Nifty ends below 8550, Sensex tanks 144 points; ICICI jumps 7%

3:30 pm Market closing: The market has ended lower on weak global markets. The Sensex is down 143.63 points or 0.5 percent at 27529.97, and the Nifty down 63 points or 0.7 percent at 8520.40. About 1307 shares have advanced, 1500 shares declined, and 172 shares are unchanged.

ICICI Bank, NTPC, HUL, ONGC and TCS were top gainers while M&M, Asain Paints, Bajaj Auto, Hero MotoCorp and Reliance were losers in the Sensex.

3:10 FII view: Jagdish Malkani, member of NSE believes the market is still on its bull run. ''Bull market is still alive and well,'' he told CNBC-TV18. Another 100 points could fall or add to the Nifty, but its trend has not changed yet.

Malkani believes that unless anything major happens globally, the market is likely to
continue its upward movement.

Prakash Gaba says that 8550-8580 is a psychological safe range. He advises shorting names like Hindalco, Bank of Baroda and Reliance Capital in the current scenario.

2:58 pm Pressure continues: Benchmark indices fell further in last hour of trade. The Sensex was down 163.32 points to 27510.28 and the Nifty declined 72.40 points to 8511.

2:40 pm Earnings: UltraTech Cement has registered a 31.5 percent growth year-on-year in standalone profit at Rs 601 crore for the quarter ended September 2016, driven by other income and operational performance despite degrowth in revenue and higher tax expenses.

Revenue declined 2.2 percent to Rs 6,195.7 crore during the quarter compared with Rs 6,338.2 crore in corresponding period of last fiscal.

Operating profit jumped 17.6 percent year-on-year to Rs 1,154.9 crore and margin expanded by 310 basis points to 18.6 percent in July-September quarter due to fall in freight & forwarding expenses (down 5.4 percent), power & fuel cost (down 17 percent) and raw material cost (down 8.5 percent).

2:30 pm Interview: After striking the deal to sell its oil refinery to Russia's Rosneft and partners for USD 12.9 billion, the debt-laden Essar Group has said it is not exiting the oil and gas business and the sale has helped to deleverage half of the Rs 88,000 crore debt at the holding company level.

Essar signed agreements on Saturday to sell 49 percent in the 20 million tons a year Vadinar refinery in Gujarat, the adjacent port and over 2,700 petrol pumps to world's largest listed oil company.

Netherlands-based Trafigura Group Pte, one of the world's biggest commodity trading companies, and Russian investment fund United Capital Partners split another 49 percent equity.

"We plan to utilise proceeds from the stake sale to deleverage the Group and pave the way for strategic consolidation and growth in other businesses. Deal will help Essar deleverage almost 50 percent of its Rs 88,000 crore debt and substantially reduce interest costs," Essar Group Director Prashant Ruia told PTI an interview here.

2:20 pm Anti-dumping duty: Government has initiated a dumping probe on imports of a chemical used in foam industry from three countries including China to guard domestic players from below-cost inbound shipments.

The investigation was started following a complaint from Gujarat Narmada Valley Fertilisers and Chemicals.

The Directorate General of Anti-Dumping and Allied Duties (DGAD), under the commerce ministry, has started the anti- dumping investigation concerning imports of "Toluene DiIsocyanate (TDI)" originating in or exported from China, Japan and Korea.

In a notification, DGAD has said that there is sufficient prima facie evidence that the normal value of the chemical in these countries is significantly higher than the ex-factory export price.

It indicates "prima facie, that the subject goods are being dumped into the Indian market by the exporters" from the three countries, it added.

2:00 pm Market Check: The selling pressure continued in afternoon trade with the Nifty struggling below 8550 level, weighed by index heavyweights HDFC, HDFC Bank, Reliance Industries, L&T.

The 30-share BSE Sensex slipped 111.62 points to 27561.98 and the 50-share NSE Nifty dropped 54.20 points to 8529.20. The market breadth also turned negative as about 1393 shares declined against 1297 advancing shares on the BSE.

The fall in European peers also hit market sentiment. European markets were lower as investors remained cautious ahead of earnings, key data and a European Central Bank (ECB) meeting later this week. France's CAC, Germany's DAX and Britain's FTSE were down 0.4-0.6 percent.

IOC, ICICI Bank, Force Motors, ITC, SBI, Infosys, Axis Bank and Nilkamal were the most active shares on exchanges.

1:45 pm Fund raising: Indian companies have raised close to Rs 24,000 crore by issuing non-convertible debentures (NCDs) in the first half of the current fiscal to meet their business needs.

In comparison, firms had mobilsed more than Rs 1,502 crore in the April-September period of the preceding financal year.

The funds have been raised for expansion plans, to support working capital requirements and other general corporate purposes.

According to the latest data with the Securities and Exchange Board of India (Sebi), companies have raised funds totalling Rs 23,901 crore through retail issuance of NCDs during April-September period of 2016-17.

1:30 pm International markets: Presidential elections in the US is a key issue and is the number one concern for equity markets across the globe, says Mark Matthews, Bank Julius Baer and Co. This and a possible US Federal Reserve rate hike are two issues that have also concerned Foreign Institutional Investors FIIs, leading to sell-offs in India. Although, Donald Trump's economic policies, which include higher infrastructure spending, would lead to higher US growth rate, the market does not like his policies on trade barriers and building walls on borders and other such rhetoric. The Indian market is big and liquid, there is not reason for money to move out of India, he says. He expects the Indian market to do well over the next 12 months. He is positive on the Chinese stocks as the Producer Price Index rose for the first time in four years. He also likes UK stocks due to the weaker pound.

The market is still in red with the Nifty below 8550. The 50-share is down 47.90 points or 0.6 percent at 8535.50 and the Sensex is down 95.20 points or 0.3 percent at 27578.40. About 1236 shares have advanced, 1387 shares declined, and 172 shares are unchanged.

ICICI Bank, NTPC, Coal India, Axis Bank and SBI are top gainers while M&M, Bharti, Hero, HDFC Bank and Asian Paints are losers in the Sensex.

European markets were lower in morning trade on Monday as investors remained cautious ahead of earnings, key data and a European Central Bank (ECB) meeting later this week.

The pan-European STOXX 600 was down 0.41 percent with all major bourses in negative territory. European stocks followed the cautious tone set in Asia as traders mull future policy decisions by major central banks. In a speech on Friday, Federal Reserve Chair Janet Yellen said policymakers might want to consider the benefits of a "high pressure economy" and let inflation continue to rise.

This helped the dollar rise against a basket of major currencies on Monday, touching its highest level since March before paring some gains, while the 30-year US Treasury yield hit a four-month high.

12:59 pm Market Update: Equity benchmarks extended fall in afternoon trade with the Sensex down 135.95 points at 27537.65 and the Nifty down 58.75 points at 8524.65.

12:35 pm Europe opens: European markets opened lower with the dollar holding firm near a seven-month high after comments from Federal Reserve Chair Janet Yellen, as investors remain cautious ahead of earnings, key data and a European Central Bank (ECB) meeting later this week.

The pan-European STOXX 600 was down 0.31 percent with all major bourses in negative territory.

European stocks followed the cautious tone set in Asia as traders mull future policy decisions by major central banks.

In a speech on Friday, Yellen said policymakers might want to consider the benefits of a "high pressure economy" and let inflation continue to rise.

12:15 pm Buzzing: Prozone Intu Properties shares were locked at 20 percent upper circuit after ace investor Radhakishan Damani picked up over a percent stake in the company.

Rakesh Jhunjhunwala's guru Radhakishan S Damani has bought 19.7 lakh equity shares (representing 1.29 percent stake) of the company during July-September quarter.

Rakesh Jhunjhunwala also held 2.06 percent stake in the Mumbai-based real estate development and leasing company, as per the latest shareholding pattern available on the exchange.

Big institutions like Acacia Partners, Cavendish Asset Management, Nailsfield etc have 8.37 percent shareholding in the company that currently has zero debt and cash of Rs 50-60 crore on its books.

As of March 2016, promoters and UK-based Intu Properties Plc held 33.46 percent and 32.38 percent stake in the company.

12:00 pm Market Check
Benchmark indices slipped into red in noon trade with the Nifty breaking 8550 level, dragged by HDFC group stocks. The broader markets also erased gains.

The 30-share BSE Sensex was down 52.88 points at 27620.72 and the 50-share NSE Nifty fell 35.45 points to 8547.95 while the market breadth remained positive. About 1355 shares advanced against 1138 declining shares on the BSE.

Sanjay Dutt of Quantum Securities said that the equities market could see much lows due to the recent sell-off trend in emerging markets and Nifty may see a 200-300 points fall.

HDFC Bank, HDFC, Asian Paints, Mahindra & Mahindra, Bharti Airtel, L&T and Adani Ports were down 1-2 percent whereas ICICI Bank remained top loser, up nearly 7 percent followed by Axis Bank, SBI, NTPC and HUL.

11:55 am Interview: The recently inked Rosneft-Essar Oil deal will help the latter pare its debt and help corporates that have direct exposure to the company. Essar is planning to reduce its group debt -- Rs 88,000 crore -- by more than 50 percent using the Rs 86,100 crore proceeds that it will receive in the all-cash deal. IDBI Bank, which has exposure to the company, says that corporates including the bank will have to look at how Essar plans to disburse the amount. ''They (Essar) will also use some of these funds for reducing their debt and if that happens, some relief will come for IDBI also surely,'' said Kishor Kharat, MD of IDBI Bank.

11:45 am Market outlook: IT giants TCS and Infosys both released their second quarter results last week and with context to the earnings results Infosys currently looks better than TCS as there is not much downside risk to it from here onwards, says Sanjay Dutt of Quantum Securities. In an interview with CNBC-TV18, he said that there is a lot of earnings uncertainty in the market the technical structure of the market seems weak at present. He said that the equities market could see much lows due to the recent sell-off trend in emerging markets and Nifty may see a 200-300 point fall.

11:30 am Buzzing: Prozone Intu Properties shares were locked at 20 percent upper circuit after ace investor Radhakishan Damani picked up over a percent stake in the company. Radhakishan S Damani has bought 19.7 lakh equity shares (representing 1.29 percent stake) of the company during July-September quarter. Rakesh Jhunjhunwala also held 2.06 percent stake in the Mumbai-based real estate development company, as per the latest shareholding pattern available on the exchange. Big institutions like Acacia Partners, Cavendish Asset Management, Nailsfield etc have 8.37 percent shareholding in the company that currently has zero debt and cash of Rs 50-60 crore on its books.

The market is completely flat though bank heavyweights are leading support. The Sensex is up 46.20 points or 0.2 percent at 27719.80 and the Nifty is down 0.25 points at 8583.15. About 1524 shares have advanced, 812 shares declined, and 137 shares are unchanged.
 
Banks stocks like Axis Bank, ICICI and SBI are gaining on Essar oil deal. Essar Oil deal may directly benefit ICICI Bank's exposure. ICICI's 'watchlist loans' portfolio stands at around Rs 38723 crore.

ICICI Bank is up 6 percent, Axis Bank, SBI, NTPC and Tata Steel are top gainers in the Sensex. Bharti, Asian Paints, M&M, HDFC Bank and Bajaj Auto are losers in the Sensex.

Neelkanth Mishra of Credit Suisse says while the broader Indian market hasn't moved much in the last two months, it has continued to outperform global equities marginally.

According to him, September 2016 results are likely to be weak, and the pace of cuts may pick up. Mishra says add global volatility, and broader markets may stay rangebound till signs of a broad-based economic pick-up become visible.

He says he expects indicators to show a pick-up by CY16-end, but GST start in FY18 could cause disruption for a few quarters, affecting earnings.

Mishra stays cautious and watchful on broader markets for now.

10:55 am Market Update: Equity benchmarks remained volatile with the Nifty hovering around 8575.

The Sensex was up 30.10 points at 27703.70 and the Nifty fell 6 points to 8577.40. About 1486 shares advanced against 821 declining shares on the BSE.

10:38 am Buzzing: Granules India shares gained 4.7 percent intraday after the US health regulator completed inspection of company's Hyderabad-based plant.

"Gagillapur facility located at Hyderabad, Telangana, India has successfully completed US FDA inspection without any observations," the pharma company said in its filing.

This facility manufactures finished dosages and pharmaceutical formulation intermediates.

Meanwhile, Granules says on October 25, it will announce its un-audited financial results for the second quarter ended September 30, 2016 and the payment of second interim dividend for the FY17, if any.

10:18 am FII View: Neelkanth Mishra of Credit Suisse says while the broader Indian market hasn't moved much in the last two months, it has continued to outperform global equities marginally.

The outperformance is 8.8 percent in 2016 so far, helped by USD-INR stability despite strong Dollar index.

According to him, September 2016 results are likely to be weak, and the pace of cuts may pick up. Mishra says add global volatility, and broader markets may stay rangebound till signs of a broad-based economic pick-up become visible.

He says he expects indicators to show a pick-up by CY16-end, but GST start in FY18 could cause disruption for a few quarters, affecting earnings.

Mishra stays cautious and watchful on broader markets for now.

10:00 am Market Check
Equity benchmarks remained rangebound after over a percent loss in last week while the broader markets continued to outperform.

The 30-share BSE Sensex was up 53.20 points at 27726.80 and the 50-share NSE Nifty rose 2.45 points to 8585.85. The BSE Midcap and Smallcap indices gained 0.4 percent each on positive breadth.

About two shares advanced for every share falling on the exchange.

ICICI Bank extended rally to 5.5 percent on hopes of repayment of loan from Essar Oil. The deal with Russia's Rosneft will help Essar substantially reduce interest costs and debt.

Essar Group finally signed an agreement on Saturday to sell its Gujarat-based refining company along with its Vadinar Port to Russia's Rosneft and a consortium led by Trafigura and United Capital Partners (UCP). The Russian investors will acquire 98 percent in Essar Oil and have paid Rs 72,800 crore for the company's refining and retail assets, and Rs 13,300 crore for the Vadinar Port.

9:55 am SBI on Essar deal:  Speaking to CNBC-TV18, State Bank of India's Chairman Arundhati Bhattacharya said that the Essar deal will get the group's debt to move to another organisation and believed it was a good deal with Rosneft. ''I am hoping it will help Essar Group to bring down leverage and stress they have in other accounts.''

State Bank of India (SBI) has proposed to launch a joint venture with Canadian company Brookfield Asset Management. Brookfield has agreed to commit Rs 7,000 crore to buy distressed assets. India's largest lender will contribute up to 5 percent of the total investments made by the fund.

Bhattacharya said that Brookfield is still looking for deals, adding that we need to do much more to ease business.

9:45 am FPIs pull out money: Foreign investors have pulled out nearly Rs 6,000 crore from the Indian debt markets in the first two weeks of this month, after pumping in a staggering amount in September.

However, Foreign Portfolio Investors (FPIs) have pumped in just Rs 180 crore in the stock markets during the period under review.

"The recent rate cut by RBI is one of the factors for the outflow. With downward pressure on bond yields, debt does not seem attractive," SAS Online Chief Operating Officer (COO) Siddhant Jain said.

9:30 am Q2 Poll: Net profit of UltraTech Cement may rise 40 percent to Rs Rs 550 crore in July-September quarter from Rs 393.9 crore in corresponding quarter last fiscal. According to CNBC-TV18 poll, the cement major's total income, however, may slip 2.4 percent at Rs 5545 crore compared to Rs 5682 crore in year-ago period. During the period, its operating profit may climb 12 percent at Rs 1110 crore versus Rs 989 crore while operating profit margin may stand at 20 percent against 17.4 percent.

The market opened higher Monday but soon run out of breath. After touching 8600 briefly, the Nifty is down 1.25 points at 8582.15 and the Sensex is up 15.52 points at 27689.12.

ICICI Bank, NTPC, Infosys, SBI and GAIL are top gainers while Reliance, Bajaj Auto, TCS and HDFC are losers in the Sensex.

The Indian rupee opened lower by 10 paise at 66.80 per dollar versus 66.70 Friday.

Pramit Brahmbhatt of Veracity said, "Due to global pressure and constant FII outflow, we expect the rupee to depreciate for the day. The trading range for the spot USD-INR pair is seen between 66.60-67/dollar today."

The dollar on Friday posted its best weekly performance in more than seven months after strong US retail sales and producer prices data for September reinforced expectations the Federal Reserve would raise interest rates in December.

Asian shares dipped while the dollar held firm near seven-month high against a basket of major currencies after comments from Federal Reserve Chair Janet Yellen boosted long-dated US bond yields.

MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.2 percent in early trade while Japan's Nikkei rose 0.2 percent.

The big trigger this week will be the final US presidential debate on Wednesday. According to a New Wall Street journal/NBC News poll - Hillary Clinton is consolidating a substantial lead over Donald Trump less than a month before Election Day, picking up support from women and swing voters. Heading into the final presidential debate in Las Vegas on Wednesday, Hillary Clinton led trump by 11 percentage points among likely voters - a big jump from the six-point edge she held in mid-September.

Crude oil prices fell on Friday as a stronger dollar weighed on the market and an industry report showed US oil drillers continue to ramp up activity with prices holding above USD 50 a barrel.