BSE Sensex sinks 455 as FY13 GDP signals more pain ahead

Equity benchmarks plunged Friday as the fourth quarter GDP reading of 4.8 percent, while on expected lines, reinforced concerns that a meaningful recovery in the economy was still some way off.

The BSE Sensex tumbled 455.10 points to end the day at 19760.30. The NSE Nifty shed 138.10 points to close at 5,985.95.

Realty and banking shares were the worst hit, and sellers were unsparing of FMCG, auto, oil & gas and metal shares as well.

UltraTech Cement , IDFC , Reliance Infrastructure , DLF , Bharti Airtel and Bank of Baroda topped the selling list, losing 5-5.5 percent.

Among midcaps, medical equipment maker Opto Circuits crashed quite badly, shedding nearly 38 percent, after it reported a 94 percent fall in net profit at Rs 12.3 crore during the fourth quarter.

Meanwhile, GlaxoSmithKline Pharmaceuticals shares gained 9 percent, as parent GSK Plc is planning voluntary open offer for GSK Pharma as it is likely to increase stake in the company, reports CNBC-TV18 quoting sources. GSK Consumer surged 10.59 percent.

Sterlite Industries shares rose 2.58 percent to Rs 93.55 after the National Green Tribunal has allowed the firm to resume operations at its Tuticorim copper smelter. Sesa Goa rose 3.6 pecent.

Economists, bankers and industrials said the latest GDP reading indicated that the worst may be over for the economy, but did not see growth picking up any time soon. Also, with the RBI again warning of inflation and current account, expectations of a steep cut in policy rates at the June meet is receding.

''Capex have not started yet, because a huge amount of capacity is going under utilised in auto industry, consumer electronics. So new factories and new capital expenditure is yet to take off and I think there is a lot of surplus capacity, almost in every manufacturing activity or every product that is made,'' L&T chairman AM Naik said in an interview to CNBC-TV18.

In addition, the decline in consumption growth indicates that the weakness in the economy is now spreading to the retail segment as well.

''Now you are moving from investment slowdown to a consumption slowdown. It is getting reflected in this (weak consumption growth) and that really means that it is now getting into a retail slowdown where you will actually see a proper recessionary phase coming into the market so to say,'' economist Haseeb Drabu said in an interview to CNBC-TV18.

3:55 pm Oil output: Reliance Industries has reported that natural gas production at its eastern offshore KG-D6 fields dropped to less than 15 million standard cubic metres per day , the lowest level since starting output in April 2009.

RIL produced a total of 14.83 mmscmd from Dhirubhai-1 and 3 (D1&D3) gas fields and MA oil and gas field in the KG-DWN-98/3 or KG-D6 block in Bay of Bengal in the week ended May 26, according to a status report of the Directorate General of Hydrocarbons (DGH).

3:50 pm Outperformer: BSE IT index outperformed the market with Infosys gaining 2.8 percent.

3:40 pm Macro outlook: Expressing satisfaction over declining fiscal deficit figures for 2012-13 , Finance Minister P Chidambaram today said the government will focus on raising revenues to bring down deficit to below 4.8 percent of GDP in the current financial year.

"I don't wish to compress expenditure, therefore revenues have to go up... For 2013-14, (we) have to do much better than 4.8 percent," he told.

Chidambaram attributed the decline in fiscal deficit to about 4.9 percent of GDP from revised estimate of 5.2 percent, to additional tax revenues and savings on expenditure side.

3:30 pm Closing figures: The Sensex closes down 455.20 points to 19763.20, and the Nifty falls 138.10 points  5985.95. About 785 shares have advanced, 1581 shares declined, and 128 shares are unchanged.

3:20 pm Alert: Sterlite is up 2 percent on the BSE as the National Green Terminal has allowed Sterlite to carry on operation in Tuticorin.

3:15 pm Bharti Airtel (4.64 percent), GAIL(4.16 percent), Jindal Steel (4.08 percent)., M&M and ITC are big losers of the day.

3:10pm: Infosys is star of the day. The stock has gained 3.1 percent on a day when the market has crashed around over 450 points. Other gainers are Sterlite and TCS .

It is a bloodbath on the Dalal Street as the market is hammered down by negative sentiments. The Sensex crashes 400.64 points to19814.76 while the is Nifty down 125.30 at 5998.75. About 707 shares have advanced, 1553 shares declined, and 141 shares are unchanged.

GSK Pharma's parent company is planning voluntary open offer as it is likely to increase stake in the company, reports CNBC-TV18 quoting sources.

Promoters hold 50.67 percent stake in GSK Pharma while foreign institutional investors hold 22.92 percent and DIIs 11.25 percent in the company. Group company GSK Consumer recently hiked stake to 75 percent.

Parent GSK Plc has refused to comment. GSK Pharma shares rallied 8 percent, which hit a new 52-week high of Rs 2,550. GSK Consumer gained 5 percent. GlaxoSmithKline Consumer Healthcare is currently at Rs 5,899.00, up Rs 634.60, or 12.05 percent. GlaxoSmithKline Pharmaceuticals was quoting at Rs 2,493.80, up Rs 193.80, or 8.43 percent.

01:59pm GSK Pharma and GSK Consumer touched new 52-week highs today, after parent GSK Plc is planning voluntary open offer for GSK Pharma as it is likely to increase stake in the company, reports CNBC-TV18 quoting sources.

01:55pm Infosys and Sesa Goa outperform amid heavy selling pressure, both rising 2 percent each. Even Sterlite Industries and HCL Tech gained 1 percent.

However, the Indian rupee weakened further to 56.70, down 32 paise compared to previous day's closing.

01:45pm parent GSK Plc is planning voluntary open offer for GSK Pharma as it is likely to increase stake in the company, reports CNBC-TV18 quoting sources.

Promoters hold 50.67 percent stake in GSK Pharma while foreign institutional investors hold 22.92 percent and DIIs 11.25 percent in the company. Group company GSK Consumer recently hiked stake to 75 percent. 

However, parent GSK Plc refused to comment. GSK Pharma shares rallied 8 percent, which hit a new 52-week high of Rs 2,550. GSK Consumer gained 5 percent.

01:40pm  BSE Sensex is down 405.51 points or 2.01 percent at 19809.89, and the Nifty down 125.25 points or 2.05 percent at 5998.80.

However, among smallcaps Forbes Gokak is the top gainer with 20 percent gains. Monsanto India , Time Technoplast , ESS DEE and Dalmia Bharat rallied 6-10 percent.

01:30pm The start of June series is very bad for the market, the Nifty is slipping towards 6000 level, led by fall in major sectors like banks, oil & gas, capital goods and metals. Bank Nifty fell 305 points or 2.38 percent to 12,500.

Also Read - Capex weak, China dumping hurting GDP growth: L&T boss

Shares of Jet Airways , HDIL , Novartis India and Indiabulls Real are down 5-6 percent. Medical equipment maker Opto Circuits is falling quite badly, down 30 percent.

01:20pm BSE Sensex is down 370 points to 19844.47, and the Nifty down 112.50 points or 1.84% at 6011.55.

ITC shares, which rallied 3.5 percent yesterday, dropped 3.6 percent today. Telecom major Bharti Airtel tanked 3.6 percent.

01:10pm Opto Circuits shares plunged 24.5 percent after a 94 percent fall (year-on-year) in fourth quarter profit at Rs 12.3 percent and a 33 percent decline in net sales to Rs 456 crore.

Among midcaps, however, Torrent Pharma and AIA Engineering rallied 10 percent.

Realty major DLF topped the selling list among largecaps, losing 5 percent followed by Hindalco , Reliance Infrastructure , M&M and PNB with 4-5 percent losses.

01:00pm Equity benchmarks extended losses in last one hour of trade, with the BSE Sensex shedding more than 300 points or 1.6 percent and Bank Nifty losing 251 points or 2 percent.

More than three shares declined for every one share advancing on the National Stock Exchange.

Infosys shares gained 1.5 percent, outperforming rest of the largecaps followed by TCS and Sterlite with 0.5 percent and 1 percent gains.

01:58pm Midcap losers: Opto Circuits , Suzlon Energy, ABG Shipyard , Novartis India, Peninsula Land , HDIL , Monnet Ispat Energy, Sterlite Tech, Texmaco Rail, Orchid Chem, Asahi India , Uflex , Sadbhav Engr and Corporation Bank were down between 5-25 percent.

01:53pm Sectoral losers: Shares of realty, banks, oil&gas, metal, FMCG, auto and capital goods were dumped by traders heavily.

01:51pm Laggards in the Nifty were DLF (Rs 193.90, 5.76%), Hindalco (Rs 101.55, 4.96%), Reliance Infra (Rs 366.50, 4.08%), PNB (Rs 768.90, 3.65%) and IDFC (Rs 147.50, 3.63%)

01:44pm Market check Sensex was down 322.55 points or 1.60% at 19892, and the Nifty was down 103.45 points or 1.69% at 6020. About 727 shares advanced, 1442 shares declined, and 136 shares were unchanged.

01:37pm Boardroom: FY14 sales target at 8-10 msf; double EBITDA in 3 yrs, says DLF

Shares of the realty-major DLF fell nearly three percent on Friday after it reported a net loss of Rs 4.19 crore in its fourth quarter of the 2012-2013 fiscal due to poor sales losses of subsidiaries. Speaking to CNBC-TV18, Saurabh Chawla, executive director of DLF said that numbers were not a reflection of the business.

01:29pm Volume Shockers ABG Shipyard, Monnet Ispat, Sterlite Technologies , Allied Digital, Suzlon Energy and Jet Airways were down on heavy volumes.

01:24pm 52-week lows: Heavyweights like Jindal Steel , Dhanlaxmi Bank , India Cements , Core Projects, SAIL and Hindustan Construction touched fresh 52-week lows.

01:20pm Opto Circuits down 21% on poor Q4 results

Shares of Opto Circuits were down over 20 percent and hit fresh new lows after the company posted 95 percent drop in its net profit.

01:18pm Indian rupee up 23 paise against dollar at 56.30. The rupee is down over 5 percent in May.

01:15pm Key losers in the BSE Midcap were Opto Circuits (Rs 39.85, 21.4%), ABG Shipyard (Rs 276.45, 8.75%), Novartis India (Rs 535.05, 7.67%), Monnet Ispat (Rs 150.60, 6.17%) and HDIL (Rs 42.05, 5.82%)

01:06pm MUST READ: FY13 fiscal deficit at 4.9% on higher non-tax revenue

Buyoued by non-tax revenue collection, the FY 13 fiscal deficit has come in at 4.9 percent versus budgeted estimate of 5.2 percent. non-tax revenue higher by Rs 8000-10,000 crore. The revenue deficit in fiscal 2013 has come in at 3.6 percent.

Key equity benchmarks were down 1.5 percent as traders dump blue chip stocks post fourth quarter GDP data. Pulled down by poor performance of farm, manufacturing and mining sectors, India's economic growth slowed to 4.8 percent in the January-March quarter and fell to a decade's low of 5 percent for the entire 2012-13 fiscal.

At 13.06 hrs IST, the Sensex was down 306.36 points or 1.52% at 19909.04, and the Nifty was down 95.40 points or 1.56% at 6028.65. About 751 shares advanced, 1330 shares declined, and 125 shares were unchanged.

Top losers in the Nifty were Hindalco (Rs 102.45, 4.12%), Reliance Infra (Rs 368.85, 3.47%), Mahindra and Mahindra (Rs 972.20, 3.23%), ITC (Rs 342.95, 3.2%) and Reliance (Rs 812.35, 2.92%).

Gainers included Sesa Goa (Rs 160.20, 1.62%), Infosys (Rs 2,365.00, 1.01%), HCL Tech (Rs 748.35, 0.86%), Jaiprakash Associates (Rs 67.10, 0.37%) and NMDC (Rs 119.50, 0.21%).

12:55 pm Opto Circuits India is down 20.61 percent after reporting a disappointing March quarter earnings after its fourth quarter consolidated net profit dropped 94 percent year-on-year to Rs 12.3 crore and net sales fell by 31 percent to Rs 457 crore.

12:49 pm Market update: The Sensex slips 293.20 points to 19922.20, and the Nifty is down 91.25 points at 6032.80.

12:40 pm Reaction to GDP: Economist Haseeb Drabu said growth was unlikely to pick up this year, more so with the revised loan restructuring rules by the Reserve Bank of India . Already corporates were hugely over leveraged, and banks would be henceforth be cautious of extending further loans as they will have to make higher provisions in case the loans have to be.

He also said that one should not read much into the healthy bottomline growth in Q4 corporate earnings. That is because the topline is still decline, and the improvement in bottomline has been driven by cyclical factors and not structural factors.

12:35 pm Index loser: BSE Bankex, Oil & Gas, Auto, FMCG, Realty indices are dragging weak.

12:30 European market: European markets have opened on a weak note today.

12:15 am Earnings alert: GMR Infrastructure has turned profitable in the March quarter on one-time gain of Rs 1231 crore from sale of subsidiary. Sales climbed over 22 percent year-on-year to Rs 2571.07 crore on improved performance from airport and roads division. The stock jumped around 5 percent on the BSE.

12:10 pm Gainers: Sterlite Industries, Infosys , Dr Reddys Labs , Wipro and GAIL are key movers in the Sensex.

12:07 pm Expert reaction to GDP: Larsen & Toubro chairman A M Naik Friday said he does not expect any major capital investment for the rest of the year so as to make a difference to GDP growth.

"Capex has not started yet, because a huge amount of capacity is going under utilised in auto industry, consumer electronics. So new factories and new capital expenditure is yet to take off and I think there is a lot of surplus capacity, almost in every manufacturing activity or every product that is made," he said in an interview to CNBC-TV18 .

Naik blamed imports from China as one of the factors responsible for unemployment and economic weakness in India.

The market has stayed weak even as growth in March quarter at 4.8 percent year-on-year was in-line with estimates. The Nifty fell to around 6050, dragged lower by rate sensitives and commodities. However, the cuts are limited for the midcap index.

The Sensex is down 227.75 points at 19987.65, and the Nifty is down 72.60 points at 6051.45.

Analyst Ramesh Damani feels global money will continue to chase India, however if rupee goes beyond 57, it could be disastrous.

The FY13 GDP has also come in line with government estimates of 5 percent, which is lowest in a decade.

11:59am GMR Infrastructure shares surged 5 percent, after it surprised the street with fourth quarter profit at Rs 579.2 crore as against a loss of Rs 164 crore expected by analysts, helped by one-time profit on sale of subsidiary at Rs 1,231 crore.

Time Technoplast shares spiked 10 percent amid large volumes Friday. Its 8,69,703 equity shares changed hands at Rs 37.50 a piece on National Stock Exchange via block deal, which is worth Rs 3.26 crore.

Also Read - Nomura maintains buy rating on IOC, sees target at Rs 390

State Bank of India , Jet Airways, HDIL, Havells India, Wockhardt, United Spirits, ICICI Bank and HDFC are most active shares on exchanges.

11:55am GlaxoSmithKline Consumer Healthcare shares rallied 4.5 percent to Rs 5,527.95 after a block deal. The stock also touched a fresh 52-week high of Rs 5,595.

Its 44,672 equity shares changed hands at Rs 5,482.35 a piece on National Stock Exchange via block deal, which is worth Rs 24.49 crore.

11:50am About 409 shares advanced while 799 shares declined on National Stock Exchange. The Nifty fell 71.65 points or 1.17 percent to 6,052.40.

More than 13 lakh equity shares of Jet Airways changed hands on exchanges today morning. The stock is down 2.75 percent to Rs 514. Also Read - Naresh Goyal buys 37% stake in Jet; total holding 66%

11:45am Hindalco and Mahindra & Mahindra declined 3 percent each. Midcaps like Novartis India, AstraZeneca, HDIL and Corporation Bank shares lost 5-7 percent.

Gujarat State Petronet gained more than 4 percent, after its fourth quarter net profit grew by 25 percent year-on-year to Rs 161.5 crore despite an increase in tax expenses. Net sales rose by 29.9 percent to Rs 358.9 crore during January-March quarter from Rs 276.3 crore reported in a year ago period.

11:40am United Breweries Holdings shares fell 2 percent, as the company posted a loss of Rs 190 crore in fourth quarter as against a profit of Rs 2.1 crore reported in corresponding quarter of last fiscal.

Sales of the company slipped nearly 19 percent to Rs 76.2 crore from Rs 93.7 crore year-on-year.

Core Education shares touched a new 52-week low of Rs 45.50, after the fourth quarter consolidated net profit dropped to Rs 51.1 crore from Rs 79.2 crore Y-o-Y.

11:30am BSE Sensex is down 242.13 points or 1.20 percent to 19973.27, and the Nifty is down 74.75 points or 1.22 percent at 6049.30.

Asia's third-largest economy expanded by 4.8 percent in the quarter that ended in March, in-line with consensus. The FY13 GDP has also come in line with government estimates of 5 percent , which is lowest in a decade.

Meanwhile the third quarter GDP has been revised higher to 4.7 percent from 4.5 percent. There is chance that capex would have grown higher in the second half of the fiscal than the first half.

11:25am Opto Circuits shares crashed 19 percent, after its fourth quarter consolidated net profit dropped 94 percent year-on-year to Rs 12.3 crore and net sales fell by 31 percent to Rs 457 crore.

The BSE Auto, Oil & Gas, FMCG and Bankex are down more than one percent.

Gammon India shares slipped more than 5 percent to touch a new 52-week low of Rs 19.45, after it posted a loss of Rs 125 crore in fourth quarter FY13 as against profit of Rs 53 crore in a year ago period. Even its net sales fell to Rs 1,632 crore from Rs 1,856 crore Y-o-Y.

11:15am BSE Sensex extended losses again, losing 252.28 points to 19963.12, and the Nifty fell 76.10 points or 1.24 percent at 6047.95.

Also Read - GDP: Q4 at 4.8%, FY13 at 5%

However, shares of Infosys, Dr Reddy's Labs, Tata Power, GAIL and Sterlite Industries outperformed other largecaps, rising around 1 percent.

Torrent Pharma shares rallied 9 percent as the company will issue bonus shares in the ratio of one share for every one share held.

11:10am Manufacturing sector grew 2.6 percent and farm sector rose 1.4 percent, Y-o-Y. Construction sector grew 4.4 percent during fourth quarter as against 5.1 percent in a year ago period.

11:00am Indian equity benchmarks continue to trade sharply lower since early trade, weighed down by index heavyweights ITC and Reliance Industries that fell more than 2 percent. The fourth quarter gross domestic product (GDP) grew 4.8 percent - in-line with expectations.

Meanwhile, the third quarter GDP has been revised upwards to 4.7 percent from 4.5 percent reported earlier (provisional).

Financials and capital goods stocks too are under pressure. The BSE Nifty slipped 167 points or 1.3 percent after the Reserve Bank of India, in it's final guidelines released yesterday, said all loans recast after April 1st, 2015, should be classified as non-performing assets. "Also from the June 1st, 2013, the provisioning requirement for fresh restructured advances has been increased to 5 percent from 2.75 percent," the RBI said.

HDFC Bank shares dropped 2 percent while State Bank of India and ICICI Bank are down 0.6-0.8 percent.

10:50am Q4 GDP numbers out, in-line with estimates

India Q4 GDP at 4.8%, FY13 GDP at 5%
CNBC-TV18 Poll: Q4 GDP at 4.8%, FY13 GDP at 5%
Farm sector growth at 1.4%, Y-o-Y

10:43am Opto Circuits crashes 16 percent on disappointing results

Revenues were down 33 percent to Rs 456 crore from Rs 681 crore a year ago. Net profit slumped 94 percent from Rs 209 crore to Rs 12 crore.

10:40am Suzlon hits new low after big quarterly loss

Suzlon Energy shares slumped near 5 percent to a new low of Rs 12.35 on NSE on Friday after the wind turbine maker reported a big quarterly loss of Rs 1,913 crore in the fourth quarter, as sales fell and interest payments on its huge debt remained high.

Buzzing stock: Nomura maintains buy rating on IOC, sees target at Rs 390

Nomura has maintained a buy rating on Indian Oil Corporation  ( IOC ) with a target of Rs 390 per share post March quarter earnings. IOC's fourth quarter results beat analyst estimates by a wide margin. The stock was up 0.5 percent.

10.36am DLF shares fall after its first ever quarterly loss

Shares in  DLF   Ltd fell nearly 3 percent on Friday after India's largest real estate developer posted its first-ever quarterly net loss, weighed down by slowing home sales in a sluggish economy.

DLF reported a net loss of Rs 4.19 crore in the January-March quarter from a net profit of Rs 211.70 crore a year earlier.

10:30am UB Holdings reports net loss of Rs 190 crore

UB Holdings reported net loss of Rs 190 crore in the fourth quarter. The company posted a profit of Rs 2.1 crore in the previous fiscal. Sales also declined to Rs 76.2 crore from Rs 93.7 crore, a year ago. The stock was down 1 percent.

10:24am Kingfisher Airlines Q4 results out

The income from operations was nil compared to Rs 763 crore, a year ago. Kingfisher's license has been cancelled and all flights have been grounded.

Losses have widened to Rs 2141.8 crore against Rs 1151.6 crore loss in the same quarter last year. The stock is up 4 percent.

Market outlook: Equities only option; buy Tata Motors, Godrej Prop: Damani

Bull party will continue and liquidity will be ample since global money will continue to chase India, Ramesh Damani told CNBC-TV18. He claims to be 95 percent invested in equities and insists he will not offload unless there's a calami

10:15am Major losers in the BSE Midcap were Novartis India (Rs 537.90, 7.18%), Opto Circuits (Rs 47.35, 6.61%), Corporation Bank (Rs 402.90, 5.3%), Berger Paints (Rs 230.55, 4.69%) and Sadbhav Engineering (Rs 109.90, 4.48%).

DON'T MISS: Did Infosys get it wrong with its 3.0 strategy?

10:10am Indian rupee hits 11-month low

The rupee is at 56.47/48 versus its close of 56.38/39 on Thursday after falling to as low as 56.60 in opening deals, its weakest since June 29, 2012.

Dealers say the Reserve Bank of India governor's comment on Thursday that inflation still remained high and it will take into account the current account deficit for policy decisions, weighs, as it dampens rate-cut hopes in June policy review, reported Reuters.

MUST READ India GDP: What the economists are predicting

Investors and policymakers will be closely watching India's fourth-quarter and full fiscal year 2012/13 gross domestic product (GDP) growth figures on Friday.

10.05am Here's how brokerages are playing Mahindra & Mahindra now

Shares of M&M were down over 3 percent despite stellar results. The management indicated that SUV sales have slowed down post 3percent excise duty hike. Also the gap between petrol and diesel prices is narrowing which is a worrisome factor for the company.

Key equity benchmarks lost over a percent ahead of the fourth quarter GDP data announcement today at 11 am. Indian shares turned volatile on the first day of the new derivatives expiry.

At 09.56 hrs IST, the Sensex was down 240.17 points or 1.19% at 19975.23, and the Nifty was down 77.15 points or 1.26% at 6046.90.

The breadth of the market was also negative. About 496 shares advanced, 748 shares declined, and 76 shares were unchanged.

Key gainers in the Nifty were Jaiprakash Associates (Rs 67.95, 1.65%), Sesa Goa (Rs 159.80, 1.36%), GAIL (Rs 324.65, 1.31%),
Tata Power (Rs 91.30, 1.28%) and NMDC (Rs 120.45, 1.01%).

Laggards included ITC (Rs 343.35, 3.09%), Mahindra and Mahindra (Rs 974.00, 3.05%), HDFC Bank (Rs 708.10, 2.35%), Kotak Mahindra Bank (Rs 783.00, 2.11%) and ACC (Rs 1,219.00, 2.01%)

9:50 am Buzzing: Suzlon Energy falls 5.21 percent to Rs 12.36 on the BSE. Wind turbine maker Suzlon Group 's net loss for the quarter ended March 31 has widened to Rs 1,912.72 crore compared to Rs 300.24 crore in the same quarter a year ago due to non-routine costs and highly competitive global wind sector. The total income fell 36.37 percent to Rs 4,336.44 crore from Rs 6,815.15 crore.

9:45 am Loser: On May 30, 2013 Tail Winds sold 3,18,14,850 shares of Jet Airways at Rs 525 on the BSE. However, Naresh Jagdishrai Goyal bought 3,18,14,850 shares at Rs 525. Jet Airways was quoting at Rs 506.25, down Rs 22.30, or 4.22 percent.

9:40 am: The Sensex is down 200.06 points at 20015.34, and the Nifty is down 66.45 points at 6057.60.

9:37 am Expert take: India's macro-economic environment is showing signs of improvement, feels Alok Sama, President & Founder, Baer Capital Partners. Sama is in the minority camp which feels India's GDP could grow 6 percent in the current fiscal .While macro-economic indicators have stopped worsening, there is little to show that things could get better any time soon.

In an interview with CNBC-TV18 , Sama said interest rates in India should start coming down, and that he is bullish on the economy as well as the stock market. If anything, politics is the biggest risk to sentiment, he says. Sama is betting on a 15 percent gain in the market over the next 6-9 months. He is not too worried about the recent slide in the rupee, and says it has more to do with the strengthening of the dollar against other currencies. Sama sees the rupee firming up to 54, or even 50, in the medium term.

9:31 am: M&M (down 2.9 percent), ITC (down 2.8 percent) and HDFC Bank (down 1.6 percent), Sun Pharma and Bajaj Auto are major losers in the Sensex.

M&M reported a better-than-expected fourth quarter net profit of Rs 889 crore, up near 2 percent year-on-year, helped by sales growth, which was also ahead of street expectations and exceptional gain from sale of Mahindra Holidays and Resorts shares.

The utility vehicle maker plans to invest Rs 10,000 crore over 2013-15. This will include a capex of Rs 7,500 crore for capacity expansion and new product launches and Rs 2,500 crore as investment in group firms.

9:30 am Market update: The Sensex has slipped 146.75 points to 20068.65 while the Nifty is down 48.90 points at 6075.15.

9:20 am Top gainers: GAIL , Tata Power , Infosys , Sterlite Industries and Jindal Steel are early gainers in the Sensex.

What Udayan says: Market unlikely to react to sub 5% Q4 GDP number

The market sees a nervous opening on the first day of June series. The Sensex is down 25.32 points or at 20190.08, and the Nifty fell 25.35 points at 6098.70. About 204 shares have advanced, 112 shares declined, and 27 shares are unchanged.

US markets closed modestly higher on Thursday on hopes of Fed continuing its bond purchase programme following tepid economic data. Europe too closed in the green.

The Indian rupee opened lower at 56.54 per dollar against 56.38 Thursday. Rupee has depreciated 5 percent in May 2013. The euro rose to 1.30 to the dollar. The dollar index was at the 83 mark led by weak economic data. The dollar was at 101 versus the yen.

Investors are likely to be trading cautiously ahead of the fourth quarter gross domestic product (GDP) number expected to be announced today. A CNBC-TV18 poll sees India's fourth quarter GDP at 4.8 percent versus 5.1 percent year-on-year. The drag will be from services which is seen lower at 6 percent. For FY13, growth is seen at 4.97 percent. Meanwhile, finance ministry sources indicate a positive surprise on the fiscal deficit front.