Sensex, Nifty end in green; SBI loses 2%, ITC & ICICI up

3:30 pm Market close: After a lot of struggle, the market has ended in green. The Sensex was at 27859.60, up 84.72 points or 0.3 percent while Nifty closed at 8592.15, up 16.85 or 0.2 percent.

SBI was down 2 percent while Adani Ports, M&M, GAIL and Sun Pharma were losers in the Sensex while Lupin, ITC, ICICI Bank, Reliance and Asian Paints were losers in the Sensex.

2:59 pm Market Update: The Sensex gained 77.53 points at 27852.41 and the Nifty rose 13.20 points to 8588.50.

About 1497 shares declined against 1130 advancing shares on the BSE.

2:45 pm Earnings: Mumbai-based road developer IRB Infrastructure said consolidated profit during April-June quarter grew higher-than-expected 10.3 percent year-on-year to Rs 182 crore, driven by revenue performance. The growth was despite sharp rise in every expenses.

Total income from operations also beat analysts' estimates, surging 36.8 percent to Rs 1,517 crore in the quarter ended June 2016 compared with Rs 1,109 crore in same period last year.

Operating profit during the quarter grew by 23.1 percent to Rs 774 crore but margin contracted significantly by 570 basis points to 51 percent on yearly basis. Operational performance was mixed as operating profit was estimated at Rs 736 crore and margin at 52.2 percent for the quarter.

2:35 pm Poll: The much-awaited earnings of the country's largest lender SBI will be announced on August 12. State Bank of India's (SBI) profit in April-June quarter is likely to fall 32.2 percent year-on-year to Rs 2,504.9 crore, according to average of estimates of analysts polled by CNBC-TV18.

Net interest income, the difference between interest earned and interest expended, may grow 5.5 percent to Rs 14,489.5 crore in the quarter ended June 2016 compared with Rs 13,732 crore in year-ago period.

Key things to watch out for would be slippages, slippages from restructured book, gross non-performing assets, watchlist, net interest margin and update on non-core assets selling.

2:20 pm NCDs issue:  Indiabulls Housing Finance (IBHFL) will open Rs 15,000 crore non-convertible debentures (NCDs) issue next week.

"The company proposes to issue Rs 15,000 secured non- convertible redeemable debentures with a face value of Rs 10 lakh each aggregating to Rs 1,500 crore (plus greenshoe option), on private basis," the company said in a regulatory filing.

Company's capital raise plan is in accordance with its AGM meeting resolution passed by shareholders in September 2015.

The issue opens on Tuesday and closes on the same day, it said. The NCDs carrying coupon rate of 8.57-8.80 percent per annum has tenor of 5 years.

Last week, the company informed about raising Rs 1,000 crore (with greenshoe option) by issuing NCDs on a private placement basis.

2:00 pm Market Check
Equity benchmarks remained rangebound in afternoon trade while the broader markets extended fall with the BSE Midcap losing 0.8 percent.

The 30-share BSE Sensex was down 39.49 points at 27735.39 and the 50-share NSE Nifty declined 31.65 points to 8543.65. About two shares declined for every share rising on the BSE.

European stocks lost their opening gains to trade mixed as investors paused for breath amid a fall in oil prices.

Oil prices fell as a build in US crude inventories and record Saudi Arabian production reinforced fears of a persistent supply overhang that will last well into next year and keep weighing on markets. US West Texas Intermediate (WTI) crude futures were trading at USD 41.17 per barrel, down 1.29 percent from their last settlement. International Brent crude futures were at USD 43.55 a barrel, down 1.14 percent.

1:55 pm Interview: Investors are losing confidence and customers are unsure of what to do in the wake of diesel vehicles being targeted as the "main villain" for air pollution, especially in Delhi-NCR region, according to Maruti Suzuki India Chairman R C Bhargava.

Stating that growth of the industry and creation of jobs are likely to be adversely impacted due to targeting of diesel vehicles, he said India seems to be applying "western remedies for pollution to our problem".

Bhargava said the fundamental truth that dust is the major cause of pollution in National Capital Region (NCR) is often forgotten.

1:45 pm Market outlook: Indian investors must temper their equity investments a little bit if markets see a sharp rise, and use intermittent corrections to buy more shares, Ajay Tyagi, Fund Manager at UTI Asset Management Company, says. Tyagi was asked about the recent slowdown in inflows into equity mutual funds and said that one of the reasons behind this could be that fund houses had been advising investors to be cautious on equities as valuations continue to become increasingly stretched. "The Indian retail investor puts in a lot of money when markets are slightly overheated and shy away when they correct," he told CNBC-TV18 in an interview. "As the markets mature, I would be glad to see investors get a little tempered with their investments if the markets rise 25-30 percent over a period of six months."

1:30 pm Buzzing: Shares of Tata Communication rose 7 percent, hitting 7-year high at Rs 519 per share intraday on Thursday. It has jumped 12 percent in last two days. Traders are actively buying shares of Tata Communication as the government is actively looking at demerging surplus land of VSNL land that it owns. Tata Communications had bought 45 percent stake in VSNL for around Rs 1,500 crore, as part of a government asset-sale programme in 2002. The government gives tax exemption for demerger of surplus land and now Tata Communication can transfer land without paying capital gains tax. The land sale will help Tata Communications to raise equity funding and also portion of the land locked with the surplus land can freed up.

The market is flat but the Nifty is slightly above 8550. The 50-share index is down 12.30 points or 0.1 percent at 8563 while the Sensex is up 12.89 points at 27787.77. About 1077 shares have advanced, 1363 shares declined, and 144 shares are unchanged.

Lupin, Reliance, TCS, ITC and Axis Bank are top gainers while M&M, SBI, Sun Pharma, Adani Ports and Tata Steel are losers in the Sensex.

European stocks opened mostly higher as markets in Asia and Wall Street pause for breath amid falling oil prices. Investors remain cautious after the trend set in the Asian trading session on Thursday where markets opened lower following US losses the previous day.

Negative Asia sentiment was also likely driven by Wednesday's oil price falls, with traders anticipating another data deluge from China on Friday when industrial production, fixed asset investment and retail sales data are due.

12:50 pm Market Update: Equity benchmarks continued to consolidate at the Sensex was up 10.43 points at 27785.31 while the Nifty fell 11.85 points to 8563.45.

The market breadth was marginally weak as about 1230 shares declined against 1156 advancing shares on the BSE.

12:40 pm Europe opens: European stocks opened mostly higher as markets in Asia and Wall Street pause for breath amid falling oil prices.

 The pan-European STOXX 600 was up 0.25 percent with most major bourses in positive territory, but the FTSE 100 was in the red.

Investors remain cautious after the trend set in the Asian trading session today where markets opened lower following US losses the previous day.

12:30 pm Earnings: Page Industries, the exclusive licensee of Jockey International and Speedo International, said profit increased 8.5 percent to Rs 67.94 crore in April-June quarter compared with Rs 62.62 crore in same period last year. Profit was lower than analysts' expectations due to disappointing operational performance.

Revenue during the quarter was ahead of estimates, rising 27.5 percent to Rs 572.44 crore on yearly basis.

Profit was estimated at Rs 75 crore on revenue of Rs 530 crore for the quarter, according to average of estimates of analysts polled by CNBC-TV18.

Operating profit increased 8.55 percent year-on-year to Rs 109 crore but margin contracted by 340 basis points to 19 percent in the quarter ended June 2016, which were estimated at Rs 118 crore and 22.6 percent, respectively.

12:20 pm FII View: The global environment is positive towards risk assets, hence India will benefit from this sentiment, says Binay Chandgothia, MD and Portfolio Manager at Principal Global Investors.

In an interview with CNBC-TV18 he said that if the yield environment remains as benign as it has been over the last few months then there is more potential for inflows to continue in India till the end of this year.

On the earnings front, he said that the decline in earnings has been reducing over the past 3-4 months and has bottomed out for Asia compared to the world, and if this trend continues then a possible 'earnings story' is developing in Asia.

Most of the risks that pertain to India are global in nature, he said.

12:00 pm Market Check
Equity benchmarks gained strength in late afternoon after consolidation from opening, aided by banks and index heavyweights Reliance Industries & ITC.

The 30-share BSE Sensex was up 118.74 points at 27893.62 and the 50-share NSE Nifty was up 23.60 points at 8598.90. The broader markets also gained in line with frontliners as about 1244 shares advanced against 1055 declining shares on the BSE.

Bank of Baroda shares cracked 8 percent as gross NPL's rose to 11.15 percent and slippages were at Rs 5,527 crore.

Tata Communication hit a fresh 52-week high of Rs 519, gaining 12 percent in the last 2 days after CNBC-TV18 highlighted Finance Minister Arun Jaitley statement that the demerger of the surplus VSNL land will be tax exempt.

Grasim fell 5 percent on fears of restructuring and ahead of earnings today, although the company is expected to report a steady set of earnings.

Motherson Sumi slipped for the second day after weak Q1 earnings, down 4 percent. CLSA slashed target price on the stock on disappointing margins from European subsidiaries.

10:56 am Market Update: The Sensex was up 25.10 points at 27799.98 and the Nifty up 0.50 points at 8575.80.

About 1064 shares advanced against 1051 declining shares on the BSE.

10:53 am Interview:  Thermax' s June quarter topline declined 20 percent and profit fell 10.4 percent year-on-year. In an interview to CNBC-TV18, MS Unnikrishnan, MD of the company, said first quarter was expected to be bad as the company is not seeing any pick-up in order inflow. 

Owing to this, he believes FY17 revenue may be a bit lower than last fiscal year.

Despite this, Thermax has started bidding for selective and specialised products and is close to winning a large order in the solar thermal space, he added.

10:45 am Merger:  L&T Finance Holdings said three of its wholly owned subsidiaries have entered into an amalgamation agreement in which two of the units will merge into the third one - Family Credit. "The Board of Directors of L&T Finance Holdings has taken note of the proposed amalgamation involving its wholly owned subsidiaries -- L&T Finance and L&T FinCorp (transferor companies) with Family Credit (transferee company)," the company said in a regulatory filing.

L&T Finance, L&T FinCorp and Family Credit are wholly owned subsidiaries of L&T Finance Holdings.

10:35 am Gold demand: Global gold demand grew by 15 percent to 1,050 tonnes in the second quarter of 2016, mainly driven by considerable investment demand, World Gold Council (WGC) said in its latest report. The overall gold demand stood at 910 tonnes in the corresponding quarter last year, according to WGC Gold Demand Trends Q2 2016 report.

Investment demand reached 448 tonnes as investors sought risk diversification and a safe store of value in the face of continued political, economic and social instability, it said.

Exchange traded funds (ETFs) performed well at 237 tonnes during the April-June period, while bar and coin demand was also up in a number of markets, including the US, at 25 tonnes (up 101 percent).

10:25 am FII View: Laurence Balanco of CLSA says strengthening emerging market currencies coupled with rising emerging market bond prices should continue to support the emerging market equity breakout.

However, the short-term risks are growing for Nifty which has been hesitating at resistance provided at the 8,667-8,723 area, he feels.

In addition, there are short-term signs of slowing momentum which at some point should lead to a correction back to the 50-day moving average, Balanco says.

10:00 am Market Check
Equity benchmarks continued to consolidate after profit booking in previous two consecutive sessions. Even Asian markets are mixed in trade. Investors waited for results of major companies like SBI, Tata Motors, Tata Steel, BHEL, Coal India, ONGC, BPCL, IOC, HPCL and Sun Pharma.

The 30-share BSE Sensex was up 27.16 points at 27802.04, and the Nifty gained 1.70 points at 8577. About 933 shares advanced against 846 advancing shares on the Bombay Stock Exchange.

Dilip Buildcon surged 11 percent on debut, trading at Rs 242 against issue price of Rs 219 per share.

Sun Pharma fell over 3 percent after Taro Pharma earnings. Taro's April-June quarter profit grew by 6.1 percent YoY to USD 109.9 million and revenue rose 8.6 percent to USD 233.8 million.

Bank of Baroda plunged nearly 8 percent after a 60 percent fall in Q1 profit and 2.6 percent decline in net interest income on yearly basis with asset quality weakening further.

9:45 am Telecom spectrum woes: The Department of Telecom has 'suspended' spectrum sharing, trading and liberalisation activities till the provisional results of the upcoming spectrum auction are declared.

"The Spectrum Trading Guidelines... would remain suspended during the time of conduct of auction i.e. from the date of issue of NIA for auction of spectrum to the date of publishing of provisional result of the auction," the amended spectrum sharing and trading guidelines said today.

Similarly, the DoT has suspended spectrum sharing and liberalisation activity as well. The move may impact merger of Reliance Communications with Sistema Shyam Teleservices as well as RCom and Aircel to some extent.

According to the sources, this move by the government is to ensure that upcoming spectrum auction, in which airwaves worth Rs 5.63 lakh crore is being put for sale, attracts good interest from bidders.

9:30 am Result: Bank of Baroda's first quarter profit fell 59.7 percent to Rs 423.6 crore compared with Rs 1,052.15 crore in year-ago period, dented by higher provisions. Slow net interest income and tax expenses (against tax credit YoY) also impacted profitability but it was supported by higher other income and operating profit.

Net interest income declined 2.6 percent to Rs 3,371 crore from Rs 3,459.6 crore on yearly basis.

Asset quality weakened further in June quarter as gross non-performing assets (NPA) as a percentage of gross advances increased 116 basis points sequentially to 11.15 percent and net NPA rose 67 basis points to 5.73 percent.

The market has opened flat with the Nifty still below 8600. The 50-share is down 4.30 points at 8571 while the Sensex is up 2.04 points at 27776.92.

BHEL, Axis Bank, Coal India, NTPC and ICICI Bank are top gainers while GAIL, Wipro, Sun Pharma, HDFC and TCS are losers. Bank of Baroda is down 5 percent after it posted disappointing Q1 results.

The Indian rupee opened lower by 9 paise at 66.81 per dollar versus 66.72 Wednesday.

Tirthankar Patnaik of Mizuho Bank said, "We expect some of the recent weakness on the dollar against global currencies and sustained capital inflows to continue supporting the rupee in the near term, which should range between 66.25-66.75/dollar."

The US dollar fell broadly as US treasury yields fell and investors waited on a speech by Federal Reserve Chair Janet Yellen later this month.