Market ends in red, Nifty still above 8500; Maruti down 1%

3:30 pm Market closing: The market has ended in red but the Nifty remained 8500. The 50-share index was down 1.55 points at 8519.50 while the Sensex was up 7.04 points at 27815.18. About 1011 shares have advanced, 1734 shares declined, and 165 shares are unchanged.

Tata Steel, GAIL, ONGC, Coal India and BHEL were top gainers while Lupin,  Maruti, L&T, Asian Paints and Axis Bank were losers in the Sensex.

3:20 pm APMC strike: Vegetable and food prices in Mumbai have surged about 30-60 percent in the past couple of days after APMC market traders have gone on an indefinite strike to protest the Maharashtra government's decision to exclude vegetable and fruits from the list of regulated products.

Following the ordinance, farmers are now free to sell their produce in the open market as opposed to selling them previously to government-mandated 300-odd mandis.

The decision comes in the wake of complaints that the older method results in higher prices thanks to stock travelling through a number of traders and commission agents.

2:58 pm Market Update: Equity benchmarks continued to consolidate as the Sensex was down 7.27 points at 27800.87 and the Nifty declined 10.15 points to 8510.90.

About 1740 shares declined against 927 advancing shares on the BSE.

2:50 pm Gold rises: Gold rose marginally, recovering from selling pressure in early trade that pushed bullion to a near two-week low, with investors using the opportunity to hunt for bargains even as improved risk appetite helped global equities rally.

Asian shares came within reach of testing their 2016 peak today as prospects of solid US growth and accommodative economic policy in major countries whet investors' risk appetite damaged by uncertainty from Brexit.

2:35 pm IEA on crude stocks: The global glut in oil is refusing to ease and acts as a major dampener on crude prices despite robust demand growth and steep declines in non-OPEC production, the International Energy Agency said on Wednesday.

The IEA, which coordinates the energy policies of industrial nations, said it had revised up its forecasts of 2016 and 2017 global oil demand growth by 0.1 million barrels per day from last month to 1.4 million and 1.3 million bpd respectively.

It said demand was growing thanks to good consumption in India, China and, surprisingly, Europe.

"This (European demand growth) is unlikely to last, though, with the ongoing precariousness of the European economies now dealing with added uncertainty following the result of the UK referendum on membership of the European Union," it added.

2:20 pm Interview: RPP Infra 's wholly owned subsidiary in Sri Lanka has bagged order from High Commission of India, Colombo worth USD 10.36 million. The order includes construction and completion of cultural centre at Jaffna.

The new order will be completed in 24 months and margins from that are expected to be around 10-12 percent, said A Nithya, Whole Time Director, RPP Infra in an interview to CNBC-TV18.                                    

The order pipeline is worth Rs 150 crore and that 20 percent of that was in building and 80 percent in infrastructure. The current order book for the company stands at Rs 820 crore but she expects it to touch Rs 1000 crore by September. Currently they are L1 in four orders.

The growth is expected around 25-30 percent, including new orders, she said.

2:00 pm Market Check
Volatility continued in equity benchmarks while the broader markets underperformed with the BSE Midcap and Smallcap indices falling 0.7 percent each.

The 30-share BSE Sensex gained 19.42 points at 27827.56 and the 50-share NSE Nifty fell 2.25 points to 8518.80. The market breadth was negative as about two shares slipped for every share rising on the Bombay Stock Exchange.

ITI shares rallied 16 percent after the Cabinet has approved the sale of assets of the company while NBCC lost 9 percent on equity dilution concerns after the government cleared stake sale in the company. The Government of India holds 90 percent stake each in companies.

European markets were mixed despite positive close in Asia and US. France's CAC was up 0.11 percent while Germany's DAX and Britain's FTSE declined 0.1-0.3 percent.

1:30 pm Telecom: Government should move to a flat levy for spectrum usage charge as suggested by Trai or clearly specify a timeline in case it decides to adopt an interim weighted average formula, industry body COAI today said.

Welcoming Trai sticking to its stated position for a flat spectrum usage charge (SUC), COAI Director General Rajan S Mathews told PTI, "We believe this should move to the flat 1 per cent previously recommended by Trai."

Talking about the "constraints" of the regulator due to the terms of reference, Mathews said, "The Cabinet and the Telecom Commission are not so constrained and should move to what Trai sees as the appropriate SUC regime, which is a flat SUC rate, and not a weighted average approach."

The market is still in red but the Nifty is above 8500. The 50-share index is down 16.70 points or 0.2 percent at 8504.35 and the Sensex is down 28.68 points or 0.1 percent at 27779.46. About 884 shares have advanced, 1691 shares declined, and 133 shares are unchanged.

ONGC, BHEL, Tata Steel, GAIL and TCS are top gainers while L&T, Maruti, Tata Motors, Axis Bank and NTPC are losers in the Sensex.

China's yuan-denominated exports rose modestly from a year ago in June while imports fell slightly, data showed Wednesday.

Exports rose 1.3 percent from a year ago while imports declined 2.3 percent, according to Reuters, which cited customs data.

China's yuan-denominated exports had risen 1.2 percent on-year in May, while imports had climbed 5.1 percent, figures showed last month. Dollar-denominated trade figures are expected shortly.

12:59 pm Market Update: Equity benchmarks remained in consolidation mode. The Sensex fell 12.99 points to 27795.15 and the Nifty declined 15.25 points to 8505.80.

About two shares declined for every share rising on the BSE.

12:40 pm Europe opens: European stocks opened mildly higher after a rally in markets in the US and Asia as markets try to continue their post-Brexit recovery amid hopes of further monetary policy easing.

The pan-European STOXX 600 was up 0.17 percent.

Asia markets advanced, extending a global rally that pushed major US indexes to records amid expectations of further easing from Japan and the resolution of some concerns over the UK's. political scene.

12:20 pm Buzzing: Share of  RPP Infra Projects gained 8.5 percent intraday as its subsidiary company has bagged order in Sri Lanka.

The company's wholly owned subsidiary in Sri Lanka has bagged order from High Commission of India Colombo worth USD 10.36 million.

The order includes construction and completion of cultural centre at Jaffna.

In the month of June 2016, the company had received additional order from the state of Madhya Pradesh for construction of Narsinghpur city worth Rs 45.4 crore.

12:00 pm Market Check
Equity benchmarks remained rangebound with the Nifty hovering around 8500 level amid positive global cues. Healthcare, FMCG and auto stocks were under pressure while oil, technology and metals gained.

The 30-share BSE Sensex fell 21.57 points to 27786.57 and the 50-share NSE Nifty slipped 12.20 points to 8508.85. The market breadth also turned negative as about two shares declined for every share rising on the Bombay Stock Exchange.

Asia markets advanced, extending a global rally that pushed major US indexes to records amid expectations of further easing from Japan and the resolution of some concerns over the UK political muddle. In Japan, the Nikkei 225 closed up 135.78 points, or 0.84 percent, at 16,231.43, extending Monday and Tuesday's combined 6.5 percent rally.

Crude futures fell as investors locked in gains after oil prices surged nearly 5 percent in the previous session, partly on forecasts from the US government and OPEC that demand would increase next year. Brent futures fell 62 cents to USD 47.85 a barrel after settling up USD 2.22, or 4.8 percent, in the previous session.

11:55 am Kerosene: Former Chairman and Managing Director RS Sharma of the upstream oil company ONGC is very happy with the government's announcement of  hike in kerosene price, which will help reduce the subsidy burden of these companies.

According to him investors want certainty and a proper subsidy sharing mechanism will bring that making the investors bullish on the sector. Also, the companies can make investment decisions accordingly.

Now with the oil companies likely to get a go ahead to hike kerosene price by 0.25 paise a litre per month till April 2017, the upstream companies will save around Rs 1000 crore annually. And with ONGC sharing 80 percent of the subsidy burden, it will save around Rs 800 crore, says Sharma.

11:45 am Loan restructing: Infrastructure firm Hindustan Construction Company (HCC) today said its lenders have agreed to restructure its loans under RBI's recent S4A scheme. "The joint lenders' forum meeting of HCC held on July 12, 2016 has passed to resolve the account under the recent RBI guidelines 'Scheme for Sustainable Structuring of Stressed Assets (S4A)'," the company said in a BSE filing. The company said it will help it bridge the gap of 'Cashflow Timing Mismatch' between claims realisation (including its interest) and debt servicing. It further said: "Under S4A scheme, the debt of the company will be bifurcated into two parts - sustainable debt, which cannot be less than 50 percent of existing debt and will have to be serviced over the same terms as that of existing facilities.

11:30 am Interview: With anticipation rising over the next Reserve Bank governor, Jahangir Aziz of JPMorgan believes that whoever is chosen must continue to focus on macro stability in the country. Inflation should continue to be the main focus of RBI going forward. It is unlikely that inflation target is changed as the current target has blessing of the government, he says. He added that the room for easing will continue to stay limited as the RBI is likely to stick to its 4 percent inflation target. The consumer price index (CPI) for June came flat at 5.8 percent due to higher vegetable and fruit prices. While monsoon will ease prices, inflation is likely to slowdown. Aziz expects inflation to hit 5 percent by March 2017.

The market has turned negative slightly but the Nifty is still holding 8500. The 50-share index is down 10.80 points or 0.1 percent at 8510.25 and the Sensex is down 8.04 points at 27800. About 796 shares have advanced, 1491 shares declined, and 110 shares are unchanged.

BHEL, ONGC, GAIL, Tata Steel and Reliance are top gainers while Maruti, Axis Bank, L&T, Adani Ports and Tata Motors are down.

Indiabulls group stocks are under severe pressure as I-T officials search Indiabulls offices across the country.

Oil prices turned lower again in Asia today after data indicated a rise in US stockpiles, reigniting concerns about a supply glut, while profit-takers stepped in after the previous day's surge.

The American Petroleum Institute reported a 2.2 million barrel rise in reserves last week, confounding expectations of a dip at the height of the crucial summer driving season when Americans go on holiday. The figures rattled traders as the Department of Energy prepares to release later on official data, which is considered a key gauge of demand in the world's top oil consumer.

10:40 am Apollo Hospitals' deal:  Apollo Hospitals Group said it has inked MoUs with Kenyatta National Hospital and Airtel Kenya in the field of healthcare in Kenya.

According to a statement, Sangita Reddy, Joint Managing Director, Apollo Hospitals Group, who was in Nairobi as a leading member of Indian Business delegation accompanying Prime Minister Narendra Modi, inked two MoUs with Kenyatta National Hospital and Airtel Africa, at Nairobi.

The MoU with Kenyatta National Hospital is focused on capacity building in Kenyan Healthcare sector. Kenyatta National Hospital is the oldest government hospital besides being the largest referral and teaching hospital in Kenya.

10:20 am FII View: With anticipation rising over the next Reserve Bank governor, Jahangir Aziz of JPMorgan believes that whoever is chosen must continue to focus on macro stability in the country.

Inflation should continue to be the main focus of RBI going forward. It is unlikely that inflation target is changed as the current target has blessing of the government, he says.

He added that the room for easing will continue to stay limited as the RBI is likely to stick to its 4 percent inflation target.

The consumer price index (CPI) for June came flat at 5.8 percent due to higher vegetable and fruit prices. While monsoon will ease prices, inflation is likely to slowdown. Aziz expects inflation to hit 5 percent by March 2017.

10:00 am Market Check
Equity benchmarks as well as broader markets continued to consolidate after a 2.5 percent rally in previous two sessions.

The 30-share BSE Sensex rose 50.02 points to 27858.16 and the 50-share NSE Nifty was up 5.45 points at 8526.50. The market breadth remained positive as about 1034 shares advanced against 911 declining shares on the Bombay Stock Exchange.

Factory data in May was ahead of expectations, at 1.2 percent against negative 0.8 percent in April while CPI inflation in June remained flat at 5.77 percent compared with 5.76 percent in preceeding month.

The current volatility in market indicated that it seems to have digested better-than-expected industrial output data. GST Bill and Q1FY17 earnings will be key triggers in near term.

ICICI Bank and Vedanta were the most active shares on exchanges. The former one gained 0.88 percent, in addition to 4.7 percent rally in previous session while later one surged another 6 percent after sources yesterday told CNBC-TV18 that LIC may have cleared merger of Cairn and the company.

9:55 am Fund raising: Indiabulls Real Estate said that it has raised Rs 25 crore by issuing non-convertible debentures (NCDs).

Last month, the Mumbai-based company had announced that it proposed to raise up to Rs 200 crore through issue of NCDs on a private placement basis.
 So far, the company has raised Rs 131 crore in three tranches.

In a filing to the BSE, Indiabulls Real Estate said that "the operations committee of the Board of Directors of the company has allotted NCDs aggregating Rs 25 crore".
Earlier this year, the company had raised over Rs 400 crore through this route.

9:45 am Brexit may hit realty: Indian homebuilders having exposure to the London property market are going to be impacted in near term from Britain's decision to leave the European Union, global rating agency Fitch Ratings said.

"Demand for luxury residential and commercial properties (in London)- the segments some Indian homebuilders have invested in - may remain weak at least over the coming 6 to 12 months as buyers postpone purchases and banks trim loans amid increased economic uncertainty," it said in a report.  Indiabulls Real Estate (IBREL) and Lodha Developers have significant exposure to the luxury residential and commercial property segments in London, where they made sizeable investments in 2013 and 2014.

9:30 am FII view: India is one of the bright spots as it is relatively shielded from forces affecting other global markets says Willem H Buiter, Global Chief Economist at Citi.

In an interview to CNBC-TV18 Buiter said that, assuming the succession of Reserve Bank Governor Rajan takes place in a way that doesn't spook markets, India should continue to prosper.

There is an element of mistaken euphoria in many global assets classes, he says, adding, current equity valuations worldwide are not justified based on earnings growth seen ahead. "Markets are looking to denominator to equity valuations than looking at numerator of future earnings which are expected to become weaker in next 6-12 months," he says.

The market has opened green. The Sensex is up 74.35 points or 0.3 percent at 27882.49, and the Nifty is up 1.95 points at 8523. About 547 shares have advanced, 251 shares declined, and 33 shares are unchanged.

ONGC, Tata Steel, ICICI Bank, BHEL and Coal India are top gainers while Sun Pharma, Dr Reddy's, HUL, Maruti and L&T are down.

The Indian rupee opened higher by 9 paise at 67.09 per dollar on Wednesday against previous close 67.18.

Bansi Madhvani of India Ratings said, "The rupee will consolidate its gains and continue its momentum, trading at 66.75-67.45/dollar." Weak yen is headed for its worst three-day slump since 2014. As investors await details of Prime Minister Shinzo Abe's fiscal stimulus plans, the pound strengthened.

Among global peers, Asian shares came within reach of testing their 2016 peak on Wednesday as prospects of solid US growth and accommodative economic policy in major countries whet investors risk appetite damaged by uncertainty from Brexit. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.2 percent in early trade to 426.62, just below its year-to-date high of 428.22. Japan's Nikkei gained 1.9 percent.

MSCI's broadest gauge of the world's stock markets has recovered all the losses after Britain's referendum to hit its highest level in over a month.

The benchmark US S&P 500 stock index set record closing and intraday highs for the second straight day on Tuesday and the Dow Jones industrial average reached record highs for the first time in over a year as optimism about the world economy and upbeat corporate results from Alcoa boosted risk appetite.

The benchmark S&P 500 ended at 2,152.14, topping Monday's record close of 2,137.16, while the Dow closed at 18,347.67 to top its previous record high touched in May 2015.

The S&P 500 hit a record intraday peak of 2,155.40, while the Dow hit an intraday record of 18,371.95. The tech-heavy Nasdaq Composite also gained, wiping out its losses for the year and notching its highest close since late December.