come," iGate President and Chief Executive Officer Ashok Vemuri said.

9:40 am Buzzer: Shares of Kalpataru Power Transmission rallied more than 6 percent in early trade on Tuesday on receiving three orders worth Rs 1,000 crore.

EPC company having presence in power and infrastructure sector bagged order for exceution of Suez Gulf/Samalaut 500 KV D/C over-head transmission line worth Rs 630 crore in Egypt.

Other two orders are for supplying and installation of 220 KV transmission systems worth Rs 246 crore in Rwanda and D R Congo; and installation of cross-country pipeline worth Rs 131 crore from HPCL .

9:30 am FII view: Mahesh Nandurkar of CLSA says that investors are cautious about Indian market primarily on the belief that it has already factored in, partially, the strong outcome in the elections. His preferred buy ideas are HCL Technologies , ICICI Bank , Zee Entertainment and Cairn India while investors are underweight on staples.

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After a strong run up in yesterday's trade, the market has opened tepidly on Tuesday. The Sensex is down 5.54 points at 20599.54, and the Nifty down 16.10 points  at 6099.25. About 192 shares have advanced, 128 shares declined, and 20 shares are unchanged.

HDFC Bank , ONGC , Infosys , Tata Power and NTPC are major laggards in the Sensex. Among the gainers are BHEL , GAIL , Bharti Airtel , Sesa Sterlite and Sun Pharma .

The rupee gained 5 paise to 62.45 per dollar in early trade on Tuesday as against previous day's close of 62.50.

Ashutosh Raina of HDFC Bank feels dollar-rupee is stuck in a consolidation phase. He expects this sideways movement to continue for some more time. According to him, the range for the day is seen between 62-63/dollar.

Among the global markets, US stocks wavered on Monday, with benchmark indexes backing off milestones that lifted the Nasdaq composite above 4,000 for the first time in 13 years, as Wall Street pondered an unexpected drop in pending home sales in October and an agreement by Iran to limit its nuclear programme.

From precious metals space, gold holds onto the previous session's gains this morning as short-covering from four-month lows offset pressure from worries over an early end to US stimulus measures and mixed economic data.

In commodities, Brent prices rebound to USD 111/bbl Vs USD 108/bbl post the Iran deal yesterday, recouping most of its losses. Nymex too rises to USD 94.4/bbl. Crude prices gains as uncertainty still persists over the timing of the rise in Iran's oil exports.

Experts say the deal will not result in an immediate increase in shipments from Iran. Goldman Sachs says they don't expect Iranian oil to flood the market despite the deal. They hold their forecast for Brent crude at USD 101/bbl in 3 months and USD 95 in 12 months.