Nifty ends below 8100 for 1st time since June 27, Tata Motors up

3:30 pm Market closing: The market has closed in red after a volatile day. The Nifty has closed below 8100 for first time since June 27. The Sensex is down 71.07 points or 0.3 percent at 26227.62 and the Nifty is down 31.65 points or 0.4 percent at 8079.95.  About 960 shares have advanced, 1660 shares declined, and 154 shares are unchanged.

Bharti Airtel, TCS, Bajaj Auto, Coal India and Asian Paints are losers while Tata Motors, BHEL, Cipla, GAIL and NTPC are gainers in the Sensex.

3:10 pm Result: Air India, which turned operationally profitable last fiscal, reported an operational loss of Rs 246.14 crore in the three months ended June 2016.

The operating loss in the first quarter of this financial year has come down from Rs 315.37 crore in the year-ago period, Minister of State for Civil Aviation Jayant Sinha informed the Lok Sabha today.

"The target fixed by Air India for operating profit for the first quarter of 2016-17 was Rs 87.28 crore against which the company has posted an operating loss of Rs 246.14 crore in the first quarter of 2016-17," he said in a written reply to the Lok Sabha. Sinha said the main reason for operating loss was the decline in "revenue yields by around six per cent over the budgeted target resulting in decline in passenger revenue".

2:55 pm Citi on CAD: India's current account deficit is expected to stay comfortable at USD 10.1 billion in this financial year, largely on account of likely demand moderation post the demonetisation move, says a Citigroup report.

According to the global financial services major, the country's current account could likely widen in fiscal year 2017-18 to USD 30 billion or 1.2 percent of GDP.

"Incorporating the October data and with likely demand moderation post the demonetisation move, we expect current account deficit to stay comfortable at USD 10.1 billion in FY17 or 0.5 percent of GDP," Citigroup said in a research note.

As per the report, the current account could likely widen in financial year 2018 as average crude prices are expected to rise, along with the gold demand in the next fiscal year.

Moreover, higher exports growth and non-oil, non gold imports are likely to widen the country's current account situation as well.

2:45 pm Boardroom: Shipping Corporation (SCI) posted standalone net loss of Rs 20 crore for the second quarter ended September 30, 2016-17.

In an interview with CNBC-TV18, Anoop Sharma, Chairman and MD of SCI, said the second quarter of this financial year was weak due to the decline in the earnings of the tanker segment. The offshore fleet was also not utilised due to the monsoon adding to the losses in the second quarter.

He hopes that the third quarter will see better results with the winter setting in. The tanker segment will be stronger.

He further said the current quarter is seeing good earnings from the tanker segment.

2:35 pm DBS on demonetisation: India's bank note reform has pushed up deposit growth and boosted liquidity that may in turn depress inflationary pressures, the Development Bank of Singapore (DBS) said today.

"The banknote reform has pushed up deposit growth, which in turn has boosted liquidity," said DBS in its daily market report.

With credit growth still weak, excess liquidity has pushed Indian ten-year bond yields sharply lower this week.

This is in contrast to Asian price action, observed DBS.

Markets' based borrowing rates and banks' lending rates are also softening, it said.

Alongside the liquidity boost, the banknote reform is expected to depress inflationary pressures. This is addition to the already positive inflation trend, the bank said.

2:20 pm USFDA nod: Drug major Lupin said its US arm Gavis has received approval from the US health regulator to market Hydrocodone Bitartrate and Acetaminophen tablets, a pain relieving drug, in the American market.

Gavis Pharmaceuticals, a subsidiary of the company, has has received final approval for its Hydrocodone Bitartrate and Acetaminophen tablets from the US Food and Drug Administration (USFDA), Lupin said in a statement.

The company's product, which is indicated for relief from moderate to moderately severe pain, is a generic equivalent of Mikart Inc's Hydrocodone Bitartrate and Acetaminophen tablets.

As per IMS MAT sales data, Hydrocodone Bitartrate and Acetaminophen tablets had sales of USD 89.6 million in the US market.

Currently, Lupin has the fifth largest pipeline of abbreviated new drug application (ANDA) filings pending approval with the USFDA.

2:00 pm Market Check
The market has slipped a bit with the Nifty below 8100. The 50-share down 27.55 points or 0.3 percent at 8084.05. The Sensex is down 73.26 points or 0.3 percent at 26225.43. About 810 shares have advanced, 1678 shares declined, and 145 shares are unchanged.

Tata Motors, Lupin, GAIL, Cipla and Sun Pharma are top gainers while Coal India, Bharti Airtel, TCS, Wipro and Asian Paints are losers in the Sensex.

European stocks were lower Thursday morning as traders paused for breath after US bond yields pulled back and the dollar came off a 13-1/2 year high.

The pan-European STOXX 600 was around 0.22 percent lower, but with major bourses pointing in different directions. President-elect Donald Trump's expansionary fiscal policy is seen as stoking inflation which has caused the dollar to rally and bond prices to fall, pushing yields higher. This could have an effect on the US Federal Reserve's interest rate hiking path.

1:45 pm European markets: European stocks were lower Thursday morning as traders paused for breath after US bond yields pulled back and the dollar came off a 13-1/2 year high.

The pan-European STOXX 600 was around 0.22 percent lower, but with major bourses pointing in different directions. President-elect Donald Trump's expansionary fiscal policy is seen as stoking inflation which has caused the dollar to rally and bond prices to fall, pushing yields higher. This could have an effect on the US Federal Reserve's interest rate hiking path.

Comments from Fed officials appear to suggest that the central bank hasn't decided yet what Trump's policies mean for monetary policy.

1:30 pm Economy: Speaking to CNBC-TV18 Tanvee Gupta Jain of Macquarie Capital Securities said that there could be short-term pain in the next couple of quarters owing to a dip in consumer discretionary spends. She was referring to the impact of demonetisation on the economy. She expects a 30-50 bps downside to their GDP estimate of 7.4 percent for FY17. Gupta expects the RBI to carry out 50-75 bps rate cuts over the next twelve months. She is seeing a higher probability of 25 bps cut in RBI's December policy. If the FOMC is cutting policy rate, it will lead to risk aversion, she said. ''We are confident there is scope for more policy rate cuts to balance growth and inflation.''

The market is flat with the Nifty managing to hold 8100. The 50-share index is up 3.75 points at 8115.35 and the Sensex is up 36.46 points at 26335.15. About 1007 shares have advanced, 1444 shares declined, and 138 shares are unchanged.

Tata Motors, Cipla, Axis Bank, GAIL and Sun Pharma are top gainers while Coal India, Wipro, Bajaj Auto, TCS and Asian Paints are losers in the Sensex.

India's bank note reform has pushed up deposit growth and boosted liquity that may in turn depress inflationary pressures, the Development Bank of
Singapore (DBS) said today.

"The banknote reform has pushed up deposit growth, which in turn has boosted liquidity," said DBS in its daily market report.

With credit growth still weak, excess liquidity has pushed Indian ten-year bond yields sharply lower this week. This is in contrast to Asian price action, observed DBS. Markets' based borrowing rates and banks' lending rates are also softening, it said.

12:59 pm Market Update: Equity benchmarks remained volatile. The Sensex was up 3.39 points at 26302.08 and the Nifty fell 3.20 points to 8108.40.

The market breadth weakened further as about 1428 shares declined against 990 advancing shares on the BSE.

12:45 pm Order inflow: IL&FS Transportation Networks today said its joint venture with IL&FS Engineering has bagged two road projects in Madhya Pradesh worth Rs 375.23 crore.

"The joint venture (JV) comprising of the company and IL&FS Engineering and Construction Company in the ratio 51:49 has submitted bids with the Madhya Pradesh Road Development Corporation Ltd..The JV has emerged as lowest bidder for the development of two projects," IL&FS Transportation Networks said in a BSE filing.

"The company has quoted Rs 213.52 crore for project 1 and Rs 161.71 crore for project 2. The construction period for project 1 is 730 days and project 2 is 548 days," it added.

Project 1 is for widening and reconstruction of Bariya Choki-Lugasi-Garhi Malhara Road, Bamitha-Dumra Road, Rajnangar-Bachhon Road and Chhatarpur-Vikrampur-Rajnagar Road.

12:35 pm Buzzing: Indraprastha Gas (IGL) shares gained more than 5 percent intraday as analysts of brokerage houses maintained positive stance on the stock, citing good Q2 earnings and likely growth in volumes.

"IGL has been a key beneficiary from the recent focus by the judiciary and state/central government on the increase in air pollution in Delhi. Volume growth for both CNG and PNG has seen a sharp rebound in the past few quarters. Volumes growth could further improve and IGL may positively surprise on margins," Nomura says in its research note.

12:20 pm CLSA on Voltas: The brokerage house has maintained selling rating on the stock but slashed target price to Rs 305 (from Rs 345) on the AC business.

It also cuts FY17/18 EPS estimates by 2-5 percent with potential downside risks, depending on how end-user demand pans out after things settle down in a few months.

Voltas' fiscal Q2 revenue declined 7 percent YoY and Ebit fell 4 percent, led by weak execution in MEP and Engineering products segments. Unitary cooling products (UCP) segment saw 20 percent Ebit growth on a low base and we note that it was still below 2QFY15 numbers.

12:00 pm Market Check
Equity benchmarks as well as broader markets remained directionless in noon trade with the Nifty gyrating in 40 points range.

The 30-share BSE Sensex was up 79.32 points at 26378.01 and the 50-share NSE Nifty rose 19.90 points to 8131.50. About 1248 shares declined against 1052 advancing shares on the BSE.

Hindalco Industries gained the most among Nifty 50 stocks, up 4 percent followed by Tata Motors with 3 percent rise whereas Power Grid, Wipro, HCL Technologies, Bajaj Auto, Ambuja Cements, Hero Motocorp, TCS and Coal India were down 1-2 percent.

Voltas lost more than 7 percent as quarterly earnings disappointed.

11:46 am GDP growth: Tanvee Gupta Jain of Macquarie Capital Securities said that there could be short-term pain in the next couple of quarters owing to a dip in consumer discretionary spends. She was referring to the impact of demonetisation on the economy. She expects a 30-50 bps downside to their GDP estimate of 7.4 percent for FY17. 

Gupta expects the RBI to carry out 50-75 bps rate cuts over the next twelve months.

She is seeing a higher probability of 25 bps cut in RBI's December policy.

If the FOMC is cutting policy rate, it will lead to risk aversion, she said.

''We are confident there is scope for more policy rate cuts to balance growth and inflation.''

11:32 am Oil Update: Crude oil futures dropped after official inventory reports indicated a larger-than-expected build in US oil stocks.

Crude inventories in the United States rose by 5.3 million barrels in the week to November 11, compared with expectations for an increase of 1.5 million barrels.

The climb in inventories was mainly due to higher imports that averaged 910,000 barrels per day (bpd), according to data released by the US Energy Information Administration on Wednesday.

US benchmark WTI crude was down 0.24 percent, at USD 45.46 a barrel. Brent crude futures fell 0.24 percent, to USD 45.52 per barrel.

11:15 am Demonetisation effect: Pawan Munjal of Hero Motocorp says
dealers saw 50 percent drop in sales in the first 2 days of demonetisation but after that sharp decline, dealers saw almost 50 percent rise in sales.

11:00 am Market Check
Equity benchmarks remained lacklustre due to lack of domestic as well as global cues. Current consolidation suggested that so far, the market seems to have priced in the effect of demonetisation on equities. Now the street will closely watch its effect on Q3 earnings of auto, FMCG, consumer durables, cement and retail etc, which will be announced in January.

The 30-share BSE Sensex was up 37.14 points at 26335.83 and the 50-share NSE Nifty gained 5.30 points at 8116.90. The market breadth remained weak as about 1254 shares declined against 934 advancing shares on the BSE.

Tata Motors was the biggest gainer on the Sensex, up 2.6 percent followed by ICICI Bank, Axis Bank, ONGC and Cipla with over a percent gain.

PSU Banks continued to climb higher as deposits have been piling up after the government banned a legal tender of Rs 500 and Rs 1000 notes. Nifty PSU Bank index rose over a percent as Bank of Baroda, Canara Bank, Allahabad Bank, Union Bank, PNB, Bank of India, OBC and SBI gained 1-2 percent.

10:40 am Acquisition target: The Indian Alternative asset manager Blackstone Group and Canadian investor Brookfield are vying with each other to pick up around 40 percent stake in Bharti Infratel.

While Brookfield is bidding on its own, Blackstone is throwing its hat in the ring with private equity fund KKR & Co and Canada Pension Plan Investment Board (CCPIB), according to a media report quoting unnamed sources.

A 40 percent stake sale in Bharti Infratel will cost around Rs 27,000 crore as per Wednesday's closing price.

Bharti Airtel owns 72 percent in Infratel, wihle the remaining is vested with public shareholders.

10:20 am Demonetisation effect: The government's demonetisation move impacted paints demand by nearly 40-50 percent initially, said Abhijit Roy, MD & CEO of Berger Paints.

However, Roy clarifies that the primary sale to dealers is not impacted but the demand from customers to dealers has reduced on back of concerns over availability of cash.

The company's 85 percent revenues comes from repainting.

States like Kerala which has less rural populations are expected to recover faster than others.

10:00 am Market Check
The 50-share NSE Nifty breached 8100 level amid consolidation in morning trade. HDFC twins and two-wheeler stocks were under pressure while oil and PSU banks were strong.

The BSE Sensex gained 12.15 points at 26310.84 and the NSE Nifty rose 1 point to 8112.60. The broader markets too were rangebound.

The market breadth was marginally weak as about 1052 shares declined against 855 advancing shares on the BSE.

Laurence Balanco of CLSA says the Philippine Stock Exchange, Hang Seng & Nifty have been the weakest markets having broken below their respective August/September lows, but are now 'oversold' & due a rebound rally.

According to him, the Nifty is likely to spend a period of time consolidating between 8,076 - 8,143 support & 8,507 - 8,562 resistance.

Clearly a break below 8,076 - 8,143 would be a concern opening the door for further weakness towards next chart support at the 7,700 - 7,722, Balanco says.

Hero Motocorp and Bajaj Auto fell more than 2 percent as demonetisation might be hitting company's sales.

9:50 am Results: Private insurer SBI Life Insurance today reported a marginal growth of 4.94 per cent in Profit After Tax (PAT) at Rs 428.17 crore for the first half of this financial year ending September 30.

The insurer's PAT stood at Rs 407.98 crore in the corresponding period of the previous fiscal, SBI Life said in a release issued here.

SBI Life's Asset Under Management (AUM) rose to Rs 87,784 crore as on September 30, compared to Rs 74,554 crore during the same period last year.

9:40 am Market check: The market is starting to pick up pace as the Sensex is up 91.46 points or 0.3 percent at 26390.15. The Nifty is up 22.10 points or 0.3 percent at 8133.70. About 1052 shares have advanced, 557 shares declined, and 76 shares are unchanged.

Axis Bank, BHEL, Tata Motors, GAIL and Bharti Airtel are top gainers while Dr Reddy's Labs, Asian Paints, Hero MotoCorp, Wipro and Bajaj Auto are losers in the Sensex.

9:30 am FII view: Neelkanth Mishra of Credit Suisse says while the RBI can bring down the cost of funds, and also increase money supply through open market operations, the demand shortfall in the economy may need a government stimulus.

Even if so, he believes the impact would come through with a lag. He feels the government's role in the economy has shrunk meaningfully, particularly when it comes to capex & most of the central government expenditure currently is non-discretionary.

"Building up a capacity to spend is, therefore, a challenge, as we are discovering in the slowing growth in roads ordering, as well as in construction. So a slowdown first, and then the fiscal stimulus would start to show up in growth numbers," Mishra says.

The market has once again opened flat. The Sensex is down 11.96 points at 26286.73 and the Nifty is down 8.15 points at 8103.45. About 244 shares have advanced, 124 shares declined, and 30 shares are unchanged.

BHEL, GAIL, Adani Ports, Tata Motors and HUL are top gainers while Dr Reddy's Labs, Sun Pharma, Coal India, Cipla and ICICI Bank are losers in the Sensex.

The Indian rupee opened higher by 5 paise at 67.89 per dollar versus 67.94 Wednesday.

Mohan Shenoi of Kotak Mahindra Bank said, "Rupee has depreciated against the dollar in-line with the yen and other EM currencies. Expected to trade in a range of 67.80-68.20/dollar for the day."

The dollar climbed to a near 14-year high against a basket of currencies , even as analysts cautioned the greenback is vulnerable to a letdown from its surge tied to bets on pro-growth policies under US president-elect Donald Trump.

The Dow snapped a 7-day winning streak. Asia, too, opened in the red as a decline in oil prices weighs on sentiment. The SGX Nifty indicates a tepid start.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.1 percent, having lost more than 1 percent so far this week as the prospect of higher US interest rates under a Trump presidency has not been kind to emerging markets. Japan's Nikkei lost 0.4 percent and Australian stocks shed 0.3 percent.

The dollar edged away from a 13-year peak, following an easing of the week-long surge in Treasury yields that was fuelled by hopes for the Trump administration's economic policies, and Asian stocks slipped on Wall Street's overnight dip.

The dollar index, which measures the greenback's strength against a basket of major currencies, stood at 100.410 after climbing to 100.570 overnight, its highest since April 2003.

The S&P 500 closed lower and the Dow ended a seven-day rally as financial stocks fell but gains in technology stocks helped Nasdaq end the day higher. US stocks had been on a tear since the real estate developer's surprise victory in the November 8 US presidential election. The Dow had closed higher for the previous seven sessions, with the last four at record levels.

Also all eyes will be on Janet Yellen as she speaks before congress today. Investors will be looking for signals on an expected December interest-rate hike, as well as the fed chief's thoughts on trump's fiscal policies.