Sensex up 100 points, Nifty ends tad below 8500; SBI down 2%

03:30 pm Market check: After a volatile day, the market ended with some gains. The Sensex was up 100.10 points or 0.4 percent at 27931.64 and the Nifty gained 28.60 points or 0.3 percent at 8495.15. About 1470 shares have advanced, 1407 shares declined and 121 shares were unchanged.

Sun Pharma, Lupin, Wipro, Hero and Cipla were top gainers while Hindalco, SBI, Coal India, Axis Bank and NTPC were major losers.

03:10 pm Gold: On its tenth-straight day of gain, gold added another Rs 25 to Rs 26,335 at the bullion market on Wednesday largely on firming global trend along with continued seasonal buying by jewellers.

Silver, however, remained under selling pressure and plunged by Rs 650 at Rs 35,300 per kg.

Bullion traders said a firming global trend as investors await release of the US Federal Reserve minutes, which may give further clues on the timing of an interest rate increase and sustained buying by jewellers to meet rising demand mainly kept gold prices higher.

02:45 pm Interview: Just Dial's Search Plus will be launched in September this year and monetisation from it should start by first half of FY17, says Ramkumar Krishnamachari, CFO, Just Dial.

Search Plus business will enable customers to carry out transactions such as booking movie tickets, ordering flowers or making doctor appointments from its directory, as well as buy various products.

Speaking to CNBC-TV18, Krishnamachari says Just Dial continues to stay most popular search player as there is no competition for local search since it has disrupted the yellow pages business.

On pricing, he says the company would keep low prices in tier-II cities as Just Dial focuses on increasing volume of vendors and gain value out of them. On tier-I cities, he says there is no pricing pressure as 95-96 percent of the businesses don't have website. ''Unless business has website they can't go to Google to advertise,'' he says.

02:30 pm S&P on PSB: Standard & Poor's today said the government's plan to infuse capital into public sector banks is a "breather", but is unlikely to "fully resolve" their looming credit shortfall. "The central government's planned capital infusions come at a good time for public sector banks. But they don't go far enough," Standard & Poor's Credit Analyst Amit Pandey said.

In a report titled - India's Capital Infusions For Public Sector Banks Are Just A Breather, S&P said the stand-alone credit profiles and ratings on some PSU banks remain sensitive to any further deterioration in asset quality, capital, and earnings. "The Basel III-related capital requirements could lead weaker PSU banks to lose market share to better-performing banks in the private sector, public sector... ," it said.

Last month, the government had announced infusion of Rs 70,000 crore in PSU banks through four years till 2018-19. Of this Rs 25,000 crore would be injected in the current fiscal. Besides, the PSU banks would raise an additional Rs 1.10 lakh crore from the markets in the next four years.

"For the next 12-18 months, the government's capital infusions will be an important lifeline for PSU banks. Many of the banks have a reduced ability to generate internal capital, largely because of the pressure on asset quality in the past few years. The weakening asset quality has resulted in lower net interest margins and higher credit costs," S&P said.

02:00 pm Market Check
The market continued to see short covering and value buying in afternoon trade, rising half a percent amid consolidation. The Sensex rose 141.12 points to 27972.66 and the Nifty advanced 41.80 points to 8508.35. About 1452 shares have advanced, 1260 shares declined, and 107 shares are unchanged on the BSE.

The rupee recovered further, appreciating 14 paise to 65.17 a dollar. The currency hit a fresh two-year high of 65.42 in early trade today.

Sun Pharma surged 4.5 percent, the biggest gainer on Sensex after Bank of America Merrill Lynch upgraded stock to buy from neutral with a target price of Rs 1,070, implying 20 percent upside. It also raised FY17/18 earnings per share forecast by 10 percent each driven by potential synergy benefits of USD 400 million from Ranbaxy integration in FY18; recent price hikes in Taro and sequential improvement in ex-Taro US business including supply from Halol.

Cipla jumped 2 percent as HSBC added the stock to its GEM Super 15 portfolio, which was launched 2014. It has a buy rating on the stock with a target price of Rs 795. "Earnings will be driven in the near term by new product launches in emerging markets and certain product approvals in UK & US," it said, adding respiratory franchise will double in next 4-5 years.

1:50 pm Interview: Gagan Banga, VC & MD, Indiabulls Housing Finance is very upbeat on the business outlook going forward and expects to maintain a 20-25 percent growth quarter on quarter and states that for the last five years the company has been operating within that range. The segment of home loans between Rs 25-30 lakh category have shown continuous traction compared to the high ticket category of above Rs 1 crore, says Banga. Rs 1 crore segment has been negatively impacted by rental yields, high mortgage rates, says Banga in an interview to CNBC-TV18.

1:30 pm Buzzing: Shares of Sun Pharma rose 5 percent intraday. Bank of America Merrill Lynch has upgraded the stock to buy from neutral with a target price of Rs 1070, implying a 20 percent upside.

The brokerage has also raised FY17/18 earnings per share (EPS) by 10 percent driven by potential synergy benefits of USD 400 million from Ranbaxy integration in FY18, recent price hikes in Taro  and sequential improvement in ex-Taro US business including supply from Halol unit.

Meanwhile, BoAML is betting big on Indian pharma companies as weak rupee is positive for the sector. It says Cadila, Aurobindo and Lupin are the biggest beneficiaries of a weak rupee while Sun Pharma would see a moderate impact as it has global operations.

The market is zooming ahead with major support from IT and pharma stocks and metal is still under pressure. The Sensex is up 146.49 points or 0.5 percent at 27978.03 and the Nifty is up 37.70 points or 0.4 percent at 8504.25. About 1407 shares have advanced, 1210 shares declined, and 107 shares are unchanged.

Sun Pharma, Cipla, Lupin, Wipro and Infosys are top gainers in the Sensex while Hindalco, SBI, HDFC, Tata Steel and Bharti Airtel are major losers.

Coal futures have fallen to 12-year lows, hit by soaring production and a slowdown in global buying, including from India and China which until recently have been pillars of strong demand.

The contract is now over 75 percent below its 2008 all-time peak and more than 60 percent below its most recent high following the 2011 Fukushima nuclear disaster in Japan. China attracted 471 billion Chinese yuan (USD 73.62 billion) in foreign direct investment (FDI) in the first seven months of 2015, up 7.9 percent from a year earlier, the Commerce Ministry said.

FDI inflows in July rose 5.2 percent from a year earlier to 50.6 billion yuan, the ministry said in a regular briefing. FDI inflows into China rose 1.7 percent in 2014, the slackest pace since 2012, while the total was a record USD 119.6 billion.

12:59 pm Market Update: Equity benchmarks continued to see buying interest in afternoon trade, led by pharma stocks. The Sensex climbed 142.32 points to 27973.86 and the Nifty rose 38 points to 8504.55.

About 1402 shares have advanced, 1199 shares declined, and 109 shares are unchanged on the BSE.

12:40 pm Buzzing: Sharon Bio Medicine gained another 18 percent (in addition to 20 percent upside in previous session) after the US drug regulator audited company's formulation plant in Uttarakhand.

"In last week, the formulation plant at Dehradun in Uttarakhand has been inspected and audited by officials of US Food and Drug Administration (USFDA)," said the drug maker in its filing.

It was the company's second plant inspected and audited by USFDA officials in the last 2 months.

The US drug regulator had inspected and audited its Navi Mumbai plant (the first plant) in the first week of July 2015.

Sharon Bio said, "We hope to add active pharma ingredient and formulation sales to USA apart from many European and other countries in near future."

12:20 pm RComm in news: CITIC Telecom revives talks to buy out Reliance Communications undersea cable business GCX, reports CNBC-TV18 quoting sources

Earlier CITIC had pulled out of the race on valuation concerns for the business, which was pegged at Rs 6000 crore. Currently, both the companies are negotiating the valuation of business. Sources says it could be valued be around Rs 2000 crore but nothing has been confirmed yet.

On the other hand, RCom has also been trying to bring down its debt and is looking at selling its stake in the tower business and DTH business. It has plans pare debt down to Rs 22000 crore in next one year.

For the tower business, so far only ATC seems to be interested while other private equity players have backed out. As far as DTH business they do not plan to fully exit it, so have invited players to buy around 50-60 percent of the business. So far no players have put in a bid for it, say sources.

12:00 pm Market Check
The market gained strength in noon trade with the Nifty climbing above 8500, supported by healthcare, FMCG, auto and select technology stocks. The broader markets performed largely in line with frontliners.

The Sensex advanced 166.81 points to 27998.35 and the Nifty rose 44.75 points to 8511.30. About 1434 shares have advanced, 1039 shares declined, and 113 shares are unchanged on the BSE.

The rupee also recovered from day's low, up 10 paise to 65.21 a dollar. In Asia, China's Shanghai recouped losses, up 1.4 percent against 5 percent fall in morning session. However, Hang Seng and Nikkei were down 0.8-1.6 percent..

Jaypee Infratech gained 5.6 percent after the the environment minister Prakash Javadekar confirmed the limitation of the eco-sensitive zone around Okhla Bird Sanctuary. According to JP Morgan, the company has a large 1150 acre project where deliveries can finally commence.

Sun Pharma topped the buying list on Sensex, up 4 percent. Infosys rallied 1.8 percent on getting order from Fidelity Bank Of Nigeria. However, Hindalco plunged 2.5 percent.

11:52 am Market rises: The Sensex is up 126.38 points or 0.4 percent at 27957.92, and the Nifty is up 33.10 points or 0.4 percent at 8499.65.
About 1402 shares have advanced, 1016 shares declined, and 119 shares are unchanged.

11:50 am Market outlook: The Commercial Vehicle (CV) cycle is picking up and a lot of companies will see a rise in their operating profitability in the coming days. In particular, the auto ancillary space is a good bet due to strong earnings growth, says Taher Badshah of Motilal Oswal AMC. "Auto ancillaries is riding on the back of some of the large original equipment manufacturers (OEMs) and domestic OEMs as well as potential lot of exports." Speaking about Indradhanush -the push that public sector banks have received - Badshah says it makes banks a reasonably good investment idea in the medium-term.

11:30 am Interview: Majesco, insurance arm of the Mastek, is listed today. The company's US subsidiary called Majesco US was listed on the New York Stock Exchange (NYSE) on June 29 this year.

Majesco's shares opened at Rs 316, disappointing investors as the street was expecting an opening price around Rs 390-400.

In an interview with CNBC-TV18, Ketan Mehta, Chief Executive Officer (CEO) of Majesco said the combined revenue of the two companies has been USD 106 million in FY15.

The company is looking to double its size of business, he said adding that the aim is to grow earnings before income, tax, depreciation and amortization (EBITDA) from current 5 percent to 12 to 14 percent over three years.

Key indices recovered from morning lows to trade marginally higher with the Nifty above the 8450 mark led by gains in pharma, consumer durables and realty stocks. The Sensex is up 90.83 points at 27922.37 and the 50-share index is up 24.45 points at 8491. About 1386 shares have advanced, 851 shares declined, and 88 shares are unchanged.

Sun Pharma, Cipla, Lupin, Wipro and Reliance are top gainers while Hindalco, SBI, HDFC, Bharti and BHEL are losers in the Sensex.

Oil prices fell in Asia, giving up meagre gains in the previous session as investors await a US inventory report to gauge demand in the world's top economy. Analysts said prices were unlikely to stage a sustained rally because the market remains awash with supplies from the Organization of the Petroleum Exporting Countries (OPEC), led by Saudi Arabia.

Oil traders are also watching a report on US crude inventories in the week ending August 14 due later Wednesday to measure demand in the world's biggest economy and large producer of shale oil.

10:59 am Market Update: The Sensex gained 83.17 points at 27914.71 and the Nifty rose 22.85 points to 8489.40. About 1400 shares have advanced, 846 shares declined, and 90 shares are unchanged on the BSE.

10:50 am Coal prices at 12-year low: Coal futures have fallen to 12-year lows, hit by soaring production and a slowdown in global buying, including from India and China which until recently have been pillars of strong demand.

Benchmark API2 2016 coal futures last settled at USD 52.85 a tonne, a level not seen since November 2003.

The contract is now over 75 percent below its 2008 all-time peak and more than 60 percent below its most recent high following the 2011 Fukushima nuclear disaster in Japan.

The steady and sharp fall in coal prices has knocked down shares of big mining companies like BHP Billiton, Glencore and Rio Tinto, and it has seen many financers exit the sector.

The price fall follows a rise in output from exporters like Australia at the same time as a sharp slowdown in overseas orders from major importers like the United States, and now also China and India.

10:25 am Interview: Majesco, insurance arm of the Mastek, got listed on the market on Wednesday. The company's US subsidiary called Majesco US was listed on the New York Stock Exchange (NYSE) on June 29 this year.

In an interview with CNBC-TV18, Ketan Mehta, Chief Executive Officer (CEO) of Majesco said the combined revenue of the two companies has been USD 106 billion in FY15.

The company is looking to double its size of business, he said adding that the aim is to grow earnings before income, tax, depreciation and amortization (EBITDA) from current 5 percent to 12 to 14 percent over three years.

The company currently has 140 clients. In the quarter gone by, Majesco signed seven new deals of which three were with tier-I insurance companies. The company plans to invest 12-14 percent of its revenues on research & development (R&D), he said.

The company is open to acquisition in the Indian and US market, Mehta said.

10:00 am Market Check
The market continued to see selling pressure amid consolidation. The Sensex fell 31.86 points to 27799.68 and the Nifty declined 15.35 points to 8451.20, dragged by FMCG, HDFC twins, capital goods and select autos. However, technology and pharma gained strength on further weakness in rupee.

The broader markets recouped early losses, up marginally. About 1068 shares have advanced, 792 shares declined, and 68 shares are unchanged on the Bombay Stock Exchange.

Majesco, the insurance subsidiary of Mastek, has opened at Rs 316 against previous close of Rs 438.05 on the National Stock Exchange. The stock rallied 5 percent to Rs 331.80 compared to its opening price.

Cipla and Sun Pharma topped the buying list, up more than 2 percent followed by ICICI Bank, Lupin, Reliance Industries, Infosys, Wipro, Dr Reddy's Labs, Tata Motors, TCS and Vedanta with 0.2-1 percent upside.

However, Bharti Airtel plunged nearly 3 percent. HDFC Bank, HDFC, ITC, Larsen & Toubro, Axis Bank, M&M, HUL, Hindalco and Coal India declined 0.5-1 percent.

9:55 am FII view:  Neelkanth Mishra, Credit Suisse said while aggregate Nifty sales fell 4.3 percent year-on-year in Q1FY16 (up 5 percent excluding oil & metals), EBIT (earnings before interest and tax) decline slowed sharply and operating margins posted a three-year high.

July-September quarter sales should see a bigger boost from USDINR, he added.

He expects further cuts for metals and PSU banks, but currency-driven upgrades to IT and pharma. According to him, the meaningful risks for the market continued to be outside India.

As fiscal headwinds to growth has receded, and government spending (particularly state governments) has picked up, domestic economic momentum is on the mend, he believes.

9:45 am Market check: The market is still flat with the Nifty holding 8450 level. The 50-share index is down 14.95 points at 8451.60. The Sensex is down 33.91 points at 27797.63. About 1013 shares have advanced, 712 shares declined, and 60 shares are unchanged.

Bharti Airtel, Hindalco, M&M, Coal India and HDFC Bank are losers while pharma stocks are still on buyers' radar.

9:30 am Buzzing: Shares of Cummins fell over 1 percent intraday on Wednesday. Nomura maintains reduce rating on the stock with an unchanged target of Rs 1064 per share. The brokerage says that the recent surge in revenue growth in Cummins India's power generation segment is not sustainable beyond FY16. Cummins India's powergen revenues in Q1FY16 benefitted from an uptick in demand in the real estate segment.

It is a quite start to trade as global markets see sharp cuts. The Sensex is down 10.32 points at 27821.22 and the Nifty is up 0.75 points at 8467.30. About 359 shares have advanced, 207 shares declined, and 34 shares are unchanged.

ONGC, Hero, SBI, Tata Steel and Coal India are major laggards while Dr Reddy's Labs, Cipla, Wipro, Infosys and Sun Pharma are top gainers in the Sensex.

The Indian rupee has touched a fresh two-year low in early trade. It has opened lower by 10 paise at 65.40 per dollar against Monday's closing value of 65.32 a dollar. The currency market was shut on Tuesday.

Ashutosh Raina of HDFC Bank said, "The impact of the Chinese Yuan depreciation is still being felt across global markets. The USD-INR currency pair has been no exception with the pair finally breaching the psychological 65/dollar figure tracking other Asian peers."

The dollar rose, getting a lift from data showing US housing starts neared an eight-year peak, which raised expectations that the Fed will raise interest rates as soon as next month.

China stocks continued their sell-off following a whopping 6 percent plunge in the previous session, underscoring that it won't be an easy return to good times for the country's equity market.

The market plunge yesterday was attributed to traders cutting back on expectations of more stimulus for the economy - on the back of better housing market data – and support for the stock market – after the China Securities Finance Corporation said it would not intervene further in the market unless there was unusual volatility and systemic risk.

Tumble in Chinese shares and weak earnings from Walmart pressured US stocks and copper prices saw six year lows. Investors will look to US inflation data and minutes of last month's Federal Reserve monetary policy meeting on Wednesday, as they seek for further clues as to when the Fed will begin raising interest rates.

Oil prices fell again after a brief rise in the previous session, as the United States enters the lower demand autumn season and Asia's leading economies slow down.