Nifty ends below 8600; Tata Motors up 4%, Reliance gains 1%

3:30 pm Market closing: The market ended lower on first day of September F&O expiry.  The Sensex was down 53.66 points or 0.2 percent at 27782.25 and the Nifty slipped 19.65 points or 0.2 percent at 8572.55. About 1069 shares have advanced, 1557 shares declined, and 227 shares are unchanged.

Tata Motors, Asian Paints, Reliance, GAIL and Cipla were gainers while Wipro, Adani Ports, L&T, BHEL and Infosys were losers in the Sensex.

2:55 pm Interview: Sajjan Jindal, Chairman, JSW Group in an interview with CNBC-TV18 spoke about the outlook for the steel, mining and power industry.

He said the company is looking at buying power assets only in India as of now and is not looking at Tata Steel UK assets.

With regards to iron ore imports, he said fortunately now enough capacity is being developed in the country and so, the country we will import very little iron ore, in fact in time they would be net exporter of iron ore.

On the steel front, he said the steel industry is standing on its feet now and the impact of anti-dumping duty may come in the long-term. Short-term too there are signs of imports slowing down, he said.

2:45 pm Poll: India's manufacturing sector may witness higher growth during the July-September quarter buoyed by improvement in export prospects and domestic demand, even as the hiring outlook remains subdued, according to a survey.

The latest quarterly survey by Ficci on manufacturing outlook for the second quarter also finds that the interest rate paid by the manufacturers still remains high and sticky.

Uncertain economic environment, unfavourable market conditions, competition from imports, delayed clearances, inadequate infrastructure (especially availability of power) and cost escalation are some of the major constraints affecting the expansion plans of the industry, the poll noted.

2:35 pm Welspun appoints E&Y:  Welspun India today said it has appointed consultancy firm Ernst & Young to look into alleged lapses in its products supply after the US-based Target Corp terminated contract with the textiles maker.

"The company has appointed Ernst & Young LLP to review our supply chain systems and processes," Welspun India said in a BSE filing.

Yesterday, Welspun India had made announcement about appointing an external auditor 'one of the Big Four' to look into alleged lapses in its products supplied to clients.

"We are in the process of appointing an external independent 'Big Four Auditor', to audit all of our supply systems and processes to understand the root cause. The audit will give us clarity on a number of questions, including where and how the issue occurred and what steps we will need to take to tighten our processes," Welspun India Managing Director Rajesh Mandawewala told analysts in a conference call.

2:20 pm Coal dispatch: Dispatch of coal by Coal India to the power sector went up 1.1 percent to 131.1 million tonnes (MT) in the April-July period of this fiscal even as the PSU workers announced to go on a nationwide day-long strike next week.

The dispatch by Coal India (CIL) in the corresponding period of last fiscal was 129.6 MT, according to official data.

Last month, the figure stood at 31.4 MT, up 1.7 percent compared to the same month a year ago.

However, the dispatch of fossil fuel by Singareni Collieries Company (SCCL) during April-July period declined by 1.6 percent to 15.150 MT, over 15.390 MT in the same period of previous fiscal, the data said.

2:00 pm Market Check
The market remained under pressure amid consolidation in afternoon trade, tracking further fall in Europe and weak crude oil prices. Investors waited for the speech by Federal Reserve Chief Janet Yellen at Jackson Hole tonight that may indicate about further rate hike in the US.

The 30-share BSE Sensex was down 105.79 points at 27730.12 and the 50-share NSE Nifty fell 33.75 points to 8558.45. The market breadth was also negative as about 1558 shares declined against 938 advancing shares on the BSE.

Oil prices fell after the Saudi energy minister tempered expectations of strong market intervention by producers during talks next month, and as analysts pointed to an ongoing supply overhang that was weighing on markets. International benchmark Brent crude oil prices were trading at USD 49.22 per barrel, down 0.91 percent from their previous close. US West Texas Intermediate (WTI) crude was down 0.4 percent at USD 47.14 a barrel.

1:30 pm IPO? Vodafone Group Plc's Indian unit is likely to delay filing the draft prospectus for its up to USD 3 billion initial public offering (IPO) until towards the end of the year, IFR reported on Thursday The filing, previously expected in September or October, is being delayed because Vodafone wants to wait for new rival Reliance Industries to launch its telecoms services, IFR, a Thomson Reuters publication, cited a source as saying. A Vodafone Group spokesman declined to comment when contacted by Reuters.

The market is under pressure. The Sensex is down 83.17 points or 0.3 percent at 27752.74 and the Nifty down 25.60 points or 0.3 percent at 8566.60. About 1010 shares have advanced, 1457 shares declined, and 197 shares are unchanged.

GAIL, Tata Motors, Reliance, Cipla and M&M are top gainers while Wipro, L&T, Adani Ports, Infosys and SBI are top losers in the Sensex.

Tracking a firm trend overseas, gold prices moved up by 0.22 percent to Rs 31,197 per 10 gram in futures trade today as traders indulged in creating fresh positions.

At the Multi Commodity Exchange, gold for delivery in far-month December rose by Rs 67, or 0.22 percent, to Rs 31,197 per 10 gram in a business turnover of 55 lots.

Likewise, the yellow metal for delivery in October traded higher by Rs 53, or 0.17 percent, to Rs 30,981 per 10 gram in 379 lots.

Analysts attributed the rise in gold futures to fresh positions created by participants in tandem with a firm trend overseas.

Globally, gold rose 0.15 percent to USD 1,323.60 an ounce in Singapore.

12:59 pm Market Update: Equity benchmarks remained under pressure as the Sensex was down 77.86 points at 27758.05 and the Nifty down 22.65 points at 8569.55.

About 1422 shares declined against 963 advancing shares on the BSE.

12:40 pm Europe opens: European stocks opened slightly higher as investors stay sidelined amid continued debate among Federal Reserve officials over the timing of a US rate hike and ahead of a speech by the central bank's chair Janet Yellen later in the day.

The pan-European STOXX 600 was up 0.16 percent.

Caution has dominated markets in the past few days with a lack of earnings and economic data to drive markets. Instead, investors have been focusing on an upcoming speech by Yellen at Jackson Hole, the annual gathering of central bankers, hoping there might be some hints towards when the next US rate hike might come.

12:35 pm Edelweiss on Mahanagar Gas: The Mumbai Metro Rail Corporation has inked agreements with 4 civil contractors, including J Kumar Infra, for 6 project packages. This will enable the contractors to claim mobilisation advances and start work post the monsoon season, says Edelweiss.

This project comprises around 50 percent of the company's order book. The brokerage house believes J Kumar is the best play on the burgeoning metro rail opportunity in India.

Edelweiss has maintained buy rating on the stock with a target price of Rs 400.

12:20 pm Market Outlook: The sharp rally in the market does cause jitters, given the state of expensive valuations, especially in the midcap space, but overall, markets are moving in the right direction, says Vikas Khemani, President and CEO of Edelweiss Securities.

In an interview with CNBC-TV18, he said macroeconomic factors, earnings, bond markets, etc were are all improving and that structural reforms were on track.

In the short term the market may look expensive and go through a time or value correction, but the overall direction seems to be positive, he said.

With reforms introduced by RBI for corporate bonds, banks will now lend less to the industry and corporates will have to borrow more from the market.

12:00 pm Market Check
The market lost its early gains amid volatility with the Nifty trading below 8600 level, dragged by infra, banking & financials and technology stocks. Asia traded mixed, with traders eyeing a speech from US Federal Reserve chair Janet Yellen later Friday for clues on the direction of monetary policy.

The Sensex was down 62.86 points at 27773.05 and the Nifty declined 18.60 points at 8573.60. About 1309 shares fell against 981 advancing shares on the BSE.

Reliance Industries, Tata Motors, GAIL and Cipla gained 1-3 percent while L&T, SBI, Wipro and ICICI Bank fell over a percent.

11:55 am Infosys: IT services provider Infosys is seeing some 'softness' in clients after Britain voted in June to leave the European Union, a top company executive said during an analyst meet on Friday.

Infosys will be in a better position by October to evaluate the impact of this on its earnings outlook for the current fiscal year ending March 31, 2017, Chief Financial Officer Ranganath D Mavinakere said.

"We want to give a more accurate picture on guidance after we execute Q2," he said, adding that he was confident growth in the second quarter would be better than the previous three months.

11:45 am Market outlook: The sharp rally in the market does cause jitters, given the state of expensive valuations, especially in the midcap space, but overall, markets are moving in the right direction, says Vikas Khemani, President and CEO of Edelweiss Securities. In an interview with CNBC-TV18, he said macroeconomic factors, earnings, bond markets, etc were are all improving and that structural reforms were on track. In the short term the market may look expensive and go through a time or value correction, but the overall direction seems to be positive, he said.

11:30 am Poll: Tata Motors is likely to see consolidated net profit at Rs 2856 crore in April-June quarter, up 3 percent from Rs 2769 crore in year-ago period. According to CNBC-TV18 poll, the auto major may see revenue growth of 5.6 percent at Rs 64400 crore from Rs 61019.5 crore in corresponding quarter last fiscal. During the quarter, its EBITDA may slip 0.8 percent at Rs 9037 crore versus Rs 9109 crore while operating profit margin may stand at 14 percent against 14.9 percent year-on-year. On a standalone basis, its net profit may slip to Rs 143 crore in Q1 from Rs 257.5 crore while revenue is likely to be at Rs 10004 crore against Rs 9296.9 crore in year-ago period. In Q1 EBITDA may stand at Rs 513 crore against Rs 346.1 crore and operating profit margin may come in at 5.1 percent versus 3.7 percent (YoY).

11:20 am Interview: Even as  Sequent Scientific is mainly focused on animal health active pharmaceutical ingredients, it is also looking to expand its human health business.

In an interview to CNBC-TV18, Manish Gupta, CEO of the company, said the company is focusing on scaling up its capabilities across all segments over the last two years.

The company has nine manufacturing facilities in India, Turkey, Spain and Brazil.

Speaking about revenue growth and profitability, he said, "We expect to close the current year FY17 upwards of Rs 1,000 crore as revenues".

11:00 am Market Check
Equity benchmarks continued to consolidate with the Nifty hovering around 8600 level as investors maintained caution ahead of speech by the Federal Reserve Chief Janet Yellen at Jackson Hole tonight. The important point to watch out for in speech would be the indication of further rate hike.

The 30-share BSE Sensex was down 24.32 points at 27811.59 and the 50-share NSE Nifty fell 8.50 points to 8583.70. About 1187 shares declined against 992 advancing shares on the BSE.

Biocon, Welspun India, Vakrangee, Reliance Capital, Tata Motors, SBI and Axis Bank were the most active shares on exchanges.

10:40 am FII View: A rate hike from the US Federal Reserve could spark a sell-off in Asian stocks and trigger capital outflows in China, according to Sam Le Cornu, co-head of Asian listed equities & head of investments at Macquarie Investment Management.

Markets have been fixated on monetary policy moves by central banks of late, with speculation of an interest rate hike by the Fed next month rising after some policymakers suggested the world's largest economy was picking up pace. A possible increase by the Fed will also come at a time when other major central banks such as the Bank of Japan and the European Central Bank are still biased to provide more stimulus.

"Unfortunately, sentiment has a huge amount of influence on the markets. If there is a Fed rate rise, there will implications for equities across Asia," Le Cornu said

10:20 am Interview: Eyeing opportunity in the contract logistics space post-GST, Allcargo Logistics today said it has demerged its supply chain management and freight forwarding businesses to form a joint venture with chemical warehousing company CCI.

The JV called Avashya CCI Logistics, is targeting a revenue of Rs 1,000 crore by 2020 from the present Rs 450 crore, Allcargo Chairman Shashikiran Shetty said.

In 2015-16, the contract logistics and freight forwarding verticals contributed around Rs 300 crore to the company's total revenue of Rs 5,800 crore, Shetty said.

He said policy moves, especially the progress on the Goods and Services Tax, increase the opportunity for offering integrated end-to-end logistics solutions to companies across sectors for which the JV has been formed.

The publicly traded Allcargo will be owning 62 percent in the joint venture, with the rest will be held by the privately-owned CCI's promoters, he said.

10:00 am Market Check
After a firm opening of September Futures and Options (F&O) series, the market seems to be in resting mood now. The Sensex is up 15.81 points at 27851.72, and the Nifty up 4.10 points at 8596.30. About 1044 shares have advanced, 767 shares declined, and 107 shares are unchanged.

Tata Motors, Cipla, M&M, Hero MotoCorp and NTPC are gainers while Adani Ports, Wipro, L&T, Asian Paints and ONGC are losers in the Sensex.

Oil prices dipped in early trading after the Saudi energy minister tempered expectations of strong market intervention by producers during talks next month.

Members of the Organization of Petroleum Exporting Countries (OPEC) will meet on the sidelines of the International Energy Forum (IEF), which groups producers and consumers, in Algeria from Sept. 26-28.

9:55 am Interview: The European Medicines Agency (EMA) has accepted to review Mylan and Biocon's application for a biosimilar called Trastuzumab, used for certain breast and gastric cancers.

Terming it as 'milestone' for the company, Biocon's CMD Kiran Mazumdar Shaw says that marketing approval for the drug is likely to come in next 12-18 months. The addressable market for the drug is USD 7 billion, which opens up a huge opportunity for Biocon and Mylan both.

Biocon, which had guided for 3-4 biosimilar approvals in FY17, has filed for an approval already and plans to file two more in second half of the current fiscal, Shaw says.

9:45 am Outlook on Asian market: A rate hike from the US Federal Reserve could spark a sell-off in Asian stocks and trigger capital outflows in China, according to Sam Le Cornu, co-head of Asian listed equities & head of investments at Macquarie Investment Management.
Markets have been fixated on monetary policy moves by central banks of late, with speculation of an interest rate hike by the Fed next month rising after some policymakers suggested the world's largest economy was picking up pace. A possible increase by the Fed will also come at a time when other major central banks such as the Bank of Japan and the European Central Bank are still biased to provide more stimulus.

"Unfortunately, sentiment has a huge amount of influence on the markets. If there is a Fed rate rise, there will implications for equities across Asia," Le Cornu said

9:37 am FII View: Sakthi Siva of Credit Suisse says net foreign buying in Emerging Asia ex-China & ex-Malaysia had slowed from an unsustainably high pace of USD 1 billion a day from mid to late July to USD 300 million then. The pace has slowed further to average just USD 18 million over the past four days, she adds. The key question for investors is whether this pause is one that refreshes or is signalling something more, according to her.

With MSCI Asia ex-Japan up 25 percent from the lows in January, she suggests buying the dips rather than chasing the rallies.

9:15 am Market Check
The 50-share NSE Nifty started off September series on a positive note, holding the 8600 level on support from banks and Tata Group stocks. Investors waited for speech by Federal Reserve chief Janet Yellen at Jackson Hole tonight.

The index was up 22.15 points at 8614.35 and the 30-share BSE Sensex gained 65.57 points at 27901.48.

Tata Motors was the biggest gainer, up 1.5 percent ahead of quarterly earnings later today.

Lupin gained over a percent on approval from the US health regulator for Paroxetine extended release tablets.

The Indian rupee opened marginally higher at 67.02 per dollar versus previous close of 67.05.

Ashutosh Khajuria of Federal Bank, "We see no major trigger for the currency movement. The Fed has maintained the status quo in yesterday's speech. We expect the rupee to remain rangebound."

Dollar slipped marginally as some investors squared positions before the annual global central bankers' gathering in Jackson Hole, wyoming, where Federal Reserve Chair Janet Yellen may offer new guidance on US monetary policy.

Asian markets were mixed as investors maintained caution ahead of speech by Federal Reserve chief.