Nifty snaps 4-day winning streak...shuts below 8800

The Indian equity market snapped a four-day winning streak on Tuesday led by profit booking, coupled with negative global cues and caution ahead of major global financial events. Today’s major decline was led by the realty, power, capital goods, FMCG, auto, IT and telecom stocks, while metal and oil & gas among the gainer.

Among the Nifty stocks, Yes Bank, Bharti Infratel, ONGC, Eicher Motors, Hindalco, Tata Steel and Cipla were the gainers whereas Hero MotoCorp, Adani Ports, Bajaj Auto, IndusInd Bank, ACC and Tata Power were among the losers today.

Finally, the BSE Sensex ended with a loss of 111 points at 28,523. The BSE Sensex opened at 28,691 touched an intra-day high of 28,699 and low of 28,481.

The NSE Nifty closed with a loss of 33 points at 8,776. The NSE Nifty opened at 8,816 hitting a high of 8,816.45 and low of 8,759.

The India VIX (Volatility) index was down 1.07% at 14.7800. Out of 1,501 stocks traded on the NSE, 900 declined and 526 advanced today. The BSE Midcap and Smallcap indices closed lower.

The rupee was trading down seven paise at 67.03 per US dollar.

On the global front, Asian stocks edged lower on Tuesday. Japan’s Nikkei closed marginally down. China’s Shanghai Composite and Hong Kong’s Hang Seng ended marginally lower.

European stocks retreated, after rising the most in two weeks as investors awaited the Federal Reserve’s Wednesday meeting. The FTSE 100 was marginally up 0.52%. The CAC 40 and DAX gained 0.3% each.

Castrol India rallied 8.8% after its promoter British Petroleum sold 8.5% stake in Castrol India. Post sale, British energy giant now holds 51% in its Indian lubricants subsidiary.

Jubilant FoodWorks tumbled 6%. The company said its CEO and whole-time director Ajay Kaul will resign to pursue opportunities outside the company.

Cadila Healthcare advanced 1.5%. Zydus Cadila and Takeda Pharmaceutical Company announced a partnership to tackle chikungunya, an emerging infectious disease.

IFCI zoomed 4%. The company will sell its entire stake in Assets Care and Reconstruction Enterprise Limited (ACRE) to Axis Bank for Rs 22.72 crore.

GTL Infrastructure jumped 14.8% to Rs.2.86 on the BSE. The company informed BSE that the company is a part of the Global Group (being Global Holding Corporation Pvt. Ltd, GTL Limited, the Company and Chennai Network Infrastructure Limited (CNIL) and together with its affiliate company, CNIL, owns and operates an independent telecom tower network, with over 27,000 towers and over 45,000 tenancies pan India. The company has invested Rs.1,800 crores in CNIL.

Hotel Leela Venture zoomed 1.4%. The company gets shareholder approval for sale/transfer of The Leela Palace, Chennai and/or The Leela Palace, New Delhi.

K P R Mill Ltd gained 1%. The Board of Directors meeting of the Company is scheduled to be held on October 5, 2016, inter alia, to consider the subdivision of Equity Shares of the Company of face value of Rs. 10 each. The company to amendment to Capital Clause of Memorandum of Association for the above.

Mangalam Cement Ltd rose 2.3% after the company has commenced Commercial Production of the New Cement Grinding Unit with a capacity of 0.75 Million Tons Per Annum (MTPA) at Aligarh, Uttar Pradesh. The overall capacity is now enhanced from 3.25 MTPA to 4.00 MTPA.

Den Network soared 3.2% to Rs.81. The company said that its board has approved the allotment of 1.58 crore shares on preferential basis to affiliates of the Goldman Sachs Group that form part of the persons belonging to the non-promoter category.

Bharat Rasayan climbed 20% to Rs.1,782 after the company said it reported a net profit of Rs.14.52 crore in June quarter, up 76.45% from Rs.8.23 crore a year ago. Net sales rose 46% to Rs.166.25 crore.

Mindteck hit 20% to Rs.94.10 after the compamy announced that it has implemented a smart parking pilot project at Connaught Place, C Block, New Delhi, for New Delhi Municipal Corporation (NDMC).

A total of 50 stocks registered a fresh 52-week high in trades today, whereas 18 stocks touched a new 52-week low on the NSE.

Sensex, Nifty under pressure; ONGC, Maruti, Dr Reddy's up 1-2%

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.

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. 

Sensex, Nifty open flat; Jubilant Food down 7%, BHEL gainer

  The Sensex is down 33.05 points or 0.1 percent at 28601.45. The Nifty is down 9.10 points or 0.1 percent 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.