Sensex rises 171points, Nifty ends above 7800; F&O expiry eyed

The market managed to see recovery in later part of the session on Wednesday ahead of expiry of Nifty September derivative contracts. Equity benchmarks fell 1 percent in morning trade on weakness in Asian peers after weak Chinese data, but positive European cues helped Indian equities rebound sharply.

The 30-share BSE Sensex rose 171.15 points or 0.67 percent to 25822.99 and the 50-share NSE Nifty climbed 33.95 points or 0.43 percent to 7845.95. The broader markets too gained in line with benchmarks; the BSE Midcap and Smallcap indices advanced 0.5 percent and 0.7 percent, respectively.

Experts said they expect rangebound trade to continue in near term but they feel there are lot of opportunities for investment post recent correction.

The Nifty is expected to remain in tight range of 7500 to 8100, Mayuresh Joshi of Angel Broking said. Delay in corporate earnings recovery could drive market towards the lower end, he added.

According to Nandan Chakraborty of Axis Capital, in the next one year some of the positives for Indian economy could be in terms of cut in interest rates and government's focus on infrastructure capex leading to boost in corporate capex.

However, India in isolation cannot continue to outperform if the world is not doing well, and currently the world is not doing that well, Chakraborty said.

Globally it was a mixed day. Key indices in Asia finished lower as China's September flash manufacturing PMI fell to a 6.5-year low of 47. Shanghai Composite and Hang Seng dropped 2 percent each. However, European markets managed to shrug off the Chinese growth concerns with the France's CAC, Germany's DAX and Britain's FTSE gaining around 0.7-1.4 percent (at 16 hours IST).

Meanwhile, Prime Minister Narendra Modi kicked off his two nations' tour in Ireland today. He will meet Irish counterpart Enda Kenny and also attend an Indian community event before departing for New York.

Banking, technology and select oil stocks supported the market in later part of trading session.

HDFC Bank, Lupin, Mahindra & Mahindra and Vedanta were top gainers in trade today, up 2-3 percent followed by Infosys and ICICI Bank with more than 1 percent upside.

ITC rallied 1.7 percent despite UP Government has raised VAT on tobacco & cigarette to 40 percent from 25 percent.

Larsen & Toubro also recovered, closing up 0.8 percent. The stock lost more than 2 percent in morning trade after rating agency ICRA downgraded term loans worth Rs 1,500 crore of toll road SPVs to default.

However, state-run power equipment maker BHEL lost 1.2 percent after rating agency CRISIL has lowered outlook on the company due to power sector overhangs. Tata Motors and Bharti Airtel were other major losers, down around 1.5 percent.

In the broader space, IDBI Bank rallied 9 percent. MD and CEO Kishor Kharat said while he hasn't heard any news of an Axis Bank like structure for IDBI Bank, but it would certainly be a welcome move if it happens.

Dishman Pharma jumped 16 percent close more than seven-year high of Rs 306.95 after the company announced a tie-up that makes them exclusive supplier of the API for Janssen's tuberculosis drug - Sirturo.

Visa Steel was locked at 20 percent upper circuit as the company confirmed that lenders have decided to invoke strategic debt restructuring in the joint lenders forum meet.

Tide Water Oil rose 3.5 percent on the back of surprise open offer announcement by minority shareholders. Standard Greases & Specialities has tied up with Janus Consolidated Finance, Alpha TC Holdings and Tata Capital Growth Fund to acquire 26 percent stake in Tide Water.

3:30 pm Market closing: Late surge helped market recovered yesterday's losses partially. The Sensex ended up 171.15 points or 0.7 percent at 25822.99. The Nifty below 7850 ahead of September F&O expiry tomorrow. The 50-share index slipped 33.95 points or 0.4 percent at 7845.95. About 1533 shares advanced, 1139 shares declined and 105 shares were unchanged.

Lupin, M&M, Vedanta, HDFC Bank and ITC were top gainers while Tata Motors, Bharti Airtel, BHEL, Bajaj Auto and Sun Pharma.

3:10 pm RBI: Though the Reserve Bank of India (RBI) is expected to cut interest rates next week by a quarter percent to a four-year low, officials say concerns over prices make it likely to resist political pressure for significant easing in the coming months.
 
In growing contrast with the government, which is desperate to accelerate a sluggish recovery, an increasingly independent RBI under governor Raghuram Rajan remains focused on a long-term inflation target of 4 percent and ending decades of damaging price volatility.

"The inflation outlook is still uncertain, and that is why the governor wants to be cautious," said one official familiar with the RBI's thinking.

3:00 pm Volkswagen's woes: Volkswagen CEO Martin Winterkorn faced a reckoning with his board on, summoned to explain how the company falsified US emissions tests in the biggest scandal in the 78-year history of the world's largest car maker.

Senior figures on the board's five-member executive committee grilled Winterkorn on Wednesday at the meeting at the company's headquarters in Wolfsburg, Germany.

Martin Winterkorn is due to have his contract extended at the end of this week and has so far shown no sign of resigning over the affair, after pledging ''utmost transparency'' in ongoing investigations. The board must decide by Friday whether to extend the 68-year-old executive's contract.

2:50 pm Europe Update: France's CAC, Germany's DAX and Britain's FTSE gained 1 percent each amid renewed fears over the health of the Chinese economy and continued fallout from the Volkswagen emissions scandal.

In Asia, equities slid deeper into the red today, after a preliminary reading of activity in China's mammoth manufacturing sector fell to a six-and-a-half-year low of 47.0 in September, rekindling worries over the world's second-largest economy.

2:40 pm GDP growth: India does not need further fiscal stimulus to revive the economy, despite GDP growth seen at the lower end of an 8.1 percent to 8.5 percent target in the current financial year, the government's chief economic adviser Arvind Subramanian said today.

"I don't think extra stimulus at this stage is necessary," Arvind Subramanian told agency in an interview, adding that the government "will and must" meet a fiscal deficit target of 3.9 percent of GDP in the current fiscal year.

Arvind Subramanian was instrumental in Finance Minister Arun Jaitley's decision in February to soften the target from an initial 3.6 percent to free up resources for a growth-boosting public spending stimulus.

2:20 pm FII View: Speaking on the impact of weak Chinese PMI on global markets, Jonathan Schiessl of Ashburton, says China still has plenty of firepower to stabilse their economy. Although manufacturing sector seems to be going through pain, there are some sectors that are showing revival like the property sector, so it is not all bad news, says Schiessl in an interview to CNBC-TV18.  However, markets continue to focus on bad data and so they are correcting, he says.

With regards to emerging markets, India continues to retain its unique position although currently it has been wrapped up in the global risk-off environment, says Schiessl.

India has been  impacted by the overall withdrawals seen in the EM space but the house continues to dribble cash into counters where valuations are good, he adds. However, they haven't put all the cash to work because they expect market to test August lows before having a good final quarter.

According to him, India has some catalyst which other EMs are lacking and is hoping for a rate cut from RBI in the upcoming policy meet.

2:00 pm Market Check
The market gained strength in afternoon trade with the Sensex rising 199.26 points to 25851.10 and the Nifty climbing 43.85 points to 7855.85. The broader markets too traded in line with benchmarks; the BSE Midcap and Smallcap advanced 0.4-0.6 percent.

The market breadth was positive as about 1390 shares have advanced against 1070 shares declined on the Bombay Stock Exchange.

Nandan Chakraborty of Axis Capital said markets traded lower than long term average valuations. He advised long term investors to allocate fresh money through the SIP route.

Globally, Asian markets close lower on renewed China woes. A preliminary reading of China's mammoth manufacturing sector fell to a six-and-half-year low of 47 in September, rekindling worries over the world's second-largest economy.
 
IDBI gained 12 percent. MD and CEO Kishor Kharat told CNBC-TV18 that while he hasn't heard any news of an Axis Bank like structure for IDBI Bank, but it would certainly be a welcome move. Dishman Pharma gained 8 percent after the company announced a tie-up that makes them exclusive supplier of the API for Janssen's tuberculosis drug - Sirturo.

1:50 pm Sale: Financial Technologies India Ltd (FTIL) said it has entered into an amended share purchase agreement with five buyers to sell its 19.06 percent stake in Indian Energy Exchange(IEX) for Rs 409.95 crore.

The company on June 18 announced that it has entered into share purchase agreement with DCB Power Ventures, Kiran Vyapar, Agri Power and Engineering, Aditya Birla Capital Advisors (Trustee to the Aditya Birla Private Equity Fund I) and Aditya Birla Capital Advisors (Trustee to the Aditya Birla Private Equity Sunrise Fund). "The amendment to share purchase agreement has been entered with the same purchasers...The total number of sale of shares between the above said purchasers are 57.80 lakh shares comprising of 19.06 per shares as against 50.34 lakh equity shares comprising of 16.60 percent as informed earlier," FTIL said in a BSE filing.

1:40 pm Resignation: Fortis Executive Vice-Chairman Shivinder Mohan Singh is stepping down from his position to join a philosophical and spiritual organisation Radha Soami Satsang Beas headquartered near Amritsar.

Shivinder Mohan Singh (40), who is the co-founder of the healthcare chain will become the Non-Executive Vice-Chairman with effect from January 1, 2016, the company said in a statement.

Commenting on his decision to step down from active role in the firm, Singh said: "Having spent almost two decades setting up and running Fortis, our mission of saving and enriching lives is an integral part of my being. Over time this has inspired me to do more direct service and give back to society a little of what I have received in abundance." 

1:30 pm Market outlook: Nandan Chakraborty, MD-Institutional Equity Research, Axis Capital, is of the belief that India unlike other emerging markets is a case where one has to buy when times are bad, especially keeping in focus government's long-term growth plans. 'Next six months are a great time to invest,' he says. In the next one year some of the positives for Indian economy could in terms of cut in interest rates and government's focus on infrastructure capex leading to boost in corporate capex, says Chakraborty in an interview to CNBC-TV18.

After a good recovery, the market has started to inch ahead smartly. The Sensex is up 94.65 points or 0.4 percent at 25746.49, and the Nifty is up 14.80 points or 0.2 percent at 7826.80. About 1287 shares have advanced, 1110 shares declined, and 119 shares are unchanged.

ITC, M&M, Coal India, NTPC and HDFC Bank are top gainers in the Sensex. Among the losers are Tata Motors, BHEL, GAIL, Cipla and Tata Steel.

Meanwhile, Asian emerging market currencies sank today after data showing further weakening in China's key manufacturing sector added to concerns about the global economy, sending investors flocking to safer assets.

Regional units are already reeling from expectations of a hike in US interest rates later this year, which analysts say could trigger an outflow of capital from emerging markets to seek higher returns. China's keenly watched Purchasing Managers' Index (PMI) for factory activity in September fell to its lowest level since March 2009, the latest round of weak data following disappointing readings including on trade, investment and consumer spending.

12:59 pm Market in green: The Sensex rose 89.27 points to 25741.11 and the Nifty advanced 13.10 points to 7825.10.

About 1224 shares have advanced, 1118 shares declined, and 123 shares are unchanged on the BSE.

12:50 pm FTIL in news: Financial Technologies India (FTIL) today said it has entered into an amended share purchase agreement with five buyers to sell its 19.06 percent stake in Indian Energy Exchange(IEX) for Rs 409.95 crore.

The company on June 18 announced that it has entered into share purchase agreement with DCB Power Ventures, Kiran Vyapar, Agri Power and Engineering, Aditya Birla Capital Advisors (Trustee to the Aditya Birla Private Equity Fund I) and Aditya Birla Capital Advisors (Trustee to the Aditya Birla Private Equity Sunrise Fund).

"The amendment to share purchase agreement has been entered with the same purchasers...The total number of sale of shares between the above said purchasers are 57.80 lakh shares comprising of 19.06 per shares as against 50.34 lakh equity shares comprising of 16.60 percent as informed earlier," FTIL said in a BSE filing.

It further said: "The total consideration would be Rs 409.95 crore as against Rs 357.06 crore." FTIL added that the above transaction is subject to fulfilment of certain customary conditions precedents and the said shares will be transferred to purchases from escrow account with Axis Bank , as directed by Supreme Court of India, upon receipt of consideration.

12:40 pm Europe opens up: European stocks opened higher today despite renewed fears that the Chinese economy is losing its footing.

London's FTSE 100 index is over 0.3 percent higher, the German DAX was up 0.1 percent while the French CAC saw a 0.3 percent pop. In Asia, equities slid deeper into the red today, after a preliminary reading of activity in China's mammoth manufacturing sector fell to a six-and-a-half-year low of 47.0 in September, rekindling worries over the world's second-largest economy.

The downbeat sentiment persisted even as Chinese President Xi Jinping defended his country's growth pace and reassured the world that China's financial markets will remain stable in his first policy address during a state visit to the US.

12:32 pm Market Update: Equity benchmarks rebounded in afternoon trade. The Sensex gained 51.58 points at 25703.42 and the Nifty rose 2.65 points to 7814.65.

About 1202 shares have advanced, 1096 shares declined, and 114 shares are unchanged on the BSE. 

12:25 pm Buzzings: Dishman Pharma gained 8 percent after the company announced a tie-up that makes them exclusive supplier of the API for Janssen's tuberculosis drug - Sirturo.

Visa Steel too spiked 19 percent in an otherwise weak market as the company confirmed that lenders have decided to invoke strategic debt restructuring in the joint lenders forum meet.

Tide Water Oil gained 6 percent on the back of an open offer announcement. SKS Microfinance too traded with minor gains after the management clarified to CNBC-TV18 that the over 1 percent cut in interest rates would not impact profitability.

12:15 pm Market Expert: Nandan Chakraborty, MD-Institutional Equity Research, Axis Capital, is of the belief that India unlike other emerging markets is a case where one has to buy when times are bad, especially keeping in focus government's long-term growth plans.

"Next six months are a great time to invest," he says.

In the next one year some of the positives for Indian economy could in terms of cut in interest rates and government's focus on infrastructure capex leading to boost in corporate capex, says Chakraborty in an interview to CNBC-TV18.

However, India in isolation cannot continue to outperform if the world is not doing well, and currently the world is not doing that well, says Chakraborty.

According to him Fed rate hike is symptomatic of the world doing well but it is unlikely that the Fed will hike rates because the US economy is still weak. 

12:00 pm Market Check
The market recovered nearly 1 percent from day's low. The 30-share BSE Sensex declined 11.82 points to 25640.02 and the 50-share NSE Nifty slipped 18 points to 7794. The broader markets also recouped early losses to trade flat.

Globally, Asian markets remained under pressure on renewed China woes. A preliminary reading of China's mammoth manufacturing sector fell to a six-and-half-year low of 47 in September, rekindling worries over the world's second-largest economy.

Ruchir Sharma of Morgan Stanley said he sees signs of the global economy being close to a recession.

Larsen and Toubro recouped early losses to trade flat. The stock fell 2 percent in early trade after ICRA downgraded term loans for two SPVs due to delays in debt servicing. The company told CNBC-TV18 that the downgrade of term loan due to regulatory issues, not liquidity.

BHEL dropped 2 percent after CRISIL revised outlook on long-term bank facilities lower.

Shares of HDFC, Tata Motors, Wipro, ONGC and Bajaj Auto slipped 1-2 percent while ITC, HDFC Bank, Infosys, M&M, NTPC, ICICI Bank and Coal India gained 0.2-1 percent.

11:52 am Market check: The market is nudging with negative bias. The Sensex is up 2.29 points at 25654.13 and the Nifty is down 11.20 points at 7800.80.
About 1115 shares have advanced, 1085 shares declined, and 108 shares are unchanged. 

NTPC, Coal India, ITC, Vedanta and HDFC Bank are top gainers.

11:45 am Market view: With China undertaking a once-in-a-generation shift from investment-led growth to consumption-led growth and with Europe too ambling about with little growth, the world economy is expected to be in 'limbo land' for at least a year, says noted economist Sanjeev Sanyal of Deutsche Bank. In an interview with CNBC-TV18, Sanyal said the recent developments in China are likely to cause an outflow of capital, which will then slosh around the world waiting to be picked up by some other large economy. "What is now needed required is someone like the US to step up and provide demand of last resort," he told CNBC-TV18, adding that the Indian economy was too small to soak up capital.

11:30 am Interview: SKS Microfinance announced a 1.25 percent cut in interest rates charged to its borrowers from 22 percent to 20.75 percent effective from October 01, 2015.

Speaking about the impact of this reduction, Dilli Raj, President, SKS Micro told CNBC-TV18 that the profits are unlikely to be impacted because of reduction in interest rates. In fact, he said book should see an annualised growth of 50 percent. It is the third interest rate reduction since October 2014. The company has been charging the lowest interest rate among Indian MFIs on its core Income Generating Loans (IGL) which are unsecured microloans since July 2015.

Although he expressed disappointment over not getting small bank licence, he said it was a missed opportunity but not a setback.

The market is still sluggish with metals and autos dragging for second day. The Sensex is down 49.74 points or 0.2 percent at 25602.10 and the Nifty slips 30.25 points or 0.4 percent at 7781.75. About 1029 shares have advanced, 1004 shares declined, and 99 shares are
unchanged.

Tata Motors, Bajaj Auto, Wipro, GAIL and Tata Steel are major losers while NTPC, M&M, Hindalco, ITC and Vedanta are top gainers in the Sensex.

Gold struggled to recover from its losses over the previous two sessions, as the dollar hit its highest in nearly three weeks on expectations the Federal Reserve would hike US interest rates this year.

Spot gold was little changed at USD 1,124.30 an ounce by 0330 GMT, after dropping 1.3 percent over the past two days.

The metal's slide follows a rally last week that took it to a near three-week high after the Fed's move to stand pat on interest rates. However, the US central bank has also said it would move to increase rates later this year for the first time in nearly a decade.

10:45 am Oil Update: Oil prices dipped today, reversing early gains, as weak economic data from China weighed on commodities and added to the woes of an oversupplied market that has seen prices more than halve since June 2014.

Crude edged up in early Asian trading after industry group the American Petroleum Institute reported that US crude stockpiles fell 3.7 million barrels last week, with stocks at the Cushing, Oklahoma, delivery point for US crude futures alone down almost 500,000 barrels. But the rise did not last as more weak data from China and tumbling commodities like coal and copper weighed on oil.

10:30 am Pfizer in News: Pfizer has entered into a Business Transfer Agreement (BTA) for the transfer of the company's business at the Thane plant as a going concern to Vidhi Research and Development LLP in accordance with the terms of the agreement for a lump sum consideration of Rs 178 crore.

Upon the conclusion of the BTA, all current workmen at the Thane Plant shall be transferred to the buyer so as to facilitate manufacturing operations.

10:15 am China PMI: The preliminary Caixin China manufacturing purchasing managers' index (PMI) fell to a six-and-a-half-year low of 47.0 in September, below the 47.5 forecast in a Reuters poll.

This compares with a final reading of 47.3 in August, the lowest since March 2009. A print above 50 indicates an expansion in activity while one below points to a contraction.

The closely-watched gauge of nationwide manufacturing activity focuses on smaller and medium-sized companies, filling a niche that isn't covered by the official data.

The decline in the flash PMI was mainly led by the new orders and new export orders sub-indexes, suggesting weak domestic and external demand. The new orders sub-index fell 0.6 percentage points to 46.0 in September, while the new export orders sub-index slipped 0.8 percentage points to 45.8.

10:00 am Market Check
The market continued to see selling pressure following weakness in global peers on growth concerns. The Sensex fell 150.77 points to 25501.07 and the Nifty declined 61.90 points to 7750.10.

The broader markets, too, declined with the BSE Midcap and Smallcap indices falling 0.7 percent and 0.2 percent, respectively. About 687 shares have advanced, 968 shares declined, and 69 shares are unchanged on the BSE.

Shares of HDFC, ICICI Bank, Axis Bank, Tata Motors, L&T, ONGC, Bharti Airtel, Wipro and SBI were prominent losers in morning trade, down 1-2 percent. However, ITC, Mahindra & Mahindra, TCS, NTPC and Hero Motocorp outperformed with marginal gains.

Meanwhile, the rupee breached 66-mark against dollar today, continuing depreciation for the second consecutive session. The currency fell 15 paise to 66.02 a dollar.

9:55 am Market outlook: Gautam Shah, JM Financial says the set-up suggests that pullback that started from 7,540 level could be over and hence the markets should now start last phase down that should lead to a lower low in October.

The expiry week could see volatility with a bearish bias but within a range, he feels. According to him, overall, the near term trend is likely be down and hence all recoveries should be sold into.

On Tuesday, the 30-share BSE Sensex plunged 541.14 points to 25651.84 and the 50-share NSE Nifty fell 165.10 points to 7812 after hitting day's low of 7787.75. The loss in broader markets was less compared to benchmarks; the BSE Midcap and Smallcap indices declined 1.6 percent and 1.2 percent, respectively.

9:45 am Market check: The market recovers a bit from early jolt. The Sensex is down 104.24 points or 0.4 percent at 25547.60. The Nifty is down 44.30 points or 0.6 percent at 7767.70. About 611 shares have advanced, 838 shares declined, and 68 shares are unchanged.

NTPC, M&M, Hero MotoCorp, Reliance and Maruti are top gainers while Bharti, Tata Steel, Tata Motors, Vedanta and Wipro are major losers in the Sensex.

9:35 am PM Modi visit: Prime Minister Narendra Modi kickstarted his week long visit to Ireland and the United States amid his confidence that his visit will help further deepen ties with these two countries.

"Working westward. PM Narendra Modi departs on a two-nation, three city visit to Ireland and the US, will address the UN," tweeted External Affairs Ministry spokesperson Vikas Swarup.

Modi will hold talks with his Irish counterpart Enda Kenny and is also scheduled to interact with members of the Indian community in Ireland. Modi's day-long visit to Ireland will be the first by an Indian prime minister since Jawaharlal Nehru visited Dublin in 1956.

9:25 am Interview: The decision by L&T Infrastructure Development Projects Ltd (IDPL) to default on two road projects it is promoting through special purpose vehicles (SPVs) is a result of government decisions that have impacted the projects' prospects and it will not have any financial impact on the company. That is the argument laid out by the K Venkatesh, CMD of IDPL, which is a subsidiary of engineering heavyweight L&T . Venkatesh spoke with CNBC-TV18 after ICRA downgraded two of the company's SPVs: a Rs 1,014 crore Gujarat road project and a Rs 475 crore Chennai project. The news of the default came to the fore after ICRA downgraded its rating on both projects to junk.

The market has opened with severe losses on Wednesday. The Sensex is down 223.81 points or 0.9 percent at 25428.03 and the Nifty slips 74.65 points or 0.9 percent at 7737.35. About 112 shares have advanced, 369 shares declined, and 29 shares are unchanged.

Vedanta, Tata Steel, Axis Bank, Tata Motors and ICICI Bank are major losers while Infosys, TCS and Hero are top gainers.

The Indian rupee extended losses for the second consecutive session. The currency breached 66-mark against dollar in early trade, down 14 paise to 66.02 per dollar compared to 65.88 a dollar in previous session.

Pramit Brahmbhatt of Veracity feels the rupee is expected to depreciate as overnight US equities traded weak.

According to him, negative sentiment in the market created by global growth concerns will also force local equities to open weak as Asian markets have already opened on a weak note, which will force rupee to trade lower.

Rupee range is seen between 65.40-66.40/dollar, Brahmbhatt says.

The US dollar hit a more than two-week high against the euro on continued belief that the Federal Reserve would hike rates this year. The dollar index rose above the 96 mark.

Asian equities mostly widened losses in early trade, after China's flash Caixin purchasing managers' index (PMI) fell to a six-and-ah-half-year low of 47.0 in September.

Major US averages crashed more than 1 percent overnight, with materials shares among the hardest-hit due to a sell-off in commodities on the back of lingering worries about a slower-growing China. Commodity prices hit two-week lows on Tuesday, with copper prices and industrial metals leading losses. US crude oil also settled down 1.8 percent at USD 45.83, a barrel.