Closing bell: Sensex sheds 239 pts, Nifty holds 10,000; RIL at record close

3:30 pm Market Closing: Equity benchmarks fell sharply on Thursday due to continued selling pressure in banking & financials on profit booking.

The 30-share BSE Sensex was down 238.86 points at 32,237.88 and the 50-share NSE Nifty dropped 67.85 points to 10,013.65.

About two shares declined for every share rising on the BSE.

Reliance Industries ended at fresh record closing high of Rs 1,655, up 1.6 percent after hitting an intraday record high of Rs 1,665.

3:20 pm Monsoon Update: With the 2017 south west monsoon season half way through, it is a good time to take stock of the situation. As seen in the table below, all India rainfall is 2 percent higher than the long period average (Year 1951-2000). However, as has been the case in recent years, the spatial distribution has been anything but normal, BNP Paribas Mutual Fund.

All India South-West Monsoon Rainfall in mm (1st June to 31st July 2017)

3:10 pm Market Check: Benchmark indices extended their losses from the morning session, with the Sensex declining over 200 points in the final hours of trade.

The Sensex was down 239.69 points at 32237.05, while the Nifty was down 68.55 points at 10012.95. The market breadth was negative as 782 shares advanced against a decline of 1764 shares, while 134 shares are unchanged.

Bharti Airtel, IOC, Reliance and ACC gained the most on both indices, while Lupin and Coal India lost the most.

2:45 pm Management Speak: In an in interview to CNBC-TV18, Nitin Rakesh, CEO & Executive Director of MphasiS spoke about the results and his outlook for the company.

HP segment revenues have been stable in FY17. FY18 should be a growth year of HP, he said.

Our pipeline and value chain is strong, he added.

2:30 pm Market Check: Sluggishness in the market continued to hold on, with the Nifty testing 10,000 levels.

The Sensex was down 168.97 points or 0.52% at 32307.77, while the Nifty was down 44.85 points at 10036.65. The market breadth was negative as 906 shares advanced against a decline of 1589 shares, while 150 shares were unchanged.

European markets were slightly lower on Thursday morning, as investors monitored further earnings reports and reacted to the Dow Jones industrial average breaking the 22,000 barrier for the first time in its 121-year history.

The pan-European Stoxx 600 edged down by 0.17 percent shortly after the opening bell with almost all sectors and major bourses in negative territory.

2:00 pm Earnings: IOC share price rallied more than 6 percent after revenue in Q1 increased to Rs 1.28 lakh crore from Rs 1.22 crore on sequential basis.

Numbers barring GRM beat analysts’ expectations. Profit stood at Rs 4,548 crore against a CNBC-TV18 poll of Rs 3,013 crore.

Operating profit at Rs 7,999 crore (up 81.4 percent QoQ) and margin at 7.6 percent (4.4 percent QoQ) against expectations of Rs 6,213 crore and 6.5 percent, respectively.

Gross refining margin came in at USD 4.32 a barrel against estimates of USD 4.60 a barrel.

1:36 pm Market Check: Equity benchmarks remained under pressure in afternoon trade, with the Sensex down 160.23 points at 32,316.51.

The 50-share NSE Nifty continued to struggles below 10,050 level, down 44.75 points at 10,036.75 on weak market breadth.

About 1,545 shares declined against 918 advancing shares on the BSE.

IOC rallied 4 percent ahead of Q1 earnings due later today.

1:26 pm Results: Colgate Palmolive’s first quarter net profit grew by 8.5 percent to Rs 136.4 crore from Rs 125.7 crore on strong operational performance.

Revenue declined 2.7 percent year-on-year to Rs 1,118 crore, with volume degrowth of 5 percent (against estimates of 6-8 percent degrowth).

Operating profit during the quarter increased 5 percent to Rs 222 crore and margin expanded by 190 basis points to 22.7 percent.

Colgate has market share of 54.3 percent in toothpaste segment.

1:15 pm Order win: Kalpataru Power Transmission gained more than 2 percent after winning order worth Rs 1,081 crore.

1:10 pm Earnings: JSW Holdings’ first quarter profit grew sharply to Rs 40.5 crore from Rs 6.1 crore in year-ago quarter.

Revenue increased over nine-fold to Rs 51 crore from Rs 9 crore YoY.

The stock price rallied 11 percent after earnings.

12:59 pm IPO: The initial public offering of Cochin Shipyard has received overwhelming response from investors today, the last day for subscription.

The public issue has oversubscribed 10.91 times, with receiving bids for 37.08 crore equity shares against IPO size of 3.39 crore shares, as per data available on the exchange.

12:40 pm Europe opening: European markets opened slightly lower, as investors monitored further earnings reports and reacted to the Dow Jones industrial average breaking the 22,000 barrier for the first time in its 121-year history.

The pan-European Stoxx 600 edged down by 0.19 percent shortly after the opening bell with most sectors and major bourses in negative territory.

12:33 pm Record high: Reliance Industries hit fresh intraday record high of Rs 1,648.90 on the NSE, up more than 1 percent.

12:20 pm Earnings: Diesel and natural gas engines manufacturer Cummins India said its standalone net profit grew by 22.6 percent to Rs 222.2 crore in the quarter ended June 2017 compared with Rs 181.2 crore in year-ago quarter.

The profitability was driven by one-time gain of Rs 56.1 crore on sale of assets.

Revenue during the quarter grew by 5.3 percent to Rs 1,419.3 crore compared with Rs 1,348 crore in corresponding quarter of last fiscal.

Operating profit fell 5.4 percent year-on-year to Rs 195.2 crore and margin contracted by 80 basis points to 14.6 percent in the quarter ended June 2017.

12:11 pm Market Check: Equity benchmarks continued to reel under selling pressure, though the losses trimmed in afternoon.

The 30-share BSE Sensex was down 124.83 points at 32,351.91 and the 50-share NSE Nifty fell 33.55 points to 10,047.95.

The broader markets outperformed benchmarks despite weak breadth, with the BSE Midcap up 0.2 percent. About 1,450 shares declined against 871 advancing shares on the BSE.

The Nifty Bank continued to struggle below 25,000 level, down 1 percent at 24,815.75.

11:59 am Earnings Poll: Jewellery and watch maker Titan Company’s first quarter profit is seen rising 23 percent year-on-year to Rs 240 crore on low base in year-ago quarter. Q1FY17 was hit by exception loss of Rs 95 crore.

Revenue from operations may grow 21 percent to Rs 3,402 crore in Q1FY18 compared with Rs 2,822 crore in same quarter last fiscal due to strong buying during Akshaya Tritiya and gold exchange scheme (GHS).

Operating profit may increase 18 percent year-on-year to Rs 345 crore; and margin may be flat due to aggressive discounting in jewellery business.

11:42 am IPO Update: The initial public offering of Cochin Shipyard has received overwhelming response from investors on Thursday, the last day for subscription.

The public issue has oversubscribed 4.46 times, with receiving bids for 15.14 crore equity shares against IPO size of 3.39 crore shares, as per data available on the exchange.

State-run Cochin Shipyard targets to raise up to Rs 1,468 crore through its share sale offer. The price band for public issue of 3.3984 crore equity shares is fixed at Rs 424-432 per share.

11:25 am FII view: Here is Morgan Stanley’s view on the Reserve Bank of India’s policy announcement.

“We maintain our view that the central bank is unlikely to take up any further easing measures beyond this rate cut, given that both we and the central bank project inflation to rise from here. Indeed, post this rate cut, we believe that the RBI’s focus will shift back towards the resolution process of non-performing loans in the banking system, and also addressing the transmission mechanism and its approach to and enhancing its toolkit in managing liquidity conditions.”

11:05 am Market Check: Equity benchmark indices were off the day’s lows and saw a marginal recovery during the previous hour, with the Nifty looking to test 10,000-mark.

The Sensex was down 127.74 points at 32349.00, while the Nifty traded lower by 38.70 points at 10042.80.The market breadth was negative as 753 shares advanced against a decline of 1,376 shares, while 113 shares were unchanged.

Banking stocks continued to sulk for the second consecutive session, with PSU banks and Nifty Bank down by 1.7 and 0.8 percent, respectively.

Coal India, BHEL and Hindalco lost the most on both indices, while Lupin, TCS, Aurobindo Pharma and IOC were the top gainers.

10:58 am Interview: Bata India has put its best foot forward this quarter after posting a decent set of numbers.

Everything went right in the last quarter for the company. Same-store-sales-growth (SSSG) improved to 10 percent in Q1 versus 3 percent in FY17, Rajeev Gopalakrishnan, Managing Director and Chief Executive Officer said.

Company is focused on the premiumisation in the top 30 stores. Bata has opened close to 40 stores in the last quarter and it is now targeting 120 stores in FY18.

Wholesale saw some glitch in terms of goods and services tax (GST) but retail grew 15 percent in the last quarter.

Higher SSSG and premium products aided margins, he added.

End of season sale was preponed to June, so the company witnessed a dull period in July, the footfalls was down by 15-20 percent.

“In August-September, we will come back very strongly because we have taken all the right steps to get the best of the best stock availability in the next six months’ time. We are very much upbeat that in the next six months, we will be doing a better show,” said Gopalakrishnan.

10:45 am Earnings Estimates: Oil retailer Indian Oil Corporation (IOC) is expected to report standalone profit at Rs 3,013 crore for April-June quarter, down 19 percent compared with Rs 3,720 crore in previous quarter.

Revenue during the quarter is seen falling at Rs 94,563 crore from Rs 1.22 lakh crore in previous quarter, according to average of estimates of analysts polled by CNBC-TV18.

Operating profit is seen rising sharply to Rs 6,213 crore from Rs 4,408 crore and margin may expand to 6.5 percent from 4.4 percent on sequential basis.

Analysts expect gross refining margin of USD 4.6 a barrel (including inventory loss) for IOC in Q1FY18 against USD 8.9 a barrel in Q4FY17 (included inventory gain of USD 2/bbl)/

They expect refinery throughput at 17.9mmt for Q1FY18 against 16.1mmt in Q1FY17 and 17.1mmt in Q4FY17, higher due to contribution from the Paradip refinery.

Key issues to watch for would be utilisation of Paradip refinery, gross refining margin, capex plans and forex/inventory changes.

10:37 am Services PMI: IHS Markit survey said business conditions in India’s service economy deteriorated markedly in July following the implementation of the goods and services tax (GST).

Output and new work declined for the first time since January, with rates of reduction the quickest since September 2013. This had an adverse effect on the labour market, with employment contracting over the month. That said, firms expressed a lack of knowledge regarding the GST and expect more clarity in the near-term to lead to activity growth. Confidence for the year ahead was, in fact, the strongest since August 2016.

On the price front, input cost inflation eased from June, while charges were raised to the greatest extent since early-2013. The seasonally adjusted Nikkei India Services PMI Business Activity Index plunged from June’s eight-month high of 53.1 to 45.9 in July, its lowest level since September 2013. The headline figure signalled the first downturn in output since the start of the year, and one that was marked.

With manufacturing production also sliding markedly, private sector output dipped to the greatest extent since March 2009. The seasonally adjusted Nikkei India Composite PMI Output Index fell sharply from 52.7 in June to 46.0.

10:26 am Market Outlook: Pramod Gubbi sees a correction around the corner and remains cautious. Further, the GST-led disruption is also continuing longer than expected.

As the Indian market scales to new highs, skeptics also see a correction/consolidation around the corner. Ambit Capital, in this scenario, remains cautious, given the fundamental view on the valuations.

“As prices go up, chances of correction are higher…potential of risks are more than ever before,” Pramod Gubbi, Head, Equities, Ambit Capital, told CNBC-TV18.

Having said that, the excess liquidity in the system could result in shallow or phase-based correction, he said. For instance, the first phase of fall could be arrested by available cash in the market. From this point, the market could rise higher. This shall be followed by a second phase, which will see a further dip in the market, he added.

10:10 am Market Check: Benchmark indices fell further in morning, with the Nifty breaking 10,050 level, weighed by banking & financials stocks.

The 30-share BSE Sensex was down 167.35 points at 32,309.39 and the 50-share NSE Nifty fell 47.40 points to 10,034.10.

About 1,181 shares declined against 721 advancing shares on the BSE.

9:58 am Buzzing: Shares of Sical Logistics advanced 5.6 percent intraday on the back of robust Q1 (April-June) numbers.

The company’s consolidated net profit was up 72.30 percent at Rs 11.2 crore versus Rs 6.5 crore, in a same period last year.

Its revenue was up 14.4 percent at Rs 244.7 crore versus Rs 213.9 crore.

The company’s operating profit (EBITDA) increased 41 percent at Rs 44 crore and EBITDA margin rose 340 bps at 18 percent.

The company at its meeting held on August 2, has decided to provide corporate guarantee to the extent of Rs 40 crore to Kamarajar Port on behalf of the company’s subsidiary for execution of the modification project.

9:43 am Inflation Outlook: Sonal Verma of Nomura feels near-term economic outlook is likely to stay benign owing to GST effects. He said, however, this is a transitory phase and expects growth to be back at above 7 percent and inflation above 4 percent over the next 6-12 months.

According to him, the challenge for the RBI is whether to focus on the near-term benign outlook, which maybe getting influenced by disruptions or to focus on the medium-term outlook that will be sustained once these effects fade.

If the RBI chooses to focus on near-term dynamics, then core inflation will continue to moderate and headline CPI inflation is likely to marginally undershoot the RBI’s projection of a little above 4 percent by Q12018, Verma said. Beyond Q1FY18, he expects CPI inflation to overshoot 4 percent.

9:29 am FII View: Abhay Laijawala of Deutsche Bank said equity market valuations continue to scale new highs.

MSCI India’s current valuation at 19.1x forward PE is significantly higher than the historical average of 15.8x. Valuations are not as expensive on price-to-book ratios, he feels.

Dissecting the valuations on PE for earnings-based sectors and price to book for more cyclical sectors shows relatively not-as-discomforting internals, he said.

He feels, industrials, IT services, utilities and healthcare appear relatively inexpensive relative to their trading history. Telecom and consumer staples appear relatively expensive.

Laijawala maintains sectoral preference for cyclical sectors.

9:15 am Market Check: Equity benchmarks extended losses in opening trade Thursday, with the Nifty struggling below 10,100 level, dragged by banks after RBI policy.

The 30-share BSE Sensex was down 40.79 points at 32,435.95 and the 50-share NSE Nifty fell 12.60 points to 10,068.90.

HDFC Bank, Axis Bank, ICICI Bank, Infosys, ONGC, HUL, Kotak Mahindra Bank, IndusInd Bank, M&M and SBI were under pressure.

IOC gained 1.3 percent ahead of earnings later today. HPCL, Sun Pharma, Wipro, TCS, Eicher Motors, Cipla and Aurobindo Pharma were trading higher.

Nifty Bank lost 0.5 percent. UCO Bank, Union Bank of India, Canara Bank, Bank of India and Allahabad Bank lost up to 3 percent.

HEG, ENIL, Godrej Consumer Products, Colgate, Emami, Voltas and Marico fell up to 3 percent.
Bata India was up 3.4 percent after earnings. Sical Logistics and TBZ also gained up to 3 percent.