Markets end lower on caution ahead of Yellen speech

Tata Motors was the top gainer on better-than-expected June quarter revenues

Benchmark indices ended flat on caution ahead of the US Federal Reserve's stance on key policy rates at a meeting scheduled later today. Further, profit booking by institutional investors also dampened sentiment.

US Federal Reserve Chair Janet Yellen is scheduled to speak at the Kansas City Fed's annual Monetary Policy Symposium in Jackson Hole, Wyoming.

The S&P BSE Sensex ended down 54 points at 27,782 and the Nifty50 settled 20 points lower at 8,573. In the broader markets the BSE Midcap and Smallcap indices ended flat with mixed bias. Market breadth ended weak with 1552 losers and 1089 gainers on the BSE.

"Market slipped into negative territory in new September expiry. Profit booking seen across the sector like Tech, Realty, Pharma while buying seen in  NBFC companies on cautious stance ahead of US Fedchair meeting today. Mid & Small cap indices also declined. Tata Motors announced quarterly result which was in line with expectation, margin declined due to forex loss (GBP depreciation post BRexit event). Nifty will remain in the range of 8550-8650," said Yogesh Mehta, AVP-Equity Advisory-Motilal Oswal Securities.

Meanwhile, the Reserve Bank of India (RBI) on Thursday announced a comprehensive set of measures to change India’s lacklustre bond market and provide a push to the currency market as well.

Foreign portfolio investors sold shares worth a net Rs 372 crore while domestic institutions were net sellers to the tune of Rs 357 crore on Thursday, as per provisional data released by the stock exchanges.

The India Meteorological Department (IMD) in its monsoon update issued yesterday, said that for the country as a whole, cumulative rainfall during this year's monsoon so far (till 24 August 2016) was 2% below the long period average (LPA).

Gains in Tata Motors and index heavyweight Reliance Industries helped offset most of the intra-day losses.

Tata Motors gained 2% on better-than-expected revenues. The auto major reported 9% growth in consolidated net income and JLR revenue for the June 2016 quarter. However, consolidated net profit for the quarter was down 57% at Rs 2,236 crore. Tata Motors DVR gained over 3%.

Reliance Industries gained 1.5%. Film studio and entertainment company Eros International announced landmark deal between its digital streaming/over-the-top (OTT) platform Eros Now and Reliance Jio, a provider of mobile telephony, broadband services, and digital services.

Infosys ended down 1.5%. IT major Infosys said that the company will give a clearer picture of the guidance post the September quarter. At an analyst meet today, the management also said that its performance in second quarter will be better than the first quarter. Infosys also acknowledged that the cancellation of the RBS contract was an instance of cautiousness among key financial clients due to Brexit.

Wipro hit a two-year low to end nearly 3% lower. According to analysts, portfolio issues and lack of growth among top clients has been leading to subpar organic growth for Wipro.

Adani Ports extended losses to end 1.6% lower amid profit taking after recent gains post robust June quarter earnings. The stock had gained over 20% in the ahead of its June quarter earnings.

Among others, shares of credit rating agencies – ICRA, CRISIL and Credit Analysis and Research (CARE) – rallied by up to 4% after the Reserve Bank of India (RBI) on Thursday announced a package of measures for the development of fixed income and currency markets.

Textile company Trident surged 12% on the back of heavy volumes amid a media report which suggests that Target Group plans to shift Welspun contract to Trident.

Welspun extended losses to end 8.6% lower. The stock came under pressure on reports that its US-based client Bed Bath & Beyond has ordered an external audit of the textile products supplied by the Indian firm.

JB Chemicals & Pharmaceuticals surged 8% after the company reported a strong 26% year on year (YoY) jump in consolidated net profit at Rs 49.85 crore for the quarter ended June 30, 2016 (Q1FY17). The company had profit of Rs 39.63 crore in the year ago quarter.