Sensex, Nifty end flat; Coal India up 4%, Tata Motors dips

03:30 pm Market close: After a volatile ride, the market ended flat again. The Sensex was down 44.93 points at 26768.49 and the Nifty slipped 15.95 points at 8114.70. About 1374 shares advanced, 1300 shares declined and 161 shares were unchanged. Coal India jumped 4 percent, followed by GAIL, NTPC, ONGC and Sun Pharma were top gainers in the Sensex. Among the losers were Tata Motors, ICICI Bank, Axis Bank, HDFC and Cipla.

02:50pm Market Update: Equity benchmarks erased more than half of gains in late trade, weighed by selling in select banking & financials, technology and auto stocks.

The Sensex rose 39.46 points to 26852.88 and the Nifty gained 9.35 points at 8140. About 1521 shares have advanced, 1058 shares declined, and 155 shares are unchanged on the BSE.

02:35pm Interview: Vinod Aggarwal, chief executive officer- commercial vehicles, Eicher Motors, says the company is seeing good business in both its buses and trucks business.

In an interview to CNBC-TV18, Aggarwal says the company has seen a 25 percent growth in bus business in the first five months of the year.

Aggarwal says the company has been getting a lot of orders from cement and mining companies. He further adds the scope in the business is tremendous as the company is still a small player.

02:15pm FSSAI on Nestle: India's food safety regulator said that laboratory tests had found overwhelming evidence that Nestle India's instant noodle products are "unsafe and hazardous" for human consumption.

In a notice issued after a meeting with Nestle's global CEO Paul Bulcke on Thursday, the Food Safety and Standards Authority of India also said it was evident that Nestle had failed to comply with its obligations under India's food safety laws.

While reserving the right to prosecute, the FSSAI issued a series of orders to Nestle, including withdrawing nine versions of its Maggi instant noodles and another product that was being sold without product approval.

Nestle had earlier on Friday announced the temporary recall of its Maggi noodles across India.

02:00pm Market Check
The market extended rally in afternoon trade with the Sensex reclaiming 27000 and the Nifty inching up towards 8200 post arrival of monsoon in India. FMCG, capital goods, power, metals and select technology stocks supported.

The Sensex rose 184.66 points to 26998.08 and the Nifty advanced 53.65 points to 8184.30. About 1512 shares have advanced, 1004 shares declined, and 166 shares are unchanged on the Bombay Stock Exchange.

India Meteorological Department has declared onset of monsoon over Kerala today. "The rainfall over Kerala has been fairly widespread to widespread for the last 48 hours. Out of the 14 rainfall monitoring stations for Monsoon onset over Kerala, more than 70 percent of stations have reported rainfall higher than 2.5 mm for last consecutive two days (June 4 and 5).

Coal India topped the buying list on Sensex, up 5 percent after the government said will phase out all linkages for the non-regulated sector over the next 12 months and re-auction them. Morgan Stanley upgraded the stock to overweight and hiked target price to Rs 449 per share.

Shares of ITC, Larsen & Toubro, HUL, ONGC, NTPC, Tata Steel, GAIL, M&M, Wipro and State Bank of India gained 1-3.5 percent. Sun Pharma rallied 3 percent as shareholders approved merger of Sun Pharma Global with company.

However, Tata Motors and ICICI Bank remained under pressure, falling over 1 percent followed by HDFC, HDFC Bank, Reliance Industries, TCS and Bharti Airtel with marginal losses.

Bhushan Steel spiked 20 percent after the company said joint lenders forum agreed to extend loans for 25 years under 5:25 scheme.

1:50 pm Rate cut again? The Reserve Bank of India won't cut its key interest rate again until the final quarter of the year as it waits to see how the monsoon season affects food prices, a agency poll found. To try to put growth on a firmer footing, RBI Governor Raghuram Rajan has chopped 25 basis points from the repo rate three times this year, with the latest cut on Tuesday leaving it at 7.25 percent.

The RBI made it clear on Tuesday that more rate cuts would depend on the outcome of India's annual rainy season and government moves to ease the pressure on food prices, which make up almost half the basket of goods used to measure inflation.

The consensus from the poll of over 30 economists suggests the RBI won't cut at its next policy meeting in August but will in the final quarter of the year, unchanged from a poll taken prior to the meeting.

1:30 pm Big buzz: A consortium of lenders has approved a corrective action plan to restructure loans taken by Bhushan Steel, say sources.

The consortium, led by State Bank of India, Punjab National Bank have approved extending the tenure of debt under RBI's 5:25 scheme. The debt taken by the company is to the tune of Rs 35,000 crore of which Rs 20,000 crore will be re-financed.

Under the scheme the loan tenor will be extended to 25 years for earlier 8 years.

The market is surging ahead with major support by metals and pharma stocks, boosted by monsoon arrival. The Sensex is up 128.93 points or 0.5 percent at 26942.35 and the Nifty is up 35.35 points or 0.4 percent at 8166. About 1445 shares have advanced, 1002 shares declined, and 165 shares are unchanged. 

Coal India, GAIL, Sun Pharma, NTPC and M&M are top gainers in the Sensex. Among the losers are Tata Motors, ICICI Bank, TCS, Axis Bank and HDFC.

Annual monsoon rains have arrived at Kerala coast in southern India, five days later than expected, officials at the weather office said.

On June 2, India scaled down this year's June to September monsoon rainfall forecast citing an El Nino weather pattern, raising fears of the first drought in six years. El Nino, an event marked by warmer surface waters in the Pacific Ocean, increases the chance of droughts in the Asia-Pacific region, including Australia, Southeast Asia and India.

12:59pm Market Update: The Sensex gained 121.38 points at 26934.80 and the Nifty climbed 35.35 points to 8166. About 1445 shares have advanced, 949 shares declined, and 152 shares are unchanged on the BSE. 12:50pm Next rate cut? The Reserve Bank of India won't cut its key interest rate again until the final quarter of the year as it waits to see how the monsoon season affects food prices, a agency poll found.

To try to put growth on a firmer footing, RBI Governor Raghuram Rajan has chopped 25 basis points from the repo rate three times this year, with the latest cut on Tuesday leaving it at 7.25 percent.

The RBI made it clear on Tuesday that more rate cuts would depend on the outcome of India's annual rainy season and government moves to ease the pressure on food prices, which make up almost half the basket of goods used to measure inflation.

The consensus from the poll of over 30 economists suggests the RBI won't cut at its next policy meeting in August but will in the final quarter of the year, unchanged from a poll taken prior to the meeting, reports Reuters.

12:30pm FII View: Downside risks could increase in case monsoons disappoint, Jitendra Sriram, Managing Director & Head of Research, HSBC India told CNBC-TV18.

He said India was having to compete for global fund flows with markets like China which are less expensive compared to India. He said the market was most likely to be flat between now and December.

Broadly, he expects corporate earnings to grow 11-12 percent this year.

He said it would be tough for the government to achieve the divestment target of Rs 69,000 crore through the market route.

12:00pm Market Check
The market gained strength in noon trade after seeing consolidation from the last three consecutive sessions. The Sensex rallied 120.60 points to 26934.02 and the Nifty rose 31.30 points to 8161.95 led by pharma, FMCG and capital goods stocks.

The BSE Midcap and Smallcap indices gained 0.6 percent each. About 1357 shares have advanced, 913 shares declined, and 142 shares are unchanged on he BSE.

Bhushan Steel shot up 20 percent after the company said joint lenders forum agreed to extend loans for 25 years under 5:25 scheme.

Coal India topped the buying list on Sensex, up 5 percent after the government said will phase out all linkages for the non-regulated sector over the next 12 months and re-auction them. Morgan Stanley upgraded the stock to overweight and hiked target price to Rs 449 per share.

Nestle India rebounded, up marginally. The company on Thursday decided to keep Maggi off the shelves until the 'current situation is clarified. Nestle global CEO Paul Bulcke is expected to address a press conference today.

Globally, Asian markets traded mostly lower as a lack of resolution on Greece and jitters ahead of the closely-watched US non-farm payrolls report curbed risk appetite. Brent crude hovered around USD 62 per barrel.

11:45 am Sales hit: State-owned NMDC said its production and sales of iron ore declined by 16 percent and 21 percent, respectively, in the first two months of the current fiscal. Iron ore production fell by 16 percent to 4.14 million tonnes (MT) in April-May of 2015-16 fiscal from 4.94 MT during the same period in 2014-15, it said in a BSE filing. While, sales of ore fell by 21 percent to 4.54 MT from 5.74 MT during the reported period, it added. The production of the company during 2014-15 touched a record at 30.44 MT as against 30.02 MT in 2013-14.

11:30 am Market outlook: Downside risks could increase in case monsoons disappointJitendra Sriram, Managing Director & Head of Research, HSBC India told CNBC-TV18. He said India was having to compete for global fund flows with markets like China which are less expensive compared to India.

He said the market was most likely to be flat between now and December HSBC has been underweight on pharma shares for the last couple of months, but Sriram said he does not see much weakness going forward. Sriram said he was bullish on telecom stocks as earnings were beginning to stabilise and the spread of smart phones was rising.

The market is sluggish ahead of winding up trade for the weekend. The Sensex is down 6.11 points at 26807.31 and the Nifty is down 10.40 points at 8120.25. About 1128 shares have advanced, 946 shares declined, and 151 shares are unchanged.

Capital goods, metals and pharma stocks are going strong. Coal India, Sun Pharma, GAIL, NTPC and L&T are top gainers in the Sensex. Among the losers are Tata Motors, Hindalco, TCS, Tata Steel and HDFC Bank.

Meanwhile, Gold was hovering near its lowest in five weeks and was on track for a third straight weekly slide, as robust US economic data bolstered expectations of an interest rate hike this year. Traders were awaiting the critical US nonfarm payrolls report due later in the day for more clues on the economy and how it would impact the Federal Reserve's interest rate policy.

10:50 am International markets: Ray Farris of Credit Suisse says the US bond moves will now depend on the employment data. US bond yields rose to 2.3 percent, falling from 2.45 percent it saw earlier in the week. Furthermore, Farris believes the US Federal Reserve will hike interest rates in September. On the Indian market, Farris says the recent correction is mainly due to the disappointment in Q4 corporate earnings. Furthermore, he expects the rupee to depreciate to 65 against the dollar.

10:30 am Interview: Internet search company Just Dial has announced a buyback plan while shelving earlier programme to raise Rs 1000 crore citing a weak market that is "right now like a bubble with frothy valuations." Speaking to CNBC-TV18, Just Dial CFO R Krishnamachari said the company will be buying back, through a tender process, a total of 1.2 million shares amounting to Rs 170 crore.

The company's board has approved a buyback at maximum of Rs 1,550 per share and the process will take around 3-4 months to complete. This buyback will be made up of 25 percent of the paid up equity and the reserves of the company, he added. Krishnamachari said the reason for this buyback is the decision to not invest in wholesome acquisitions due to stretched valuation levels.

The market is still flat. The Sensex is up 12.50 points at 26825.92 and the Nifty is up 4.45 points at 8135.10. About 911 shares have advanced, 773 shares declined, and 113 shares are unchanged.

Coal India, Sun Pharma, GAIL, Cipla and Bharti Airtel are top gainers in the Sensex. Among the losers are Tata Motors, Tata Steel, ITC, ONGC and Hindalco.

Oil prices rose in Asia gains were capped before a key meeting of the OPEC cartel, which is expected to maintain its current production levels despite an oversupplied global market. US benchmark West Texas Intermediate for July delivery edged up three cents to USD 58.03 while Brent crude for July gained 13 cents to USD 62.16 in late-morning trade.

At its last meeting in November, the cartel, which pumps around 30 percent of the world's oil, kept its official production target of 30 million barrels per day, a move seen as trying drive high-cost US shale oil producers out of the market.

09:58am Market Update: The Sensex declined 39.11 points to 26774.31 and the Nifty slipped 11.90 points to 8118.75. About 952 shares have advanced, 770 shares declined, and 117 shares are unchanged on the BSE. 09:50am Just Dial in News: Just Dial rallied 8.8 percent intraday on getting board approval for buyback of equity shares at much higher price compared to current market price.

"The board of directors, on June 04, has approved the proposal to buyback fully paid-up equity shares of face value of Rs 10 each of the company from the shareholders on a proportionate basis through a tender offer (buyback)," said the local search services provider.

The buyback will be up to 25 percent of the aggregate of paid-up capital and free reserves of the company at a maximum price Rs 1,550 per equity share, it added.

This is subject to the approval of the shareholders of the company and approvals of statutory, regulatory or governmental authorities.

The buyback price approved by the board is nearly 40 percent higher compared to Thursday's closing price of Rs 1,109.70.

09:35am FII View: Herald van der Linde, HSBC said risks to growth are rising and there's limited room for support from rate cuts. He feels the delay in the recovery in the investment cycle and poor monsoon expectations will continue to put pressure on earnings.

According to him, earnings expectations are already high " too high in his opinion" because of optimism about growth, while concerns about the monsoon could further dent rural demand. Consensus has cut CY15 earnings estimates by 2.6 percent in the last two months. This is not good news for India Inc, he believes.

He stayed underweight on India.

09:15am Market Check
The market opened marginally lower on last day of the week following weakness across the globe. The Sensex fell 45.58 points to 26767.84 and the Nifty declined 15.80 points to 8114.85. About 223 shares have advanced, 330 shares declined, and 73 shares are unchanged on the BSE.

Tata Motors, Tata Steel, Axis Bank, ITC, Vedanta, HCL Technologies, Bosch and ACC lost 0.8-1.4 percent while Coal India topped the buying list on Sensex, up 3 percent. Bharti Airtel, GAIL, Dr Reddy's Labs, Sun Pharma, Idea Cellular, Lupin and BPCL gained 0.4-1.4 percent.

Nestle tanked 4 percent as Tamil Nadu, Jammu & Kashmir, Gujarat and Uttarakhand joined Delhi to impose a temporary ban on Maggi noodles. Central food safety regulator found fault with reports from several states. Nestle India decided to withdraw Maggi noodles off the shelves, despite it being safe.

The Indian rupee has opened flat at 64.01 per dollar today against previous day's closing value of 64 a dollar. The currency immediately showed some recovery in early trade, up 6 paise at 63.94 a dollar.

Pramit Brahmbhatt of Veracity said, "Today also local equities are expected to trade weak as Asian markets have already opened weak for the day taking cues from concerns raised over Greece issue."

He expects rupee to depreciate today as weakness in Asian markets will force local equities to trade low. Also the strength in dollar may keep rupee under pressure, he said, adding the rupee range for the day is seen between 63.60-64.40/dollar.

Globally, volatility gripped equities and bonds across markets. Yields surged after ECB president warned of more volatility. Dow Jones, S&P 500 closed below the 50-day moving average ahead of jobs report.

Greece concerns continued to weigh on the European markets. Asian stocks opened mostly lower following weak US lead. Japan's Nikkei is weak despite the stronger dollar against the yen.

In other asset classes, the euro was weak against the dollar as traders pocketed profits from the euro's biggest two-day gain in six years and German bund yields slipped from multi-month highs. The dollar index was trading at around 95.70 levels.

Crude prices headed lower on worries that rising European bond yields could tighten the availability of speculative money that had been invested in oil. Investors are also awaiting the meeting of the Organization of the Petroleum Exporting Countries (OPEC) taking place in Vienna.

Gold prices are marginally higher after closing at its lowest in nearly five weeks.