Sensex ends flat; CNX Midcap Index at record closing high

03:30pm Market Closing

Equity benchmarks closed flat amid consolidation on Wednesday but the broader markets outperformed frontline indices. In fact, the CNX Midcap index ended at record closing high, up 1.5 percent.

The 30-share BSE Sensex fell 1.30 points to 28442.71 while the 50-share NSE Nifty rose 12.95 points to 8537.65. About 1926 shares have advanced, 1088 shares declined, and 117 shares are unchanged on the Bombay Stock Exchange.

Shares of ONGC, Cipla, BHEL, HUL, NTPC, Jindal Steel and Asian Paints topped the buying list, up 2-8 percent while Dr Reddy's Labs, HDFC, Bharti Airtel, Hindalco Industries, HDFC Bank and Zee Entertainment fell 1-2.5 percent.

Eicher and Bajaj FinServ were top contributors to midcap gain while major gainers on midcap index were Financial Technologies, Suzlon and Sun TV Network.

03:15pm Construction stocks in News

The government eased FDI rules for construction sector and DIPP releases press note on FDI in construction development. IVRCL, HCC, NBCC and NCC gained 5-10 percent.

02:55pm SAIL OFS on Friday?

The government will conduct SAIL's offer for sale (OFS) on Friday, reports CNBC-TV18 quoting unnamed sources.

Ministers' panel will meet tomorrow to fix floor price, say sources, adding there are no plans of the government to offer heavy discount to institutional investors.

CNBC-TV18 learnt that the government may provide limited discounts to retail investors and will communicate to stock exchanges today on OFS timeline.

02:30pm BHEL, ONGC in focus

BHEL has successfully developed, manufactured and commissioned India's first phase shifting transformer Kothagudem Thermal Power Station in Telegana. The stock gained 2.5 percent.

State-run oil & gas explorer ONGC climbed over 3 percent after agencies report indicated that the government is considering reworking company's subsidy formula. According to the report, reworking subsidy formula could improve ONGC profitability.

Another state-run company Oil India also saw buying interest, up 1 percent.

02:25pm RBI comfortable with current account deficit

The Reserve Bank of India is "reasonably comfortable" with the current account deficit because of lower oil prices, deputy governor HR Khan said, after the country last week unexpectedly eased some rules on gold imports.

"We are reasonably comfortable from the current account point of view because of oil," Khan told reporters in the sidelines of an event in Mumbai.

"So taking all that into account, a view has been taken that we'll give up this 80:20 (rule on gold imports)," Khan told reporters.

India on Friday scrapped a rule mandating traders to export 20 percent of all gold imported into the country - in what had been known as the 80:20 rule. India will soon announce the current account deficit for the July-September quarter, reports Reuters.

02:00pm Market Check

The market remained lacklustre in afternoon trade with the Nifty trading in a 20 points range. The index advanced 13 points to 8537.70 and the Sensex rose 11.27 points to 28455.28.

The broader markets maintained strong momentum with the BSE Midcap and Smallcap indices gaining 1.6 percent each. About 1864 shares have advanced, 974 shares declined, and 107 shares are unchanged on the Bombay Stock Exchange.

Midcap auto stocks like Eicher Motors and TVS Motor saw heavy buying interest today after Goldman Sachs resumed coverage on both stocks with a buy. On TVS Goldman has a 12-month target of Rs 345 and on Eicher, a 12-month target of Rs 19,235.

Insurance companies such as Reliance Capital and Max India rallied 4-7 percent on news of FDI in insurance making headway. Reports indicate the Congress has back key reforms measures and the draft report is expected in first 10 days of December after which the panel will approve it and will tabled in the house thereafter.

Bajaj Electricals, Havells and Surya Roshni surged between 5-17 percent on a CNBC Awaaz exclusive news that all government offices and municipal corporations will have LED lights.

However, Pratibha Industries declined 5 percent after Crisil downgraded the company's ratings to negative to reflect the expectation of continuing pressure on the group's financial risk profile.

The company told CNBC-TV18 that its net debt is at Rs 1,700 crore and it expects debt to be down by Rs 200-300 crore by end of 2015 via monetisation of non-core assets. More information please visit this site www.bigprofitbuzz.com

Sensex, Nifty rangebound; broader markets extend gains

01:45pm Interview

The finance ministry seeks to extend the 5:25 scheme to all stalled infrastructure projects. The scheme is likely to help easing project and finance bottlenecks. It will also address issues related to the non-performing assets.

Speaking to CNBC-TV18, KK Mohanty, MD, Gammon Infrastructure says the 5:25 scheme is a positive step for infra companies and will be more effective at lower interest rates.

According to him, interest rate of construction projects is currently around 12 percent. Post 5:25 scheme, investors can earn returns at the start of the project.

The company is planning to implement the scheme for its new projects.

01:30pm MTNL in focus

Telecom Minister Ravi Shankar Prasad says there is no proposal for disinvestment of MTNL and BSNL.

In fact, the government is in process of revitalising both companies, says Prasad, adding revival measures include merger of MTNL and BSNL and four groups formed to study BSNL and MTNL merger.

01:00pm Market Check

Equity benchmarks gained marginal strength amid volatility, supported by banks, oil, auto, capital goods and select metals stocks. The Sensex rose 32.59 points to 28476.60 and the Nifty advanced 17.65 points to 8542.35.

The broader markets extended gains in afternoon trade. The BSE Midcap and Smallcap indices climbed 1.7 percent each. About two shares advanced for every share declining on the Bombay Stock Exchange.

Rakesh Arora, Macquarie says despite the outperformance relative to global markets, the Indian market is still below previous valuation peaks.

He believes the market can re-rate further to 16-17x if economic recovery is stronger-than-expected. "Our 12-month Nifty target is 9,940 based on 15x FY17e EPS,” he says.

Shares of BHEL and Sesa Sterlite kept top position in the buying list in the Sensex, up 2.5-3 percent. ICICI Bank, Axis Bank, ONGC, Reliance Industries, Mahindra & Mahindra, State Bank of India and Maruti Suzuki gained 0.6-1.6 percent.

However, ITC, HDFC, TCS, Infosys, Dr Reddy's Labs, Bharti Airtel and Hero Motocorp declined 0.5-2 percent.

In the midcap space, Firstsource Solutions, Bajaj Electricals, Natco Pharma, Max India and Indian Bank climbed 7-12 percent while Sundaram-Clayton, Astral Poly, SpiceJet, Hindustan National Glass and Ramco Cements fell 2-4 percent. More information please visit this site www.bigprofitbuzz.com

BSE Mid, Smallcap gain 1%; Sensex, Nifty consolidate

10:25am Market Expert

The market will remain elevated till the Budget since most of the news momentum that will be flowing is expected to be positive, said Harendra Kumar of Elara Capital.

On specific stocks, he is positive on consumer-driven sectors. Also, the ongoing decline in global crude oil prices makes paint companies and PVP pipes companies attractive. He expects these stocks to head higher in the next six-12 months.

However, he is not too upbeat on oil marketing companies.

10:00am Market Check

Equity benchmarks continued to consolidate with the Nifty hovering around 8530 level while the broader markets outperformed frontline indices with the BSE Midcap and Smallcap indices rising more than a percent.

The Sensex fell 5.40 points to 28438.61 and the Nifty rose 3.35 points to 8528.05. Advancing shares outnumbered declining ones by a ratio of 1397 to 493 on the Bombay Stock Exchange.

The Nifty could correct briefly over the next few sessions, but has a strong support level at 8460, says Vineet Bhatnagar, Managing Director, Phillip Capital

In an interview with CNBC-TV18, Bhatnagar says there is a higher probability of the index moving towards 8630 by the end of this year.

BHEL topped the buying list, up more than 3 percent followed by State Bank of India, Mahindra & Mahindra and NTPC with more than a percent gain. Commercial vehicle maker Tata Motors rallied 1.7 percent on bagging orders for 1,542 Sumo Gold from police agencies. Shares of ICICI Bank, Axis Bank, Reliance Industries and ONGC were up over 0.4 percent.

However, index heavyweights ITC and Infosys fell 1.6 percent each. HDFC, TCS, Sesa Sterlite and Sun Pharma declined 0.3-0.8 percent. Dr Reddy's Labs lost 1.5 percent. More information please visit this site www.bigprofitbuzz.com

Nifty ends below 8550 post RBI meet; auto dips, metals gain

03:30pm Market Closing

Equity benchmarks extended losses on Tuesday on keeping status quo on policy rats by Reserve Bank of India. The 10-year bond yield declined 0.9 percent on hopes of rate cut in 2015.

The 30-share BSE Sensex fell 115.61 points to close at 28444.01 and the 50-share NSE Nifty declined 31.20 points to 8524.70. However, the broader markets outperformed benchmarks with the BSE Midcap and Smallcap indices rising 0.9 percent and 0.55 percent, respectively.

About 1528 shares have advanced, 1407 shares declined, and 121 shares are unchanged on the Bombay Stock Exchange.

BPCL shed 4.27 percent after the government increased excise duty on petrol by Rs 2.25 per litre and diesel by Re 1 per litre. Asian Paints lost 3.4 percent on profit booking and rise in Brent crude oil prices.

Gail India, Mahindra & Mahindra, HDFC and Hero Motocorp were down 1.5-3 percent while Jindal Steel, Hindalco, NMDC, IDFC, Bharti Airtel, L&T, Sesa Sterlite and Tata Steel gained 1-5 percent.

03:15pm Rupee

The Indian rupee appreciated by 12 paise to 61.90 a dollar compared to previous day's closing value.

03:00pm Bajaj Auto under pressure

Bajaj Auto today reported six percent decline in motorcycle sales at 2,61,94 units in November 2014.

BAL said exports were up 23.93 per cent during the month at 1,65,733 units as compared to 1,33,731 units in November 2013.

In the commercial vehicles category, its sales stood at 47,311 units, up 48.36 percent, against 31,888 units in the same month of the previous year.

02:45pm NBCC jumps 5%

State-run National Buildings Construction Corporation said it has secured PMC work for construction /improvement/maintenance of roads at Miao-Vijaynagar (Arunachal Pradesh) costing Rs 1850 crore.

02:30pm FII View

Bharat Iyer, JPMorgan says India has been the best performing emerging market, with 30 percent gain this year so far in the MSCI USD index.

“Most sectors have seen a notable re-rating in valuations and in an environment of improving investor sentiment and supportive liquidity, the search for value has increased. Energy, industrials and consumer staples rank low on the composite relative ranking while financials, consumer discretionary and telecom sectors rank high,” he adds.

02:15pm 3G spectrum auction in February?

As the government plans to conduct 3G spectrum auction along with 2G radiowaves sale in February, it has asked telecom regulator TRAI to expedite the base price recommendations for it.

"DoT requested TRAI to expedite the process for its recommendations on the reserve price of 2100 Mhz band and related issues so that the auction of spectrum in this band could be conducted along with the auction of spectrum in the 800/900/1800 MHz bands scheduled in February 2015," TRAI said.

In the consultation paper today for valuation and reserve price of spectrum in 2100 MHz band, used for 3G services, the regulator has said that the Department of Telecom is in talks with the Defence Ministry for the vacation of the band and there are three possible scenarios under deliberation.

02:00pm Market Check

It’s a choppy day on the Dalal Street as the benchmark indices traded with a cut of 0.2 percent while midcaps outperform with gains of 0.6 percent.

The BSE Sensex declined 53.36 points to 28506.26 and the NSE Nifty slipped 15.65 points to 8540.25. About 1380 shares have advanced, 1397 shares declined, and 127 shares are unchanged on the Bombay Stock Exchange.

Andrew Holland of Ambit Investment continued to be extremely bullish on India. He has a Sensex target of 45000 over the next three years and believes the Nifty will hit 9000 before the Budget.

The Reserve Bank of India kept key rates unchanged but cut the March-end CPI inflation target to 6 percent from 8 percent earlier. RBI governor Raghuram Rajan says change in monetary policy stance now would be premature, adding RBI may change stance in early 2015 if inflation falls to 6 percent.

The government has increased the excise duty on petrol and diesel for the second time in the last one month. Excise on petrol increased by Rs 2.25 per litre and on diesel by Re 1 per litre. Oil marketing companies like BPCL, HPCL and IOC declined three percent each.

Global markets are upbeat today. China's Shanghai ended higher with 3 percent gain while European markets like FTSE, CAC and DAX are higher by almost 1 percent. Rebound in oil prices and hopes of more stimulus from China kept these markets active. More information please visit this site www.bigprofitbuzz.com

Sensex volatile, Nifty still below 8550; M&M slips 3%

01:25pm Market Expert

The Nifty is likely to hit 9000 by Budget in late February, feels Andrew Holland of Ambit Investment Advisors. In an interview with CNBC-TV18, he says the Sensex is likely to hit 45,000 in the next three years.

Holland is not bullish on PSU banks from a long term perspective, though he has become constructive on the banking space near term. Holland sees the RBI cutting interest rates in the March quarter.

He expects crude prices to decline further as he feels it is more of a demand issue than a supply problem. Holland feels the best way to play the oil story would be to bet on companies building oil & gas pipelines across the country.

He expects a global sell-off in January on economic growth concerns. Should global markets crack, India will not be immune to it, cautions Holland. But he says any steep decline will be a good buying opportunity.

01:00pm Market Check

The market turned choppy after Reserve Bank of India (RBI) kept rates unchanged in its fifth bimonthly monetary policy review. The Nifty and the Bank Nifty recovered from the day's low after RBI's dovish stance spurred hope of a rate cut as early as March next year. The BSE Midcap outperformed, up half a percent.

The Sensex declined 59.77 points to 28499.85 and the Nifty fell 17.75 points to 8538.15. About 1236 shares have advanced, 1403 shares declined, and 116 shares are unchanged on the Bombay Stock Exchange.

The Reserve Bank of India cut the March-end CPI inflation target to 6 percent from 8 percent earlier. The governor Raghuram Rajan says change in monetary policy stance now would be premature, adding RBI may change stance in early 2015 if inflation eases.

The central bank further added that it would want to see pace of disinflationary process set in, before taking a decision and that moderate inflation is a must to sustain healthy growth. The governor says that the government is comfortable with median inflation aim of 4 percent.

Bajaj Auto fell over 1 percent after reporting weak November sales numbers that came in lower by 0.5 percent primarily owing to the slump in domestic sales which are down 19 percnet year-on-year. Mahindra & Mahindra slipped nearly 3 percent while Tata Motors, Maruti Suzuki and Hero Motocorp lost 0.7-1.3 percent.

Infosys declined 1.7 percent as the stock price adjusted for bonus issue in the ratio of one share for every one share held. Housing finance company HDFC slipped over a percent.

However, shares of L&T, ICICI Bank, Reliance Industries, Bharti Airtel, ONGC, Sesa Sterlite, Sun Pharma, Hindalco and Tata Steel gained 0.5-1.5 percent. More information please visit this site www.bigprofitbuzz.com

Nifty below 8550, RBI meet eyed; banks, auto under pressure

10:30am DLF under pressure

Shares of DLF fell more than a percent intraday Tuesday after Bank of America Merrill Lynch reinstated an underperform rating on the stock with a price target of Rs 130.

The prime reasons, according to the brokerage, are slow housing market recovery in Gurgaon; negative cash-flow; elevated debt levels; and legal issues.

BoAML does not expect a housing volume recovery in DLF’s core market, Gurgaon in the near term. "Gurgaon’s unsold inventory has risen exponentially over the past three quarters, indicating a significant slowdown in sales. We see weakness for three to four more quarters for DLF before a possible recovery becomes visible," the brokerage said.

The brokerage expects DLF to remain cash-flow negative through FY17E – lack of launches and higher costs (operating, finance and construction) should lead to cash deficiency.

It also sees DLF’s debt levels to remain elevated in FY16E as well despite asset sales as proceeds from the sale will be used to offset the lack of cash.

According to the brokerage, a verdict against DLF in any of the ongoing legal issues (CCI, SEBI) can potentially dampen its brand equity and financial performance.

Upside risks include quicker market recovery, leading to better-than-expected launches/pre-sales, and pick-up in commercial leasing.

10:00am Market Check

Equity benchmarks continued to see marginal selling pressure as rate sensitives like banks and autos declined ahead of RBI credit policy.

The 30-share BSE Sensex slipped 67.61 points to 28492.01 and the 50-share NSE Nifty fell 22.75 points to 8533.15. The broader markets remained flat.

India's biggest lenders State Bank of India, ICICI Bank, HDFC Bank and Axis Bank, and housing finance company HDFC declined 0.5-0.9 percent. Auto stocks like Tata Motors, Mahindra & Mahindra, Bajaj Auto, Hero Motocorp and Maruti Suzuki slipped 0.5-1 percent post November sales data.

Infosys lost 1.5 percent after adjusted for bonus issue in the ratio of one share for every one share held.

However, shares of Reliance Industries, ONGC, Larsen & Toubro and BHEL bounced back, up 0.5-1 percent. Power stocks like Tata Power and NTPC too rebounded with a percent gain.

Cairn India bounced back with more than a percent gain after Brent crude recouped some losses to trade at USD 72 a barrel from five-year low of around USD 68-69 a barrel. However, BPCL and Asian Paints fell 2-3 percent. More information please visit this site www.bigprofitbuzz.com