Sensex closes flat amid fears of Q1 earnings downgrade

The BSE Sensex and NSE Nifty closed flat for the fifth consecutive session on Friday amid fears of earnings downgrade. Even rate cut by European Central Bank (ECB) yesterday failed to drive global markets higher as investors seem more worried about sluggish economic growth.

The BSE benchmark fell 17.55 points to close at 17521.12 and the NSE benchmark declined 10.35 points to 5,316.95.

Jyotivardhan Jaipuria, Head of Research, BofA Merrill Lynch feels earnings won't be very good for the Sensex companies. "Excluding a few aberrations, earnings growth will be under 10%," he says.

"We will probably see analysts cutting their earnings forecast by 2-3% for the Sensex companies. For the first time we will see sales growth slowing. Our forecast is for this quarter sales growth at 16% that will be the slowest in ten quarters."

Major companies like HDFC, HDFC Bank, Infosys and TCS will kick start the earnings season by announcing their first quarter earnings numbers for financial year 2012-13.
He believes the market will continue to grapple with the same macro issues in the second half of the year as well. "I think markets will keep battling and seesawing between the benefit of lower rates versus growth still not picking up," he told.

At 14:53 hours IST: Sensex falls 50 pts; SBI, ICICI, Tata Motors most active

Indian equity benchmarks continued to trade lower with marginal losses due to fall in Infosys and Reliance Industries. Larsen & Toubro, Bharti Airtel and State Bank of India too were down. However, the buying in ITC, HUL, ICICI Bank and HDFC has limited the downside.

The BSE benchmark was down 34.09 points at 17504.58 and the NSE benchmark declined 16.40 points to 5,310.90. The Indian rupee too retained its fall, depreciating by 53 paise to 55.47 against the US dollar.

Shares of Jindal Steel extended losses, falling 3.3% while Sterlite Industries, Hindalco and Tata Steel dropped 1-2%.

Engineering and construction major by sales Larsen & Toubro tanked 1.7% and top telecom operator Bharti Airtel fell 1%.

Oil & gas producers Reliance Industries and ONGC went down 0.7% each. Country's second largest software services exporter Infosys lost 1.4%.

Top lender SBI was down over 0.5% whereas its rival ICICI Bank gained over 1%.

FMCG majors ITC and HUL rallied 1% each. Housing finance company HDFC, utility vehicle maker M&M, largest mining company Coal India and drug maker Cipla rose 1% each.

In the second line shares, KSK Energy Ventures, Jai Corp, MCX India, Himadri Chemicals and Eros International rallied 3.5-10% whereas MindTree (will report earnings next week), Edelweiss Financial, Info Edge, HOEC and Phoenix Mills slipped 3.5-5%.

State Bank of India, ICICI Bank, HDFC Bank, Tata Motors, HDFC, United Spirits and JSW Holdings were most active shares.

At 14:01 hours IST: Sensex, Nifty pare losses; banks, FMCG lead

The BSE Sensex and NSE Nifty pared losses led by buying interest in banks and FMCG stocks. European markets too recouped losses after initial fall; France's CAC, Germany's DAX and Britain's FTSE were flat.

The BSE benchmark rose 5 points to 17,543.56 while the NSE benchmark declined 3.55 points to 5,323.75.

Country's largest private sector lender ICICI Bank spiked over 1% while its rival HDFC Bank gained 0.8%. Top lender State Bank of India turned flat after recovery.

Housing finance company HDFC, and FMCG majors ITC and HUL moved up 1.3% each. Commercial vehicle maker Tata Motors and utility vehicle manufacturer Mahindra & Mahindra climbed 1%.

State-owned power equipment manufacturer BHEL went up 0.5% whereas engineering and construction major by sales Larsen & Toubro was down 1%.

Reliance Industries, India's most valued stock trimmed losses to 0.5% and top software services exporter TCS to 0.12% from 1% each.

Shares of Infosys, Wipro, Bharti Airtel, ONGC, Tata Steel and NTPC were down 0.5-1.5%.

At 12:43 hours IST: Sensex remains under pressure; JSPL, Sterlite top losers

The 30-share BSE Sensex continued to trade marginally lower due to weak global cues, even after central banks like European Central Bank and The People's Bank of China cut interest rates yesterday.

The BSE benchmark dropped 64.32 points to 17,474.35 and the NSE benchmark was down 25 points to 5,302.25. On the global front, France's CAC, Germany's DAX and Britain's FTSE opened marginally lower.

Engineering and construction major by sales Larsen & Toubro and country's second largest software services exporter Infosys were down 1.33% each.

Oil & gas producers Reliance Industries and ONGC slipped 0.7% and 1.3%, respectively. Top lender State Bank of India and software services exporter TCS lost 0.8% each.
Jindal Steel topped the selling list, falling 3% while Sterlite Industries, Tata Steel and Hindalco Industries tumbled 1-2.5%.

However, cigarette major ITC rose 0.66% and top commercial vehicle maker Tata Motors gained 0.8%.

Housing finance company HDFC and private sector lender HDFC Bank climbed 0.9% and 0.35%, respectively. FMCG company HUL surged 1.5%.

The Indian rupee went down by 57 paise to 55.51 against the US dollar. Euro was trading at 1.2369 against the US dollar, down 0.11% whereas Dollar Index rose 0.14% to 82.91.

NYMEX crude fell 1.26% to USD 86.11 a barrel and Brent crude declined 0.86% to USD 99.83 a barrel.

At 11:30 hours IST: Choppy Nifty trades lower; ITC, HDFC, Tata Motor outperform

The 30-share BSE Sensex and 50-share NSE Nifty were trading marginally lower since early trade due to weak Asian cues, even after a rate cut by European Central Bank and The People's Bank of China yesterday.

The BSE benchmark went down 66 points to 17,472.86 and the NSE benchmark was down 25.55 points to 5,301.75.

Country's largest software services exporters TCS, Infosys and Wipro declined 1-2% ahead of first quarter earnings of FY13 by majors TCS and Infosys scheduled for July 12.

Even volatility in the rupee was also a cause of concern for these stocks. Few days back, the rupee appreciated sharply from 57.15 a dollar to below 54 a dollar, but it started its depreciation again since yesterday. It fell by 48 paise to 55.42 against the US dollar.

Metal stocks like Sterlite Industries, Hindalco Industries, Tata Steel and Jindal Steel & Power tanked 1.5-3%.

Shares of Reliance Industries, Larsen & Toubro, ONGC and State Bank of India were down around 1%.

However, ITC, HUL, HDFC, HDFC Bank, Tata Motors, Mahindra & Mahindra and Cipla outperformed quite nicely, rising 0.6-1.6%.

The market breadth too turned negative; declining outnumbered advancing by 897 to 503 on the National Stock Exchange.

Despite a round of global central bank easing, the euro skidded and could soon test its lows of the year, after Europe's top banker painted a bleak picture of the region`s economy. Euro fell sharply below 1.24 a dollar.

The European Central Bank cut rates by a quarter point, as expected, and the Bank of England moved forward with more quantitative easing. In a surprise move, the People's Bank of China joined in Thursday, moving forward with surprise rate cuts at about the same time as the Bank of England news.

Yet, sentiment soured as ECB President Mario Draghi said euro-zone growth is weakening and there's materializing downside risks to growth.

Among Asian markets, Nikkei and Kospi were down around 1%. Straits Times, Kospi and Hang Seng were marginally lower while Shanghai turned higher.

At 10:08 hours IST: Sensex extends losses; Reliance, Infosys, L&T down 1%

The BSE Sensex has extended losses amid choppy trade due to somewhat profit booking. Technology, oil & gas, metals and infrastructure stocks were under pressure.

The BSE benchmark declined 92.25 points to 17,445.42 and the NSE benchmark slipped 32.7 points to 5,294.6. The Indian rupee too remained weak, falling by 53 paise to 55.47 against the US dollar.

Even along expected lines rate cut by European Central Bank (ECB) and a surprise rate cut by The People's Bank of China (PBoC) yesterday failed to cheers global markets because every market across the globe seems worried about growth in major parts (Europe and US) of the world. Asian markets like Shanghai, Hang Seng, Nikkei, Kospi, Taiwan Weighted and Straits Times fell 0.4-1%.

ECB has cut refinancing rate by 25 basis points to a record low of 0.75%. Even deposit and marginal lending rates were also cut by 25 bps. However, President of the ECB, Mario Draghi has noted that the downturn has become more widespread and demand remains weak. PBoC cut lending rates by 31 bps with 30% flexibility below reference rate and cut one-year deposit rate by 25 bps.

Back home, MET Department's statement too dented the sentiment saying monsoon rains are 49% below average in the week ended July 4.

Reliance Industries, India's most valued stock and engineering and construction major by sales Larsen & Toubro were down 1% each.

Country's largest software services exporters TCS, Infosys and Wipro moved down 0.75-1.7%. State-owned oil & gas producer ONGC slipped 1.15% and top lender State Bank of India was down 0.4%.

Among metals stocks, Jindal Steel, Tata Steel and Sterlite Industries plummeted 1.5-2.6%.

However, top commercial vehicle maker Tata Motors and utility vehicle manufacturer M&M gained 0.9% each. FMCG major HUL rose 0.9% too and housing finance company HDFC was up 0.4%.

In the second line shares, KSK Energy Ventures, Hindustan National Glass, Anant Raj Industries, Jain Irrigation and Tube Investment rallied 4-10% whereas Edelweiss Financial, MindTree, Delta Corp, Shoppers Stop and Trent fell 3-4%.

At 9:20 hours IST: Sensex starts on a cautious note; Rupee down to 55.5/$

Indian equity benchmarks opened flat with a negative bias on Friday, following marginally negative Asian cues. Asian markets were down due to growth concerns after disappointing economic data, even after central banks cut rates yesterday.

The BSE benchmark was down 39 points to 17,500 and the NSE benchmark fell 14.45 points to 5,312.85.

The Indian rupee depreciated further by 56 paise to 55.50 against the US dollar.

Among Asian markets, Shanghai, Hang Seng, Nikkei, Straits Times, Kospi and Taiwan Weighted were down 0.4-0.8% following a decline in US markets as markets looked worried about growth despite rate cut by central banks. European Central Bank cut refinancing rate by 25 bps to a record low of 0.75%. The People's Bank of China also throw a suprise by reducing lending rates by 31 bps with 30% flexibility below reference rate.

Back home, JSPL fell 2% as DowJoneswire reported that the company has suspended work at its Bolivia Iron Ore Mine.

JP Associates, L&T, Infosys, Wipro, ICICI Bank, ONGC, TCS, Reliance Industries, NTPC and SBI were under pressure.

However, Coal India, HUL, M&M, Tata Motors, ACC and Ambuja Cements gained in early trade.

The CNX Midcap Index was flat, but advancing shares outnumbered declining by 417 to 286 on the National Stock Exchange.

In the second line shares, Ballarpur Industries rose 2.5% as the company will transfer two paper units to its arm and list it overseas as per demands by FII shareholders.

India Cements went up 1.5% after promoter has increased stake in the company by 2.47% to 28.24%.

Lanco Infratech was up 0.6% after Mint reported that Morgan Stanley is in talks to buy stake in Lanco thermal assets.

South Indian Bank and Dhanlaxmi Bank were up 0.7-1.5%.

Kalindee Rail shot up nearly 6%. 3i Infotech gained 0.8%, rising for third consecutive session today.

However, Kingfisher Airlines fell over 1%.