Nifty ends at 8616, Sensex flat; ITC, DRL, Reliance down 1-11%

3:30 pm Market closing: After a lot of volatility, the market has ended flat. The Sensex is up 47.81 points or 0.2 percent at 28024.33, and the Nifty is up 25.15 points or 0.3 percent at 8615.80. About 1316 shares have advanced, 1346 shares declined, and 202 shares are unchanged.

ICICI Bank, Adani Ports, Maruti, HDFC and Tata Motors are top gainers while Dr Reddy's, ITC, Reliance, Tata Steel and Axis Bank are losers.

3:20 pm GST? The constitutional amendment that allows for a Goods and Services Tax (GST), is more likely to be passed in this Monsoon Session of Parliament, says Japanese financial services major Nomura.

According to Nomura, the expected timeline for the passage of GST is by August 12 and there is a 60 percent probability for this.

"We believe a constitutional amendment that allows for a goods and services tax (GST) is more likely than not to be passed during the ongoing Monsoon Session of parliament (July 18-August 12)," Nomura said in a research note.

3:00 pm Market Update: Equity benchmarks remained volatile. The Sensex was down 1.41 points at 27975.11 and the Nifty gained 8.35 points at 8599.

About 1395 shares declined against 1218 advancing shares on the BSE.

2:50 pm Earnings: Housing finance company HDFC's April-June quarter profit beat analysts estimates, showing a solid 37.5 percent growth at Rs 1,870.7 crore on yearly basis, boosted by stake sale in insurance business.

Total income from operations increased 19.4 percent to Rs 8,382.3 crore in the quarter ended June 2016 compared with Rs 7,018.6 crore in corresponding period of last fiscal.

Profit on sale of investment stood at Rs 921 crore against Rs 23 crore on yearly basis.

Provision for contingenices shot up sharply by 580 percent year-on-year to Rs 340 crore during the quarter but declined 37.6 percent on sequential basis.

2:40 pm Nomura on GST Bill: The constitutional amendment that allows for a Goods and Services Tax (GST), is more likely to be passed in this Monsoon Session of Parliament, says Japanese financial services major Nomura.

According to Nomura, the expected timeline for the passage of GST is by August 12 and there is a 60 percent probability for this.

"We believe a constitutional amendment that allows for a goods and services tax (GST) is more likely than not to be passed during the ongoing Monsoon Session of parliament (July 18-August 12)," Nomura said in a research note.

The GST bill, which intends to convert 29 states into a single market through a new indirect tax regime, was earlier planned to be introduced from April 1 this year, but the deadline was missed as the legislation to roll it out remains in limbo in the Opposition-dominated Rajya Sabha.

2:20 pm Funding for Tata Steel JV:  Tata Steel today said the Quebec government will invest Canadian USD175 million (about USD 133 million) in its joint venture firm's direct shipping iron ore project (DSO project).

Tata Steel Minerals Canada (TSMC) is a JV established in October 2010 by the Indian firm and New Millennium Iron Corp with the former owning 94 percent.

Quebec's Deputy Premier Lise Theriault announced award of a government financial contribution of Canadian USD175 million to TSMC to support achievement at Schefferville of a DSO project, Tata Steel said in a statement.

Tata Steel Group has invested in excess of Canadian USD1 billion, it added.

2:00 pm Market Check
Equity benchmarks as well as broader markets continued to consolidate in afternoon trade ahead of expiry of Nifty July derivative contracts and the outcome of two-day Federal Reserve's policy meeting.

The 30-share BSE Sensex was down 23.45 points at 27953.07 and the Nifty gained 1.70 points at 8592.35.

The market breadth remained negative as about 1366 shares declined against 1203 advancing shares on the BSE.

Dr Reddy's Labs (down 9.7 percent), Yes Bank, ICICI Bank, Maruti Suzuki, Axis Bank, Claris Life, SpiceJet and Jindal Steel were most active shares on exchanges.

1:30 pm GST: After years of negotiations, arguably the country's biggest tax reform has likely cleared most of its hurdles and its rollout appears to be on track for its intended April 1, 2017 target.

When introduced, GST will be a single tax that will replace almost all state and central level indirect taxes and levies such as sales tax, service tax, excise duty, etc.

Yesterday, a meeting of central and state finance ministers took place where details on issues such as the contours of the "revenue neutral rate", which will become the benchmark tax rate for goods and products across the country, will thrashed out.

The Sensex is down 40.29 points at 27936.23 and the Nifty is down 4.95 points at 8585.70. About 1109 shares have advanced, 1398 shares declined, and 181 shares are unchanged. 

ICICI Bank, Maruti, Tata Motors,Adani Ports and BHEL are top gainers while Dr Reddy's Labs, Tata Steel, Coal India, ITC and Axis Bank are losers in the Sensex.

The yen fell pressured by expectations of further monetary easing by the Bank of Japan and amid media reports that the Japanese government will soon unveil a $265 billion stimulus package. Trading in the yen was choppy, with traders taking cues from various headlines regarding Japan's economic stimulus package.

12:58 pm Market Update: Equity benchmarks were volatile ahead of expiry of July derivative contracts and outcome of two-day Federal Reserve's policy meeting.

The Sensex was down 9.23 points at 27967.29 while the Nifty was up 4.35 points at 8595. About 1142 shares advanced while 1332 shares declined on the BSE.

12:40 pm Europe opens: European stocks opened higher ahead of the latest monetary policy decision from the US Federal Reserve.

The Stoxx Europe 600 index begun Wednesday 0.18 percent higher with all sectors in positive territory, bar travel and leisure, oil and gas and food and beverages.

European markets are awaiting the latest decision from the Federal Open Market Committee which is scheduled to conclude its two-day meeting with its statement on monetary policy at 1400 ET. Traders do not expect the Fed to raise interest rates, but will watch for indications on the timing of the next hike.

12:30 pm Yen depreciates: The yen fell, pressured by expectations of further monetary easing by the Bank of Japan and amid media reports that the Japanese government will soon unveil a USD 265 billion stimulus package.

Trading in the yen was choppy, with traders taking cues from various headlines regarding Japan's economic stimulus package.

The yen fell after Japan's Fuji TV said Prime Minister Shinzo Abe was planning to announce a stimulus package with a headline figure of around 27 trillion yen.

Abe was later quoted by Jiji news agency as saying the stimulus package, to be announced next week, would total more than 28 trillion yen ($265.48 billion), including 13 trillion yen of "fiscal measures".

That would be bigger than earlier reports of a possible headline figure of around 20 trillion yen.

12:15 pm GDP growth forecast: A good monsoon can help add "a percentage point" to India's GDP growth in the current fiscal, from 7.6 percent in 2015-16, NITI Aayog Vice Chairman Arvind Panagariya said today expressing confidence in crossing the 8 percent mark.

"I am very optimistic particularly encouraged by the monsoon. Monsoon will deliver this time. We can expect some pretty robust agriculture growth," Panagariya told reporters on the sidelines of a conference of chief secretaries and planning secretaries here.

"If the agriculture growth does pan out on those lines...that adds up a percentage point to the growth. That really makes crossing 8 percent quite probable. We should cross 8 percent in 2016-17," he added.

Indian economy grew 7.9 percent in March quarter and recorded a five-year high growth rate of 7.6 percent for the 2015-16 fiscal on robust manufacturing growth.

12:00 pm Market Check: Equity benchmarks erased morning gains to trade flat with a positive bias in afternoon trade. The broader markets also came off day's high.

The 30-share BSE Sensex was up 24.44 points at 28000.96 and the 50-share NSE Nifty rose 14 points to 8604.65 while the market breadth was negative as about 1318 shares declined against 1122 advancing shares on the BSE.

ITC, Reliance Industries, Infosys, Axis Bank, Tata Steel and Lupin were laggards. Dr Reddy's Labs tanked 9.5 percent on downgrades by brokerage houses post Q1 earnings. ICICI Bank, HDFC, Tata Motors, Maruti, TCS and SBI were were gainers.

10:59 am Market Update: Equity benchmarks remained strong despite profit booking. The Sensex was up 166.15 points or 0.59 percent at 28142.67 and the Nifty rose 55.70 points or 0.65 percent to 8646.35.

About 1397 shares advanced against 762 declining shares on the BSE.

10:45 am Japan's stimulus package: Japan PM Shinzo Abe says the government will compile economic stimulus package sized over 28 trillion yen, adding 13 trillion yen of stimulus will be on fiscal measures.

Cabinet will take a call on stimulus package on August 2, he says.

Nikkei was trading at 16689.97, up 1.87 percent and yen at 105.56 against US dollar.

10:35 am Buzzing: Delta Corp shares surged nearly 6 percent intraday after signing a leave and license agreement for premises in the Denzong Regency Hotel, Gangtok, Sikkim, to operate a casino.

"...has also obtained a provisional license from the Government of Sikkim under the Sikkim Casino (Control & Tax) Act, 2002 for the same," the gaming company said, adding it is in the process of refurbishing and getting the premises 'casino ready' which should be completed in the next three months.

In addition to three offshore and one onshore casino in Goa, Delta will strengthen its presence by adding this Casino in Sikkim.

10:15 am Nikkei rallies: Japanese stocks rebounded from Tuesday's sell-off as most Asian markets waffled today ahead of key central bank decisions as well as major earnings reports due in Japan and South Korea.

The benchmark Nikkei 225 surged up 2 percent, getting an additional fillip after Japan's Fuji TV reported that a closely watched upcoming fiscal stimulus package could be as high as 27 trillion yen (USD 254 billion) and could be announced as early as Wednesday afternoon. Analysts had previously anticipated a stimulus package of 10 trillion to 20 trillion yen.

10:00 am Market Check
Equity benchmarks recouped previous day's losses to trade at over 15-month high on the Nifty, supported by banking & financial, auto and infra stocks.

The 30-share BSE Sensex was up 213.58 points at 28190.10 and the 50-share NSE Nifty rose 63.70 points to 8654.35. The broader markets traded in line with benchmarks as the BSE Midcap and Smallcap indices gained 0.8 percent each.

About three shares advanced for every share falling on the Bombay Stock Exchange.

ICICI Bank and Maruti Suzuki topped the buying list on Sensex, up more than 3 percent followed by HDFC, Tata Motors, L&T, SBI and BHEL.

Dr Reddy's Labs crashed 9 percent after dismal set of earnings in Q1 due to US pricing issue. Jefferies has downgraded the stock to underperform from hold with a reduced target price of Rs 2850 per share. It has also cut FY17-18 earnings estimates by 28-14 percent and expects earnings to remain flat over FY16-18.

10:00 am: The Sensex is up 207.88 points or 0.7 percent at 28184.40, and the Nifty up 70.25 points or 0.8 percent at 8660.90. About 1333 shares have advanced, 458 shares declined, and 77 shares are unchanged.

9:55 am FII view: Gautam Chhaochharia of UBS says goods & services tax (GST) is a key near-term driver for market sentiment but its impact on economy will likely be felt medium term.

According to him first couple of years of GST implementation may be quite disruptive and impact uncertain. The wide range of revenue-neutral-rate by various expert committees/institutions indicates the complexity and unpredictability, he says.He feels if the rate is too high, it may lead to higher tax revenues but would hurt business, consumption and be inflationary.

If too low, then it could cause fiscal stress, with its own adverse implications, Chhaochharia says, adding the consuming states are likely to benefit from GST but they won't share this with Centre.

9:45 Market check: The Sensex is up 178.50 points or 0.6 percent at 28155.02, and the Nifty is up 57.90 points or 0.7 percent at 8648.55 after briefly touching 8650. About 1269 shares have advanced, 435 shares declined, and 74 shares are unchanged.  Nikkei surged over 2 percent on hopes that PM Abe will announce 254 billion yen stimulus. A media report may have stoked speculation that the government was considering "helicopter-money light." Helicopter money is essentially printing money and distributing payouts, something that Japanese officials have denied they plan to do.

9:30 am Market climbs: The market has gradually picked up pace with the Nifty comfortable above the 8600. the 50-share index is up 47.35 points or 0.5 percent at 8638 and the Sensex is up 136.73 points or 0.5 percent at 28113.25. About 1176 shares have advanced, 366 shares declined, and 58 shares are unchanged.

BHEL, ICICI Bank, Maruti, Tata Motors and SBI are top gainers in the Sensex. Dr Reddy's dived 10 percent while Sun Pharma, Bajaj Auto and Lupin are other losers.

The market has opened flat with companies, that have posted dismal Q1 earnings, dragging indices. The Sensex is up 28.89 points or 0.1 percent at 28005.41, and the Nifty is up 10.55 points or 0.1 percent at 8601.20. About 291 shares have advanced, 117 shares declined, and 24 shares are unchanged.

HDFC, Maruti, Asian Paints, Tata Steel and SBI are top gainers while Dr Reddy's Labs fell 8 percent. Other losers in the Sensex are Coal India, Sun Pharma, Axis Bank and Wipro.

The Indian rupee slipped in the early trade. It has opened lower by 6 paise at 67.33 per dollar versus 67.27 Tuesday.

Traders are on the edge with eyes on outcome of the Federal Reserve Open Committee (FOMC) and Bank of Japan (BoJ) meet. Analysts expect the Federal Reserve to hold off on an interest rate hike this month and possibly for months to come. The US central bank is widely expected to stand pat on monetary policy and the markets will sift through its statements - a post-meeting press conference will not be held - for any hints of a future interest rate hike.

Among global peers, Asian stocks edged up early following a relatively upbeat session overnight for US and European stocks, with caution ahead of the Federal Reserve's policy decision capping gains.

The safe-haven yen sat atop large gains as hopes for a large fiscal stimulus package out of Japan faded. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.1 percent. Japan'sNikkei climbed 1.1 percent and Australian shares added 0.3 percent. South Korea's Kospi stood flat.

On Tuesday, US equity markets closed mixed while stocks in Europe traded slightly higher as gains in major healthcare and consumer goods stocks propped up European equities to offset persistent concerns over the region's banking system.

In the currency space, dollar was steadier against other currencies ahead of the Federal Reserve's policy announcement late. Crude oil prices were little changed as supply glut worries continue to weigh on sentiment. From the precious metals space, gold rose on but remained hemmed into a range at the start of FOMC meet.