Sensex, Nifty end in red; Tata Steel, ONGC, Cipla gainers

3:30 pm Market closing: The market has ended in negative terrain. The Sensex was down 111.30 points or 0.4 percent at 28523.20, and the Nifty slipped 32.50 points or 0.4 percent at 8775.90. About 1182 shares advanced, 1525 shares declined, and 194 shares were unchanged.

Tata Steel, ONGC, Cipla, Maruti and Lupin were top gainers while Adani Ports, Hero MotoCorp, Bajaj Auto, Bharti and BHEL were losers in the Sensex.

3:10 pm Large trade: Shares of Castrol India rose 11 percent intraday after its promoter British Petroleum sold 8.5 percent stake In Castrol India. Post sale, British energy giant now holds 51 percent in its Indian lubricants subsidiary.

According to CNBC-TV18, BP sold around 4.2 crore shares worth Rs 1898 crore trade on BSE & NSE at Rs 440.15-445.45 per share.

Earlier, in May BP wholly owned unit Castrol Ltd on Thursday sold 11.5 percent stake in Castrol India and slashed its holding in the company to 59.42 percent from 70.92 percen  for about Rs 2072 crore.

2:51 pm Interview: Blue Star saw 50 percent growth in Onam sales against its expectation of 25 percent growth.

"Post summer, we have been looking forward to the onset of the festival season and Onam always indicates how the rest of the period is going to move and it was excellent. Therefore, I am optimistic about rest of the season," B Thiagarajan, Joint MD of the company told CNBC-TV18.

Thiagarajan expects the market to grow by at least 20 percent during the upcoming festive season, that is October to December period.

2:40 pm Service tax notice: The Tax Department has slapped a service tax demand of over Rs 6,100 crore on the overseas arm of state-owned ONGC, a move that may potentially render its investments in oil and gas fields abroad infructuous.

ONGC Videsh Ltd (OVL) has stakes in 37 oil and gas projects in 17 countries around the world. These stakes are held through subsidiaries, branches and joint ventures. For operations of these projects, those units and joint ventures would raise a demand for money on the parent, OVL, which would transmit the investments.

The Service Tax Department now contends that the overseas units are rendering a service to OVL and as such the company is liable to pay service tax at the full rate, sources said.

2:20 pm USFDA nod: Sharon Bio today said it has received approval from the US health regulator for its API plant at Taloja in Maharashtra.

The company, however, said it cannot start supplying to the US market as its payment for generic drug user fee is pending.

In a BSE filing, Sharon Bio Medicine said it has "received the Establishment Inspection Reports from the US Food and Drug Administration (USFDA)".

The inspection was conducted during June 29, 2015 to July 7, 2015 at the Taloja plant, it added.

"The API (active pharmaceuticals ingredients) is now approved by USFDA," the company said.

2:00 pm Market Check
Equity benchmarks extended losses in afternoon trade with the BSE benchmark Sensex falling nearly 150 points, dragged by Infosys, Reliance Industries and ITC.

The index was down 142.29 points at 28492.21 and the Nifty fell 42.25 points to 8766.15. The broader markets also lost further but outperformed benchmarks.

The BSE Midcap and Smallcap indices slipped 0.2-0.4 percent on weak breadth. About 1532 shares declined against 1056 advancing shares on the exchange.

European stocks were mixed as global investors awaited the outcomes of separate policy meetings of the US Federal Reserve and Bank of Japan.

Oil prices fell after Venezuela said that global supplies needed to fall by 10 percent in order to bring production down to consumption levels, and technical indicators also pointed to cheaper crude futures. International benchmark Brent crude oil futures were trading at USD 45.70 per barrel, down 0.54 percent from their last close. US West Texas Intermediate (WTI) crude futures were down 0.55 percent at USD 43.06 a barrel.

1:30 pm Penalty: The Tax Department has slapped a service tax demand of over Rs 6,100 crore on the overseas arm of state-owned Oil and Natural Gas Corp (ONGC), a move that may potentially render its investments in oil and gas fields abroad infructuous.

ONGC Videsh Ltd (OVL) has stakes in 37 oil and gas projects in 17 countries around the world. These stakes are held through subsidiaries, branches and joint ventures. For operations of these projects, those units and joint ventures would raise a demand for money on the parent, OVL, which would transmit the investments.

The Service Tax Department now contends that the overseas units are rendering a service to OVL and as such the company is liable to pay service tax at the full rate, sources said.

The market is still under pressure as the Sensex is down 104.36 points or 0.4 percent at 28530.14. The Nifty is down 32.20 points or 0.4 percent at 8776.20.
About 1105 shares have advanced, 1427 shares declined, and 176 shares are unchanged.

ONGC, Tata Steel, Maruti, ICICI Bank and Lupin are top gainers while Hero MotoCorp, Bajaj Auto, Tata Motors and Infosys are losers in the Sensex.

European stocks were lower as global investors awaited the outcomes of separate policy meetings of the US Federal Reserve and Bank of Japan.

The pan-European STOXX 600 was down 0.15 percent with most sectors in negative territory. A dip in oil prices fueled by continued concern over a supply glut, weighed on investor sentiment. Oil and gas stocks were sharply lower.

Meanwhile, investors were pausing for breath as the US Federal Reserve starts a two-day meeting on Tuesday, although the chances of a rate hike at this meeting are slim following a deluge of disappointing US data.

The central bank will make a policy announcement on Wednesday at the end of its meeting. Market consensus is for the Fed to hold its base rate at 0.25-0.50 percent.

12:59 pm Market Update: Equity benchmarks remaind under pressure with the Sensex down 108.37 points at 28526.13 and the Nifty down 35.45 points at 8772.95.

About 1407 shares declined against 1081 advancing shares on the BSE.

12:45 pm Europe opens: European stocks opened in negative territory as global markets await the outcomes of separate policy meetings of the US Federal Reserve and Bank of Japan.

The pan-European STOXX 600 was down 0.23 percent.

Global markets are pausing for breath as the US Federal Reserve starts a two-day meeting on Tuesday, although the chances of a rate hike at this meeting are slim following a deluge of disappointing US data.

12:35 pm Credit Suisse on SAIL: Credit Suisse has maintained underperform call on Steel Authority of India (SAIL) as the stock remained expensive even at FY18 EBITDA (earnings before interest, tax, depreciation and amortisation) and any deleveraging looks unlikely till FY19.

The brokerage says SAIL's surprise positive EBITDA (operating profit) per tonne in Q1 (USD 4 per tonne) raises a larger question on whether its turnaround is indeed under way, as its much delayed capex programme draws to a close.

It further says the company's capex (capital expenditure) programme is likely to be completed by FY17-end, though mining related capex will continue.

Its capex guidance for FY17 is Rs 4,000 crore while Q1FY17 capex was around Rs 1,140 crore. Net debt of the company was over Rs 34,000 crore in FY16.

EBITDA for the quarter was at around Rs 230 crore while analysts were expecting the company to post EBITDA loss of over Rs 300 crore.

12:20 pm USFDA inspection: Cadila is expected to complete its remediation for its Moraiya facility by September-end, sources say. The company will call the United States Food & Drugs Association (US FDA) for re-inspection in October.

The company had received warning letters for Moraiya and Zyfine plants in December last year. Zyfine facility, however, will take another 3-4 moths for remediation, sources say.

Moraiya facility is the most important unit for Cadila as it contributes nearly 60 percent to the US sales. The company has done 14 product transfers from the plant and is looking to do 5-6 more on back of capacity constraints.

The company today also said that Zydus in partnership with Takeda will be looking to tackle chickungunya.

12:00 pm Market Check
The benchmark BSE Sensex continued to fall amid consolidation as investors keenly waited for the outcome of two-day meetings of central banks - Federal Reserve and Bank of Japan - which will be announced Wednesday.

The 30-share BSE Sensex fell 99.67 points to 28534.83 and the 50-share NSE Nifty was down 29.25 points at 8779.15.

Experts believe once these central banks meetings get over, the market may start concentrating on September quarter results that will kick off in second week of October. They expect the Nifty at its record high soon.

Bank of Japan (BoJ) is expected to make a bigger move in its current policy meet, believes Ian Hui of JPMorgan.

He says that the bank is likely to expand its quantitative and qualitative easing (QQE) as well as move more into the negative interest rate category. This will mainly help Japan support its spending and inflation target, he feels.

Castrol India is the most active stock on exchanges as the parent company Castrol sold 8.5 percent stake today. The stock gained 8 percent.

11:45 am Interview: Mahindra Holidays is already seeing good traction in the spa business and is now considering moving from rejuvenation to wellness says Chairman Arun Nanda. Nanda was speaking on CNBC-TV18 on the occasion of completion of 20 years in business Tuesday. Nanda say prices have been increased by about 5 percent on a blended basis and the overall trend in average realisation is positive given higher upgrades by customers.ewer products are likely to aid margins due to operating leverage, he says. He also shared details on new resorts under construction, the company's target on new member additions and new products on offer.

11:30 am Pharma update: Cadila is expected to complete its remediation for its Moraiya facility by September-end, sources say. The company will call the United States Food & Drugs Association (US FDA) for re-inspection in October. The company had received warning letters for Moraiya and Zyfine plants in December last year. Zyfine facility, however, will take another 3-4 moths for remediation, sources say. Moraiya facility is the most important unit for Cadila as it contributes nearly 60 percent to the US sales. The company has done 14 product transfers from the plant and is looking to do 5-6 more on back of capacity constraints. The company today also said that Zydus in partnership with Takeda will be looking to tackle chickungunya.

The market continues to be under pressure as the Nifty is still below 8800. The 50-share index is down 25.35 points or 0.3 percent at 8783.05 while the Sensex is down 83.10 points or 0.3 percent at 28551.40.

ONGC, Cipla, Maruti, Dr Reddy's Labs, Maruti and Lupin are top gainers while  Hero MotoCorp, Bharti Airtel, Adani Ports, Infosys and Bajaj Auto are losers in the Sensex.

Oil prices eased in Asia today with analysts expecting volatility in the run up to a producers' meeting next week, while traders are also awaiting the release of US stockpiles data.

The commodity plunged last week on supply glut worries but bounced slightly yesterday after OPEC member Venezuela said a deal to limit output was close. Unrest in key producers Libya and Nigeria also raised the prospect their exports would be hit.

Venezuelan President Nicholas Maduro said Sunday that participants in producer talks by the 14-nation OPEC cartel and Russia in Algeria from September 26-28 are working on a deal.

10:43 BoJ expectations: The Bank of Japan may steal the thunder from the US Federal Reserve and its chair Janet Yellen this week if it chooses to give more monetary stimulus in its latest effort to jumpstart its economy and the US central bank decides to stand pat on interest rates.

If the BOJ, led by Governor Haruhiko Kuroda, decides toshake up its policy stance, one avenue would be to be lessaggressive in purchasing longer-dated assets, thereby allowingyields to go up, while cutting short-term rates deeper intonegative territory.

This would likely result in a rise in yields of US Treasuries and other government bonds, and on the margin push uplong-term borrowing costs for consumers and corporations.

10:30 am Oil falls: Oil prices fell after Venezuela said that global crude supplies needed to fall by 10 percent in order to bring production down to consumption levels, confirming analyst views that markets remain heavily oversupplied.

Global oil supply of 94 million barrels per day needs to fall by about a tenth if it is to match consumption, Venezuela's Oil Minister Eulogio Del Pino said on Monday.

International benchmark Brent crude oil futures were trading at USD 45.80 per barrel, down 0.33 percent from their last close.

US West Texas Intermediate (WTI) crude futures were down 0.51 percent at USD 43.08 a barrel.

10:15 am BoAML on Aurobindo: Bank of America Merrill Lynch (BoAML) has maintained its buy rating on Aurobindo Pharma on expectations of strong 23 percent earnings per share (EPS) CAGR over FY16-18, especially after USFDA's successful inspection of unit IV plant at Andhra Pradesh and establishment inspection report for Penem facilities.

The company's management has indicated that the US Food & Drug Administration has successfully completed inspection of its unit IV plant at Andhra Pradesh, India. The FDA has issued 2-3 minor observations which should not impact the approval of pending products from the site as per the company.

"This is a positive development as Unit IV was the last major manufacturing site with an inspection pending in the near term, and Unit IV houses the manufacturing plants responsible for production of Injectables and Opthalmics - which will be the key growth driver for ARBP over the near-midterm," the brokerage house says.

10:00 am Market Check
Equity benchmarks fell for the first time in last five trading sessions due to profit booking. The Nifty continued to struggle below 8800 level amid consolidation, weighed by index heavyweights Reliance Industries, Infosys, HDFC and ICICI Bank.

The 30-share BSE Sensex was down 61.62 points at 28572.88 and the 50-share NSE Nifty declined 25.30 points to 8783.10 while the broader markets remained flat.

Globally investors waited for the outcome of Federal Reserve's two-day policy meeting that will be announced on Wednesday. Rate hike expectations already diminished but the commentary on further rate hike would be closely watched.

Adrian Lim, Senior Investment Manager, Aberdeen Asset Management, said the US Fed won't go in for a rate hike in this round, but there will be a guidance coming forth on what to expect from it in the next round.

9:55 am Foreign flow: India saw a record inflow of over USD 1.3 billion from listed foreign funds in August, primarily on account of strong capital infusion in passive funds, says a report.

In comparison, listed foreign funds poured in USD 1.2 billion in July after pulling out USD 332 million in the preceding month.

Overall, the country has seen an inflow of USD 545 million so far this year.

"Listed fund flows to India recorded USD 1.34 billion in August with strong inflows in passive funds at USD 845 million," said a Kotak Institutional Equities report.

India is followed by Taiwan, which attracted an inflow of USD 1 billion.

9:45 am Market check: The Sensex is down 106.17 points or 0.4 percent at 28528.33, and the Nifty down 39.85 points or 0.4 percent at 8768.55.
About 856 shares have advanced, 897 shares declined, and 102 shares are unchanged.

9:30 am FII view: James Sullivan of JP Morgan says the brokerage house remained overweight on emerging markets (EM) and expects continued performance in Asia, led incrementally by China.

Base case is a slow lift-off by the Federal Reserve which will not fundamentally alter easing potential in most of EM Asia, he feels.

He says this belief in slow lift-off is supported by rising labour force participation which is preventing unemployment from dipping into significant inflationary territory & limited requirements for aggressive rate hikes.

Sullivan feels negative interest rate policy (NIRP) in Europe and Japan extends the impact of monetary policy for some time.

The market has opened in red territory as investors are nervously waiting for the outcome of Federal Reserve and Bank of Japan policy meetings. The Sensex is down 33.05 points or 0.1 percent at 28601.45. The Nifty is down 9.10 points or 0.1 percebt at 8799.30. About 532 shares have advanced, 281 shares declined, and 58 shares are unchanged.
 
Dr Reddy's Labs, M&M, ONGC, BHEL and Maruti Suzuki are top gainers while NTPC, Wipro, HDFC, ICICI Bank and Infosys are losers. Jubilant FoodWorks is down 7 percent.

The Indian rupee opened flat at 66.97 per dollar on Tuesday versus previous close 66.96.

Ashutosh Raina of HDFC Bank said, "The all important FOMC and BoJ meetings get underway today. Markets are expecting no rate increases from Fed, but the statements accompanying the policy will be keenly analysed."

"USD/INR currency pair has been stuck in a very narrow range. Expect the pair to trade in a range of 66.80-67.10/dollar ahead of FOMC," he added.

The US dollar fell from over two-week high against a basket of major currencies on expectations that any Bank of Japan action this week would not weaken the yen and the Federal Reserve would refrain from raising rates.

Asian shares edged lower today. Global markets have been blowing hot and cold in recent weeks over the Fed's intentions, not helped by both hawkish and dovish comments from several Fed officials over this period.
The consensus is that the Fed will leave interest rates unchanged at the end of its two-day meeting, with investors focusing on the statement as well as Chair Janet Yellen's speech for clues on the timing of the central bank's next interest rate increase.

A see-saw session on Wall Street ended little changed, with gains in big bank stocks offsetting a drag from Apple, as investors braced for the Federal Reserve meeting later this week.

The Dow Jones industrial average fell 3.63 points, or 0.02 percent, to 18,120.17, the S&P 500 lost 0.04 points, to 2,139.12 and the Nasdaq Composite dropped 9.54 points, or 0.18 percent, to 5,235.03.

Crude oil prices pared gains after surging as much as 2 percent as Venezuela hinted that OPEC and other major oil producers could agree to a market support deal and clashes in Libya disrupted attempts to boost crude exports. From the precious metals space, gold prices rose as the dollar slipped but gains were capped by nervousness ahead of a US Federal Reserve monetary policy meeting and a rise in US government bond yields.