Sensex falls, Nifty ends at 8153 after Fed move; Axis Bank up 2%

3:30 pm Market Closing: Equity benchmarks closed lower amid consolidation after the Federal Reserve announced rate hike of 25 basis points, dragged by pharma, FMCG and index heavyweights HDFC, HDFC Bank, Infosys and Reliance Industries.

The 30-share BSE Sensex was down 83.77 points at 26519.07 and the 50-share NSE Nifty fell 28.85 points to 8153.60.

3:21 pm Gold falls: Gold prices dropped to their lowest in over 10 months, with the dollar surging after the United States raised interest rates for the first time in a year and signaled further hikes for 2017.

US gold futures declined 2.10 percent to USD 1,139.30 per ounce.

3:08 pm I-T raid: On a trail of a jeweller who allegedly sold bullion worth Rs 600 crore, the Income Tax Department today unearthed Rs 60 crore from the accounts of 20 shell companies in a raid at an Axis bank branch in sector 51 here.

A team of the department today raided the Axis Bank branch here and searched the accounts.

In the search, Rs 60 crores were found in 20 accounts of as many shell companies, an official said, adding the IT team was scanning the records to trace the directors of these companies.

An IT team had earlier found that a jeweller here had sold gold bricks worth Rs 600 crore after demonetisation and has accounts in the same branch of the bank.

The jeweller's name has not been disclosed by the officials yet.

2:59 pm Market Update: Equity benchmarks remained volatile as the Sensex was down only 0.09 points at 26602.75 and the Nifty declined 8 points to 8174.45.

The market breadth was positive as about 1328 shares advanced against  1220 declining shares on the BSE.

2:52 pm Europe mixed: European bourses were mixed after the US Federal Reserve announced a 25 basis point rate increase and opened the door to three hikes next year.

France's CAC and Germany's DAX gained half a percent while Britain's FTSE fell 0.3 percent.

2:42 pm Stake sale: Private equity firm KKR alongwith CPPIB are likely to submit a formal bid to buy Bharti Infratel next week, sources say. The two companies are the only bidders after Brookfield's exclusivity ended.

The companies are looking to acquire 51 percent stake in the company. The deal is expected to value Bharti Infratel at Rs 70,000 crore.

CNBC-TV18's Nisha Poddar, quoting sources, said that KKR and CPPIBwill start due diligence process once the bid is accepted by Bharti.

2:30 pm HSBC on inflation: The Reserve Bank is expected to meet its target 'comfortably' as CPI inflation is likely to remain well below 5 percent over the first half of 2017, an HSBC report says.

According to the global financial services major, food prices have remained low over the first 10 days of December and it is getting increasingly likely that the RBI will meet its '5 percent by March' CPI target comfortably.

"We expect CPI inflation to remain well below 5 percent over the first half of 2017," HSBC said in a research note.

Retail inflation fell to a two-year low of 3.63 percent in November following the Centre's demonetisation drive that led to lower consumer spending on various food items including vegetables.

2:15 pm New bike launch: Bajaj Auto today launched its latest sports bike Dominar 400 priced up to Rs 1.5 lakh (ex-showroom Delhi) as it looks to challenge segment leader Royal Enfield in the Rs 1-2 lakh category.

The Dominar 400, powered by a 373cc engine will be available with ABS and disc brake versions which are priced at Rs 1.5 lakh and Rs 1.36 lakh, respectively.

"The Dominar is the best and biggest bike ever from our stable and we are entering a price segment of Rs 1-2 lakh which has a leader (Royal Enfield) with 80 percent market share," Bajaj Auto Managing Director Rajiv Bajaj told reporters here.

Spelling out ambitious targets for the new model, he said, "We are targeting about 20 percent of the segment and if achieve that the Dominar will be a USD 1 billion brand in the next 12-18 months."

2:00 pm Market Check
Equity benchmarks continued to consolidate in afternoon trade with the Nifty gyrating in a range of 8170-8200 levels, after the Federal Reserve move was on expected lines, though the outlook on further rate hikes was hawkish.

The 30-share BSE Sensex was up 22.69 points at 26625.53 and the 50-share NSE Nifty gained 2.70 points at 8185.15 while the broader markets gained strength again on positive breadth.

The BSE Midcap and Smallcap indices were up 0.2-0.3 percent as about 1345 shares advanced against 1161 declining shares on the exchange.

JSW Energy, MRPL, Cummins, Tata Global and Adani Power were top midcap gainers, up around 3 percent while NALCO was the biggest loser, down 7.5 percent followed by Castrol, 3M India, Bajaj Finserv and HPCL with around 2 percent loss.

Mandhana Industries gained for the third consecutive session, rising 20 percent after ace investor Rakesh Jhunjhunwala picked up over 12 percent stake in its retail business Mandhana Retail.

1:45 pm Exclusive: Private equity firm KKR alongwith CPPIB are likely to submit a formal bid to buy Bharti Infratel next week, sources say. The two companies are the only bidders after Brookfield's exclusivity ended.

The companies are looking to acquire 51 percent stake in the company. The deal is expected to value Bharti Infratel at Rs 70,000 crore.

CNBC-TV18's Nisha Poddar, quoting sources, said that KKR and CPPIBwill start due diligence process once the bid is accepted by Bharti.

KKR was unavailable to comment and Bharti Infratel declined to comment.

1:30 pm Market outlook: The action by the US Fed was expected and the word coming from them suggests a more dovish stance, says Nilesh Shah of Envision Capital. "The good news is that they have laid out a roadmap for the next three years," he added. In an interview with CNBC-TV18 he said that demonetisation as an event maybe over but its impact on quarterly earnings is yet to be seen. On the macroeconomic front he further said that uncertainty around the roll out of the goods and services tax (GST) bill has certain serious ground implications.

The market is flat with the Sensex up 33.09 points or 0.1 percent at 26635.93. The Nifty is up 5.65 points at 8188.10. About 1311 shares have advanced, 1138 shares declined, and 166 shares are unchanged.

TCS, Wipro, Axis Bank, M&M and Adani Ports are top gainers while Sun Pharma, Tata Motors, NTPC, ITC and Bharti Airtel are losers in the Sensex.

The interest rate hike by the Federal Reserve reflects a strengthening US economy that will benefit emerging market economies but also make them vulnerable to volatile capital flows, Moody's Investors Service said today.

"A resurgence of heightened cross-border capital flow volatility in response to the Fed's tightening could have negative spillovers for those with large external funding needs, high leverage, macroeconomic imbalances, or uncertainties around politics and policies," it said.

The interest rate hike reflects a strengthening US economy that should continue to expand through 2018 and emerging markets exporters will benefit if US growth translates into higher import demand.

12:58 pm Market Update: Equity benchmarks remained volatile due to lack of domestic as well as global cues after Federal Reserve meet.

The 30-share BSE Sensex declined 10.89 points to 26591.95 and the Nifty slipped 5.60 points to 8176.85.

About 1291 shares advanced against 1117 declining shares on the BSE.

12:45 pm Buzzing: IT company Sonata Software shares climbed 8 percent intraday Thursday after the company received patent from the US for its unified enterprise mobility platform Halosys for innovation on rule based notifications.

The patent was granted for a key technology innovation in the Halosys platform that enables users to be notified across web, SMS, email and in-app push notifications based on events matching a pre-configured set of filters including the user's location, time of day, along with the date from the event's object graph.

Halosys is a unified enterprise mobility platform that enables enterprises to build and manage a portfolio of mobile business applications, leveraging existing enterprise systems and data, from a single mobility technology platform.

Sonata had acquired Halosys head quartered in California in August 2015.

12:31 pm FIIs outflow: Indian capital markets seem to be losing their 'safe haven' status among foreign portfolio investors as they appear headed for nearly USD 2-billion pullout of the so-called 'hot money' 2016, making it the worst period in last eight years in terms of foreign investments.

Surprisingly, it is the debt instruments that are taking the biggest hit, after remaining a preferred investment avenue for foreign funds in recent years, even as equities continue to attract net inflows but not enough to compensate the huge outflows from the bond market during the year passing by.

Experts believe that any respite from such a sell-off is likely only in the second half of the new year 2017.

The net outflow by FPIs in the debt market is already more than USD 6.2 billion (nearly Rs 43,000 crore) this year with a few days of trading left, which far exceeds the net inflow of less than Rs 30,000 crore (USD 4.3 billion) into the equity market.

12:15 pm Earnings: Infrastructure company IVRCL today reported widening of its net loss to Rs 354.47 crore during the second quarter ended September 30, mainly due to lower income from operations.

The Hyderabad-based construction company had posted a net loss of Rs 306.54 crore in the year-ago period.

Its total income from operations fell by 21.77 percent during the quarter under review to Rs 501.45 crore from Rs 641 crore in the corresponding period of the previous fiscal.

12:00 pm Market Check
Equity benchmarks continued to consolidate after pricing in Federal Reserve event. FMCG, private banks, healthcare and telecom stocks were under pressure while technology stocks continued to support the market.

The 30-share BSE Sensex was down 57.01 points at 26545.83 and the 50-share NSE Nifty fell 14.75 points to 8167.70.

From here on, generally the market in December around Christmas remains rangebound due to lack of cues as well as FIIs support.

TCS and Infosys gained 1-2 percent whereas ITC, Tata Motors, Sun Pharma and Bharti Airtel fell 1-2 percent.

Asian markets were mostly lower as the dollar strengthened sharply and investors digest the Federal Reserve's first interest rate rise this year and its hawkish rate outlook for 2017.

The Fed's 25 basis points rate hike was widely anticipated by the market, but it was the projected trajectory of three rate hikes for 2017 that raised concerns.

11:30 am Market sell-off: The Sensex is down 19.32 points at 26583.52, and the Nifty down 6.35 points at 8176.10. About 1229 shares have advanced, 992 shares declined, and 124 shares are unchanged.

11:11;3-TCS, M&M, Bajaj Auto, Infosys and Adani Ports are top gainers while Sun Pharma, Tata Motors, ITC, NTPC and Bharti Airtel are losers in the Sensex.

The market is still holding early gains as the Sensex is up 78.61 points or 0.3 percent at 26681.45. The Nifty is up 25.85 points or 0.3 percent at 8208.30. About 1349 shares have advanced, 782 shares declined, and 109 shares are unchanged.

TCS, M&M, Infosys, Bajaj Auto and SBI are top gainers while Sun Pharma, Tata Motors, Bharti Airtel, NTPC and ITC are losers in the Sensex.

Gold prices fell sharply by Rs 295 to Rs 27,292 per 10 grams in futures trade today as participants cut their bets amid a weak global trend. Analysts attributed the fall in prices to weak trend in gold overseas where it traded at nearly 10-month low after the US Federal Reserve announced a hike in interest rates, boosting the dollar and reducing appeal of the precious metal.

Meanwhile, gold was trading 0.17 percent down at USD 1,140.70 an ounce in Singapore.

10:59 am Market holds gains: Equity benchmarks retained uptrend as the Sensex was up 84.15 points at 26686.99 and the Nifty up 26.85 points at 8209.30.

About 1344 shares advanced against 769 declining shares on the BSE.

10:56 am Oil Update: Oil prices stabilised today as a tighter market looms in 2017 due to planned output cuts led by OPEC and Russia, after sharp declines earlier following Wednesday's US interest rate increase that drove investors out of commodities.

International Brent crude oil futures were trading at USD 53.92 a barrel, up 1 cents from their last close. US West Texas Intermediate (WTI) crude oil futures were at USD 50.98 per barrel, virtually flat with their last settlement.

10:46 am Joint venture: Cipla Holding BV, a wholly owned subsidiary of Cipla in Netherlands, has entered into a joint venture agreement with Ahran Tejarat Company.

10:26 am Dollar strength likely?: Johanna Chua of Citi says investors are likely to persist with long USD strategies against emerging market currencies, reloading these trades in the instances where they prematurely took profits, and joining the consensus where they were previously skeptical or were merely waiting for better entry levels.

Although there remains considerable uncertainty about President-elect Trump's tax and trade policies, investors are likely to take comfort in the belief that that the majority of likely scenarios offer continued support to the dollar, he feels.

10:15 am Nomura on demonetisation: Even as the demonetisation drive is likely to cause short-term disruptions in the economy, the move is part of a foundation being laid out for more stable growth, Japanese brokerage Nomura has said.

Estimating growth to largely remain unchanged for the next 12 months, the Japanese financial services major said the GDP would stand at 7.1 percent in 2016 as well as 2017 and would pick up to 7.7 percent in 2018. The GDP stood at 7.2 percent in 2015.

"Bottom line for India in our view is that there will be short-term growth disruptions (due to currency replacement scheme). However, we think a foundation for more sustainable growth pick up is now being laid," Nomura India Chief Economist Sonal Varma told reporters here today.

"So, we are quite positive on the medium-term outlook," she added.

10:00 am Market Check
Equity benchmarks recouped early losses to trade higher with the Nifty holding 8200 level as Federal Reserve acted in line with expectations. Technology and banks stocks helped the market recover while FMCG and select pharma stocks were under pressure.

The 30-shares BSE Sensex was up 94.76 points at 26697.60 and the 50-share NSE Nifty gained 30.80 points at 8213.25 while the broader markets outperformed with the BSE Midcap and Smallcap indices rising 0.7 percent each on positive breadth.

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

TCS (up 2.7 percent) and Infosys (up 1.6 percent) were the leading contributors to Sensex's gains after rupee weakness against the US dollar as Federal Reserve hinted three hikes each in next three calendar years.

However, Sun Pharma was the biggest loser with nearly 2 percent loss followed by ITC, Tata Motors, Bharti Airtel, ONGC and ICICI Bank.

9:55 am Exclusive: Exclusive sources tell CNBC-TV18 that road and power companies are seeking an overhaul of existing tax reforms from the upcoming Budget.

Companies in road and power sector have met with finance ministry officials and key to their demands is the proposal to consolidate all taxes allowing them to be taxed as a single entity. Currently, special purpose vehicles under a company are treated as separate entities and taxed on profit.

Tax consolidation would allow companies to pay tax based in overall profit. The finance ministry has asked road and power companies to cite foreign examples of tax consolidation.

9:45 am Market outlook: Speaking to CNBC-TV18 Udayan Mukherjee said that the whole era of easy money driving momentum in emerging markets is over. Markets have been resetting themselves and last night with the Fed reserve raising rates that nail got driven home with more firmness, he said.

Mukherjee said we should resign ourselves to a lower trajectory of flows and lower momentum imparted from the global side to our markets.

It might not be an inclusive period of growth globallhy, he said, adding that this time is different in that you might have to make a distinction between developed world and the emerging world.

9:35 am Market rebounds: The market has rebound on technology stocks support.the Sensex is up 113.96 points or 0.4 percent at 26716.80, and the Nifty up 35.30 points or 0.4 percent at 8217.75. About 1026 shares have advanced, 501 shares declined, and 65 shares are unchanged.

IT index is up over 1 percent with top gainers like Infosys and TCS. Adani Ports, Infosys and GAIL are top gainers while Sun Pharma, Bharti Airtel, ITC, ICICI Bank and ONGC are losers in the Sensex.

The market has opened lower tracking global markets reacting to Federal Reserve's interest rate. The Sensex is down 165.32 points or 0.6 percent at 26437.52 and the Nifty is down 53.20 points or 0.6 percent at 8129.25. About 198 shares have advanced, 701 shares declined, and 28 shares are unchanged.

Tata Motors, ITC, Bharti Airtel, Sun Pharma and Hero MotoCorp are losers in the Sensex. Among gainers are Adani Ports, Cipla, Infosys and Dr Reddy's Labs.

Federal Reserve raised interest rates by a quarter point and signaled hikes could come next year at a faster pace than some expected. The Fed's decision to raise rates comes as President-elect Donald Trump, who will be sworn in next month, is seen cutting taxes and increasing spending on infrastructure.

Fed Chair Janet Yellen indicated the central bank was, at the margins, adapting to Trump, as some committee members began shifting fiscal policy assumptions to slightly faster growth and lower unemployment.

The Indian rupee has opened at 67.76 against the US dollar, down 33 paise from previous close after the Federal Reserve hiked interest rate and its commentary was more hawkish than expected.

Mohan Shenoi of Kotak Mahindra Bank says as expected, US Federal Reserve hiked Fed Funds rate by 25 bps overnight.

He sees the trading range between 67.70 and 68 against the US dollar for the day.

Asian shares and currencies struggled on Thursday. In Japan, the Nikkei 225 surged 0.91 percent, likely due to a weaker yen which is near an 11-month low against the dollar. Across the Korean strait, the Kospi opened down 0.31 percent.

US stocks fell the most in two months Energy stocks weighed the most on the S&P 500 after a sharp drop in US crude oil prices. The Fed's decision to raise rates comes as President-elect Donald Trump, who will be sworn in next month, is seen cutting taxes and increasing spending on infrastructure.

The Dow Jones industrial average fell 118.68 points, or 0.6 percent, to 19,792.53, the S&P 500 lost 18.44 points, or 0.81 percent, to 2,253.28 and the Nasdaq Composite dropped 27.16 points, or 0.5 percent, to 5,436.67.

Among asset classes, US crude prices fell nearly 4 percent, the most since mid-July, on renewed concerns about an oil glut sparked by rising U.S. crude inventories in storage.