Sensex, Nifty end 1% down; infra, banks, metals skid

3:30 pm Market closing:  After a lot of struggle, the market ended with major loses. The Nifty ended below 7850, down 85.50 points or 1 percent while the Sensex slipped 300.65 points or 1 percent at 25489.57.

Asian Paints, Tata Motors and NTPC were top gainers while Adani Ports, HUL, Tata Steel, HDFC and BHEL were losers in the Sensex.

3:00 pm Rajanomics: There is "absolutely no reason" for the Indian government to borrow in dollars and the rest of the developing world must be careful not to become too reliant on foreign capital, Reserve Bank of India Governor Raghuram Rajan said on Friday.

"I see no reason for the sovereign to issue dollar bonds across the world," said Rajan, speaking at an event at the Chicago Booth business school in London.

"When India can borrow freely and long-term in domestic currency, there is absolutely no reason for it to go out and start a dollar borrowing programme...We will continue to borrow locally."

He said many developing countries had already started feeling the consequences of too much borrowing in hard currency.

2:30 pm Market outlook: Even as the near-term outlook for the market remains a bit hazy, the market is headed sharply higher in the medium term, says Jai Bala of cashthechaos.com. In an interview with CNBC-TV18, Bala said the next leg-up in the market will be very strong. "The 6,900-7,900 bounceback was a trailer. The next move will put a lot of people in awe," he said. Bala has previously said he expects the markets to take out previous all-time highs by May next year. In the near term, the market could head higher if 7,990-8,010 is taken out, Bala said. "Then it will be clear the next leg is under way."

The Sensex is down 327.09 points or 1.3 percent at 25463.13, and the Nifty is down 93.15 points or 1.2 percent at 7807.25. About 901 shares have advanced, 1484 shares declined, and 167 shares are unchanged.

Adani Ports, HUL, HDFC, ICICI Bank and GAIL are losers while Asian Paints, ITC and Tata Motors are gainers in the Sensex.

Monsoon will hit Kerala between May 28 and 30, two-three days before its normal onset date of June 1, private forecasting agency Skymet said. However, it is expected to reach New Delhi on July 1 and Jaisalmer by July 12. It is likely to reach Kolkata by June 10 and Mumbai by June 12. The Southwest Monsoon will arrive over Andaman and Nicobar Islands between May 18 and 20.

"It is likely to reach Kerala between May 28 and May 30. Thereafter, it will cover other parts of the country. Present weather conditions are indicating a promising beginning of Monsoon 2016 which is likely to usher in with a bang," Skymet said.

1:30 pm Monsoon uodate: Monsoon will hit Kerala between May 28 and 30, two-three days before its normal onset date of June 1, private forecasting agency Skymet said. However, it is expected to reach New Delhi on July 1 and Jaisalmer by July 12. It is likely to reach Kolkata by June 10 and Mumbai by June 12. The Southwest Monsoon will arrive over Andaman and Nicobar Islands between May 18 and 20. "It is likely to reach Kerala between May 28 and May 30.

The Sensex is down 363.01 points or 1.4 percent at 25427.21, and the Nifty down 103.95 points or 1.3 percent at 7796.45. About 886 shares have advanced, 1480 shares declined, and 156 shares are unchanged.

Asian Paints, Tata Motors are top gainers while HUL, ICICI Bank, GAIL, HDFC and Tata Steel are losers in the Sensex.

Meanwhlie, acting upon recommendations of the Special Investigation Team on black money, market watchdog Sebi plans to tighten due diligence requirements for issuance and transfer of controversy-ridden P-Notes and put the onus on investors to ensure compliance with anti-money laundering law.

While Sebi (Securities and Exchange Board of India) has been of the view that the regulations have already been strengthened to check any misuse of this route for money laundering like activities, it has decided to put in place additional safeguards as suggested by the SIT. The regulator plans to put in place six specific changes to the KYC (Know Your Client) norms and transferability of Offshore Derivative Instruments (ODIs) -- commonly known as Participatory Notes or P-Notes -- in this regard.

12:45 pm Market falls again: The Sensex is down 350.53 points or 1.4 percent at 25439.69, and the Nifty dis own 102.65 points or 1.3 percent at 7797.75. About 803 shares have advanced, 1473 shares declined, and 159 shares are unchanged.

12:30 pm New buyers: Private equity investors Advent International and Temasek today launched Rs 1,695 crore open offer to acquire 26 percent stake in Crompton Greaves Consumer Electricals (CGCEL) to become majority shareholders.

The open offer is to acquire "up to 162,953,997 equity shares constituting 26 percent of the total share capital of the target company," Crompton Greaves said in BSE filing.

"The open offer is made at a price of Rs 104 per offer share, the total consideration payable by the acquirer..will be Rs 1,694.72 crore," it added. Shares will be acquired through Advent International Corporation's Amalfiaco and Temasek Holdings (Private) Ltd's MacRitchie Investments Pte Ltd.

Benchmark indices remained in bear grip with continous selling pressure. The Sensex is down 328.13 points or 1.3 percent at 25462.09, and the Nifty down 94.55 points or 1.2 percent at 7805.85. About 904 shares have advanced, 1313 shares declined, and 171 shares are unchanged.

Adani Ports, Asian Points, Tata Motors and ITC are top gainers while HUL, ICICI Bank, Tata Steel, BHEL and Bharti Airtel are losers in the Sensex.

Oil fell as investors took a breather from a recent price rally spurred by the International Energy Agency's forecast that the crude oversupply would shrink dramatically later this year.

The uptrend is likely to continue as the IEA report shows that a rebalancing of the supply and demand situation could come in sooner rather than later, analysts said.

Demand is expected to grow at a "solid" rate this year, boosted by India's needs, the IEA said yesterday as it projected that the oil surplus "will shrink dramatically" later in the year.

11:55 am Buzzing: Shares of Eicher Motors tanked 5 percent intraday on Friday after promoters have sold stake in the company. Promoter group has sold 4.2 percent stake in the company for Rs 2100 crore. The company says that the sale has been done to provide liquidity to the promoters, and the proceeds will be utilised for personal uses, such as portfolio and other investments, and for charitable purposes. Following the sale, the promoter group will continue to hold 50.67 percent stake in the company.

''The promoters intend to maintain a majority share in EML, and do not plan to sell any further shares in the fore-seeable future,'' a company statement said. Part of the promoter group who sold stake (1,140,846 equity shares) are Anita Lal, Rukmani Joshi and The Eicher Goodearth Trust.

11:30 am Big fall: Shares of Eicher Motors tanked 5 percent intraday on Friday after promoters have sold stake in the company. Promoter group has sold 4.2 percent stake in the company for Rs 2100 crore. The company says that the sale has been done to provide liquidity to the promoters, and the proceeds will be utilised for personal uses, such as portfolio and other investments, and for charitable purposes.

Following the sale, the promoter group will continue to hold 50.67 percent  stake in the company. ''The promoters intend to maintain a majority share in EML, and do not plan to sell any further shares in the fore-seeable future,'' a company statement said.

Part of the promoter group who sold stake (1,140,846 equity shares) are Anita Lal, Rukmani Joshi and The Eicher Goodearth Trust.

Selling pressure continues on Dalal Street as the Nifty struggles below 7850. The 50-share index is down 64.30 points or 0.8 percent at 7836.10. The Sensex is down 227.96 points or 0.9 percent at 25562.26.

Adani Ports, Asian Paints and Tata Motors were gainers while Bharti Airtel, HUL, Dr Reddy's, L&T and ICICI Bank are losers in the Sensex.

Meanwhile, US index provider MSCI announced changes to a number of its index funds on Thursday, including adding four securities and removing one from its US large-cap index.

Additions to that group included Tyson Foods, Edwards Lifesciences and Equinix, the three largest.

MSCI also added significantly to its China A Index, incorporating 30 new securities and removing 14. The three largest additions were Beijing Xinwei Telecom, SDIC Essence Holdings Co and Zhejiang Zheneng Electric.

The index provider serves 97 of the top 100 largest asset managers, according to its client research from June 2015 and P&I data as of December 2014.

10:55 am MSCI readjustments: US index provider MSCI announced changes to a number of its index funds on Thursday, including adding four securities and removing one from its US large-cap index.

Additions to that group included Tyson Foods, Edwards Lifesciences and Equinix, the three largest.

MSCI also added significantly to its China A Index, incorporating 30 new securities and removing 14. The three largest additions were Beijing Xinwei Telecom, SDIC Essence Holdings Co and Zhejiang Zheneng Electric.

The index provider serves 97 of the top 100 largest asset managers, according to its client research from June 2015 and P&I data as of December 2014.

10:30 am Result poll: Cadila Healthcare is likely to report net profit at Rs 375.4 crore in January-March quarter, up 7.2 percent from Rs 350.4 crore in corresponding quarter last fiscal. According to a CNBC-TV18 poll, the pharma company's revenue in Q4FY16 may rise 9.5 percent at Rs 2504 crore against Rs 2288.2 crore in year-ago period.

During the quarter, EBITDA may increase 11 percent to Rs 551 crore compared to Rs 496 crore while operating profit margin may stand at 22 percent from 21.7 percent year-on-year.

The market is still dragging with weakness in banks, capital goods, IT and metals. The Sensex is down 232.77 points or 0.9 percent at 25557.45, and the Nifty down 67.50 points or 0.8 percent at 7832.90.

About 670 shares have advanced, 994 shares declined, and 96 shares are unchanged.

Adani Ports, Tata Motors and Asian Paints are top gainers while Dr Reddy's Labs, Bharti Airtel, HUL, ICICI Bank and Tata Steel are losers in the Sensex.

Crompton Greaves Consumer Electricals, demerged from Crompton Greaves which deals in consumer products business is listed today with gains. Last year, investors in the consumer products business of Crompton Greaves sold their entire stake at a value of Rs 93 per share.

Oil prices dipped in early trading as a stronger dollar weighed and Russia warned that a global crude supply overhang could last into next year.

The dollar has recovered 2.46 percent in value from May lows against a basket of other leading currencies , reversing an almost 8-percent fall earlier in the year.

A stronger dollar, in which oil is traded, makes fuel imports more expensive for countries using other currencies, potentially hitting demand.

9:55 am RBI new norms for private lenders: The Reserve Bank of India has tweaked extant guidelines on ownership and shareholding structure for private sector banks.

"The guidelines have been reviewed against the background of the guidelines on licensing of new banks in the private sector issued in February 2013, the need for additional capital for the banks consequent to the implementation of Basel III capital regulations and to rationalise the ownership limits," the Reserve Bank said in a release.

Ownership limits for all shareholders in the long run are now stipulated under two broad categories: (i) natural persons (individuals) and (ii) legal persons (entities/institutions).

9:45 am P-Note under scrutiny: Another reason for the market fall may also be that SEBI may increase disclosure norms and introduce KYC on P-Notes.

Further to the amendment in the Mauritius treaty, the Securities and Exchange Board of India (SEBI) is likely to tighten the norms for participatory notes (P-Notes) to curb round-tripping and restrict money laundering, reports CNBC-TV18 quoting sources. At a likely board meet scheduled on May 20 to finalise changes in P-Note norms, SEBI may consider increasing reporting and compliance standards on them, sources say. The changes could include requirement of increased disclosures on transfer and prior consent of issuer on transfer, bringing P-Notes under know-your-customer (KYC) and anti money laundering norms and reporting suspicious transactions to the financial intelligence unit.

9:35 Sudden fall: The market has started to taper off. The Sensex is down 267.09 points or 1 percent at 25523.13 and the Nifty is down 74.80 points or 0.9 percent at 7825.60. About 644 shares have advanced, 716 shares declined, and 81 shares are unchanged.

In a double whammy to the economy, industrial output growth plunged to 0.1 per cent in March while retail inflation soared to 5.39 percent in April, which may spoil the chances for any immediate rate cut by RBI. The factory output growth decelerated mainly due to poor performance of manufacturing and mining sectors coupled with contraction in capital goods production, while higher food prices pushed the inflation higher, reversing the recent downward trend. The retail inflation in March stood at 4.83 percent, the lowest in six months. In April 2015, the rate of price rise was at 4.87 percent.

The market has opened lower Friday. The Sensex is down 59.70 points or 0.2 percent at 25730.52, and the Nifty is down 35.30 points or 0.4 percent at 7865.10. About 247 shares have advanced, 292 shares declined, and 46 shares are unchanged.

Tata Motors, Wipro, Bajaj Auto, Asian Paints and HUL are top gainers while Dr Reddy's Labs, Tata Steel, BHEL, NTPC and L&T are losers in the Sensex.

The Indian rupee slipped in early trade. It has opened lower by 16 paise at 66.78 per dollar against previous close of 66.62.

Ashutosh Raina of HDFC Bank said, "The global risk-off coupled with weak IIP and CPI numbers are expected to weigh on Indian markets."

The dollar gained against the yen after Japan's Central Bank governor said there was more room to ease monetary policy if needed. Yen fell to a two week low pressured by speculation that the Bank Of Japan could expand its monetary stimulus as soon as next month.

Markets in Asia were lower in early trade, following a modest finish in US equities. The Bank of Korea is expected to announce its monetary policy decision.

Oil prices advanced in the US, with Brent crude futures settling up 48 cents at USD 48.08 a barrel, while US crude futures finished up 47 cents to USD 46.70.

US stocks ended mixed, with gains in telecommunications and consumer staples helping make up for a tumble in Apple to a two-year low. The S&P 500 and Dow Jones swerved between gains and losses before ending virtually flat. Up 0.90 percent, Microsoft was the largest upward force in the S&P 500.