Nifty ends below 8500, Sensex loses 189 points; SBI up 4%

03:30 pm Market closing: The market has ended lower. The Sensex was down 189.04 points or 0.7 percent at 27878.27 and the Nifty closed 41.25 points or 0.5 percent at 8477.30. About 1447 shares have advanced, 1423 shares declined, and 144 shares are unchanged.

Bank of Baroda (up 15 percent) was top Nifty gainer while Tata Steel, SBI, GAIL, Coal India and Wipro were top gainers in the Sensex. Among the losers were Cipla, Hindalco, ONGC, Hero Moto and Vedanta.

03:10 pm Gold import tariff value: The government raised the import tariff value on gold to USD 363 per 10 grams and silver to USD 499 per kg, taking strong cues from the global market.

For the first fortnight of this month, the import tariff value of gold and silver stood at USD 354 per 10 grams and USD 498 per kg, respectively.

The import tariff value is the base price at which the customs duty is determined to prevent under-invoicing.

The tariff value is revised on a fortnightly basis. The change in tariff value of gold and silver has been notified by the Central Board of Excise and Customs, said an official statement issued by the Finance Ministry.

The government raised the tariff value of imported gold and silver marginally taking into account the rise in global prices.

03:00 pm Market Update: The Sensex dropped 162.44 points or 0.58 percent to 27904.87 and the Nifty fell 26.85 points to 8491.70.

About 1407 shares have advanced, 1371 shares declined, and 142 shares are unchanged on the BSE.

02:45 pm Buzzing: Prism Cement shares climbed 3.9 percent intraday as the company is going to sell its stake sale in insurance joint venture to partner.

"The board of directors of the company, today, has agreed to sell 23 percent of its holding in the paid-up capital of Raheja QBE General Insurance Company Limited (Raheja QBE), the general insurance subsidiary, to its existing partner in Raheja QBE, namely the QBE Group, Australia," said the company in its filing to the exchange.

It will sell stake for a consideration of approximately Rs 103 crore (AUD 21,500,000).

Once the proposed transaction is consummated, the company's shareholding in Raheja QBE shall stand reduced from 74 percent to 51 percent, it said.

02:30 pm MFs bullish on banks: Mutual Fund managers seem to be bullish on bank shares as they raised their allocation in the sector to an all time-high of over Rs 85,000 crore in July anticipating a rate cut by the Reserve Bank.

In comparison, equity fund managers' deployment in banking stocks stood at Rs 55,086 crore in July 2014. Industry experts said that fund managers raised their allocation to bank stocks expecting a rate cut by the Reserve Bank.

They added that fund managers can not take a bearish call on banking stocks, given the high weightage attached to the index.

As per the data available with Securities and Exchange Board of India (Sebi), overall deployment of equity funds in bank stocks stood at Rs 85,329 crore in July compared with Rs 78,582 crore in the previous month.

The previous high was in May, when allocation of funds in the banking shares was at Rs 79,215 crore.

Besides, exposure to bank stocks was at 20.88 percent against 20.54 percent in the preceding month. The BSE bankex index inched up 2.46 percent in July, while BSE Sensex witnessed a growth of 1.2 percent.

02:00 pm Market Check
Equity benchmarks continued to see selling pressure in afternoon trade. The Sensex fell 164 points to 27902 and the Nifty declined 38 points to 8480. Second line shares fared better than their large cap counterparts, with the BSE Midcap Index and BSE Small Cap Index up 0.2 percent and 0.2 percent respectively.

Sandeep Bhatia of Kotak Institutional Equities expects the market to be rangebound for some time and feels 8000 on the Nifty is a good buying opportunity and 9000 is the time to book profits.

SBI, Sun Pharma, Tata Motors, GAIL and Tata Steel were the biggest gainers among Sensex 30 stocks, up 1-4 percent.

However, Cipla plunged more than 4 percent despite strong numbers in Q1. The stock fall may be driven by fears of slowdown in sales of Esomeprazole drug, which supported Q1 earnings. Reliance Industries, HDFC, Infosys, HDFC Bank, L&T, TCS, Axis Bank and ONGC slipped 1-2 percent.

Birla Corp (17 percent), PC Jeweller (13 percent), Vaibhav Global (10 percent), Indian Bank (10 percent) and Amara Raja Batteries (7 percent) were the big winners in the midcap space. Other notable gainers included KPIT Tech (5 percent), SpiceJet (6 percent), IDBI Bank (6 percent), Triveni Turbine (7 percent) and SREI Infra (7 percent).

1:50 pm Maggi woes: The apex consumer court accepted the government's Rs 640-crore suit against Nestle for its alleged unfair trade practices pertaining to Maggi instant noodles and posted the next date of hearing for September 30.

The bench of the National Consumer Disputed Redressal Commission, presided over by Justice JK Jain and Justice BC Mehta, also wanted to look into the findings of fresh test reports of the popular instant noodles by accredited laboratories.

"The court has sought fresh, sealed samples to be tested by accredited labs. Further course of action will be decided by the ministry (of consumer affairs)," Additional Solicitor General Sanjay Jain said after the preliminary hearing.

The Department of Consumer Affairs has alleged that Nestle by its "unfair trade practices" vis a vis Maggi instant noodles, by selling "defective and hazardous products" has caused injury to millions of consumers, which called for this class action suit.

1:30 pm Modi in UAE: Making an appeal to businessmen to invest in India, Prime Minister Narendra Modi assured them that India is a land of many opportunities.

"125 crore people of India are not a market but they are a source of great strength," he said.

He claimed that India is one of the fastest growing economies of the world. "It is now commonly believed that India is one of the fastest growing economies. There are several opportunities of development in India. All leading institutions like IMF, World Bank and Moody's agree that India is world's fastest growing economy," he said.

Modi also raised hopes about a bright for for Asia if India and UAE work together. "India's growth potential and UAE's strength together can make this Asia's century," he said.

Heady wildswing is seen with the Nifty struggling to hold 8500. The 50-share index is down 47.85 points or 0.6 percent at 8470.70 while the Sensex is down 205.12 points or 0.7 percent at 27862.19.

SBI, GAIL, Tata Steel, Sun Pharma and Coal India are top gainers. Cipla, Hindalco, Vedanta, ONGC and Reliance are among major laggards.

The rupee dropped further by 21 paise to Rs 65.21 following sustained bouts of dollar demand from importers amid higher greenback overseas on the back of weak domestic equity market.

The domestic currency on Thursday had plummeted by 32 paise to 65.10 against the dollar, hitting its weakest level last seen in September 2013, as China further devalued yuan.

The rupee resumed lower at 65.12 per dollar as against last weekend's level of 65.00 at the Interbank Foreign Exchange (Forex) market.

12:55 pm Amara Raja at new high: Shares of Amara Raja Batteries hit a record high of Rs 1,025 apiece, up more than 5 percent after reporting better than estimated earnings in the quarter ended June. Brokerages maintained buy rating on the stock post earnings.

Net profit in Q1 grew by 15 percent year-on-year to Rs 122 crore, driven by strong revenue growth in the automotive segment and favourable lead prices. Revenue increased by 11 percent to Rs 1,145 crore. Operating profit margin expanded by 100 basis points to 18.2 percent, the highest since Q4FY10.

Brokerage Nomura has retained buy rating on the stock. With capacity expansions in the automotive segment and with the recovery in the economy, it expects Amara Raja to continue to deliver healthy double-digit revenue growth.

12:43 pm Market Update: Equity benchmarks recovered in afternoon trade. The Sensex declined 71.22 points to 27996.09 and the Nifty fell 7 points to 8511.55.

About 1313 shares have advanced, 1206 shares declined, and 141 shares are unchanged on the BSE.

Tata Motors bounced back with more than 1 percent gain. The stock was down 2 percent on weak global sales numbers.

12:23 pm Buzzing: Birla Corp said it will acquire two cement units from Lafarge India having a capacity of 5.15 million tonnes per annum for Rs 5,000 crore. The stock rallied 15 percent.

Birla Corporation said in a BSE filing said "it has agreed to a transaction with Lafarge India Private Ltd, whereby Birla Corp, either directly or through its wholly-owned subsidiary, shall acquire both the Jojobera and Sonadih cement businesses (Acquisition business) from Lafarge India for an Enterprise Value of Rs 5,000 crore".

Birla said it will acquire the cement business, comprising an integrated cement unit at Sonadih (Chhattisgarh), a cement grinding unit at Jojobera (Jharkhand), along with Concreto and PSC brands.

"Acquisition business has a cement capacity of 5.15 million tonnes per annum," it added.

The company said that upon completion of this transaction, Birla Corporation will consolidate its position in the eastern India cement market, where the demand supply scenario and outlook continue to remain buoyant.

12:00 PM Market Check
The market halved its losses in noon trade with the Sensex down 154.39 points at 27912.92 and the Nifty down 30.10 points at 8488.45. However, the broader markets outperformed benchmarks as the BSE Midcap and Smallcap indices gained more than 0.2 percent.

The rupee dropped further by 21 paise to Rs 65.21 following sustained bouts of dollar demand from importers amid higher greenback overseas on the back of weak domestic equity market. The domestic currency on Thursday had plummeted by 32 paise to 65.10 against the dollar, hitting its weakest level last seen in September 2013, as China further devalued yuan.

All PSU banks rallied further after the government launched a revamp plan 'Indradhanush' which deals with reforming PSU banks. Bank of Baroda led the upmove as the market cheered the appointment of the MD and Chairman of the bank from the private sector. The stock shot up 14 percent.

SBI gained 4 percent after the PSU banks reform move and the bank decided to cut rates on deposits of certain maturities by 25-50 basis points.

ICICI Bank rebounded smartly, up marginally in noon trade. Tata Steel and Sun Pharma rallied 2 percent each.

Cipla lost nearly 4 percent despite a strong quarter. Kotak has a buy rating with a target of Rs 790 per share. But CLSA maintained sell rating with target of Rs 683.

HDFC fell nearly 2 percent as the HDFC Life stake sale to Standard Life was done at a slightly lower valuation against the sale to Azim Premji Trust in June quarter. HDFC Vice Chairman and CEO Keki Mistry said the company may look to bring IPO of HDFC Life in 2016.

11:30 am Monsoon check: India's monsoon rainfall deficit has widened to 10 percent as a strengthening El Nino weather pattern trimmed rainfall, the weather department said, raising fears of the first drought in six years. The June-September monsoon rains determine farmers' earnings as more than half of farm land lacks irrigation. Though agriculture accounts for about 15 percent of India's USD 2 trillion economy, three-fifths of its 1.25 billion people depend on it for their livelihood.

It is a volatile start to this week with the Nifty slipping below 8500. The 50-share index is down 69.65 points or 0.8 percent at 8448.90. The Sensex is down 280.73 points or 1 percent at 27786.58. About 683 shares have advanced, 1072 shares declined, and 95 shares are unchanged.

SBI, Coal India and Tata Steel are top gainers in the Sensex while Cipla, Vedanta, Hindalco, ONGC and Tata Motors are among losers.

Oil prices resumed their decline in Asia as a global glut of crude supplies showed no signs of abating in the face of sluggish demand, analysts said. Oil came under renewed pressure in Asia after the latest data showing the number of rigs drilling for US oil increased last week, the sixth rise in seven weeks, analysts said.

The news added to fears of a prolonged global surplus as output from the Organization of the Petroleum Exporting Countries and the US remains robust despite the tumbling prices.

10:30 am Oil falls: Oil prices resumed their decline in Asia as a global glut of crude supplies showed no signs of abating in the face of sluggish demand, analysts said.

US benchmark West Texas Intermediate (WTI) for September delivery fell 63 cents to USD 41.87 a barrel in late-morning trade, the lowest since March 2009. Brent crude for October, a new contract, was down 65 cents to USD 48.54.

WTI and Brent's September contract rose in New York on Friday after closing at their lowest level in six and a half years in the prior session.

But oil came under renewed pressure in Asia after the latest data showing the number of rigs drilling for US oil increased last week, the sixth rise in seven weeks, analysts said.

The news added to fears of a prolonged global surplus as output from the Organization of the Petroleum Exporting Countries and the US remains robust despite the tumbling prices.

10:00 am Market Check
The market remained under pressure in morning trade, dragged by profit booking in private banking & financials, technology and oil stocks. The rupee, too, see selling pressure, down 21 paise ot 65.21 a dollar.

The Sensex fell 247.64 points or 0.88 percent to 27819.67 and the Nifty declined 62.60 points or 0.73 percent to 8455.95. However, the broader markets outperformed benchmarks, trading flat.

Cipla topped the selling list, falling 4 percent on fears that Esomeprazole sales may slow down from Q2FY16 onwards. However, its Q1 numbers were strong, led by Esomeprazole sales.

Shares of HDFC declined 1.7 percent. The housing finance company said it would sell 17.95 crore of HDFC Life to Standard Life at Rs 95/share (9 percent equity). Post stake sale in HDFC Life, company's holding in HDFC Life will be 61.65 percent and Standard Life will hold 35 percent in HDFC Life.

Infosys, Reliance Industries, ONGC, Tata Motors and Axis Bank dropped 1-3 percent while PSU banks continued to see buying interest after the government launche revamp plan 'Indradhanush' for PSU banks.

9:55 am FII view: Bharat Iyer, JP Morgan said, "Our preferred stance to participate in a potential economic recovery remains in high quality financials with a strong capital and liability franchise and manufacturing sectors with high operating and low financial leverage like commercial vehicles, cement and select capital goods. We would avoid the beta chase."

Iyer said the brokerage is underweight on consumer discretionary, particularly with a rural bias. "We remain positive on IT services and healthcare," he added.

9:40 am Buzzing: Shares of Birla Corporation surged 12.5 percent intraday as the company is going to acquire Jojobera and Sonadih cement businesses from Lafarge India.

The company either directly or through its wholly owned subsidiary, shall acquire both cement businesses for an enterprise values of Rs 5000 crore.

The transaction would be funded through existing cash reserve and incremental debt, and is subject to approval of Competition Commission of India and other relevant regulatory approvals, as per BSE release.

This acquisition includes integrated cement unit in Sonadih, a cement grinding unit in Jojobera, along with Concreto and PSC brands and a excellent management team. It has cement capacity of approximately 5.15 million tonnes per annum (mtpa), with mineral rights over adequate reserves of limestone.

9:23 am Market slips: The Sensex is down 301.25 points or 1 percent at 27766.06 and the Nifty is down 79.95 points or 0.9 percent at 8438.60. About 622 shares have advanced, 825 shares declined, and 80 shares are unchanged.

Cipla loses 4 percent while Vedanta and Hindalco are down 3 percent. Tata Motors and ONGC are among major losers in the Sensex.

The market has opened flat. The Sensex is down 9.19 points at 28058.12 and the Nifty is up 11.40 points at 8529.95. About 451 shares have advanced, 216 shares declined, and 78 shares are unchanged.

Hindalco, SBI, Sun Pharma, Wipro and Tata Steel are top gainers in the Sensex. Among the losers are Dr Reddy's Labs, Tata Motors, Hero, L&T and ONGC.

The Indian rupee slipped in the early trade. It has opened lower by 10 paise at 65.10 per dollar versus 65 Friday.

Agam Gupta of StanChart Bank said, "The dollar will probably be stronger against INR due to the trade data which was released on Friday after market close. There should be interest from local government banks to sell USD on upticks to 65.20-65.30/dollar area."